E-commerce in 2023: predictions for Amazon sellers

E-commerce in 2023: predictions for Amazon sellers

2022 has been another crazy year for e-commerce and Amazon. Increasingly, sellers come to Amazon with big ambitions, even as consumers cut spending to address recession worries. Regardless, Amazon remains the top retailer for consumers, and it will be another big year for Amazon sellers.

Predictions for 2023

Let’s look into the future and predict how doing business at Amazon will differ in 2023.

More consumers will buy goods on social networks

Social commerce is growing in popularity yearly as the younger generation trusts people’s opinions more about what to buy than the big brands. Social media platforms are increasingly evolving to allow consumers to purchase products they see in posts, videos, and advertisements. With news of TikTok’s plans to open warehouses in the USA and growing consumer interest in social shopping, some social media giants are in a competitive position to challenge Amazon’s dominance in e-commerce.

In 2023, social media will become an even bigger driver of e-commerce. Giants like TikTok and Meta will continue to adapt their offerings, but we will also see new social platforms try to enter the e-commerce space.

Of course, that doesn’t mean existing Amazon sellers are staying put. Amazon will find new placements that will open up more opportunities for sellers.

Virtual reality will play a more significant role in e-commerce

Virtual reality has been a hot topic, but we predict that in 2023 it will break into e-commerce. In 2022, Walmart invested in artificial intelligence-based “try-on” technology to allow customers to change clothes on virtual models based on their bodies. This is a massive step for e-commerce regarding customer experience. Expect a surge in ‘virtual trial’ innovation.

Off-Amazon advertising will be more critical than ever for Amazon sellers

Advertising is one of the best ways to drive traffic. With the rise of e-commerce on social media, advertising needs to follow suit; more advertising dollars will go toward social media influencer marketing to help marketers stay ahead of new trends. In 2023, it’s more important than ever to have diverse, broad-based advertising to stay ahead of the competition — other sellers on Amazon and retailers on different platforms in general.

A fundamental way for sellers to adapt to more competitive advertising in 2023 is through off-platform advertising. One of the biggest advertising trends will be marketing outside of Amazon.

2023 will bring more advertising platforms for e-commerce sellers, and we’ll also see more maturity of existing platforms, offering more features to help sellers.

Supply will continue to approach North America

Supply chain challenges, initially caused or exacerbated by the global pandemic, continue to threaten companies of all sizes, and China’s quarantine protocols continue to strain the system. With so much uncertainty and so many companies still recovering from financial shocks in 2021, sellers will look to suppliers closer to home to provide them with stability in 2023.

We’re getting closer to more sellers seeing the benefits of sourcing closer to the United States. If it ends up with a China-like shutdown again, that could be a tipping point that pushes brands to think outside the box to avoid making their products there.

China’s policy of zero infection will remain a threat to the supply chain in 2023. Even experienced retailers are changing their approach to shipping and storage. Sellers are choosing to keep more inventory in 3PL warehouses instead of relying on Amazon FBA to deliver their products on time.

3PL and Amazon FBA differ significantly in services and rates. The contractor’s choice for storage and order delivery can play a crucial role in the development of your business.

PartnerTrade is an international 3pl operator that supports our customers, process control, optimization of shipping estimates, and processing in our warehouses. 6 years of experience working with Amazon allows us to provide high-quality services.

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