With more than $5 trillion in sales expected by 2023, e-commerce has become a huge part of the global economy. This industry is a constantly evolving one. As it continues to grow, so too will the way companies sell their products. In 2023, the industry will look quite different from how it does today.
So, what will the e-commerce industry look like in 2023, and what trends will we see in this market?
Mobile E-Commerce Will Continue to Rise
By 2023, it is expected that the number of mobile phone users will reach 7.3 billion. Out of them, at least 6 billion people will own a smartphone. So, it is evident that the mobile e-commerce industry in 2023 will continue to rise.
As of today, it’s estimated that over half of all e-commerce transactions are made on mobile devices. This trend is unlikely to change anytime soon, as consumers are increasingly using their phones for everything from shopping to banking.
The continued rise of mobile e-commerce will be driven by three factors:
- The growth of smartphones and tablets
- The increasing comfort of online shoppers with making purchases via smartphone or tablet
- The continued rise in popularity of mobile payments (such as Apple Pay, Samsung Pay, etc.)
Since mobile devices are smaller than desktop computers, they’re easier to carry around and more convenient to use while on the go. However, they also have less processing power than desktop computers and, therefore, cannot run as many applications at once—making it difficult to browse a large selection of products or do extensive research before making a purchase decision.
To solve this problem, many companies have started designing their websites and apps specifically for users on mobile devices. This includes customized navigation menus that are easy to navigate using only one hand (such as sliding left or right), as well as shorter forms that don’t require filling out lengthy user profiles or entering credit card information every time you want to check something out online.
E-Commerce Will Be More Dependent on Fulfillment Centers
Fulfillment centers are businesses that specialize in receiving goods from suppliers and distributing them to consumers. Most companies use third-party fulfillment centers because it is cheaper than using their own employees, but there are many other factors that make it an attractive option for e-commerce companies as well.
As e-commerce continues to grow, businesses need to make sure they have the infrastructure in place to handle the demand. This includes having a reliable supply chain, as well as a solid network of distribution centers. Since ensuring these things by themselves will be costly, e-commerce businesses will continue opting for fulfillment centers instead of doing it all themselves.
Supply Chain Issues Will Prevail
As the E-Commerce industry continues to grow, supply chain issues will continue to be a problem for retailers. To solve these problems, companies need to be willing to invest in new technologies and logistics solutions.
The first issue that many retailers face is that they do not have enough space available for their inventory. This can lead them to become overstocked, which can lead to empty shelves or even loss of revenue due to unsold goods.
Another supply chain issue that retailers face is the lack of transparency between different parts of the supply chain. This can cause issues such as late shipments or lost packages.
Data Privacy and Protection Will Gain More Importance
In 2023, there will be a focus on how companies can ensure that they’re protecting their customers’ data while still being able to use it for marketing purposes.
As consumers become increasingly aware of their rights to privacy and protection, they expect businesses to be transparent about how they use their information. This means businesses must be able to prove that they have taken steps to protect their customer’s personal data.
As a result, data security will become even more important than it is now. Businesses need to make sure they are storing information securely, so it remains safe from hackers as well as any other unauthorized access.
Omnichannel selling is a growing trend in the industry. The idea is that retailers can sell to customers using any channel, be it online, at a store, or even through social media. This allows them to reach a wider audience and sell products from their website or physical store that might not have been available online.
The main benefit of omnichannel selling is that it allows customers who are already familiar with one channel (like Amazon) to buy products from companies they’ve never heard of before (like Birchbox). This helps retailers reach new customers and build brand loyalty, but it also helps them retain existing customers by providing better service.
In 2023 we can expect to see a continued push towards convenience and instant gratification as well as an increase in digital shopping experiences. We can also expect e-commerce businesses to employ new technologies like virtual reality or augmented reality to create more immersive shopping experiences for their customers.