Ecommerce Trends for 2021
With 2020 throwing us many surprises, there has been a shift in consumer behaviour that forced many businesses to focus on digital and eCommerce strategy. Consumers are now more online than ever and the expectations for that online experience are higher than ever. The good news is there are more tools to help support eCommerce than there ever have been and it is these tools and new ways of working which have pushed eCommerce forward and shaped trends for the future. We share top eCommerce trends we anticipate will be key conversion drivers inthe year ahead.
Shopping via a mobile device has recently soared to 73% of all global purchases. The growth of this statistic is a result of brands featuring, and consumers using, services such as Apple Pay, Google Pay, and PayPal. The services make checking out online faster, and more simple. One of our beauty clients has revealed 68% of revenue is generated via Paypal and Apple Pay. Many consumers now choose not to carry a card around with them, and only ever pay through cards via their digital wallet! This is becoming more commonplace.
Building on this, the likes of payment installments with services such as Klarna is becoming ever more popular. Paypal has also recently enabled the buy now and pay in installments feature too. This allows younger demographics to afford luxury and buy from brands they admire. As a result, over time, we see payment installments bolstering the younger luxury consumer and shifting the narrative around luxury; namely fashion; to be younger.
We have seen this trend in our up and coming whitepaper which is soon to launch. Here we look at the affluent consumer and how luxury and premium brands can prepare themselves for the next generation of consumer.
Paypal has also recently signed on some of the top 5 cryptocurrencies, including Bitcoin & Ethereum. We have no doubt that we’ll be seeing more luxury brands introduce Crypto payments. Another one of our clients is also introducing cryptocurrency to support the transactions of its goods within the platform. We see such innovation continuing; with this being championed by the luxury industry as the luxury consumer is more likely to be ‘au fait’ with Cryptocurrencies. Yachting and property companies have also already looked to Cryptocurrency. Watch this space.
AR Technology: Try before you buy
Try before you buy has a whole new meaning thanks to AR. With the majority of consumers having to shop online due to lockdowns and draconian government policy surrounding the pandemic, high net worth individuals no longer have the same access to trying on products in-store. Brands are now looking to AR (augmented reality) to allow consumers to virtually try on products or makeup via their camera phone. The likes of L’oreal and Chanel have already adopted this technology for their make-up and even some of their sunglasses. Kenzo has also tested this with some of their trainers. It’s only a matter of time before we start seeing more of this throughout the luxury industry.
AR Technology: 3D Walkthroughs
Similarly to consumer products, industries such as real estate and even hospitality are using AR to provide online virtual 3D walkthroughs. This enables prospective buyers and travellers the opportunity to preview the space in an immersive and engaging way whilst providing an understanding of the design & layout of the property.
HNWI tends to be time poor so providing a rich and intuitive experience, whilst even on the go via mobile, will help support this consumer’s experience with your brand. Interactive video-based content is 10 times more likely to increase awareness and therefore see a natural lift in sales and conversions.
Shoppable Live Streaming
Shoppable live streaming has already been making waves in China and the trend is set to make its way to western marketing. And the commercial benefit can be huge! According to iResearch, shoppable live streaming reached heights of approximately $138 billion in 2020. The reason for live streaming’s success is that it is more than just video. It enables a two-way between the viewers as well as the host. There is also an element of excitement as what you are watching is unfiltered and polished. Burberry live-streamed their recent collection via the video gaming platform Twitch- just one of the many platforms available to live stream. The success of live streaming is the precision of planning the stream. There is no room for errors when the video is live, so make sure there have been a few test-runs as best as possible.
Subscription models are going to soar in the eCommerce world next year as there are significant benefits for both the consumer and business.
For the business, regular subscriptions not only contribute to a more stable revenue model through customer retention, but it also helps the business better understand the consumer. One example of customer subscription is through a recurring type of product purchase. Another example is a brand loyalty scheme. These set ups allows for a more segmented and accurate CRM system, and can support marketing to tailor communications. For the consumer, subscriptions provide convenience and ease of consumer journey.
49% of shoppers are signed up to at least one subscription service whether it’s with Netflix, Stitch fix or a wine subscription. You can be really inventive with how your subscription model might work and you don’t have to stick to just one single product. Personalised monthly or seasonal hampers or tasters of latest products creates an intriguing variation for users and keeps them excited they receive their subscription package. Creating a loyalty based subscription program takes it one step further but as you can see the opportunities are endless. We have helped multiple clients get set up with their subscription service so do get in touch if this is something you’re interested in.
Buying through Instagram/ Facebook has never been easier. Check out is smoother and Instagram Shopping will become more and more like Amazon’s one-click buy. Social media will increasingly account for many businesses’ sales online so ensure your channels are tracking is effectively set up to be able to maximise this trend. Facebook is soon to also be rolling out in purchase app – this has been slowly rolling out in the USA and it’s a matter of time before we see this arrive in other countries.
We have devised a bespoke auditing system for Facebook Ads Account which looks into how your brand’s account is set up and how it is being used, to maximise results with the platform. Speak to a consultant if you’re interested in getting your Facebook/ Instagram Ads Account audited for optimum results.