Changes in the eCommerce market through the eyes of customers - eCommerce news #no. 52

The rapidly coming end of the holiday season is conducive to taking stock. How has the eCommerce industry changed recently? The answer to this question was provided by Klarna, among others, creating a report on the shopping preferences of e-consumers. Find out what online shoppers from more than 18 countries expect and learn about the latest trends in the market. All this (and more) is waiting for you in the 52nd edition of the Press Release!

Shopping Pulse report - Klarna examines e-consumer behavior

Over the past few years, the development of eCommerce has gained incredible momentum, and there is no indication that the digital transformation will slow down. With the emergence of new technologies and the evolution of sales platforms, consumer expectations are also constantly increasing. Today, customers expect not only a guarantee of a smooth order placement, but also an exceptional shopping experience. How exactly is the industry shaping up?

Klarna, one of the most popular providers of deferred payments, has studied how customers around the world make purchases. The report is based on the experiences of nearly 20,000 consumers from 18 countries (including the United States, Germany, Poland, New Zealand and the Czech Republic).

Across all countries, the popularity of online shopping has increased since the survey began, with the value of the eCommerce market increasing quarter by quarter. Moreover, as many as 63% of representatives of younger generations (Millenials and Gen Z) said they would never return to stationary stores if they had to choose between the traditional form of shopping and its online counterpart. This does not mean, however, that stationary shopping will be completely displaced - many shoppers still choose this form for grocery, drugstore or home furnishings purchases.

What other conclusions come out of the study?

• Customers often make online purchases under the influence of inspiration found on social media. They most often use platforms like TikTok or Facebook for this purpose.
• More than half of users of sales platforms expect owners to invest in technologies that smooth online payments (e.g. Buy Now, Pay Later).
• As many as 95% of shoppers compare prices online.
• Globally, we are buying more and more responsibly - more and more customers pay attention to whether a brand uses eco-friendly and recycled materials (42%) and whether a company provides adequate working conditions for its employees (41%).

Klarna's report takes an insightful look at the image of the modern e-buyer. If you want to know more about the needs of eCommerce shoppers, take a look here.

Product reviews created by AI - what is Amazon's new idea?

Amazon, the global giant among marketplace platforms, is constantly testing new features aimed at improving the customer experience. What idea did the platform's developers surprise us with this time?

The company has begun testing a feature that summarizes reviews left by buyers, creating a single short product description. The solution aims to make it easier to review reviews and speed up purchasing decisions. In 2022, Amazon customers posted nearly 1.5 billion reviews and ratings - reviewing them all is a significant challenge.

Artificial intelligence-created short texts will be appropriately marked as created by the algorithm. For now, the functionality is being tested in the US market among various product categories.

Do you think such a solution will win the trust of users? You can read more about Amazon's idea at this link.

Subscription commerce = the future of online sales?

Business based on a subscription model is helping to maintain a steady customer base, but combating the growing exodus of users has also posed a significant challenge for those selling this way in recent times. These are the conclusions of a study titled: "2023 State of Industry Report" prepared by technology company ChargeBee.

The survey includes an analysis of the activities of more than 300 companies related to the subscription industry. Most of them (64%) expect an increase in customer churn. Therefore, it is necessary to create new and effective strategies to foster user retention. To this end, more than 50% of companies are investing in new technologies. Leading strategies include improving the quality and responsiveness of customer service and additional support, especially using artificial intelligence. Many companies are also reaching for other ways to retain customers such as: investing in loyalty programs (27%).

The measures taken by industry leaders allow us to make some predictions about the future of the market. According to the authors of the report:

• Subscription companies are placing increasing emphasis on personalization to improve the customer experience. By collecting and analyzing data, it is possible to better understand shoppers' preferences and tailor their own offerings to them.
• More and more companies are using a hybrid approach in subscription pricing.
• With the development of various forms of subscriptions, one can also see an increase in regulations protecting consumers who opt for this form of shopping. Changes have already been made in the United States and Germany, for example.

Will subscription shopping dominate industries soon? Read the study here.