2023 Commerce Trends

The empowered, digitally-savvy consumers of today are demanding more personalized experiences, seamless omnichannel interactions, and sustainable and ethical practices from the brands they engage with. For organisations trying to develop long-lasting client relationships and loyalty, understanding these shifting consumer expectations is essential.

Keeping an eye on the pulse of developing trends is essential in this 24/7 globally connected world of commerce. As we enter 2023, the landscape continues to change quickly. Because of technical developments, shifting consumer habits, and the ever-changing global economy you must stay ahead of the curve and change your strategies quickly in order to to achieve long-term growth and success.

This article examines the most recent commerce trends that are changing how businesses operate, interact with clients and prioritise capex investment.

Unified Commerce

All channels, touchpoints, and consumer interactions are seamlessly integrated by unified commerce to create a seamless and uniform experience. By dismantling the barriers between physical stores, e-commerce platforms, mobile applications, social media, and any other customer touchpoints, it goes beyond the conventional multi-channel or omni-channel techniques.

The goal of unified commerce is to create a personalised and frictionless buying experience across all channels while also optimising operations and generating a consolidated perspective of the customer. With this strategy, retailers may lower barriers, get rid of duplication, and use data to acquire useful insights that will ultimately increase consumer pleasure, brand loyalty, and revenue.

By adopting unified commerce, businesses can respond to the constantly changing demands and preferences of their customers by offering a connected and seamless experience from discovery to purchase, regardless of the channel or device the customer chooses to use.

NextGen POS

The way that businesses process transactions and engage with customers is changing thanks to Next-generation Point of Sale (POS) systems. Modern, cloud-based POS solutions that offer a wide range of functions and capabilities are replacing outdated cash registers in a noticeable way.. These modern POS systems seamlessly link to commerce websites, inventory management systems, customer relationship management (CRM) tools, and other essential business software. By offering real-time data and analytics for informed decision-making, they give businesses a centralised perspective of their operations. Next-gen POS systems enhance the customer experience, speed up checkout processes, and increase customer loyalty with features like mobile payments, contactless transactions, and personalised customer profiles. They also enable companies to optimise employee scheduling, automate sales reporting, and manage inventory effectively. The usage of next-gen POS systems will increase as we move further into 2023, revolutionising how businesses run and interact with customers while also allowing them to remain adaptable in a constantly changing commerce landscape.

Customer in-store expectations are higher than ever, with consumers seeking personalized interactions, seamless omnichannel experiences, and immersive environments that blend the best of physical and digital realms.

Gone are the days of having a proprietary POS system that is independent of your users checkout journey, for future customers POS and checkout need to be working together, in the same system.

https://www.cabiri.io/blog/modern-pos-with-composable-commerce

Frictionless Checkout

We like Trigo’s description of a store from their white paper ‘How Trigo brought frictionless checkout to market’ - “A store is a living creature; there are so many variables and moving parts that create unique challenges that grocers must face on a daily basis. The unpredictable human interactions, dynamic store operations, and physical limitations dictate if the store will be a success or a failure.” Trigo want frictionless checkout from them to make grocery shopping a better experience by not removing the parts of physical shopping that their customers like. Tech will be infused into real-world experience but not be shaped by it. We’re not totally in agreement with that final point but we do appreciate detraction free shopping and also the art of tailoring frictionless in the way that Trigo has done for their customers.

Frictionless Checkout refers to the seamless and easy process of making a purchase, without obstacles, delays or touch. A good example of zero touch is KFC, their customers in China have been smiling to pay since 2017, a payment approach perfect for fast food retailers. This isn’t new and it doesn’t need be zero touch, retailers can adopt light-touch payment such as palm or fingerprint recognition. Despite ongoing questions surrounding biometric privacy and data handling, biometric continues to gather momentum. Cabiri are expecting this trend to strengthen with increased global adoption of hygienic touch-free technology like Smile&Pay and more investment in the testing of palm and voice recognition. Looking further forward, voice activation looks set to grow.

In summary, two words favored by ChatGPT alongside the oxford comma, frictionless zero and light-touch technologies will continue to grow, again following China, with deeper inroads into social, live and social/live commerce. For Cabiri Frictionless Checkout embraces not only the act of payment but also Better POS.

Personalisation

With an increasing focus on customer-centric experiences, businesses are leveraging advanced technologies and data analytics to deliver highly tailored and relevant interactions. By capturing and analyzing customer data, businesses can gain insights into individual preferences, behaviors, and purchase history, enabling them to create personalized product recommendations, targeted offers, and customized marketing campaigns. Personalization extends beyond product recommendations, with businesses also personalizing website experiences, emails, and customer support interactions. Moreover, advancements in artificial intelligence and machine learning are enabling businesses to automate and scale personalization efforts, ensuring consistent and seamless experiences across multiple touchpoints. In 2023, personalization not only enhances customer satisfaction and engagement but also drives customer loyalty and increases conversion rates. Businesses that embrace personalization as a strategic priority can stand out in a crowded market, building lasting relationships with customers and staying ahead of the competition.

Growing adoption of Composable Commerce

The next generation of headless commerce, known as composable commerce and poised to revolutionize the way businesses approach their commerce infrastructure in 2023. This exciting concept promotes flexibility, modularity, and agility by allowing businesses to create and customise their commerce ecosystems using a range of independent, extensible services. Composable commerce allows for a highly customised and scalable strategy by enabling companies to choose and integrate best-in-class solutions for a variety of tasks, including payments, order management, inventory management, and fulfilment. Businesses can quickly react to shifting market dynamics, test out new technologies, and streamline processes by using microservices design and APIs. Additionally, easy connection with third-party platforms and marketplaces is made possible via composable commerce, increasing reach and generating new revenue sources. Businesses who use composable commerce will have a competitive advantage as we go towards 2023 because they will be better able to adapt to changing client expectations, provide individualised experiences, and realise the full potential of their commerce strategy.

Composable commerce requires a deeper understanding and awareness to fully leverage its benefits. While composable commerce is gaining traction, many organizations are still in the early stages of comprehending its principles and implications. However, there are pioneers like Cabiri who have been practising similar ideas long before the term "MACH" (Microservices, API-first, Cloud-native, Headless) even emerged. Cabiri recognized the value of modularity, flexibility, and interoperability in commerce ecosystems, and they championed the adoption of these principles before they were widely acknowledged. As the understanding of composable commerce grows, organizations can benefit from the lessons and experiences of early adopters to drive innovation, enhance customer experiences, and stay ahead in the rapidly evolving commerce landscape.

Voice Commerce

The way customers engage with companies and make buying decisions about what to buy is being revolutionised by voice commerce, an emerging trend in the world of commerce. With the popularity of voice assistants like Apple's Siri and Amazon's Alexa expanding, people can now easily purchase and communicate with businesses using voice commands. Users may use this technology to browse for items, place purchases, and even get personalised suggestions all through straightforward speech interactions, providing a smooth and hands-free experience. Voice commerce is giving customers greater convenience, but it's also giving businesses new ways to communicate with their target market in a more personalised and natural way. Organisations that adopt voice commerce will be well-positioned to deliver excellent customer experiences and gain as this trend picks up steam.

Social Media

Social media continues to be a dominant force, shaping customer behaviours, influencing purchase decisions, and providing unique opportunities for businesses to connect with their target audiences. With the increasing integration of social commerce features, such as shoppable posts and in-app purchasing options, social media platforms have become virtual marketplaces where customers can discover, research, and buy products seamlessly.

Beyond direct selling, social media platforms also serve as powerful marketing tools, allowing businesses to build brand awareness, engage with customers in real time, and leverage user-generated content for authentic social proof. Social media has also developed into a crucial avenue for customer support, offering quick responses, individualised connections, and efficient problem solving. Businesses who adopt social media as an essential component of their commerce strategy will gain a competitive edge by utilising the enormous potential for consumer reach, engagement, and conversion that these platforms provide as the social media landscape continues to change.

Live shopping on social media has emerged as a game-changing trend in the commerce landscape. By fusing the power of live video streaming with real-time purchasing capabilities, this creative strategy gives customers an engaging and dynamic shopping experience. Businesses may present their products or services in a dynamic and engaging way using platforms like Facebook Live, Instagram Live, and YouTube Live, giving demos, responding to queries, and inspiring viewers to act quickly. Customers can easily switch from browsing to buying when they can make purchases within the live stream, increasing ease and lowering friction in the purchasing process. Live shopping also fosters a sense of authenticity and trust, as customers can witness firsthand product features, demonstrations, and testimonials. This trend not only boosts sales and conversions but also cultivates a sense of community, as viewers can interact with hosts and fellow shoppers through comments and chats. As live shopping gains prominence in 2023, businesses that embrace this trend can tap into the power of real-time engagement, drive customer loyalty, and create memorable shopping experiences that transcend traditional e-commerce transactions.

Machine Learning

Businesses are turning to machine learning algorithms to gain insightful information and make data-driven choices as a result of the exponential expansion of data and the complexity of consumer behaviour. Businesses can efficiently analyse enormous volumes of data, spot trends, and forecast client preferences by using machine learning models. This enables them to create highly focused marketing campaigns, individualised product suggestions, and successful pricing strategies. Additionally, machine learning algorithms help businesses automate a number of tasks including demand forecasting, inventory control, and fraud detection, which boosts productivity and lowers costs. Businesses that leverage the potential of machine learning technology will gain a competitive edge by enhancing consumer experiences, streamlining processes, and opening up new growth prospects in the constantly changing commerce environment of 2023.

Augmented Reality

Augmented reality (AR) is revolutionizing the commerce industry in 2023, offering exciting opportunities for businesses to engage and captivate customers in immersive and interactive ways. By overlaying digital content onto the real world, AR enables customers to visualize products in their own environment, try on virtual clothing, or virtually experience products before making a purchase. This technology bridges the gap between online and offline shopping experiences, allowing customers to make more informed decisions and reducing the likelihood of returns. Additionally, AR enhances the customer journey by providing virtual guides, interactive tutorials, and personalized recommendations, fostering deeper engagement and brand loyalty. As AR technology becomes more accessible and integrated into mobile devices, businesses across various sectors, including fashion, home decor, and automotive, are leveraging its potential to enhance product discovery, improve customer interactions, and create memorable experiences. In 2023, embracing augmented reality will be a key differentiator for businesses seeking to stand out, deliver innovative experiences, and shape the future of commerce.

Whilst we are your go-to experts for composable commerce, we are not experts in AR. By far the best source of information we have found is this January 2023 article from Tom Emrich, Director of Product at Niantic Labs entitled ‘23 Augmented Reality Trends to Keep an Eye on for 2023’. The best way to enjoy this as Tom says, time to grab a cup of coffee and get comfy, this is a long read! We did, its an excellent article and well worth the effort. Doing exactly what it says on the tin, Tom takes us through a whopping twenty three trends.

23 Augmented Reality Trends to Keep an Eye on for 2023

ChatGPT Fun

By now most of us will have tried ChatGPT but probably not looked up what it stands for, its short for ‘chat generative pre-trained transformer'. Moving swiftly onto to some fun stuff, we asked ChatGPT to conducted an interview with itself.

QUERY = Can you write me a paragraph for my 2023 commerce trends article about chat GPT?

ChatGPT: In 2023, Chat GPT (Generative Pre-trained Transformer) is emerging as a transformative trend in the commerce industry, revolutionizing customer interactions and support. Powered by advanced artificial intelligence, Chat GPT enables businesses to offer personalized and real-time assistance to customers across various platforms and channels. With its natural language processing capabilities, Chat GPT can understand and respond to customer inquiries, provide product recommendations, and address concerns with remarkable accuracy and efficiency. By integrating Chat GPT into their customer service strategies, businesses can enhance customer satisfaction, streamline support workflows, and improve overall operational efficiency. Moreover, Chat GPT's ability to continually learn and adapt from vast amounts of data ensures that its responses become more refined and accurate over time. As we delve into 2023, businesses that leverage Chat GPT gain a competitive advantage by delivering exceptional customer experiences, increasing engagement, and driving brand loyalty in an increasingly customer-centric commerce landscape.

What we find interesting is how quickly this tool has become ingrained in our everyday lives and our relationships with it. Individual relationships vary of course but ChatGPT feels like a personal research assistant. The tab is often open, has a personality and sometimes a pronoun! It has not however, written this article.

Generative AI - Quality of the Query

Generative AI has rustled a few feathers - Cabiri view this as good disruption and fundamental to success as always is the quality of the query. As algorithms develop so do queries and most recently, query development tools.

Constructing a query to generate your perfect image is not as easy as it looks, requiring experimentation and on some generators, a budget. When each query demands a fee, knowledge of query construction is key. We think quest for quality query will push advancement and allow creators to exceed their expectations without the learning curve or the expense of wasted query costs. An educational uptick should follow with more ‘how to AI query’ courses becoming available. It should be noted that with some generators, artists can choose to display their prompts, or queries, or hide them protect their work.

On the subject of image protection, Adobe have counted concerns with FIREFLY. Released in beta, their generator sources copyrighted and licenced images from within their stock system, combating potential ownership issues that systems sourcing from the wild naturally have. Adobe are planning a revenue share model for artists contributing to their master stock system.

So why is this of interest to Cabiri? We believe that licensed image banks have the potential to be an composable commerce, digital asset game changer. An AI text to image model that high street e/retailers can adopt, by using their own existing copyrighted image database as source. In an age where customer experience is key, what if an intelligent fitting room could understood what an occupant wanted by responding to user initiated cues. Delivering images of available or customized products on the fly, tailored to that unique user experience. “Mirror, I like theses jeans but show me this red crew with a v-neck and add a pocket.” High street retail may seem a long way off delivering high volume customized clothing, but it’s not impossible and might even reduce waste. We think experts like Amplience, with a history of intelligent rich media management, are well placed to push this forward. The race is on, who’s going to get there first and who hasn’t got to the starting line!