The e-commerce market will continue to grow in the coming years. This has been revealed by a recent ReportLinker study that expects it to grow by 404.840 million dollars during 2023-2027, accelerating at a compound annual growth rate of 20% during the forecast period. In Spain, this trend will continue during 2023, especially with internationalization, since according to data from the first ‘Business Behavior Report’ produced by there wasone of the providers of fulfillment With the highest growth in the United Kingdom and Europe, 61% of Spanish e-commerce intend to expand internationally this year.
“This year the e-commerce market will continue to grow as it consolidates after years of constant fluctuations. At Huboo we enjoy a privileged position, since our positioning with clients and strategic alliances allow us to identify the most relevant market trends early and thus be able to implement them quickly and efficiently” it states Roy Elizondo, Vice President of Strategic Alliances at Huboo.
This way, Huboo has identified the 4 trends for e-commerce that will mark 2023:
- Meeting the needs of the price-sensitive consumer
Inflation has hit consumers hard who, consequently, have started to cut major expenses and opt for cheaper products. This adjustment in consumer habits has led companies to significantly increase package deals (with which they offer discounts with each complementary product added to the cart) with the aim of encouraging consumers to continue adding products to their basket. In addition, there has been an increase in subscription model offerings, in which customers commit to regularly purchasing products at a discounted price with the goal of building repeat customers to smooth out the ups and downs of sales.
This year, as the economy recovers and inflation subsides, e-commerce companies will need to be more cost sensitive and focus on delivering value for money to their customers. Designing effective promotions will be significantly more important and for SMEs, they will need to use sales packages and subscriptions creatively, actively increasing product sales without devaluing their products or brand while competing with the big ones players From the market.
- Help customers spread the cost of purchases
During the pandemic, the popularity of buy now and pay later (BNPL) plans skyrocketed and Europe is currently leading this trend, with 24% of consumers using this mode of purchase, according to data from Freedom Finance. To increase sales at a time of widespread uncertainty, many e-commerce companies have partnered with BNPL companies to offer flexible payment options and help customers spread the cost of purchases.
As the impact of the cost of living continues to be felt, offering flexible payment terms can be a competitive advantage for many e-commerces, especially for higher cost items. During 2023, BNPLs will become commonplace in the e-commerce space, and successful SMEs will be the ones thinking creatively about how to use these systems to engage customers and encourage them to increase their spend.
- Reduce costs by offering cheap delivery services
In early 2022, more than half of online shoppers considered same-day delivery important. However, these days customer expectations are softening and they don’t consider it as important a factor in their user experience. In response, we’re seeing e-commerce brands trade costly same-day or next-day delivery for cheaper services, thereby lowering the price of products without impacting profit margins. During this year we will see how the brands continue to maintain the option of super fast delivery for customers willing to pay more, but they will not necessarily offer it as standard.
Additionally, many SMEs will begin to lower the price threshold for free delivery, with the goal of retaining existing customers or trying to reduce cart abandonment at the checkout. Lastly, e-commerce brands should pay close attention to their return policy in the coming year, as it has the potential to make or break a sale. It is essential that they simplify the return process while reducing the cost to the customer, for better margins and a better user experience.
- Find ways to enter new markets without friction
The difficult economic climate forces online retailers to look for new opportunities abroad. So much so that according to the first ‘Business Behavior Report’ prepared by Huboo, 61% of Spanish e-commerce intend to expand internationally this year. Fortunately, thanks to technology, there are many sales channels such as Mirakl, which simplify and speed up this process to facilitate entry into new markets.
Expanding internationally for e-commerce companies is not only a sensible approach for SMEs looking to fill the sales gap, but is becoming increasingly viable with the increasing variety of e-commerce technology on offer. During 2023 we will see a significant increase in the number of companies of all sizes moving into new markets.