The rise of Amazon has indeed changed the retail eCommerce and consumer industry. Shoppers are now more adept at online shopping. Similarly, many small to medium-sized enterprises have transitioned from traditional brick and mortar stores to online selling.
The innovation offered by Amazon has leveled the playing field for both large corporate brands and less-well-known brands. Small business owners, individual sellers, and professional Amazon sellers can compete against big companies by leveraging Amazon seller tools and marketing platforms.
To help you take your Amazon venture to the next level, here are some of the eCommerce and Amazon trend forecasts to take note of to help you make beneficial adjustments to your online business in 2022.
Amazon Trend Predictions and eCommerce Forecasts for 2022
Amazon Market Trend Forecasts for 2022
Resale eCommerce Growth – More Second-Hand Items
Amid the economic uncertainty brought about by the COVID-19 pandemic, consumers are now more open to purchasing second-hand items. Apart from monetary concern, sustainability is also a factor as to why resale eCommerce has become more appealing to consumers.
The resurgence of consumer interest in second-hand items resulted in the $9 billion market value of resale apparel alone, which is projected to grow more than $40 billion by 2025. This gives you an idea that sellers have a vast opportunity to capitalize on this impending Amazon trend in 2022.
To rival leading platforms for resale eCommerce, such as eBay and Facebook Marketplace, Amazon has been highlighting more of their programs and platforms focused on sustainability and resale of pre-owned items.
Some of these platforms and programs that Amazon may highlight in 2022 include, Amazon Renewed, Amazon Warehouse, and FBA Grade and Resell programs.
Improvement in Amazon Social Media for Better Engagement
Social media platforms are gradually becoming shopping platforms for consumers. According to Forbes, two-thirds of online shoppers shop on social media sites such YouTube, Facebook, Pinterest, and Instagram.
In view of this trend, it is predicted that in 2022, Amazon will further improve its approach to social media. As part of this Amazon trend forecast, more tools and features will be introduced to help brands and influencers promote their products.
Currently, Amazon has an Amazon Live program that allows brands and influencers to live stream on Amazon. And since product videos and video sharing have become an online standard, Amazon might continue to develop their Amazon product videos to widen their reach.
Continuous Increase of Amazon Advertising Cost
In retrospect, the average Amazon cost-per-click in January 2020 was only $0.88, but it ballooned up to $1.20 for June 2021. In fact, from June 2020 to June 2021, the average Amazon advertising cost-per-click (CPC) has already seen more than a 50% increase.
With the current trend of Amazon’s advertising cost, there is the likelihood that Amazon will continue to increase the average cost-per-click (CPC) come 2022. The influx of Amazon sellers will likewise contribute to the increase of advertising costs for the following year.
Amazon Sellers Trend Forecasts for 2022
More Traditional Retailers, DTC Brands On Amazon
One of the lessons the pandemic imparted to traditional retailers and brand manufacturers is the resilience of eCommerce sites. After the series of lockdowns and quarantine periods, corporate brands gradually pulled away from department stores and directed the bulk of their items on online platforms, like Amazon.
Similarly, direct-to-consumer (DTC) companies can likewise expand on Amazon for better marketing. With Amazon allowing the expansion of DTC brands through Amazon stores, it can be expected that more brands will be on Amazon in 2022.
Increased Interest for Domestic Manufacturers
The COVID-19 pandemic has also highlighted the vulnerability of the supply chain and logistics industry, which caused order delays and missed sales for Amazon sellers. For that matter, it can be expected that sellers will look into domestic manufacturers for their inventory in 2022.
In fact, the search term “made in USA” has had a 54% increase, while “made in Canada” has had a whopping 143% increase in search volume, according to Jungle Scout. This goes to show that sellers are seeing domestic manufacturers as an alternative to overseas suppliers.
eCommerce Forecasts – Shopping Trends for 2022
Increase of Online Mobile Shopping Activities
The unceasing innovation in mobile software and hardware makes it much easier for shoppers to check and purchase items online. Hence, more consumers are accepting mobile devices as their go-to platform for online shopping.
That being said, it is expected that mobile commerce will increase in 2022. This prediction is based on data that mobile commerce will drive almost 50% of those eCcommerce sales next year, according to eMarketer.
Optimize your eCommerce site and listings for mobile to help you maximize this growing trend.
Live Shopping Expected to Grow
Live shopping is a growing trend today and is expected to see more traction in 2022. It can be considered a component of social commerce since it takes place on social media platforms like Facebook.
Sellers livestream to promote their items, and this allows customers to ask questions from sellers or influencers directly. The method of selling is straightforward, which makes it appealing to shoppers.
Live shopping will be more prevalent in the following years, and other eCommerce sites will likewise adapt to this trend. As for Amazon, they can simply promote Amazon Live for increased audiences.
eCommerce Forecast – Trending Tech for 2022
Improvement in Software Development
Amazon has predicted that in 2022 and the coming years, developers will see more developer-friendly software development toolkits (SDKs). AI-supported SDKs will likely be introduced to free developers from mundane tasks, such as bug fixes and code reviews.
This eCommerce forecast means that developers can focus more on creating sophisticated systems at a faster rate with machine learning. Hence, opening the door to a new breed of software developers for the eCommerce industry.
Proliferation of Specialized Cloud Technology
Another Amazon tech prediction for 2022 involves the increased usage and popularity of specialized cloud technology. Unlike its current application in the traditional centralized infrastructure model, 2022 will introduce specialized cloud technology and its global distributions applicable in cars, appliances, digital systems here on Earth and in space.
Increased Reliance on Automation Software
We predict that more entrepreneurs will adapt automation software, including AI repricers, for automated repricing. The shift toward automation software is not only limited to Amazon, for other industries are likewise seeing the value of task automation.
One of the factors behind such a shift towards sophisticated AI programs is the need for industries to redistribute priorities amidst the COVID-19 pandemic. The necessity for a better system and improved task management will entice entrepreneurs to embrace automation for innovation.
From algorithmic Amazon repricers to refined voice assistance and improved data analytics, many premier brands and industry leaders will transition their businesses to AI or machine learning by 2022 and beyond. And such a trend coincides with the projected artificial intelligence software market revenue of $126 USD by 2025.
Prepare for Market Breakthroughs
The entire economy is in the recovery phase, and priorities have shifted towards modernization and the introduction of better solutions, to problems encountered during the pandemic and its aftermath.
As we enter 2022, it would be best to familiarize yourself with the potential Amazon trends and other upcoming market scenarios to help you make the necessary adjustments to your business.