Staying ahead of trends in the ever-changing eCommerce space is a must if you want to remain competitive. Whether it’s consumer behaviour, new technology or industry movements, we’ve broken down the most impactful changes to keep abreast of. We’ll cover the following:
- What are the consumer trends?
- How is AI & tech involved?
- What are the digital trends?
- What are the industry insights?
Skip straight to statistics
Consumer Trends
It hardly needs pointing out that consumer trends are evolving each year, most notably post-pandemic. Australian shopping behaviour reports show that on average, 5.4 million households participate in online shopping each month1, a 39% increase since 2019. A survey conducted by Auspost, meanwhile, suggests that 93% of respondents said that they’d increase or maintain their current levels of online shopping.
So, with such high demand and growth in retailers across major industries, how are consumers selecting who they purchase from? Over half of shoppers (52%) indicate that they are more likely to purchase from companies that share their values2 and a 2022 survey showed that on average, nine in ten Australians are much more likely to purchase sustainable and ethically produced products and services3.
While growing challenges in online shopping increase the difficulty of entry, statistics show there are some proven methods to increase eCommerce conversions. Delivery times, for example, are one of the most important factors when consumers purchase from any eCommerce store, with 67% of consumers expecting an improvement in delivery speed. This makes it crucial for eCommerce merchants to select carriers that are not only reliable but also have a track record of fast deliveries with the least disruptions1. Shopify’s research also indicates that websites with a personalised customer experience using internal customer data are proven to lift revenue by 20% and reduce cart abandonment2.
AI & Other Tech
When it comes to technology, how has innovation contributed to the growth of the eCommerce industry? With the growing presence of AI and other forms of technology within our day-to-day lives, how are these technologies transforming online shopping?
Within our research, we’ve found that in the APAC region alone, 63% of consumers most commonly shop within a mobile app such as Amazon, eBay, ASOS3. With the majority of consumers now shopping on mobile devices, this has also created the necessity to ensure mobile applications perform at high speeds to prevent increases in bounce rates.
Social media
Auspost research conducted in 2022 found that 97% of Gen Z consumers say social media is their main source of inspiration on which products to procure and 62% of people aged 16 to 39 will buy products directly from their social feeds, on platforms such as Facebook, Instagram, TikTok and Snapchat4. Instagram shop revenues alone saw a 123% growth year on year from FY20 to FY21, with Instagram becoming the primary focus of marketing for many eCommerce stores4. According to recent social media statistics, 90.4% of global internet users are visiting an online retail site or store; 81.5% are searching online for products or services; and 76.8% are purchasing a product online1.
VR & voice search
With many companies now heavily investing in VR and voice search capabilities for their platforms, we’ve seen adoption of such technologies in day-to-day shopping trends. With almost one-third of Australian houses adopting voice search in their homes, eCommerce platforms are adapting their technology to complement voice search3. 71% of consumers also said that they’d be much more inclined to shop more often with eCommerce brands that use virtual reality (VR)5.
Industry Insights
With the growth of eCommerce, what do businesses from the industry report from their internal findings in 2022? Auspost reports that they’ve committed an additional $400 million in 2022 to develop new facilities, technologies and a larger workforce to accommodate the growth in online sales, a total investment of $1 billion over the past three years since the beginning of the Covid-19 pandemic4.
With eCommerce retail predicted to account for 20.4% of global retail by end of 2022, industries such as homeware and appliances saw the highest expenditure at 23.8%, followed by 16.3% in department stores, 15.3% at grocery and liquor online retailers, 12.4% for personal and recreational and 10.9% for fashion6. One in three medium-sized businesses estimates that over 25% of their capital expenses will go towards investing in eCommerce throughout 2022. These investments include technology, marketing, larger workforces and customer service4.
Reports by Roy Morgan found that a whopping 75% (approximately 16 million) of Australians aged 14+ are now aware of buy now pay later (BNPL) services7. ABC reported that there are now 5.9 million active accounts across various BNPL service providers and a survey of 1,746 Australians RFI Global for the Australian Finance Industry Association found that 38% of those surveyed had used one of the buy now pay later services. With Australians spending over $12 billion via buy now pay later services in FY20 – FY21, these services accounted for 1% of transactions online8. Statistics show that online retailers implementing buy now pay later are benefiting immensely especially with young adult consumers.
