The UK e-commerce market is one of the most mature across the globe. This brings with it both enhanced opportunity and increased competition. As a result, online retailers have a need to be more innovative and agile than ever before.
Discover more about e-commerce trends below, including what the current market looks like. Plus, download our full E-commerce Trends 2023 guide for more information, including how retailers need to pivot and key next steps.
PRICE. PRICE. PRICE
This trend is not limited to the UK, as similar surveys conducted in other countries have shown similar results. In the United States, for example, a study found that 71% of consumers compare prices online before making a purchase (Source: Forbes). This shift in consumer behavior has led to a rise in the popularity of price comparison websites and apps, which allow shoppers to easily compare prices across different retailers.
Additionally, retailers are also feeling the pressure to offer competitive prices in order to attract customers. Many are now implementing price match guarantees, where they promise to match or beat the prices of their competitors. It is clear that price has become a major factor in consumers' purchasing decisions, and businesses must adapt to this new reality in order to stay competitive in the market.
KEEP IT PERSONAL
The one-size-fits-all shopping model is no longer enough to cut it in today's market. This shift towards personalisation is driven by advancements in technology and data analytics. Retailers are leveraging customer data to gain insights into their preferences, shopping habits, and behavior, allowing them to create targeted marketing campaigns and offer personalized recommendations.
One example of personalized shopping is the rise of subscription box services. These services curate a selection of products based on the customer's preferences and deliver them to their doorstep on a regular basis. This not only saves customers time and effort but also introduces them to new products that align with their interests.
Furthermore, retailers are investing in technologies like AI and machine learning to further enhance the personalisation of the shopping experience. These technologies can analyse vast amounts of data in real time, enabling retailers to provide personalized product recommendations, tailored advertisements, and even virtual shopping assistants.
SOCIAL COMMERCE
Social commerce combines the convenience of online shopping with the engagement and social interaction of social media platforms. It allows consumers to discover products, read reviews, and make purchases without leaving their favorite social media apps. This trend is driven by the rise of influencer marketing, as consumers trust the recommendations of influencers they follow.
Additionally, social media platforms are constantly improving their shopping features, making it easier for businesses to showcase their products and for consumers to make seamless purchases. As a result, retailers are investing more in social media advertising and optimizing their online stores for social commerce. It's clear that social commerce is reshaping the retail landscape and will continue to be a dominant force in the future.
PEOPLE LOVE THE PLANET
Consumers are increasingly concerned about the environmental impact of their purchases and are actively seeking out brands that align with their values. They are looking for retailers that prioritize ethical sourcing, use sustainable materials, and have a commitment to reducing waste and carbon emissions.
In response to this growing demand, many retailers are implementing various sustainability initiatives. Some are adopting circular economy models, where products are designed to be easily recycled or repurposed. Others are investing in renewable energy sources and implementing eco-friendly packaging solutions. Additionally, retailers are embracing transparency by providing detailed information about their supply chains and manufacturing processes.
These sustainability efforts not only attract environmentally-conscious consumers but also help retailers differentiate themselves in a crowded market. By prioritizing sustainability, retailers can build trust and loyalty with their customers, ultimately leading to long-term success. It is clear that sustainability is no longer just a trend but a necessary aspect of doing business in the modern world.
NOW WHAT?
During times of economic financial hardship, marketing budgets are often the first to be reduced as they often make up a significant portion of expenses. However, studies have shown that companies that retained or increased their marketing budgets during the 2008-2009 recession actually experienced growth in sales.
Instead of cutting back on, or cutting off, marketing costs, it would be more beneficial in the long run to get smarter with how you market your business.
Here at Audience, we offer commercial-first marketing - ensuring our goals align with yours to generate the results you need. To discuss our services, your marketing strategy or even just pick our brains - drop an email to hello@getaudience.co.uk or visit www.getaudience.co.uk.
