Five Unexpected Trends that will Change the Facets of the E-Commerce Industry in 2022

Many businesses are now concerned about the long-term impact of the pandemic on the retail and e-commerce industries. However, despite the doomsaying, many brick-and-mortar stores and smaller e-commerce players are doing very well online, with average e-commerce businesses reporting a 15 percent increase in annual revenue since April — despite the assumption that the entire retail sector has been in crisis mode since the outbreak of the pandemic in early 2020.

Fremont, CA: These are just a few of the startling findings of a recent Brightpearl study into retail performance and changing consumer behavior since COVID. Furthermore, several unexpected trends will likely shake up the retail landscape in 2022.

Stores will be Important E-Commerce Assets

The popular belief is that online shopping is killing physical stores, and it is wreaking havoc on many smaller retail chains. On the other hand, other store-based retailers are succeeding because they recognize that physical locations can be valuable e-commerce assets, particularly in the post-COVID era.

Optimized Delivery Strategies Must Be Top of Any Online Retailer's Agenda

According to recent data, unreliable delivery has created a crisis of confidence among online shoppers over the last year, with nearly 40 percent of shoppers experiencing order delays.

Online Retailers Will Prioritize Trust to Attract and Retain Customers

Trust is becoming an increasingly important factor in deciding which brands to buy from when shopping online. More than half (51 percent) of consumers now say it is their primary purchasing motivator, surpassing other factors like brand name and even price. Consumers are looking for retailers who will provide a consistent buying experience, which has been compromised as many brands have shifted to an online model without the necessary infrastructure in place. This, in turn, has resulted in widespread issues with delivery, communications, and returns, as well as an environment in which 42 percent of shoppers have lost trust in online shopping as a result of negative experiences.

Smaller Online Retailers Are Closing the Gap

With major players like Amazon.com, Walmart, and Target expanding their online presence, it's easy to believe that smaller online retailers are suffering as a result. That isn't always the case, though. Last year, e-commerce businesses in the United States reported a 15 percent increase in growth. According to the data, many smaller and midsized retailers are doing well online. The opportunity to expand on this success exists, but steps must be taken to compete with more prominent players in delivery speed and overall operational efficiency.

E-commerce Companies Will Increase Their Technology Spending

Technology investment will be at the forefront of retail strategies in 2022, with 68 percent of retailers planning to increase their technology spending over the next year. Web personalization, social media marketing, and expanding online payment options are among the significant technology initiatives online retailers will prioritize in 2022.