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April 10, 2023

The Future of E-Commerce: 4 Strategies for Bridging the Digital Divide in 2023

Over the past 3 years, the pandemic forced offline brands online. At the same time, omnichannel and DTC ecommerce brands doubled-down on the digital experience to compete for shopper attention and share of wallet. The result was a seriously heightened emphasis on the shopper experience. This emphasis opened the gates for rapid innovation and new ways of meeting shopper needs in spite of obstacles.

One thing is for certain: There is no going back to the status quo. If you’ve found a way to delight shoppers, you don’t stop doing it. Not to mention, they're unlikely to let you. Shoppers have higher expectations of both the online and in-person shopping experiences.

The reality is, shoppers no longer see the world as digital vs. physical – they expect the best aspects of both to meet their needs, wherever they are. Brands face the challenge of bridging that gap to stay relevant.

Here are 4 trends we’re excited about that brands are deploying in 2023:

1. Virtual Try-ons

AR/VR technology helps shoppers visualize how products will fit into their worlds. Beauty brands use virtual try-on technology to help shoppers see how different lipstick shades will suit their skin tone. Home goods and furniture brands help shoppers see how a new armchair will fit in their living room.

Why it works: Products that require “context” to evaluate are challenging to feature in the two-dimensional digital world in a way that gives shoppers confidence. AR/VR brings products that are meant to be in 3D into 3D, giving shoppers a vision…without having to pay for shipping.

What to consider: AR/VR technology is still “new”, and many brands that roll these technologies out have had to build them in house. Even working with a partner, it’s a big and ongoing investment, but worth it if the question of “How does it look in real life?” is the biggest blocker of conversion.

2. Live Styling and Virtual Concierges

When shoppers are in store, they get the benefit of in-store experts to help discover new styles or find the right fit. Online, shoppers are often left to go it alone, resulting in endless collection scrolling, abandoned carts, and few checkouts. Virtual styling concierges bring this level of personalization online. The experience can range from a chat or text option between a shopper and a stylist to a full-service styling video chat with a brand expert.

Why it works: Products that require a high degree of consideration, education, or have unique attributes can be overwhelming – and intimidating – for first-time shoppers. Having an expert guide the shopper towards the right “fit” based on their needs gives comfort, and is an incredible shopping experience that builds loyalty.

What to consider: Styling programs are hard to scale, in person or online. If a styling program is successful, we’d challenge a brand to dig into why shoppers opt for styling, and implement other strategies that deliver the same experience that can reach many more shoppers.

3. Combined Online and Store Logistics

Delivery and returns can be pain points in the shopper journey, but also present an opportunity to create delight for shoppers. Shoppers love flexibility, so options like shopping online to pick up in store same-day put the power of the experience in their control. Similarly, returns can be a pain, but giving optionality means a brand is meeting shoppers where they’re at. Dropping items in-store, in the mail, or even at a returns drop-off means a shopper can fit returns into their lives, not the other way around.

Why it works: Optionality puts shoppers in the driver’s seat of their experience. Many shopping experiences are designed as one-size-fits-all, but that rigidity can put off customers from shopping again (or even checking out in the first place.)

What to consider: Managing logistics and tracking inventory across channels can be messy, and expensive. Brands exploring these options should pilot these programs at a small scale to measure the impact on shoppers to ensure that the investment will be worth it.

4. Try Before You Buy

Some products just need to be experienced in person for a shopper to feel confident in their purchase. That’s never been a problem in stores, but online, the model has always been backwards: buy our product, then see if you like it. TryNow, a software company that enables brands to automate try before you buy programs, puts the online shopping experience back in the right order. Now brands can truly bring the store to a shopper’s door!

Why it works: There are a million reasons why a shopper might not checkout online, but they all come down to one root cause: uncertainty. Try before you buy eliminates uncertainty and instills confidence with shoppers. By removing the friction of paying first in the customer journey, brands can increase conversion, AOV, and lifetime value.

What to consider: Try before you buy programs accelerate growth, and with that comes an increase in returns. This is a feature, not a bug, but requires a shift in how a brand thinks about profitable growth. Try before you buy programs succeed when they are approached as company-wide initiatives.

If you’re interested in learning more about how a trial program could grow your ecommerce business, let us know and we can make an introduction to our partners at TryNow.