Shaping Your Ecommerce Strategy in 2022 Key Industry Trends
The world’s eCommerce market has seen unprecedented growth since the onset of the viral pandemic. The”pandemic effect” or “pandemic effect” caused massive spikes in online shopping, particularly among first-time buyers, and the rapid growth of newer business models for e-commerce, such as the online grocery store and last-mile delivery.
As the boom in e-commerce continued into 2020, The world has changed in various ways. We see less restrictive restrictions on offline shopping and ongoing disruptions to global supply chains and production. Do these issues harm the popularity of shopping online? What trends have disappeared into the distance and which remain to be here to
This report draws insights from data from the Semrush. Trends platform to address these issues. We examine the scope of the eCommerce boom to 2021 and outline some of the emerging trends in eCommerce that are expected to stay. All to assist you in forming a more effective strategy based on insight-driven digital marketing for your business’s e-commerce in the future.
The Ecommerce industry's global trends and shifts The slowdown in traffic, the diversity of Geo as well ...?
In terms of dollars, the e-commerce sector has experienced an increase of double-digits over the last decade. On the other hand, traffic-wise, we’ve noticed an identical pattern. Shoppers are increasingly using websites to search for products available for purchase.
COVID has only contributed to this trend. Over a year, (YoY) traffic patterns across all industries show that from 2019 to 2020, online retailers had 27% more customers. When we consider the most popular times for e-commerce, namely the winter and pre-seasonal season, November 2020 traffic was at an all-time high.
However, has this trend continued through 2021? The traffic data shows that although online shopping platforms’ popularity is still strong, it hasn’t increased. It appears that consumers have cooled off their online shopping craze. If you add the Q3 2020 numbers with the Q3 2021 data, we observe that the e-commerce market in 2021 decreased by two percent.
What does this mean? For a business based on e-commerce, it is no longer possible to solely rely on the expanding market to benefit from the general expansion. When the market slows down, it is time to reorient your marketing strategy to expand your market share.
online shoppers’ Behavior Changes
The pandemic was characterized by massive growth in desktop use in terms of changing user behavior. With more people staying at home, mobile surfing was less prevalent, and many users switched to desktops at home whenever they had to search for some information on the internet.
Does this affect the device breakdown in eCommerce? However, what is the impact on device breakdown?
By 2021, mobile internet traffic is the most popular online shopping method, with over 56% of shoppers browsing e-commerce websites on their mobile phones.
Since the beginning of this pandemic, the use of desktops has increased. In November of 2020, the mobile-desktop gap was extremely close. The gap increased again when the globe gradually returned to some pandemics restrictions.
Yet, desktop growth seems to have stayed for a long time, and the current desktop traffic is higher than the pre-pandemic levels by approximately 60 percent.
What does this mean? While we all operate in the age of mobile-first and mobile experiences remain essential, don’t ignore the desktop entirely. In the world of e-commerce, desktop traffic share is similar to mobile traffic; therefore you need to make sure that you cater to mobile and desktop customers and offer an excellent experience across all devices.
Where are Online Shoppers From?
*The calculations are based on the traffic statistics for websites with e-commerce which the Semrush. Trends solution classifies within the Ecommerce category.
The explosion of eCommerce has taken across the globe. However, as you’d expect, those countries with the highest GDPs in the world draw the highest amount of traffic to e-commerce websites.
The US, UK, and Germany are the top three countries with the highest online consumer percentage. The other list is logical, with the top 10 listed here being nearly perfectly aligned and the top 10 nations in terms of GDP.
What does this mean? The English-speaking world dominates the world of e-commerce. However, suppose you are thinking about increasing the market. In that case, you may think about different markets like France, Germany, and Japan and translate your site (or, as with Amazon, which has an additional place) to non-English-speaking customers.
Leading E-commerce Marketplace Players (Global)
In the case of top online retailers, companies based in the United States are the most popular. Amazon, eBay, and Walmart have the biggest traffic share, with Walmart growing at 21%, which is the most of 2021.
Although Asian firms are an entity to be reckoned with because Asia (particularly China) has the largest digital-first population in the world, China-based Aliexpress has the highest decline in traffic of -19%. We could blame the supply chain or more effective marketing strategies employed by other companies, but the pattern is evident.
As we witnessed in our country-by-country traffic analysis, Germany shows many positive signs. The local Amazon site has the fifth highest market share in the eCommerce industry and has the second-fastest growth trend.
The Top Online Ecommerce Player according to Region
While big players like Amazon dominate the market for online shopping across the globe, however, there are some regional variations.
Amazon is the most popular e-commerce brand in North America and Europe. The third place spot comprises local European brands, including the Netherlands-based Bol.com and the Shina-based Aliexpress.com.
The most significant differences in the global picture of e-commerce are in non-western areas, such as MEA (the Middle East and Africa), LATAM (Latin America) as well as APAC (Asia-Pacific).
The MEA’s top 3 brands in the region are all Turkish-based. Turkey has witnessed one of the most rapid growth trends, with the eCommerce explosion more than doubled from 2017 to 2021, reaching over $ 22 billion.
The most well-known e-tailers in Latin America are also more localized including the Argentina-based MercadoLibre (MercadoLivre located in Brazil) and Brazil-based Americanas being among the top.
The top spot in APAC is filled with more well-known names such as Rakuten and Flipkart, globally well-known brands.
Ecommerce Industry: Are US Trends Any Different?
Since the majority of shoppers who shop online and the best brands are from the US, We’ve chosen to examine how the trends of the previous section are different in the most successful eCommerce regions.
In line with its global position, Amazon holds the #1 spot among the top e-commerce websites within the US. The market has an impressive 40% market share, which is more than the five competitors closest to it together.
Suppose we look at how the YoY market share growth, however, we will find that in 2021 Walmart has lost a significant share in the marketplace, nearly 10 percent. Of the top three companies in the marketplace, Walmart (+8%) was the only one that saw its market share grow in 2021.
The most rapid growth rates go to the less well-known competitors, Lowe’s (+14 percent), as well as Etsy (+10 10%).
In general, we’re witnessing several mixed trends across the United States. While some brands are still benefiting from the past year’s e-commerce boom of the past, year, Others, particularly the biggest brands, are already beginning to see the impact of the market’s slowdown.
What does this mean? If you’re competing to win the interest of the US viewers, the battle gets more brutal. Smaller players are growing, but the bigger players have a substantial, even dominant, Amazon’s case. In this regard, it is vital to concentrate on the competitive landscape and develop strategies that allow you to stand-out from the other players.
US Ecommerce Market Size (Dec 2020-Dec, 2021)
Every market has a considerable growth potential. However, the majority of players don’t realize the size of the market. We gathered a potential audience for the most prominent e-commerce players across the US to estimate the market size for the nation.
We examined the statistics on demand for the products that US E-tailers offered (based on the number of keywords they are using and the traffic they generate to these keywords) and followed this up with their existing customer base. We discovered:
- A total addressable marketplace (TAM) for online-based goods across the US is 6.7 billion. Per suppose, this does not mean that if you were to have 100% of the market, you’d have more than 7 billion customers. That means that if you sell every product offered on the market of e-commerce in the US, it would be possible to expect to earn around 7 billion points from these products. However, not necessarily sales.
- The US’s total market for available goods (SAM) is 5.8 billion. This is a more sales-focused figure and shows the number of sales that could be made when you have a total market share in the e-commerce sector across the US.
What does this mean? Indeed, there is no way to have a total market share in any field. Still, this figure, particularly when you consider it over time, provides an actual picture of the size of the market online than basic traffic statistics, which clearly indicate the market’s potential is not fully realized.
Leading US e-commerce Players Are Market Leaders Still Leading, and who has the potential to change this Game?
How can you interpret this image: each brand is represented by two bubbles of the exact hue. The brighter bubble shows where the brand was in December 2021. the darker one shows the state it was in December of 2019. The line in the middle shows the market position of each brand over the two years that were analyzed, which helps identify the most significant shifts in the market.
In a shift from a purely abstract picture of the market and focusing on actual data, we’ll find that the e-commerce industry in the US was experiencing lots of fluctuation over the last year:
- The general slowdown in market growth has left its impression on the major online retailers’ market positions. Half of the top e-commerce brands’ positions weakened between 2021 and 2020.
- Without any game-changing brands -aka the ones with the fastest traffic growth, but with smaller traffic shares-we can find most players adhering to their Game status. For example, Kohl’s and Etsy were unable to maintain their quality as game changers and are now niche players. BestBuy and Target are also diving even deeper into the niche player category.
- The most significant shifts were observed in those in the Established Player roles. Because of its large traffic share and rapid growth, Walmart is the only online retailer that can compete with eBay for the Leader title in 2021. Amazon and eBay, 2020’s Leaders, lost their position in 2021 and are now among the Established Players who are brands with huge market share but a slow growth rate.
How Do Top Ecommerce Brands Create Traffic?
The US eCommerce players have always been the leaders in marketing strategies, we’ll look at the most successful strategies for acquiring traffic. What is the difference between top US players’ strategies and worldwide traffic generation trends?
Please find out more about it here.
E-tailers"Traffic Generation Strategy (Global)
When we analyze the general patterns of traffic acquisition for the top e-commerce brands across the globe, we find that direct traffic dominates the entire market.
This means that brand awareness is one of the most effective tools in the toolbox of eCommerce marketers. In the past, direct traffic has been responsible for more than 40% of the traffic in the eCommerce market, and this growth rate was only amplified during the outbreak and continued to increase from that time.
Social traffic share and paid advertising has not seen many changes in the past couple of years, so the changes are coming from somewhere else.
It appears that search has provided an opportunity for referrals as the second largest source of traffic for online stores, which means that solid marketing partnerships and link-building strategies can be very effective soon when acquiring traffic strategy.
What does this mean? Businesses that sell on the internet depended for years on the brand’s recognition; however, in 2021, this is becoming more prevalent. If you need to choose your investment on marketing efforts, make sure you give preference to brand recognition and partnerships that could generate referral traffic.
The Most Popular Ecommerce Players in the US. Acquisition Strategies
To analyze the US brands using traffic generation strategies, we examined the three top E-tailers: Amazon, eBay, and Walmart.
Overall, the picture appears comparable to the global view. The three brands receive the bulk of their traffic via direct sources, while referrals are regarded as the second-most important traffic source.
However, if we take a view at the YoY traffic breakdown of the three online stores, We’ll see a clear view of the situation:
- Amazon, the US company which lost the most significant percentage of market shares in the year 2021, has seen a substantial decline (-13 percent) on direct visits. The loss of Amazon’s traffic is not a surprise when we think of the importance of brand recognition as a key marketing strategy for e-commerce websites. Amazon also saw a huge decrease in search (-23 percent) and paid (-8 percent) traffic, which is a pattern that runs in line with general trends in the industry.
- The same is true in the case of eBay, the market’s leader, which had its traffic decline in 2021. They experienced a decrease of direct visitors (-10 percent) and also search and paid channels but saw a rise in referrals (+17 percent). The brand may have been saved from losing part of the market in the US.
- Today, Walmart, the only US brand that holds an impressive market share as well as had its traffic increase only up, was doing something right through 2021. Contrary to the other two brands, each of Walmart’s traffic sources attracted a more significant number of visitors, and the one exception was being paid. The number of visitors to Walmart’s website was up by 24%, which is why it’s worthwhile to take an in-depth look at its social media strategy to get some ideas.
What does this mean? It’s fascinating to observe the close correlation between industry best practices and changes to the actual breakdown of traffic channel-by-channel for certain online retailers. Direct traffic is thought to be the best source of traffic for the business. Those that are losing some viewers from the channel are immediately showing slow growth rates.
The reason people turn to E-tailers: The Most Wanted products and Calls-to-Action
The primary question for any business that uses e-commerce is, “What do customers want?” From country to nation, customers turn to websites for e-commerce to purchase various items. In the US, most of the time, it’s high-tech items that draw customers to shop online
- The most popular Amazon pages are dedicated explicitly to AirPods as well as Fire TV Stick. Fire TV Stick with Alexa Voice Remote. Rapid tests related to pandemics for COVID were among the top three.
- The eBay users also enjoy headphones, however, they prefer Harman Kardon and JBL.
- Customers who shop at Walmart tend to be the most attracted by all things gaming, and Sony PlayStation 5 and Xbox dominate the top list of wanted items. To be clear, PlayStation’s console pages draw twice the number of people who visit it compared to Xbox!
The Most Popular Product on Amazon of 2021
The cumulative look at the top items sold on several online retailers typically included gadgets, electronics and other pandemic-related items. The most popular internal Amazon searches were quite different.
Thanks to Sellzone’s Keyword Wizard tool, we determined which items users were most interested in on Amazon in 2021.
The top-rated items on the market show a wide range of products, such as electronics, clothing, beauty, and health. Our latest Amazon price analysis illustrates that these categories show an enormous price difference.
Although this study shows that the price isn’t a significant aspect of Amazon trending products, seasonality is likely to play a more substantial role, as evidenced by the look of bathing suits with covers up and 4th of July shirts. To find a wealth of information regarding price and seasonal trends, look up Amazon’s Amazon Pricing Study.
What is it that makes online Shopping Customers click?
Each platform is a different place with its triggers – words also known as CTAs (calls-to-action) designed to encourage users to click the advertisement for the product and then choose one of the platforms over another.
We’ve examined hundreds of digital advertisements of the ten most popular e-tailers across the US and identified the most well-known CTAs in their ad copy:
Terms such as “deal,” “free shipping,” words “deal,” “free shipping,” and “free/easy return” are used in the majority of the ads for marketplaces. The primary message is based around these three promises, but with specific nuances:
- Online pharmacies such as CVS have health-related CTAs, and COVID testing is among the top trigger words that are most well-known.
- Kohl’s frequently emphasizes its sale alerts service and effortless online shopping.
- BestBuy typically promises a one-hour delivery time, which suggests that the market trusts the speed at which it ships. It’s the same with Target, but its service is more time-bound, with a minimum of one day.
- eBay is a popular choice for customers due to its focus on its top brand selection.
- Etsy, in contrast to other online retailers, emphasizes safe shopping.
We can’t declare that these advertisements are the most effective yet. However, if businesses selling e-commerce advertise with particular words repeatedly, they’re working the best.
Insight-Driven Strategies to Shape your 2022 Marketing Strategy for E-commerce
Most marketers who work in eCommerce believed that the growth caused by pandemics would continue. Pre-COVID forecasts indicated that 2020 could be more significant than 2019, while 2021 could be even more.
However, COVID changed the steady growth and predictable patterns of the market, leading to an astonishing increase in online sales through 2020. However, in 2021 when the offline market began a slow but steady opening, the market’s expansion slowed down and was even blocked.
The report analyzed some of the major 2021 trends in the digital E-commerce industry specifically to assist those who have to decide on the eCommerce market. Here are some of the essential aspects to remember when developing your marketing strategy for the coming year:
• market share has come coming back
The e-commerce market growth of 2020 promised a growing audience base and, consequently, less competition. However, the development of e-commerce has diminished, and your marketing strategies must now concentrate on your competitors and increase your market share.
• Desktop experiences are also meaningful.
Although mobile is the most popular device, e-commerce sites have a similar percentage of desktop shoppers. Therefore, cross-device optimization is the only option to provide an unbeatable UX and a smooth UI experience for all users.
• Consider expanding your target market.
While the English-speaking world accounts for the highest traffic share of e-commerce websites, other geos could help you increase your market share overall and attract more customers, which means more sales and, consequently, increased money to spend on other marketing campaigns.
France, Germany, and Japan have large populations that are avid about online shopping, So you might be tempted to take advantage of these markets before your competitors do.
• The US online market is becoming more challenging to conquer
The more prominent players are losing a part of their market share to smaller competitors. It’s a promising trend, but you’ll need to contend with the most prominent players in the global e-commerce market, including Amazon, eBay, and Walmart.
It appears like the only strategy that works here is to study the competition from afar and develop inventive strategies to aid you in beating more robust opponents.
• Prioritize brand awareness and marketing over all other things
The post-pandemic period of e-commerce is characterized by the growth of traffic from direct sources. In contrast to other trends that faded in 2021, this trend seems to have remained. Brand awareness campaigns are essential to attracting more people to your site and growing the market you are in. Anything that brings you referral traffic–co-marketing campaigns, various partnerships, and link-building–should also be within your focus.
• Check your home regularly
While we’ve attempted to highlight the e-commerce trends expected to remain for the long haul, the market is evolving rapidly. Therefore, you’ll be in unfamiliar waters, trying new strategies, products, and strategies. To succeed, it is essential to have all the information you can gain from the market and the competitors. Semrush.Trends is an excellent example of this.
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