Ecommerce Trends 2022 - Checkout.com
Growth, Dynamism, Innovation but also Sustainability, Threat and Adoption…
These are the resounding terms at the top of European merchants and consumers’ minds according to Checkout.com Ecommerce Trends 2022 Report. Checkout.com surveyed 1,000 ecommerce merchants across Europe along with 8,500 European consumers, asking them what they think will be the biggest opportunities, priorities, challenges and threats in 2022. By consolidating this data they have distilled the five key trends which are set to shape the sector in 2022.
Sustainability - More merchants seem to be pledging to implement more eco-friendly practices in an effort to better meet their customers’ expectations. They are looking at the resale and rental market to ensure their products are in circulation for longer. According to their survey, 54% of consumers say they will seek reassurance that brands are doing their bit before buying. Merchants who fail to make significant strides towards more sustainable models risk losing customers to brands that have both chosen to focus on it and communicate their progress to shoppers. Merchants are also utilizing buy now, pay later (BNPL) to make ethical and sustainable products more affordable to all, albeit at a premium. The increase use of AI and VR solutions also plays a part in sustainability by allowing consumers a more accurate sense of product fit, reducing return rates thereby cutting the emissions associated with additional shipping.
Social media - Social commerce has skyrocketed. Livestream demonstrations of products, real-time influencer marketing and live product launches are setting a new path towards substantial sales in social channels. Increasingly, brands are maintaining active social media presences in order to drive prospective buyers engagement. The likes of Instagram and TikTok now serve as major discoverability tools for brands. They empower sellers to publish regular content, such as reels, live Q&As and stories, showcasing both their products and their people. However, with the flurry of growth in social commerce has also come a creeping sense of scepticism felt by consumers about the veracity of brands paraded on their feeds.
Payments Optimisation - Another takeaway on the social commerce trends, is the growing importance of the checkout experience. Brands are actively investing in new and improved payments technologies that capture more sales at the digital checkout, while also protecting the bottom line from fraud and chargebacks. Merchants see payments as core to their ambitions to grow into new regional markets, a priority at the top of their list, considering that up to 60% of consumers will abandon their cart if they cannot pay with their preferred payment method, localizing payments across Europe. Payment diversification strategies are vital if brands want to convert more sales, as well as local payment methods. Meanwhile, a quarter of merchants surveyed said they are preparing to offer payments via digital currencies or even to sell digital assets such as NFTs. The virtual reality environments is an area that is gaining more exposure.
Fraud and Security - 2022 will see important implementation of new security and fraud tools from brands across the board. In 2020, card-not-present fraud cost ecommerce merchants an estimated $35.54 billion globally. This is a substantial amount and unfortunately the pandemic has turbo charged that trajectory. Whilst fraud is difficult to wholly avoid, it can be reduced. As competition intensifies, how brands strategize against fraud will become critical to their position in the wider retail ecommerce market
Marketplace - Experts predict 50-70% of digital commerce to be conducted on marketplace platforms by 2025. Even before the pandemic, marketplaces were eating up half of global online sales. Every kind of marketplace from luxury, to discount, to re-sale, has seen an uptick in sales and popularity. In the case of luxury marketplaces, for example, their ability to aggregate boutique products has attracted affluent consumers unable to cross physical borders during the travel bans imposed by the pandemic.
Conclusion: It’s refreshing to hear that sustainability is a top priority in 2022. To drive growth whilst ultimately applying ethical principles in sourcing, servicing or processing is an area of immense opportunity, one that could be applied across industries and across multiple touchpoints.
Drop shipping, marketplaces and subscription/rental models have all gained wider adoption as a move towards sustainability. What’s also interesting to note is the undeniable threat that is associated with marketplaces… Of course, more prominently in segments where a direct customer approach is still favoured (e.g. travel, hospitality)… Either way, threat or opportunity, these trends cannot be ignored!Source: Checkout Ecommerce Report 2022
