HomebankrollingTop 3 Trends in Ecommerce for Q1 2022

Top 3 Trends in Ecommerce for Q1 2022


Primarily driven by the COVID-19 pandemic, ecommerce has changed drastically over the last few years. Not only are shipping and acquisition costs rising, but consumer behavior is also rapidly evolving. To succeed as an ecommerce business decision-maker, check out our top three ecommerce trends for quarter one in 2022.

1. Ecommerce is becoming more competitive.

It’s no secret that stay-at-home policies, fears of the virus and times of uncertainty have driven shoppers to online stores. To accommodate this change in customer behavior, a large number of ecommerce businesses emerged with more on the way. According to Statistica, the online segment will make up close to a quarter of total global retail sales in 2025!

To exist in this competitive ecommerce landscape, incumbents, as well as newcomers, are contending for consumers’ attention. The result is increased costs of advertising and reduced return on ad spend (ROAS). Additionally, cross-app data sharing is prohibited unless users choose to opt-in since Apple’s updated its privacy in iOS 14.5. The ramification is advertising across Facebook and Instagram has become much less effective than before.

2. More ecommerce businesses are going global.

More ecommerce brands will develop on the global stage as businesses reach their growth limits in the domestic environment. This go-global trend is even echoed by customers with more purchasing from websites outside their home country. While it’s highly likely you’ll tap into new markets, cross-border supply chains could be complicated to manage. If internationalization is something your business can’t handle at the moment, consider working on product development and market penetration.

3. Alternative financing is growing in popularity.

The current ecommcerce landscape is seeing alternative financing gaining prevalence among companies. Adapted to the needs of new-age businesses, a huge selection of financial instruments has emerged in 2022. For example, in revenue-based financing, funding is not repaid in fixed installments. Instead, RBF platforms will share a fixed percentage of your company’s revenue until the sum is fully repaid. Many businesses now prefer RBF and inventory financing, in lieu of taking out loans or trading equity for investors’ money. The advantage to RBF is flexible repayment. However, your ecommerce business must have recurring revenue.



Most Popular

Recent Comments