Table of Contents
The vertical market creates user demand. It is focused on a certain niche, where enterprises meet the needs of a certain group of people. Since the audience of the vertical market is divided into segments, enterprises can count on an interested, “warmed up” public.
E-commerce is currently experiencing its heyday. Based on statistics, every year the global retail sales of e-commerce increase by more than 0.5 billion U.S. dollars.
The customers worldwide recognized the special value of the niche during the COVID-19 pandemic, when for many countries the possibility of buying online and contactless delivery became almost vital. At the end of the acute period of the pandemic, users did not abandon e-commerce, realizing how much it simplifies life.
E-commerce occupies a large niche in the structure of the vertical market. Earlier in one of our articles we have discussed the phenomenon of E-commerce in detail. Today we will discover the latest trends, define what determines the demand for the products of this vertical, take a look at the user experience within this niche, and also consider the main traffic sources and possible changes on their part.
Trends in popular products
The range of popular products in the e-commerce market is wide, but the limelight usually belongs to the mass market consumer products. The main components of this category are beauty products, appliances and electronic devices, goods for children and mothers, household goods, and furniture. Forbes highlights the following patterns in the implementation of popular E-commerce products.
- Voice search is becoming more and more popular (Siri/Cortana services embedded in devices; Alexa/Google Smart home speakers)
- The growing share of the younger generation among users (about 80% — people under 40 y.o.)
- An influx of traffic through social networks (especially the growing influence of TikTok)
- Focus on eco-issues (the growing popularity of products expressing concern for the environment, the so-called greenwashing has become a go-to marketing strategy)
- The popularity of video content, the transition from text to visual
- The growing popularity of subscription services
- Implementation of online consultants and chatbots on web pages (Intercom, Drift, etc.)
- The introduction of augmented reality (AR) and virtual reality (VR)
- Personalization of the user experience
These trends are becoming more global compared to the forecasts for the development of the E-commerce market for 2022. However, in general terms, the course remains the same. This fact helps to track the progress and growing popularity of this niche.
Seasonality of demand
The season in e-commerce determines a lot. The following factors should be taken into account when you promote an e-commerce offer:
- Holidays. Holidays and the pre-holiday periods are the time when the user is especially open to shopping. It is important to pay attention to geographic audience segmentation. There are common holidays that are celebrated in the vast majority of countries around the globe, but the way they are celebrated may differ: specifics foods and culture-specific gifts, possible date shift (for example, the dates of New Year and Christmas do not coincide in different countries). It is also important to keep in mind that different countries have their own national holidays.
- On- and off-season. During the on-season, the user makes impulsive purchases, so there should be as few obstacles to making a purchase as possible on his way (opt for easy campaign funnels). Make bright and intuitive e-mails, conduct a large and short-term sale, announce free shipping, make discounts on second and subsequent purchases, etc. In the off-season, users buy less, and therefore at this time you can think through the strategies for peak seasons and save advertising costs.
- Seasonal products. Some offers are simply made for a specific time of the year. The best examples are Christmas decorations in winter and sunscreen in summer. Pay close attention to the latest news as well: toilet paper and sanitizers during the pandemic have made some people rich.
Changes in user behavior and habits
Drastic changes in user behavior occurred in 2020, when the total digitalization of society began due to the COVID-19 pandemic. The number of orders on the Internet has intensely increased, so people have become more likely to choose the sites of popular marketplaces to order the entire range of goods and services (up to groceries). Also, the demand for audio and video content instead of text has significantly gone up. In general, this experience was perceived by many users (especially the younger generation — zoomers) as a positive change. They do not seek to abandon it: video conferences, online classes, schools and self-learning platforms are still rising in popularity. Originated in 2020, this trend in user behavior goes further: short audio and video content formats are developing today. They were called “shoppertainment” — a portmanteau word of “shop” and “entertainment” that means the buying process associated with joy. This is especially popular in the formats of Instagram Stories, Reels, YouTube Shorts, TikTok.
Possible changes in traffic sources
The main sources of traffic in the E-commerce niche today are social networks and marketplaces. These represent a perfect ecosystem that can both draw the users in, make them interested in a product, and provide everything necessary to finalize the purchase. So, it’s no wonder that marketplaces and social media have been introducing many new “shopping” features, such as:
- new payment methods (for example, the option “buy now, pay later”, which is already being implemented by a large number of platforms today)
- ensuring the protection of user data (since any data leak greatly undermines the reputation of the brand or platform)
- the development of a mobile version of the website and mobile applications for the possibility of a “quick purchase”
- possible improvement of the “shoppertainment” scenario by introducing new advertising strategies and interactive formats such as shoppable streams
E-commerce is developing at an extreme speed today, this could be attributed to the global and still growing digitalization of society. Studying the trends of this niche market and finding ways that best suit a particular channel or product will help ensure good conversion rate or brand credibility. Add these trends to your tool kit and take your ad campaigns to a new level of success.
If you want to reach new GEOs and audiences, maybe it is all waiting for you on Telegram? We’ve prepared some material about Telegram audiences. What are the messenger’s users like this year? How old they are, what they do, and what they are interested in!