While online shopping was already on the rise pre-2020, the pandemic has accelerated the growth of ecommerce globally, with revenue projected to reach $US 5.4 trillion in 2022.
It’s big business — and there are huge opportunities for brands who are across the emerging trends and customer behaviour. In Australia alone, growth predictions put the market on track to hit A$21.7 billion by the end of 2025 — up from A $13.9 billion in 2017.
Research from Klarna shows that while physical stores are not going anywhere, and people still love the thrill of the till, more and more are also taking advantage of shopping online from the comfort of their own home.
We take a look at some of the ecommerce trends you need to prepare for in 2022 to stay on top of this growing market.
Get daily business news.
The latest stories, funding information, and expert advice. Free to sign up.
1. Be sustainable and grow
Whatever the method of purchase used, businesses are being put on notice as consumers increasingly choose how to spend their money based on the impact their purchases have on the environment and society.
According to the 202 Inside Retail/Klarna Australia Consumer Survey, 47% of shoppers say it is very important to them to shop with retailers who support good causes. A further 69 percent of respondents say they have started shopping with a new brand because they admire its social impact activities.
The Klarna research shows shoppers have very clear ideas about what they want retailers to focus on when supporting social initiatives. The top priority is that retailers provide evidence of the impact of their efforts (55%) and don’t just do it for publicity.
They know when a retailer has done the wrong thing, and are quick to act. While positive initiatives may have started them shopping with a retailer, 59% say they stopped when there was any negative press.
2. Social commerce
Clever marketing means meeting your shoppers on the apps or platforms where they already are. According to Klarna’s Shopping Pulse, on average, 33% of shoppers have purchased a product after seeing it on social media. And about half of them did it directly from the platform.
Why send someone off a platform when they can buy the product on offer with one click?
Facebook, Instagram, Pinterest and WeChat are already streets ahead with it and YouTube, TikTok and Twitter have all announced plans to get on board.
It’s a good move if you are targeting a younger market. One-in-three consumers under 40 are using social commerce, with research from Klarna showing 78% of Gen Z and 79% of Millennials say they have purchased a product after seeing it on social media.
It’s time to look at adding the option to click and buy.
3. Shopping on mobile devices
While most shoppers still prefer traditional desktops or laptops when shopping online, the preference for mobile devices is rising, according to Klarna’s Shopping Pulse.
Globally, computers still come in at number one with 49% of users purchasing on a laptop or desktop, but mobiles are steadily climbing and now sit in second place at 35%. In Australia, the gap between first and second is even smaller, with 49% of people using computers to make purchases compared to 41% relying on mobiles.
4. Live Streaming
Taking it to the next level on social media is the emerging trend of Livestream shopping.
It’s a bit like being in a bricks and mortar shop, with a sales assistant on hand to help, only consumers can do it from anywhere. Influencers and brand representatives go through a product’s selling points – while consumers debate the pros and cons and ask advice in real time.
It’s already big in China and is starting to take off in the US. Research predicts that in 2022, livestream commerce in China will reach USD $446 billion USD, or 15% of total online sales.
According to IBM, sustainable packaging is a make or break for up to 72% of global consumers.
The bottom line is money talks, and those businesses who don’t read the signs will fall behind as consumers make their point through their purchasing power.
5. What does the future hold
While technology moves quickly, and shoppers are quick to take up opportunities for innovative ways to make purchases, there’s still a general belief that the majority of shopping will be done in physical stores in a year’s time.
Klarna’s research shows physical stores are still an essential resource for many shoppers, but it also highlights the growth of online shopping, with predictions that the next year will continue to see more and more people filling their shopping cart online.
Klarna has been connecting the world’s biggest brands with customers for over 15 years. With Klarna, shoppers get the freedom to shop when inspired and pay later. Boost sales, increase average order value and keep your customers coming back for more. Klarna reaches and engages millions of hungry shoppers across their app and social channels, driving traffic to your store.