Founder and CEO of Avasamchanging the face of DropShipping, automated step by step.
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We’ve had a few turbulent years in retail, both online and offline. Covid-19, supply chain issues and more have leaders worried about doing business. Unfortunately, this year isn’t off to a much better start. Issues currently affecting retail include the “cost of living crisis“increasing costs of energy bills, strikes and protests around the world and some countries still in recession worldwide.
That’s a lot for retailers on top of their usual challenges, and many are probably wondering what all this could mean for sales in 2023. Fortunately, experts suggest it’s not all doom and gloom, despite the ongoing challenges we all face opposite. There is a lot of big data out there and after reviewing information from previous years and trends from the past few weeks, some big names in the industry have made their predictions. For example the Adobe communications team made some key predictions for retailers during the 2022 holiday season.
From what I’ve observed over the past few months, we can expect certain trends to continue into 2023. Here are a few to watch out for.
Table of Contents
1. Customer convenience is key.
Convenience has been a major trend for retailers since the pandemic, so it’s no surprise that customers still want the easiest ways to fulfill their orders. Here are a few points to remember:
• Online retail isn’t going anywhere. Due to the convenience that e-commerce offers customers, the popularity of online retail is unlikely to decline.
• There is a demand for omnichannel companies. “Buy online, pick up in store” became popular during the pandemic, and many customers want to be able to interact with retailers on their terms – that convenience factor again.
• Mobile commerce is more popular than ever. I believe that a mobile storefront should be a priority for all retailers, if they don’t already have one.
• Returns must be flexible. Customers want to be able to make their exchanges, returns and refunds in the most convenient way possible, so retailers need to think about how best to manage this.
2. Savings are everything.
Again, this is no surprise – with increased household costs this year, retailers must offer the best value and the lowest cost possible. Holiday shopping started earlier in 2022, with Black Friday deals showing in mid-October. Customers were more likely to shop to get the best deals, but given the cost of living crisis, this would likely also spread costs. Free shipping for online orders is also essential as customers don’t like to feel like they are paying extra.
3. Other factors count.
It’s not just about convenience and cost; there are other considerations retailers need to know! For example, sustainability sells. Even though customers want convenience and savings, they still want to know what their impact on the environment.
Another factor is that there is still a demand for high quality and luxury items. UK online marketplace OnBuy reported a increase in spending on big-ticket items in October, with Apple, PlayStation and Samsung all doing well. Luxury brands tend to withstood the economic downturn (subscription required), and since products from these brands are likely to be gifted, it’s probably not surprising either.
How can retailers secure sales in January and beyond?
1. Adopt new technology quickly. It’s not just about Amazon, eBay and an online store anymore – customers no longer want to leave social media to place their orders! Meta announced this in November new ways to find and buy businesses through WhatsAppwhile YouTube is currently testing in-app shopping in shorts. Companies that benefit from new functionality will be the first to benefit from it and generate additional sales.
2. Increase sales through dropshipping. With many retailers getting caught by improved delivery times from suppliers and need additional inventory, dropshipping can be a realistic way to help manage this without incurring dramatic discounts or losses. Those retailers who don’t have inventory or simply want to expand their offerings without investing cash can take advantage of additional sales in these arrangements. Suppliers and larger retailers who need to clear their inventory can also increase their order intake by offering dropshipping arrangements, either through dropshipping marketplaces or by implementing automation that allows other retailers to access their inventory.
3. Automate as much as possible. Most retailers will already have done this – order and inventory management systems are essential for businesses. Marketing automation should also be in place, as well as customer support. With so many systems available, getting the right systems for your brand can help you manage your business much more effectively.
Final thoughts
While the peak season of 2022 has been a rough one for many retailers, there are some positive predictions for the future – and I think those who have planned ahead, or who can quickly integrate new strategies and automation into their business, are likely to survive the downturn. Ecommerce companies must continue to look for ways to add additional inventory, add more ways to sell, and streamline as much of their operations as possible.
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