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Top 5 eCommerce Trends in 2022

eCommerce trends of 2022 by browntape

eCommerce trends in 2022 that are becoming the game changers for the industry.

Just a decade back, shopping was a great outdoor experience. Stepping out to either buy groceries or clothing or going miles away to specific locations for shopping for a wedding. It was a soulful experience but sometimes tiring too.

E-shopping avenues opened up opportunities to purchase anything and everything from the comforts of your homes. So many factors at various economic levels came into play, into making the eCommerce sector a multi trillion-dollar market. The last two years of the pandemic has given a new definition to e-shopping. The industry has witnessed an up-graph of 77% between 2020 and 2021. This growth has come from not just metros, but also from tier II and III cities as per report by Bobble AI. Top eCommerce trends in 2022 will redefine and transcend the industry to another level. 

Online purchases have expanded to groceries, perfumes, and even jewellery which initially hovered over electricals, devices, and clothing. Apart from the key player brands like Amazon, Flipkart, Myntra; new brands like Nykaa, Meesho, and Shopify gained tremendous momentum. 

Top eCommerce Trends in 2022, That are the Game Changers

The fact that the physical stores will never completely disappear, consumers would want options and convenience when it comes to shopping. The legacy of “Customer is King” remains undeterred and, the brands must work towards satisfying the customer needs. Consumer behaviour is constantly evolving, henceforth the businesses need to be up to speed with the latest eCommerce trends in 2022. On-ground product launches aren’t just the big thing. Online product showcases and launches have become as bigger, if not less, as the physical events. 

Here we discuss some of the top eCommerce trends in 2022 that are turning tables for the sector this year.

Tier 4 Cities, Towns And Villages Will See a Boost

An upward trend in the number of online shoppers is emerging from the Class 4 cities and villages. The D2C trend has already touched these areas with deep reach of the internet services and logistics infrastructure. The tier 4 cities and rural areas are becoming one of the strongest contributors to the growth of the eCommerce. The experts suggest that online purchases of fashion, wellness, beauty, electronics and FMCG goods from small and remote locations of India will continue to rise. Since tier 4 shoppers prefer Cash on Delivery, the CoD payment method will form the majority of Tier 4 orders. The key to the success of the eCommerce industry is due to increased internet penetration to Tier 3, 4 and rural areas. Not to forget, that the pandemic sky-rocketed the demand. For the main players, the rise in demand increased pressure on their portals to manage larger transactions. It also made them expand their folio intro broader product offerings to serve broader audiences. The eCommerce players are expecting further growth of $150 billion as per RedSeer Consulting’s report. India will soon become the second-largest eCommerce surpassing the United States, by 2034. Grocery and fashion will become the key drivers of this incremental growth.

Growth in Social Commerce

eCommerce trends 2022- social commerce
Social Media channels have become a major online marketplace for selling products/services. This trend saw an up-graph of Social Commerce in the last 5-7 years. Many D2C eCommerce brands now offer the ease of shopping directly from Instagram or Facebook. Social influencers play a vital role here, bringing the brands to the consumer. As per the researched data on Sprout Social, 73% of businesses have made social commerce as part of their marketing strategy, while another 79% are in process of including a major chunk of their budget spend on social channels. For the brands who want to communicate with Gen Z and millennials, they need to be pursuing social commerce. According to a recent survey by eMarketer, 55.5% of consumers aged 18-24 and 48.7% of consumers aged 25-34 made at least one purchase on social media in 2021. India’s social commerce market, at $800 million, is setting its course through social media platforms such as Instagram, Facebook, and WhatsApp. Henceforth, it is all the more than essential for businesses to include social commerce in their brand sales strategy. This leads to one less clickless buyer’s journey. Social commerce in the United States is growing to nearly $80 billion. A recent PayPal survey revealed that India is already the leading Asian market for social commerce. It is projecting to become a $100 billion vertical of ecommerce by 2025.

Artificial Intelligence (AI) or Augmented reality (AR) commerce on the Rise

AI or AR in eCommerce trend in 2022 is the newest one in online shopping space. While AR commerce uses 3D mapping, allowing consumers to experience the product virtually before their buying decision. AI uses algorithms to predict consumers shopping patterns based on the products that they buy and when they buy them. AI uses multiple applications like conversation chatbots or online virtual assistants, recommendation systems, voice-enabled apps like – Alexa, Siri, Echo, and Google Home. These applications have become a game-changer for the eCommerce ecosystem.  With AR commerce, “Try before you buy” takes on a whole new meaning. AR helps brands reach customers who might be too busy to go to the nearest store or don’t have a store nearby. The brands that used AR to their advantage are Lenskart, Pepperfry, Sephora, Nykaa. So, whether it is trying on glasses frames, placing a piece of furniture in a room, or trying makeup products that compliment your skin tone; AR makes it happen. The Artificial Intelligence market in India was at $7.8 billion in 2021, which is projecting growth to 4.7 billion this year. About 101.6 million consumers will use AR minimum of once a month in 2022. This represents a 22% increase in size of market for AR and 27.5% for AI, as per statistics reported by analytics India Mag.

Livestream Shopping Will Become More Prominent

live stream grow- eCommerce trends 2022

Involving social influencers or celebrities giving live product demo, consumers participate and ask questions/comments before taking the buying decision. The experience is somewhat similar to how one would shop in a store with store associates answering your questions. The main difference lies in the ease of shopping within the comforts of your home.

Predominantly invaded by fashion, beauty and personal care brands, India’s Instagram Reels is taking the lead for livestream commerce. After the the ban on Tiktok, Instagram became the showcase or showstopper for many brands.

Livestream eCommerce market is seeing an exponential growth $4-$5 billion by 2025. Beauty and personal care market is topping the charts with above $1 billion GMV. Fashion brands will contribute about 60-70% of the GMV, while beauty and personal care will contribute rest of 30-40%. (according to report by market research firm RedSeer).

Conversational Commerce Bound to be in the ForeFront

Using chat or messaging platforms to influence buyers to purchase your product is another form of online shopping. Through an avid conversation with a brand on Facebook Messenger or WhatsApp, consumers can freely interact directly with the brands. This process of buying becomes a lot more personalized and interactive on a one-on-one basis. Alexa, Siri, Echo, and Google Home are the finest example of voice-enabled shopping apps.

Gartner predicts that 47% of organizations will use chatbots for customer care and 40% will deploy virtual assistants in 2022. Importantly, the overall market size for chatbots worldwide is likely to be over $1.3 billion by 2024.

By putting the customer and business in direct contact through a variety of platforms, conversational commerce enables businesses to better connect with their customers at every step of the purchasing journey.

Conclusion

So, the truth of the matter is – while most industries had struggled to thrive during the pandemic, eCommerce flourished and enjoyed exponential growth. The truth is also to accept, adapt and include the new trends in your business strategy.

There are several eCommerce trends in 2022 to keep an eye on. These trends, infused with new technology developed, ensure smoother customer buying journeys and a better brand experience.

Consumers will continue to evolve and so will their expectations. A seamless, convenient, and memorable shopping experience, is the way to capture their attention. Henceforth, to change the game plan for the year 2022, businesses should invest in the right eCommerce trends in 2022 to keep up with the fast-changing needs and preferences of the consumer.

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