What tech trends are driving innovation and shaping the ecommerce sector?
Last week, Manchester Digital asked some of our sponsors of the Ecommerce Conference what tech trends they anticipate to be driving innovation within the ecommerce sector in 2023. This week, we're asking some of our members and other businesses from across the sector for their insight.
Featuring Space 48, Hyperfinity, Fluid Commerce, Dark Horse, and Creative Content Works.
Space 48
A headless approach to commerce can support big brands' prospect of creating engaging experiences that merge the barriers between online and in-store commerce.
Headless commerce is a term used to describe a decoupled architecture wherein the back-end system that powers a website (including the inventory, checkout, CMS, and CRM) is separate from the front-end user interface. Headless commerce systems are API-driven and easily integrated with other applications and platforms. Its versatility allows brands to create custom experiences for their customers, allowing for seamless experiences, regardless of whether they are shopping online or in-store. With headless commerce, brands can easily connect their online and offline channels, providing customers with a consistent experience no matter how they shop. As this technology continues to evolve, headless commerce will become even more powerful, enabling brands to create truly unique and engaging shopping experiences for their customers.
Ai-written content offers quick and dynamic opportunities to create content.
Technology is making strides in creating AI-written content. Platforms like Scalenut and Jasper use the same language parsing algorithms as search engine bots to produce high-quality articles on demand with very little human input. Allowing brands to create content at scale, making them popular among businesses looking for faster turnarounds but still want their identity maintained online. The drawbacks to this approach are that sometimes the AI-written content is difficult for humans and lacks emotion or coherence. However, as technology continues improving in its ability to create engaging material, there will likely be an increasing importance placed on using such techniques with SEO strategies.
In Summary, the big takeaway is that some exciting and potentially game-changing shifts are happening in how software is created and deployed. These two examples only scratch the surface of what is possible. Still, they highlight some significant areas of change: increasing personalisation & intelligence and blurring lines between online & offline experiences.
Click here to find out more about Space 48
Hyperfinity
We’re living through a well-documented period of economic uncertainty. The ecommerce companies that survive and thrive will do so by making the best possible commercial decisions.
A tech trend I’m excited about is the rise of decision intelligence. Using data science and AI to understand customer behaviour and needs, then applying that insight to make great commercial decisions.
For example, the product range to offer, how to merchandise it to maximise conversions, how it’s marketed to customers in personalised ways, and how pricing and promotions are optimised to maximise margin.
Decision intelligence is all about putting the power of data science and AI in the hands of business users, regardless of whether they can code. Democratising access to data science and AI offers huge potential for ecommerce companies to differentiate from their competitors.
Retail media is another trend that’s taking ecommerce by storm. It enables brands to reach their target audience online with much greater certainty, and retailers to open a new, highly profitable revenue stream.
Key to a successful retail media operation is intelligence use of first party data. Understanding customers through the lens of which products they buy and browse, then targeting them with compelling ads when they’re on a shopping mission, will yield higher sales for retailers and more satisfied customers.
Click here to find out more about Hyperfinity
Fluid Commerce
Live Shopping - or Live Commerce - has to be one of the most exciting trends at the moment. Not solely because of the exciting revenue figures and conversion rate it is set to generate, but because in the UK it is still a fresh opportunity for brands of all sizes to differentiate themselves from the competition.
Live Commerce presents a new marketing channel for online stores to explore, and a way for retailers to connect with their online customers by presenting their personality, products and culture in a new and interactive way.
Live Shopping can be used for large groups to present a wide range of products, but it can also be used on a one-to-one basis to provide a more personalised private-shopping feel.
Recordings from live shopping events can then be re-used and edited to create a whole host of new on-site and social media content for future campaigns.
The growth trajectory of live commerce is set to explode in the next four years. A report by McKinsey’s on the topic stated that, “live-commerce-initiated sales could account for as much as 10 to 20 percent of all ecommerce by 2026”.
Early-adopters of live commerce are already benefiting from this new channel, and learning how to create the best live shopping experiences. Some brands have reported record daily sales and conversion rates of over 30%. It is certainly a trend to watch over the next 12 months.
Click here to find out more about Fluid Commerce
Dark Horse
Performance Max from Google is the biggest new tech trend we see coming in from a PPC perspective that is driving innovation within the e-commerce sector. In simple terms Performance Max or pMax is about unifying shopping with other channels such as search, display and video. It is blurring the line between how you reach your audience across all these channels. We’ve seen Performance Max as an upgrade on the old smart shopping campaigns and allows the user to apply it easily – to help make the campaign perform better. Although it is only a year old, it has been adopted very quickly across the digital space, but it is still, very much, in its infancy.
The reason we see the pMax as an innovative trend is partly due to its fast adoption but also due to the positive effect it is having on the automation and performance improvements. Campaigns are seeing successes with it. However, it isn’t all bright lights, the flipside is the lack of visibility and control. You need to be aware of any branded or unwanted competitor search terms coming through that might falsely inflate your revenue or ROAS. There’s also a danger of leads coming through that have circumnavigated your negative keywords list. You can add a negative keyword list, but you will need to go through Google support rather than the conventional way.
We definitely see pMax having a place in ecommerce, however, it is about trialling and testing different strategies as best practice will vary depending on the vertical you are based in. The overall trend is exciting, although it remains to be seen whether Google will allow more control (as mentioned before with allowing negative keywords but only if you apply for them), or if it will double down on black box technology.
Click here to find out more about Dark Horse
Creative Content Works
We’re on the verge of a new frontier of commerce. The way we interact with the internet will evolve over the next decades to a fully immersive 3D world from the 2D internet that we know so well. This will have a profound impact on the way we work, play and shop. Ecommerce is a bi-product of the 2D internet. What the future holds for eCommerce in the Metaverse age is still evolving. One thing that is clear is that brands can take steps to prepare for that future today, by investing in Metaverse ready content. This investment can be used now in the 2D internet for the creation of better still and moving product imagery as well as the seeds for the future 3D Metaverse - AR and VR and immersive product customisation. This will ultimately enable those brands to cut through the noise, better engage audiences and improve the quality of their shopping experiences.
Metaverse Ready Content
The brands of tomorrow, will be those that blur the lines between the physical and digital customer experience to engage on a more meaningful level with Metaverse Ready Content. We predict that there will be a rise in the use of CGI and Digital Twin Technology, allowing you to create an exact replica or “digital twin” of your products in a virtual space. You can model everything from shoes, to handbags and small accessories to large furniture and complex products and environments. In a nutshell, Digital Twin technology sets the foundation for what’s possible in the Metaverse. You can take your 3D model and make it playable (think 360 spins, videos and more).
AR In-Room Product Previews
At CCW, we think Augmented Reality (AR) and “In-Room” Product Previews are here to stay. The better and more accurate your product imagery is on your website and in your marketing material - the more confident the shopper will be in their purchasing decisions. If buyers can effectively “try before they buy” or visualise a product in their own home - the more confident they’ll feel to convert. We believe AR is a quick win that will lead to fewer returns, less shipping costs and ultimately make a demonstrable difference to your bottom line.
3D Product Configurators
3D and interactive product configurators are another tool we’re starting to see more of in the online retail and B2B space. Just as with AR - Configurators will soon become the norm allowing buyers to visualise, and customise products in stunning 3D environments. Configurators remove barriers to what is often a lengthy sales process. A simple concept well executed could be the difference between a lost sale and a lifelong customer. Critical in today’s ever-more competitive retail landscape.
Click here to find out more about Creative Content Works
