eCommerce news #no. 26

Running an online store these days requires constant observation of the market - it often turns out that as a result of unexpected changes, even the most likely predictions lose their meaning. The beginning of 2022 brought just such changes. - and their impact on customers' purchasing decisions was examined by BLIK, publishing the results in its latest report. Social commerce and the SMP sector also faced unexpected challenges - Facebook decided to drop its live sales feature, while smaller entrepreneurs, fearing a crisis, are constantly improving the User Experience of their websites and online stores. As you can see, there are indeed many changes - but thanks to Advox Press, none of them should surprise you!

Inflation in the shadow of war - what decisions did consumers make in the first half of 2022?

The war in Ukraine, steadily rising inflation and negative macroeconomic forecasts - these notions projected consumer attitudes and purchasing decisions in the first half of 2022. How did the market evolve under these specific conditions? The answer to this question was provided by BLIK, analyzing transaction data from mobile payments. A momentary drop in profitability proved inevitable, but from the beginning of April most industries began to record sales increases again. What exactly does the report reveal?

• The global situation has affected the entertainment industry the most, with interest in ticket purchases in March falling by as much as 16% compared to February's results. A similar trend can be seen in subscriptions to streaming services. However, with the start of spring, BLIK saw impressive growth in this sector, up 20%.
• The first half of the year was not successful for the fashion sector either. The situation improved with the arrival of April, and the need to replace closets with summer ones and the beginning of the selling season certainly contributed to its improvement. The average value of a shopping cart is now PLN 248.
• However, not every area recorded negative results - Poles' fondness for qCommerce continues to grow. Nevertheless, experts have noticed that the attractiveness of the fast form of shopping is characterized by a certain seasonality. Consumers are most likely to reach for the express delivery option in autumn and winter - it definitely loses popularity in summer.

BLIK is currently one of the most popular forms of payment in Polish eCommerce, evidenced by the fact that transaction data from as many as 1168 online stores, recorded between January and June this year, was used to create the report.

Detailed results of the survey can be found here.

Future of live shopping in question - Facebook abandons live sales option

Social media trends are changing at a dizzying pace - until recently it was claimed that live shopping would become the future of social commerce. In contrast, last week Mark Zuckerberg's company surprised everyone with the news that Facebook is scrapping its live sales feature. Until now, users of the platform were able to tag individual products and create lists of them while conducting broadcasts. The ability to conduct such events will disappear at the beginning of October 2022. How does Facebook explain the above decision?

Live shopping debuted on Facebook two years ago - at the time it was to be distinguished primarily by the possibility of direct interaction with the customer. As part of its promotion, the social network established partnerships with global brands such as Sephora and Abercrombie&Fitch. However, Meta's efforts did not bring the expected results.

A similar move was recently made by TikTok, which also abandoned tests of a live shopping tab in the UK. Plans to develop both social media platforms were largely motivated by the great success of this functionality in Asian countries. However, it quickly became apparent that Western consumers were not enthusiastic about live shopping. In response to the needs of a wider audience, Facebook developed a new solution - which one?

Short and dynamic reels - this is the kind of content that is expected to become a staple of Facebook's new social commerce. Audience interest in this form of video is steadily growing - will it also translate into sales successes? We will certainly follow the results with curiosity.

You can read more about Facebook's decision here.

Is UX design the key to success in the industry?

Intuitive navigation, an attractive interface and a simple purchase path - these are just some of the elements that influence a user's decision to stay on the site. According to the Data Points report, it is underdeveloped UX design that is responsible for the demise of eCommerce platforms - and by as much as 70%. Minimizing this outcome requires a skillful combination of knowledge of individual customer needs and new industry trends. Among the solutions that positively impact the customer's shopping experience stand out:

• implementation of modern forms of payment (such as digital wallet payments, with voice assistant assistance, Buy Now, Pay Later),
• one-step-checkout,
• no need to create an account to make a purchase,
• automated form filling,
• suggestions for preferred form of delivery or payment,
• alternative forms of login, such as through social media accounts.

Refining your online store in terms of UX allows you to realistically increase conversions. However, one should be aware that such measures require a lot of work and specialized knowledge. Thus, the introduction of the above solutions can be a challenge for small and medium-sized entrepreneurs. Nevertheless, more and more of them decide to introduce innovative functionalities. In Poland, smaller online stores are starting the metamorphosis of their websites with the elimination of the obligation to create an account - such small changes can prove crucial, especially in the current crisis times.