Online shopping

Online shopping on the rise

While online shopping was already on the rise before 2020, the pandemic has accelerated the growth of e-commerce around the world, with revenues expected to reach US$5.4 trillion in 2022.

It’s a big business and there are huge opportunities for brands that are on the lookout for emerging trends and customer behavior. In Australia alone, grow predictions put the market on track to reach AU$21.7 billion by the end of 2025, up from AU$13.9 billion in 2017.

Research of Klarna shows that while physical stores aren’t going anywhere and people still love the thrill of checkout, more and more people are also enjoying shopping online from the comfort of their homes.

We take a look at some of the e-commerce trends you need to prepare for in 2022 to stay on top of this growing market.

1. Be sustainable and grow

Regardless of the purchasing method used, companies are being warned as consumers increasingly choose how to spend their money based on the impact of their purchases on the environment and society.

According to the 202 Inside Retail/Klarna Australia Consumer Survey, 47% of shoppers say it is very important to them to shop from retailers who support good causes. Additionally, 69% of respondents say they started shopping with a new brand because they admire its social impact activities.

Klarna’s research shows that shoppers have very clear ideas about what they want retailers to focus on when supporting social initiatives. The top priority is for retailers to provide evidence of the impact of their efforts (55%) and not just for advertising.

They know when a retailer has done wrong and act quickly. While positive initiatives may have spurred them to shop at a retailer, 59% say they stopped when there was negative press.

Attract, convert and retain customers with Klarna. Flexible payment options and impactful marketing solutions.

2. Social Commerce

Smart marketing means meeting your buyers on the apps or platforms where they are already. According to Klarna’s Shopping Pulse, on average, 33% of shoppers bought a product after seeing it on social media. And about half of them did it directly from the platform.

Why fire someone from a platform when they can buy the product offered in one click?

Facebook, Instagram, Pinterest, and WeChat already have a head start, and YouTube, TikTok, and Twitter have all announced plans to join.

This is a good thing if you are targeting a younger market. One in three consumers under the age of 40 use social commerce, with research from Klarna showing that 78% of Gen Z and 79% of Millennials say they have purchased a product after seeing it on social media.

It’s time to consider adding the option to click and buy.

3. Make purchases on mobile devices

While most shoppers still prefer traditional desktop or laptop computers when shopping online, the preference for mobile devices is increasing, according to Klarna’s Shopping Pulse.

Globally, computers are still number one with 49% of users buying on a laptop or desktop, but mobile is steadily increasing and is now in second place at 35%. In Australia, the gap between first and second is even smaller, with 49% of people using computers to make purchases, compared to 41% using mobiles.

4. Live broadcast

Taking it to the next level on social media is the emerging trend of Direct purchases.

It’s a bit like being in a brick and mortar store, with a salesperson on hand to help, only consumers can do that from anywhere. Influencers and brand reps review a product’s selling points, while consumers debate pros and cons and ask for real-time advice.

It is already big in China and is starting to take off in the United States. Research predicts that in 2022, online commerce in China will reach 446 billion US dollars, or 15% of total online sales.

According IBMsustainable packaging is decisive for up to 72% of global consumers.

The bottom line is that money talks, and companies that don’t read the signs will fall behind when consumers make their case through their buying power.

5. What does the future hold?

Although technology is changing rapidly and shoppers are quickly seizing opportunities for innovative ways to shop, there is still a general belief that the majority of purchases will be in physical stores a year from now.

Klarna’s research shows that physical stores are still a key resource for many shoppers, but it also highlights the growth of online shopping, with predictions that next year more people will fill their online shopping cart.

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