#218 HTE-Trendy DTC Strategies to Win the Sales 🚀📢

Powerful Insights, Trends & New Tool For E-commerce Success!

August 26, 2023 • Estimated Reading Time: 13 minutes

Greetings, savvy e-commerce enthusiasts! 👋

Get ready to uncover e-commerce success with our Saturday Edition! 🛍️ From game-changing DTC strategies and SEO tactics to avoiding critical mistakes, we've got the insights to elevate your online business. Dive into Shopify's latest moves, meet our Brand of the Week 🌟, and discover the must-read shaping e-commerce trends. Plus, explore exciting job opportunities in the field. 💼

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  • Trendy DTC Strategies To Win The Sales 🚀 

  • Top 5 Common E-commerce Mistakes That You Need To Stop Right Now! 😱

  • Components Of A Successful E-Commerce SEO Strategy 📈 

  • Shopify's New Tools Are Encroaching Upon The Business Of Existing Vendors 🛠️

  • Brand Of The Week 🏆 

  • Top Read 📚 

  • Job Board- Get Your Dream Job With A Click✨

Trendy DTC Strategies to Win the Sales 🚀📢 

Direct-to-consumer (DTC) retail is no longer limited to digitally native brands. Traditional retailers also adopting the same strategies, especially as they strive to compete in a post-pandemic world. Direct-to-consumer (DTC) sales are projected to keep growing as more brands move to the eCommerce space and established DTC players continue to expand their existing market. It's projected that in the US alone, digitally native brands will reach $44 billion in sales by 2023, and established DTC brands will reach $138 billion in sales.

While most of the DTC trends in 2022 will continue to 2023, there are new emerging trends that brands should watch out for. Understanding these trends will guide your business as you launch and sustain your DTC strategy in 2023. Here are some of the top DTC trends to watch for in 2023:

  1. Inflation Impacts Customer Spending

Inflation is prompting customers to be more cautious with their spending, affecting brands globally. CNBC has reported that even higher-income individuals in the US are trimming expenses to manage their budgets more effectively.

DTC brands can work this reality to their favor by doing these tips:

  • Reinforce Brand Identity: Highlight what sets your brand apart and why it's the optimal choice for consumers.

  • Smart Marketing Allocation: Prioritize marketing efforts on platforms that offer the best returns, utilizing data to pinpoint effectiveness.

  • Enhance Customer Experience: Streamline the customer journey for a seamless transition from casual shoppers to loyal advocates.

  1. Authentic Storytelling

Consumers today seek more than just products; they want stories that resonate with their values. Successful DTC brands are weaving their unique narratives into every aspect of their marketing, creating an emotional connection that fosters loyalty. In 2022, 66% of DTC companies mentioned increasing customer acquisition costs as the main challenge in achieving their growth goals.

  1. Embracing Subscription Pricing for Profitability

To ensure profitability amid competitive pricing, a strong pricing strategy is crucial. Subscription pricing, even for physical items, gained traction in 2022. Customers pay a recurring fee for regular replenishment of goods, fitting well with products like essentials, pantry items, and pet food.

For instance, Butcher Box, a DTC food brand, offers a customizable "monthly box" subscription complemented by free products to encourage subscription retention.

  1. Rising BNPL Adoption Eases Cart Abandonment

High cart abandonment rates, reaching 70%, challenge DTC profitability. Addressing this, the 2022 trend of diverse payment options persists in 2023, including "buy now, pay later" (BNPL) methods. Beyond Apple Pay and Google Pay, DTC platforms now leverage BNPL like Afterpay and Klarna. This suits pricier items, letting buyers start with a fraction of the cost, often fee-free or low-interest. Brands benefit by partnering with BNPL-promoting fintech startups like Afterpay and Affirm, drawing shoppers and minimizing abandonment.

  1. Social Commerce Fusion

Integrating social media and e-commerce has never been more powerful. DTC brands leverage platforms like Instagram and TikTok through in-app purchasing features for marketing and sales channels.

  1. AI-Powered Personalization

Artificial Intelligence is revolutionizing how DTC brands personalize their offerings. By analyzing customer data, these brands offer tailored recommendations, personalized shopping experiences, and even predictive supply chain management.

Chatbots have been increasingly used in the past year by e-commerce sites, and this trend will continue. Brands who've used them to streamline customer service attest to how much chatbots reduce valuable customer service time. AI chatbots have claimed to reduce as much as 92% of customer service tickets.

  1. Enhancing Product Return Experience for DTC Brands

Product returns have deterred online purchases, often considered a necessary aspect of e-commerce. Survey results indicate that 3 out of 5 respondents (US, UK, France) prefer free return shipping, while 2 out of 5 opt for refunds via the original payment method.

Product return policies and processes are pivotal for DTC brands, influencing customer choices. Brands should revamp strategies, improve internal processes, refund insurance, and return locations. Additionally, product quality and presentation should be optimized to minimize returns. A customer-centric approach sets DTC brands apart and fosters differentiation in a competitive landscape.

  1. Increased importance on Zero-Party or First-party data

Consumer data sharing is evolving due to iOS updates and Google's elimination of third-party cookies in Chrome, which is expected to be fully implemented by 2023. Brands rely on data for personalization, as 56% of customers expect tailored shopping experiences. 

As third-party data wanes, DTC brands must secure first-party (zero-party) data willingly shared by customers for targeted ads. Creative approaches, like Ipsy's personalized quizzes, are crucial for acquiring valuable customer insights that drive product recommendations and brand engagement.

🛍️ Top 5 Common E-commerce Mistakes to Avoid! ⚠️

Success in online retail requires avoiding pitfalls that could hinder your progress. Here are the top 5 e-commerce mistakes that you should steer clear of:

1. Ignoring Mobile Optimization: With a significant chunk of traffic from mobile devices, not optimizing your website for mobile can result in lost sales and frustrated customers.

2. Neglecting Customer Reviews: Customer reviews build trust and influence purchase decisions. Failing to showcase reviews (or, worse, hiding negative ones) can harm your brand's credibility.

3. Complex Checkout Process: A lengthy or confusing checkout process can lead to shopping cart abandonment. Streamline the process to minimize friction and increase conversions.

4. Poor Product Descriptions and Imagery: Incomplete or unclear product descriptions, coupled with low-quality images, can leave customers uncertain about their purchase. Invest in high-quality visuals and detailed descriptions.

5. Overlooking Social Media: Social media is a powerful tool for building a brand personality and connecting with customers. Neglecting it means missing out on valuable engagement opportunities.

Components Of A Successful E-Commerce SEO Strategy 📈 

In the vast digital landscape, a strong SEO strategy is a compass that guides your online store toward visibility and success. Here's a breakdown of the key components of an effective E-commerce SEO strategy.

1. Keyword Research: Uncover high-intent keywords that your potential customers use to search for similar products. Utilize tools to find relevant keywords and long-tail variations.

2. On-Page Optimization: Optimize your product pages with well-structured headings, clear product descriptions, and high-quality images. Incorporate your target keywords naturally to improve search engine rankings.

3. Technical SEO: Ensure your website is technically sound by optimizing page load speed, implementing mobile responsiveness, using structured data markup, and creating an XML sitemap.

4. Link Building: Build high-quality backlinks from authoritative sources within your industry. Guest posting, influencer collaborations, and content marketing can help establish your website's credibility.

5. User Experience (UX): A seamless user experience keeps visitors engaged and positively impacts SEO. Easy navigation, quick checkout processes, and mobile-friendliness contribute to higher rankings.

Shopify's New Tools Are Encroaching Upon The Business Of Existing Vendors 🛠️

Shopify's Expansion and Competition: Shopify is introducing more free tools for merchants, putting it in direct competition with some third-party developers within its app ecosystem.

Shopify Collective: Shopify recently launched the Shopify Collective. This cross-selling tool allows sellers to offer products from other Shopify merchants on a drop ship basis directly on their own websites.

Competition from Existing Solutions: While Shopify Collective is free, other cross-selling platforms like Carro and Convictional offer paid solutions for similar functionalities. These tools don't have identical offerings.

Shopify's Strategy: Shopify's approach of offering free tools that may overlap with paid third-party apps is not new. The company tests products and functionalities to enhance its merchant services.

Merchant Collaboration: Amanda Engelman, director of product management at Shopify, mentioned that Collective facilitates merchant collaboration by allowing them to add products from top Shopify brands without inventory investment.

Shopify's Focus: Shopify's recent actions come after the spin-off of its logistics business. The move reflects the company's commitment to simplify and democratize commerce, aligning with its "main quest."

Balancing Act Continues: As Shopify expands its free tool offerings, navigating its relationships with third-party developers is crucial to ensure a thriving ecosystem while meeting merchants' evolving needs.

This ongoing dynamic underscores Shopify's commitment to innovation while maintaining a symbiotic relationship with its developer community.

Brand Of The Week 🏆 

Curie is a brand renowned for its aluminum-free deodorants and body care solutions. Dedicated to providing safe and potent alternatives, Curie's products effectively combat odor without compromising health. Their commitment to clean ingredients means no aluminum, parabens, or phthalates. A variety of signature scents, from Coconut Nectar to Juniper Eucalyptus, cater to diverse preferences. Shape Magazine recognized their deodorants as the most effective. 

Founder Sarah Moret's frustration with natural products' performance led to Curie's inception. Sustainability is pivotal; their packaging stems from recycled bottles, and their lab is wind-powered. Appearing on "Shark Tank" bolstered their exposure. Through an online store and social media platforms, Curie engages customers. With an emphasis on efficacy, safety, and eco-consciousness, Curie redefines personal care.

Top Read 📚 

Speech by Chair Powell on the Economic Outlook~ Federal Reserve, 25th August 2023 

Job Board- Get Your Dream Job With A Click✨

Thank you for joining us in this edition of the Saturday E-commerce Edition. We hope these insights and strategies empower you on your journey to e-commerce success. Stay tuned for more exciting updates and trends in our next issue!

Until then, happy selling and innovating!