Looking Ahead: Pattern Australia Predicts Key eCommerce Trends

Written by Merline McGregor, General Manager for Pattern Australia

Undoubtedly, 2023 will be a period of change for the Australian retail sector. Brands will be challenged by a likely reduction in consumer spending and a shift in buyer behaviour as shoppers evolve the channels through which they discover and purchase goods. Retailers need to meet these demands and become active on platforms their customers prefer to connect, engage and sell.

Given the disrupted operating environment ahead, what trends do brands need to be aware of – and how can they maximise the chances of engaging and converting customers in the future?

The local online marketplace sector evolves with Amazon to become the dominant player

Tighter household budgets will lead to an increase in the number of price-sensitive shoppers in Australia. This will shift shopping behaviour and result in a growth in traffic to online marketplaces that customers perceive offer price value.

This growth of price sensitive-shoppers and a general increase in marketplace activity was seen during Cyber Week - with marketplace revenue up by 50% over the Cyber Week period, with Tuesday and Wednesday experiencing the largest growth at +189% and +204% respectively.

To succeed in a competitive online marketplace environment, brands must develop and execute Amazon’s go-to-market strategies as the platform increases market share against eBay and becomes dominant in Australia.

Currently, 30% of Australians have an Amazon Prime membership, a figure expected to rise dramatically in the coming 12 months as the company builds out its infrastructure and attracts new shoppers through price and convenience. Going forward, brands must become active on key marketplaces to broaden their reach, drive revenue, and act as a defence strategy against competition and unauthorised sellers.

Social commerce offers a top-of-funnel alternative for brands wanting to connect with Millennial and Gen Z Shoppers.

Australian consumers who use social media for online shopping are forecast to increase to 6.4 million by 2024. This increase is expected to rise quickly in the coming year as platforms like Facebook, Instagram, TikTok and Pinterest improve their social commerce capabilities.

We anticipate that although influencers will continue to be an asset to drive consideration for purchase, the growth in brand social commerce spending in Australia will increasingly be allocated to top-of-funnel activity like brand awareness engagement and e-store traffic. As a result, pixel and product feed hygiene must become a priority for brands seeking to attract and convert Millennial and Gen Z buyers across social media.

Customer nurture activity is key to offseting a drop in new shopper acquisition

In a year when new customer acquisition will be challenged, brands must nurture existing customers and invest in activities that foster loyalty. Personalised recommendations and shopping deals that enhance the customer experience, powered by leveraging existing buyer data, will build loyalty and open up new sales opportunities.

Convenience in eCommerce will also be a focal point for brands as retailers will look to nurture the ‘new to eCommerce’ customer set that came through in the past two years. Tactics such as subscription models will offer powerful ways to provide customer stickiness, especially as large players such as Amazon look to expand their Subscribe & Save offering.

Today’s brands are rich in customer data, and these days that is often overlooked or underutilised. In 2023 retailers can help offset a predicted downturn in new shopper activity by building personalised customer campaigns that reference existing shopper data to maximise sales from those already familiar with your brand.

For more information click here https://pattern.com/au/