According to Statista, online retail sales are expected to reach $6.51 trillion in 2023 (1), and the percentage of retail sales from online purchases is expected to hit 20.8 percent, according to Shopify. (2) There's no question that online shopping will continue to be huge this year, and here are some trends that will push it further.
1. Cross-Border Shopping
U.S. consumers are increasingly shopping with retailers located in other countries, and that trend is expected to continue in 2023. Reasons include finding better deals and finding products that aren't available in the U.S. One of the great powers of the web is the ability to access information and products from around the globe. Post-pandemic, there appears to be a rising trend in online shopping.
"With pandemic pressures fundamentally altering the form of supply and logistics chains, consumers’ willingness to think outside their own borders has naturally broadened," says Doug Bonderud at Salsify, further noting that, "In 2023, this trend will continue as consumer expectations expand. Now familiar with a world where they can order anything on-demand, customers don’t want to be deterred by geographic restrictions." (3)
2. Video Shopping
Online video-based shopping has continued to grow in popularity, thanks to short-form video platforms like Instagram and TikTok, not to mention YouTube and other social media channels. This is likely to be a continuing trend throughout the coming year.
"As videos gain prevalence and dominance as a form of media consumed by the masses, video shopping will likewise bring about changes in the way that people browse and shop online," says Amy Danise at Forbes. (4) "Simply put, video shopping involves the use of video content to promote one’s products or services. The roles of videos in online shopping are multifarious, spanning different customer touchpoints in the purchase journey."
She goes on to cite 360-degree product videos and live streams as two formats in particular that are likely to drive shoppers to make purchase decisions.
3. Buy Now Pay Later
We will probably see more payment options emerge this year, as well as more people adopting a variety of different options. Buy Now Pay Later (BNPL) is expected to gain more traction in 2023 as more shoppers look to deal with rising costs by financing purchases with multiple payments over time. Many sellers even offer this option without interest, making it an extremely attractive option for a consumer who wants to save more cash in the short term.
4. Cryptocurrencies
Cryptocurrencies will also likely continue to play a larger role in online shopping with crypto-BNPL combinations already starting to become more common. As Payments Journal notes, even Visa has successful crypto card programs, and consumers can use crypto-linked BNPL cards to break up payments on items. (5) Many online retailers already accept Bitcoin and other cryptocurrencies as payment.
5. Second-Hand E-commerce
Second-hand e-commerce (or "re-commerce") will probably become increasingly popular. Consumers feeling the pinch from inflation are looking for deals, and this is an area where buying used articles can make a big difference. Used and refurbished items are likely to account for a significant portion of online shopping in the coming year. With services like Poshmark, ThredUp and Swap.com in addition to major players like eBay and Amazon, consumers have numerous choices to buy clothing, apparel, and other goods at lower prices.
The pandemic and inflation have been tough on consumers' wallets, but there have never been so many buying options, along with convenience and choice, as today's e-commerce landscape offers. Online shopping is a huge trend, and when the current hardships begin to ease, the buying innovations and options will remain.
1. https://www.statista.com/statistics/1095969/retail-sales-by-channel-worldwide/
2. https://www.shopify.com/enterprise/global-ecommerce-statistics
3. https://www.salsify.com/blog/top-trends-in-ecommerce-to-watch-in-2023
4. https://www.forbes.com/sites/forbestechcouncil/2022/11/16/online-shopping-trends-to-watch-in-2023/
5. https://www.paymentsjournal.com/6-online-payment-trends-shaping-the-future-of-e-commerce/