Five Predictions for eCommerce Growth in 2023

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SUMO Heavy

4 min readDec 21, 2022

eCommerce is one of the fastest-growing sectors in our economy, with a projected growth rate from 17% in 2018 to 23% by 2025. As technology continues to develop and shape consumer behavior, it is worth considering what the future could hold for the industry over the next five years. In this article, we will be making five predictions for eCommerce growth in 2023.

The global pandemic has accelerated the adoption of digital eCommerce

eCommerce sales rose from $571.2 billion in 2019 to $815.4 billion in 2020, the first year of the pandemic, according to the most recent 2020 ARTS release, a surge of $244.2 billion or 43%.

Companies worldwide have responded to the pandemic by making digital transformation a crucial part of their operations to stay ahead of the curve. From increased efficiency and reduced costs, businesses have seen the benefits such changes can provide — enabling them to remain agile amidst rapidly changing markets. It’s clear that leveraging tech-driven solutions is no longer optional; it’s become fundamental for organizations seeking success in this new typical environment.

By 2023, digital commerce will account for 22% of all retail sales.

According to research completed by eMarketer and Statista, online retail sales will reach $6.51 trillion by 2023 and will account for 22% of all retail sales by then. This shift towards online shopping continues to accelerate. This means that eCommerce can no longer be seen simply as an add-on or afterthought for retailers; it must become a crucial part of their strategies from now on. As the eCommerce sector continues to grow, retailers must continue developing their understanding and capabilities to capitalize on their potential.

M-commerce will grow to 30% of digital commerce by 2023

The eCommerce market is expected to grow to 30% of all digital commerce by 2023, and this shift toward mobile commerce is already being reflected throughout the eCommerce market today.

Studies validate that browsing products and making purchases through mobile devices account for more than a quarter of eCommerce sales, showcasing the increased adoption of m-Commerce technology.

Mobile shopping is quickly becoming a preferred choice for consumers, with retail m-commerce sales skyrocketing by 15.2% in 2021 to an incredible $359.32 billion. Projections show that these figures are only going higher and should more than double before 2025; US consumer spending through this channel could top out at around 44.2%, proving mobile commerce as the main driver of growth for eCommerce success today and into the future.

Businesses need to invest in best practices for mobile optimization now more than ever to stay ahead of their competition and remain competitive through the growth of this sector.

Social commerce will double in the next three years

The age of social commerce is upon us, and there’s every reason to believe that it will continue to grow exponentially over the coming years.

This year, US retail, social commerce sales will skyrocket to over $53 billion and continue accelerating throughout the next three years. By 2025, this sector will be expected to reach an impressive total of almost $107 billion.

Thanks to social media platforms like Tiktok, influencers are now leveraging their power to turn a profit. This has spurred an impressive increase in monetization opportunities online.

Meanwhile, tech-enabled features like contactless shopping have made it easier for shoppers to purchase products without leaving their homes — a convenient option proving increasingly popular amongst consumers looking for speed and ease during online transactions. Social commerce is undeniably a strong force in today’s rapidly changing digital landscape, providing brands with the ability to reach massive audiences and boost profits. Its success looks set to continue as many companies embrace its revolutionary potential.

Personalization and recommendations will become more critical than ever before

Reviews and ratings are becoming integral tools for providing insight into customer experiences. With feedback from end users, businesses can gain invaluable insight into optimizing their products or services while cultivating brand loyalty.

By unlocking the potential of a limitless wellspring of data, companies can craft custom-made experiences for their customers. This leads to decisions made with greater accuracy and insight, inspiring strong customer loyalty in the process. Very few businesses can survive without reviews, as they are an invaluable source for understanding what customers think about your brand, making them more critical than ever before.

Summary

The global pandemic has firmly established digital commerce as a necessary part of the new normal.
In particular, businesses across all industries have recognized the importance of shifting their processes and operations to digital technologies and increasing their reliance on digital strategies.
Many businesses have seen the benefits of utilizing digital technologies to support the supply chain, from improved efficiencies to reduced customer costs, making digital transformation a key focus for companies worldwide.
By 2023, digital commerce will account for 22% of all retail sales.
eCommerce is expected to grow to 30% of all digital commerce by 2023, and this shift toward M-commerce (mobile commerce) is already reflected throughout the eCommerce market today.
Social Commerce will double in size within three years due primarily to increased power held by social media influencers and features like contactless shopping, allowing easy transactions without leaving home.
Personalization and recommendations will become more important than ever before as we continue digitizing our world because they provide customers with tailored experiences that result in solid customer loyalty.

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