The eCommerce industry has seen astounding growth in the past few years. The rise of online shopping and payment systems has helped the retail industry flourish. The global eCommerce growth rate for 2022 is forecast at 9.7%, bringing global eCommerce sales worldwide to $5.7 trillion.

However, this booming industry also holds several challenges for its participants. Let’s look at some of these challenges and how they can be overcome.

This article is based on Anatoliy Labinskiy’s YouTube blog video eCommerce 2022 Recap.

eCommerce is still blooming. E-commerce now accounts for more than 24% of total retail, offline, and online sales. The market is still growing dramatically there, which means if you are not online yet, and you have your own business or retail store, you just must follow the crowd and improve your business by diving in online and starting testing there.

No more cheap ads at all

The cost of advertising has been rising. If you work in the industry, I think you are aware that CPMs are rising steadily and that the cost per acquisition for any form of purchase is getting more expensive. In the last year, Meta has risen to become one of the most costly. If you examine the stats, it costs roughly 47% more for each and every advertiser to acquire good results from their commercials. Facebook has started to lose advertisers as a result. And because they were unable to change course, a great number of firms have closed their doors.

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The rise of the TikTok

TikTok is one of the best platforms for selling products to a younger audience. Many advertisers switched to TikTok because it was so cheap at the time. By the end of 2022, it becomes more expensive, but it’s still an unbelievably fast-growing platform. Whereas the majority of creators and advertisements with large brands that were previously on Facebook have now moved to TikTok.

Give a second chance for Twitter ads

When Elon Musk bought Twitter, he fired many people who were related to the policies of the ads. Following the acquisition, over 50 major advertisers left Twitter. Everyone who is using Twitter right now is getting incredible results and much faster than before. So if you are not testing Twitter yet, I highly recommend you start. Especially if you manage simple drop-shipping stores, you can try cheap and better-performing ads.

What is the best strategy for your email marketing campaigns? Check in the article.

Facebook biggest fails

This year, Mark Zuckerberg fired over 11,000 employees worldwide. He lost a lot of positions on the market with the Metaverse idea; all the problems and expenses that have become apparent on Facebook really started beating him, and at the moment, Metaverse and Meta itself have just dropped 75% on the NASDAQ market. Meta is not ready for this kind of changes and nobody knows what will happen in 2023 because obviously, investors are not happy with the decisions, which has been made by Mark Zuckerberg.

Platforms’ transformation to marketplaces

Online shopping on platforms such as Facebook and Instagram has essentially begun to grow. In 2022, many large brands begin testing live-streaming and shopping on their own pages, rather than moving from social media to the brand’s website.

So, basically, people are purchasing directly from Facebook and Instagram pages, and there is a feature that has been operational for some time, but metrics show that it is expanding. People are watching their favorite brands’ live-streams and buying online while watching the presentation directly on the page without leaving the stream, giving them the opportunity to make over 40% conversion rates while live-streaming. As I previously stated, more and more brands are migrating to various social media platforms, and the main thing is that an ecosystem is being built.

Importance of SMS marketing 

SMS marketing is really a money-printing machine, so keep that in mind. The open rate is so high. Just do the right marketing and implement it on your end if you haven't done that yet.

Support your marketing strategy with User Generated Content

TikTok compelled many people to embrace user-generated content. UGC becomes so popular in 2022 that many people begin to set up their own UGC agencies and UGC services.

And so many students are making money on it right now just by recording themselves for several brands, drop-shipping stores. And UGC is something that allowed us in our days to make traffic cheaper, results better, and conversion rates higher because copywriting issues on social media platforms are so sensitive right now that you can really overtake your competitor only by using user-generated content. 

It's fascinating to see what the eCommerce industry will look like in 2023. It's a future we can all feel excited about, and we're thrilled to be at the forefront of it all. Check the whole story by Anatoliy Labinskiy via the link.