Introduction
Welcome to the final instalment of our guide to Commerce Trends in 2023.
For the last month, we have been dissecting Shopify’s 2023 trends report – and extracting stats, tips, and actionable insights that you can put to use in your own business.
So far we have already covered the topics of Money, Marketing, Supply Chain, and Retail.
This week, we’re asking what successful Ecommerce looks like in 2023 and beyond... And can you guess what the magic word is, when it comes to successful ecommerce in 2023?
Social.
So without further ado, let’s take a look.
Top Three Takeaways
The report sums up the impact on Ecommerce in three main takeaways that outline the state of the industry in 2023. Here’s what they say:
“Online shopping growth steadies: The dust has settled on the exploding ecommerce market, but brands now find themselves up against global competitors.
“Social media is taking over commerce: Brands are leaning heavily on social media to engage, convert, and retain customers.
“Digital advancements revolutionise social media: Innovations that make the metaverse possible could give early adopters an edge over the competition.”
Commerce Trends 2023 – p.43
We are going to unpack each of those statements now, but here’s the message in a nutshell: Competition is high, everything is social, and embracing new tech is the way to get ahead.
First of all, let’s have a look at that all-important social dimension to ecommerce.
It’s Time to Get Social
The Commerce Trends report stresses this point:
“Social media is infiltrating every part of retail.”
Just take a look at the projected data on social commerce sales in the next few years.
Commerce Trends 2023 – p.45
As you can see here, the research by Statista suggests that global social commerce sales are set to almost triple between 2022 and 2026. That’s an extraordinary rate of growth – to reach almost $3000 billion in the next few years!
The report states that your brand needs to be engaging with consumers through social channels.
For example, they show how good use of socials is the number one tool that brands are using to drive growth right now.
Commerce Trends 2023 – p.11
28% of brands are using their social media channels to acquire and retain customers, and drive new growth.
In last week’s article we talked about the need to offer customers not just a transaction, but an experience. A connection. And look at this, from the report:
“Innovations across social platforms offer brands and consumers the blended connections they crave.”
It’s also worth noting this one:
27% of brands are using ecommerce marketplaces more.
Now look, we understand. No one wants to go it alone in uncertain times. So there’s a huge temptation to throw in with the big boys, and join one of the megacorp marketplaces. But there is another way.
At Alvio, we believe that by working together on a collaborative commerce model, smaller brands and retailers can take on the world.
We have talked before about how to expand your market reach without relying on marketplaces, and we are confident that through smart teamwork, brands can retain control over their own futures.
That doesn’t mean there won’t be challenges. But for every challenge there’s a strategy.
And when you approach commerce the Alvio way, you’re playing for keeps… you get to build your own brand – not someone else’s.
The Challenge: Make Your Voice Heard
In many ways, it is harder than ever now to get ahead in ecommerce. Particularly as we watch the rapid growth and rise of marketplace monopolies.
Here’s how Shopify explains the challenge we currently face:
“A healthy ecommerce market attracts stiff competition. Marketplace giants have dominated on convenience, speed, and low prices, while many independent digital retailers struggle to stand out in a saturated market. Cart abandonment rates are high, and consumer loyalty is harder to earn.”
Commerce Trends 2023 – p.44
However, the key word above is “loyalty.” That’s the way you take back your market share from these giants – by building meaningful relationships with consumers.
Give them the human touch, that the big corporations just can’t replicate.
But how to reach those would-be customers?
As the commerce landscape inevitably grows more social, you might be wondering how to make your voice heard… when you’re up against giant corporations with entire social media teams catering to thousands – or millions – of built-in followers.
Well, if you know anything about Alvio, then you know exactly what we’re going to suggest…
That’s right: we need to collaborate.
The Solution: Collaborative Commerce
Alvio provides countless ways for smaller brands to help each other get ahead. Through collaboration, and innovation, we help digital retailers to stand out in the market – and in doing so, we’re building a model that can replace the reliance on marketplace giants.
On an Alvio model you can sell another retailer’s products in your store… or have your products appear in their store.
Through a smart dropshipping model, we allow you to reduce your product mileage costs too. Our collaborators typically see around 16% reductions on fuel miles… and the days of overstocked or understocked warehouses are over.
We don’t just reduce your overhead costs though. What Alvio does goes deeper than that –
We want to help you turn your competitors into collaborators.
We strongly believe that small brands can and should work together, to take their business back from the marketplace corporations. So we made a model that lets you find and collaborate with other brands and retailers in your sector. Team up. Fight side-by-side.
The Commerce Trends report also hints towards a new way of doing ecommerce.
“Although social advertising is a commerce trend that’s here to stay, leading brands are also using digital platforms to interact with consumers in ways that transcend advertising.”
Commerce Trends 2023 – p.45
That’s exactly what we want to build – a model that transcends advertising.
It won’t matter what eye-watering ad spend the corporations want to throw at their businesses, if we’re all working together to build something better.
And a big part of that depends on innovation.
We just need to get there first.
Get Ready for the Metaverse
We have seen some incredible tech shake-ups in recent years. As we already talked about here, social media has already changed the way commerce works forever. More recently we are seeing the rise of AI tools, such as language models and even online store shopping assistants (which is something we’ll get to in a future article…).
But the next big one, a lot of people believe, is going to be the metaverse.
Millions upon millions of people already enjoy social experiences in virtual worlds. Whether that’s gaming, shopping, chat, learning skills, or even collaborating on art or music projects in virtual spaces.
Right now though, there are more different versions of these virtual worlds than we could name.
However, some of the biggest players are setting their sites on the creation of virtual hub worlds that can incorporate countless other virtual experiences within them. A metaverse of virtual worlds.
Yes, it’s a big deal.
And can you imagine what it’s going to mean for the ecommerce landscape?
Commerce Trends 2023 – p.46
Shopify’s study found that “75% of global business decision makers believe interacting with customers in the metaverse will become commonplace.”
Meanwhile, the best estimates now suggest that by 2030, metaverse commerce is going to reach revenues in the region of $680 billion.
Here’s what the Commerce Trends report had to say about it:
“Social media transformed how brands interact with consumers. Now web3 is bringing these interactions into a virtual environment, often called “the metaverse.” Seamless connection will be a hallmark of these virtual spaces, just as it has become a key feature of modern commerce. And a connected brand experience across channels will be even more important to the future of commerce than in recent years, according to 84% of the businesses we surveyed.”
Commerce Trends 2023 – p.46
When technology leaps ahead like this, it tends to have a filter effect.
A lot of companies aren’t ready for the future… and they get left behind. So you want to be in the other group – be one of the early adopters, the future-minded brands who strike first ground in the new world.
And we’ve got the tools to get you there.
Let’s talk about what we’re building with Prove Anything – a web3 authentication system that tracks the entire product lifecycle. From point of purchase and beyond, you’ve never had insights like this before.
But more than that, on an Alvio + Prove Anything model, your products become multidimensional keys that can unlock doors in the metaverse too.
We have already talked about the potential applications of this tech. It goes way beyond proof of ownership…
For example, say you buy a T-shirt from a band, and it rewards you with a blockchain pass that allows access to bonus tracks, or even VIP concert tickets.
But let’s take it up a dimension: Imagine a loyalty programme where a consumer purchases your product, then they can use it to access bonus rewards in virtual worlds even years later.
The exciting thing is, the metaverse is still being built – we’re in that space that tech gurus are calling the “art of the possible.”
The Shopify report points to this endless potential too:
“...the directions commerce takes on these platforms are still in construction mode, which means opportunity for brands that want to lead in the next generation of social commerce.”
Commerce Trends 2023 – p.47
So there you have it. Do you want to lead? We do, so let’s talk.
Together, Alvio and Prove Anything are leading the way in delivering web3 connectivity to Shopify.
So talk to us today – We want you to be part of that future with us.
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And that’s a wrap!
When Shopify released their Commerce Trends 2023 report, it was a gift to the small businesses and brands who wanted to get ahead in these changing times.
Over the past month, we have now analysed the entire document – breaking it down into tips, stats, and step-by-step guides for getting the jump on 2023… and future-proofing your business.
We also showed you how an Alvio collaborative commerce model deftly answers many of the challenges raised by the report, on the topics of Money, Marketing, Supply Chain, Retail, and now Ecommerce too.
Hopefully you found this series helpful!
We would love to hear from you, with any comments, queries, or ideas you want to raise about these articles. You can always reach us on LinkedIn, or by sending us a message through our website.
What next, now that we’ve finished analysing the Commerce Trends report? Well we have plenty more deep discussions and insider industry tips we want to share with you – so to make sure you keep receiving those straight into your inbox, you can subscribe here.
