Welcome to the latest Direct Peak insights article! This time we are delving into e-commerce and some of the new and emerging trends that could accelerate your sales in 2022.
We work with e-commerce businesses across the UK helping them to plan and budget for growth and these are the technologies and processes being invested in over the next 12 months.
Continual investment in tech platforms is one of the most popular streams of investment to secure future growth, along with people (to build, develop and maintain systems), and fulfilment- especially businesses that moved online during the pandemic.
The pace of change in e-commerce is relentless with new innovations, technologies and ways to engage with your audience emerging all the time. By continually investing you can stay ahead of the curve, provide the best experience for your customers, and grow faster.
Chatbot technology
With the industry undergoing such rapid change, e-commerce businesses must constantly be up to date with digital technology solutions.
These need to be innovative, cost-effective and scale with your business’s requirements.
Many e-commerce businesses are installing Chatbot technology, something which is becoming an expected part of the customer experience, for customers that prefer to use live chat tools rather than speak with a person when researching products.
The cost of chatbot technology is varied, depending on its functionality and channel of deployment. You can create your own basic chatbot using a chatbot platform or pay a third party to set it up a more complex one for you.
Chatbots can talk to more than one person at a time and are available 24/7. This means that customers are offered quick and precise answers to their queries without having to wait.
Top tip – chatbots that asks for a customer’s email address before they start chatting it can capture 30% more leads on your website than general forms.
Omnichannel automation
Omnichannel marketing is emerging as one of the fastest growing trends; using technology to provide consumers with content based on where they are in their shopping journey. Omnichannel marketing combines all platforms, including email, text message, websites and social media.
Take the following scenario; If your customer may visit a store, and then check your social media channel before visiting the website and making a purchase. Having a connected, consistent message nurtures your customer and increases conversions and sales.
Mobile shopping
M-commerce is set to overtake e-commerce as more people shop using their smartphone or tablet than ever before.
Many people will now stand in a shop comparing prices online on their mobile phone before buying.
Mobile commerce offers a variety of payment options including one click checkouts from digital wallets. While developing and managing your online store take the rapid growth of m-commerce into consideration – and be aware of advancements in technology and the constant need for optimisation.
Subscription models
Tech giants Netflix, Spotify and Amazon pioneered subscription models.
Subscription models are popular with e-commerce businesses because it unlocks:
Higher customer retention ratio
Greater business predictability
Maximise your revenue.
The benefits to your customer are:
Convenience – no need to remember to re-order
Predictable deliveries
Subscription fits customer’s preference
Value for money.
Using social media channels for live shopping experiences
Social media channels have global audiences. Over 90% of users access their favourite platforms using a mobile device and 54% use social media to research products.
Live shopping is a trend expected to increase in 2022. YouTube, facebook, Instagram, and TikTok already have their own live streaming features. Brands can link their products directly to these platforms.
Did you know? On November 28 Twitter launched its new livestream shopping platform, with Walmart being first in line with a 30-minute virtual shopping experience. Users were able to watch the live broadcast, shop the featured products and join in the conversation around the event by tweeting comments.
Live commerce is a perfect way to showcase your products or demonstrate ‘how to’, to an interactive online audience, improving your customer’s experience.
Check out our handy guide to setting up a live shopping event on Facebook:
Set up a Facebook shop
Set up live shopping on Facebook in Commerce Manager
Decide on a time for your event using your analytics to see when your customers are most active
Promote it to your viewers from about a week before, using social media
Prepare your products or collection that you want to feature
In the Create section click Live, this will take you to the Live Producer tool
Go to the Live shopping tab and toggle on Enable live shopping.
Under Select a playlist, click Choose My Playlist and click Save. The products from your playlist will show under Feature items so you can share them in your live video
Under Post, give your video a title
Click Go Live when you’re ready
Viewers can click through and purchase on the spot
Once you’ve done with the live video, click End Live Video.
Whether you are new to selling online, or already established, planning ahead, and having funds in place gives you the advantage as opportunities present themselves.
Sound financial planning is key to achieving the goals the business sets – understanding current cash position, predicted and trending income and costs, and fully detailing the costs involved are essential not to run into trouble.
If you are hiring for example, to develop and upgrade systems and infrastructure, the cost to the business is more than just salary. Take into account pension contributions, desk, equipment and space to work. There are also recruitment costs to take into consideration.
Ask yourself – Would outsourcing roles that aren’t core to your business make more financial sense? Finance, HR, and marketing services are commonly outsourced to professionals, giving you access to skills and resources without having to carry the headcount overhead within the business.
Many e-commerce businesses use third party logistics providers (3PL) for ‘on demand’ storage and fulfilment. If your business is expanding fast but you don’t want to commit to an expensive larger premises many storage facilities offer a flexible option. This saves the large capital outlay on renting and kitting out a building.
If you are seeking advice and guidance when planning to scale your ecommerce business then we can share our experience and insights on how similar businesses are planning for growth.
If you are ready to talk to one of our team get in touch directly by completing the form below.
Why not sign up to our monthly newsletter and receive regular smart accounting tips, and follow us on social media for new updates and insights from Direct Peak’s financial experts?
The whole team at Direct Peak have been amazing to work with. Everything we have been looking for from an accountant. Thank you from Acoustic Associates
Luke Tyler
2023-06-20
The Direct Peak team are exceptional in all they do. They demystify my questions on accounting, offer clear, sound advice, and help me to make informed decisions about my business.
Don Wiid
2023-05-10
Karl Newman and his team help us with our Xero accounts system, making sure it is accurate and up to date. The real value though, is Karl's experience as a management accountant, providing indispensable advice on a monthly basis to ensure we keep growing.
Craig Sawyer
2023-03-09
Direct Peak are the perfect accountants for me. Always helpful and friendly. They take away any of my accountancy headaches which allows me the time to focus on my business. Would highly recommend them and do to any business owners I can. Thank you all !
Kelsey Brace
2023-02-20
I've worked with Karl & Direct Peak for years. They have always provided great service and advice. Highly recommeded!
Sana Hanassi-Savari
2023-02-10
Great service, I would highly recommend them. The team are friendly, always around to help and very knowledgable.
Simply Antivirus
2022-10-11
Direct Peak was the right choice for us. Outstanding friendly service. The team are highly knowledgeable regarding tax and financial matters, and they have been an asset to the running of our business. Very approachable and have an answer to all my questions. Highly recommend them! Very well done guys!
catherine Johnson
2022-10-11
I recently changed my Accounting to Direct Peak, mainly due to Karls brilliant support with advice regarding making Tax Digital and around my business growth intentions.
Having run my own small business and being with my previous accountant for 13 years, I have been SUPER impressed with every aspect of the move - the advice, the support, and mostly the friendliness of the team and their willingness to want to help. Eve has been so amazing at supporting me to make the transition to Digital VAT returns - I cannot recommend Karl and his team at Direct Peak highly enough - Thanks Guys!
Peter Baker
2022-09-21
Karl has been outstandingly patient and generous with his time. I cannot recommended Karl enough. He has helped massively in starting up my own company.
Direct Peak provides a dedicated business tax accountant, who will prepare your annual accounts and tax returns. They will be on hand to answer any tax queries you have.
Your business tax accountant will ensure that the company is set up in the most tax-efficient way and that you are claiming for all the correct expenses to maximise your earnings.
