Top 50 Retail Innovation Statistics That Helps You to Plan for 2023
With a new year come new trends in the world of retail and eCommerce. This time, many of them were brought by innovative technologies that have thoroughly changed the ways consumers browse and shop.
The number of visits to brick-and-mortar stores is decreasing year and year, whereas online retail, on the other hand, is blooming. Online shopping is expected to keep growing and could account for as much as 30% of total retail sales by the end of 2023.
What will retail look like in 2023? Statistics show the rise of sales through a variety of digital channels and the importance of balance between personalisation and consumer privacy.
A few topics already introduced in Retail Industry Trends & Predictions prove that no matter what’s happening in the retail landscape, customer experience will always play a vital part in any successful strategy.
Let’s dive straight into the top retail trends 2023 that will help you deliver what your consumers really value.
1. Almost half (48% of shoppers) have left a brand’s website and purchased from a competitor because of a poorly personalised experience.
2. 41% of shoppers, on the other hand, stated it’s creepy to receive a text from a brand or retailer when they walk by a physical store, feeling that using their location was the most invasive approach.
3. 71% of mobile purchases are influenced by personalised emails from a retailer.
Inclusivity and Shopping Behaviour
4. In 2023, more retailers will offer extended price ranges with the rise of the plus-size market, especially in the US.
5. The rising trend is sustainable retailing. 65% of shoppers said they care more about sustainability than they did a year ago.6. 50% of digital consumers have stated that environmental concerns impact their purchasing decisions.
7. Complete product customisation is expected to grow massively in 2023 to offer a one-of-a-kind look for each consumer.
8. The retailers offering flexible payment plans, such as Afterpay, Klarna, Final or Affirm, have seen an increase in conversion rates by up to 30%.
9. More brands will offer multiple payment options to create easier checkout experiences, such as Apple Pay, Paypal or Amazon checkout.10. 88% of consumers are willing to pay more for same-day delivery or faster delivery.
11. Consumers look for unique experiences- more than half would attend a pop-up store, while 42% would participate in an experience-driven social event or demo inside a store.
12. In-store shopping statistics show we’re expecting to see more seamless experiences between in-store and online, starting with consistency in pricing, in-store pickups and free in-store returns.
13. More shoppers will expect guest checkout in place on eCommerce websites- 35% of abandonment rates are due to the lack of a guest checkout option available.
14. More customers expect free shipping than those who expect to pay for shipping, meaning more brands will need to include it in their offerings.
15. 84% of customers will abandon their cart if the website is not secure.
16. 53% of millennials said sales assistants don’t have the tools they need to provide good customer service, such as mobile devices for looking up customer profiles and recommending products.
17. Being transparent about the pricing, fees, and additional charges at checkout will continue to be important in 2023, as unexpected fees and charges are one of the main reasons customers abandon the cart.
18. 57% of online shoppers are comfortable with providing personal information to a brand, as long as it directly benefits their shopping experience.
19. 46% of consumers expect product comparisons from eCommerce sites.
20. 68% of people said trustworthy reviews are the strongest influencing factor when they decide to shop.
21. According to Adobe, 69% of mobile purchases were influenced by emails from a certain company, 67% by Online Ads and 54% by Facebook.
22. The first of our retail technology trends 2023 is that voice shopping is growing among Internet users, and it is predicted that 55% of smart speaker owners will make purchases by voice by 2023.
23. QR codes are coming back. 4 in 10 users scan a QR code on their mobile devices every month.
24. By 2023, over 120,000 stores will be using AR (Augmented Reality) technologies.
25. Some major eCommerce platforms, such as BigCommerce and Shopify, have already realised apps that have AR capabilities, allowing merchants to get 3D products into their stores.
26. Nearly half (42%) of consumers feel that AI will lead to faster checkouts.
27. 2023 will witness a lot more eCommerce sites joining the trend and taking advantage of Predictive Analytics and AI.
28. Social media networks will be integrated with the most recognisable payment services, such as Apple Pay and PayPal.
29. It is recommended to use video, 3D models, and testimonials for products at higher price points to speed up the decision-making process.
30. More eCommerce brands will incorporate headless commerce, enabling them to build a custom front end from scratch with its endless possibilities.
31. Messaging Apps will help bridge the gap between personalisation and automation, providing quick help and tailored products instantly to users.
32. Dynamic pricing is predicted to drive significant profit for retailers, with constant monitoring and optimising prices to react to consumer behaviour and insights.
33. 42.9% of eCommerce sales will be made on mobile devices by 2024.
34. Google is becoming a new online marketplace. Google Shopping has proved to boost conversion by over 17%.
35. More than half of online shoppers (55 per cent) have made a purchase through a social media channel, such as Facebook, Instagram or Pinterest.
36. TikTok is one of the emerging channels for eCommerce brands to test out and leverage in 2023, becoming the fastest-growing digital platform. With 1 billion users worldwide, it was the second-most downloaded app in both Google Play and Apple Store in November.
37. By 2023, it is expected to see a higher number of subscription-based business models, an eCommerce trend that has been steadily growing over recent years.
38. B2B eCommerce sales were projected to increase worldwide by $6.6 trillion by 2023.
39. Sending promotional SMS messages is predicted to grow, where 98% of mobile users open text messages and only 20 for emails.
40. 2023 is said to be a year of owned marketing, where more brands will grow their customer lists to become less dependent on third-party advertising.
41. In 2023, more brands will understand that it is essential to find a good audience for Facebook and Instagram ads rather than simply running Google Shopping ads.
42. $5.9 trillion– the number of expected global eCommerce sales by 2023.
43. It is predicted that going international will be essential for any growth strategy in 2023.
44. With customers being more mobile-savvy, we will see a growth of PWA (progressive web apps) for eCommerce.
45. More retailers will offer non-commerce experiences, such as live music or workshops.
46. Streaming ads will be a part of a well-rounded omnichannel approach in 2023. Omnichannel retail trends 2023 will play a huge role in driving the sector forward.
47. Secure payment gateways have more chances to be completed. In fact, PayPal transactions have 70% higher checkout rates than non-PayPal transactions.
48. Global purchases are increasing, with 57% of online shoppers having made a purchase from an overseas retailer.
49. 43% of eCommerce traffic is coming from organic Google search, so strategies for 2023 should be built with SEO in mind.
50. 90% of shoppers will visit Amazon to check and compare pricing.
Retail market trends 2023
Predicting online retail trends 2023 is always challenging, but based on current data and emerging technologies, here are some potential trends that could shape the industry:
More use of machine learning (ML) and artificial intelligence (AI)
Retailers will increasingly leverage AI and ML to optimise their supply chains, personalise the customer experience, and analyse data to make better business decisions.
The continued growth of e-commerce
E-commerce will continue to grow, and retailers will need to provide a seamless omnichannel experience to stay competitive.
Augmented reality (AR) and virtual reality (VR)
AR and VR technologies will be used by retailers to provide a more immersive and interactive shopping experience, allowing consumers to virtually try on clothing or see how furniture would look in their homes.
Sustainability and ethical consumerism
Consumers will continue to place a greater emphasis on sustainability and ethical practices, and retailers will need to respond by offering eco-friendly products, reducing their carbon footprint, and promoting ethical manufacturing practices.
Increased adoption of contactless payments
Contactless payments will become even more prevalent, with retailers offering more options for mobile payments, digital wallets, and other contactless payment methods.
Social media and influencer marketing
Social media will continue to play a significant role in driving sales, with retailers leveraging social media platforms and influencer marketing to reach new audiences and engage with existing customers.
Personalisation and customisation
Retailers will continue to prioritize personalisation, offering customised products and experiences to meet the unique needs and preferences of individual customers.
The Future of the Retail Industry
What are the trends in retailing? Now you should have a good idea of what to expect in 2023 and how important it is to understand how consumers shop and make their purchasing decisions. There are a few trends that have a tendency to re-appear and stand out in a crowd:
- Personalised experiences and customisable product offerings
- Voice Commerce
- Omnichannel strategy
- Flexible shipping, payment and return policy
You’re probably thinking, what is an omnichannel strategy? With those in mind, we can expect brands to invest heavily in multi-channel strategy with the growth of mobile commerce and buying through social media platforms. Customers will also expect businesses to operate in sustainable ways and connect with them on a slightly deeper level with an understanding of their real needs.
Capitalising on these trends with a retail innovation strategy
Retail innovation strategy is the process of identifying and implementing new ideas, technologies, and practices that improve the customer experience, increase operational efficiency, and drive revenue growth.
Here are some key steps to consider when developing a retail innovation strategy:
- Identify your business objectives - Determine your business objectives and define what success looks like for your company. This could include increasing revenue, improving customer satisfaction, reducing costs, or entering new markets.
- Understand your customers - Analyse your customers' behaviour, preferences, and needs to identify areas where you can improve their experience. Use data analytics, customer surveys, and other tools to gain insights into their behaviour and preferences.
- Explore new technologies - Stay up-to-date with emerging technologies that can enhance the customer experience or streamline operations. This could include AI, VR, AR, chatbots, and other digital innovations.
- Foster a culture of innovation - Encourage your employees to share their ideas and embrace a culture of experimentation and learning. Generate an environment that rewards risk-taking and creativity.
- Partner with startups and other external partners - Partner with startups, accelerators, and other external partners to tap into new ideas and expertise. This can help you stay ahead of the curve and quickly implement new innovations.
- Continuously test and learn - Continuously test and learn from your innovations, using data to measure their impact and refine your strategy. Be willing to pivot or iterate as needed based on what you learn.
- Prioritise agility and flexibility - The retail industry is constantly evolving, so it's essential to prioritise agility and flexibility in your innovation strategy. This means being able to quickly adapt to new technologies, changing consumer behaviour, and shifting market conditions.
Nothing is for certain in the retail industry with constantly changing shopping habits and emerging technologies. Is the retail industry growing? We’ve certainly witnessed the rise of fully customisable products, subscription-based business models, the importance of omnichannel strategy and flexible payment plans, which all lead to unique customer experiences. Analysing these retailer statistics, seasonal insights, and trends can only help you create strategies that drive results in real-time.
This blog post is Last updated on May 23rd, 2023.
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