- Introduction
- The situation of the e-commerce market
- An increase in E-commerce turnover
- Share of e-commerce and development
- Purchasing habits persisting since the Covid crisis
- Mobile ordering, the trend
- Social commerce is taking hold
- 2023 trends
- The technologies that are coming
- A more local and responsible E-commerce
- The future in the light of data
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Introduction
Marked by current events, the year 2022 exploded the counters in terms of online sales. This period affected by the aftermath of the health crisis has changed consumer habits. New perspectives are being added to the development of online commerce in France. Other consumer reflexes took place in 2022 and are the norm in 2023. Between the upheavals anchored in the habits of millions of French people and the successive crises: what to expect from the year 2023? Focus on the new face of e-commerce in France.
The state of the e-commerce market in France?
In the majority of projects we have worked on, the turnover of an e-commerce store, during the first years, is between 100,000 and 500,000 euros. From one online store to another, the amount of turnover may vary, in particular due to:
Ecommerce sales up in 2022
146.9 billion euros – that’s the sales figure for e-commerce in France in 2022, all sectors combined, up 13.8% on 2021. Services have regained their place online, with a 36% increase in growth for this sector. Percentages, yes, but in concrete terms?
Online sales translate into transactions, and by 2022, this number will have risen to 2.3 billion in France alone. The most intense periods are around Black Friday and Cyber Monday: according to Statista, 70% of French shoppers took part in purchases during this business weekend. In the fourth quarter of 2022, an average of 47.6 million French shoppers visited at least one of the top 20 e-commerce sites or applications every month. In terms of mobile visits, the big winners in 2022 were Vinted and Shein, with over 84% of visits made on mobile. Proof of the impact of e-commerce on consumers, particularly when it comes to mobile use.
More e-commerce sites in France and more visits
The acceleration of e-commerce sales in France can be explained in part by the growing number of sellers and customers. According to Médiamétrie’s Observatoire des Usages Internet, the number of buyers has remained stable in 2022 since 2021, around the 42 million cyber-buyers who had already gone online in 2020. This post-Covid figure has still not changed. To take things a step further, the marketing study informs us that the number of e-commerce sites will continue to rise: 5% more in 2022. According to Fevad, no fewer than 10,000 new e-commerce sites are launched every year.
The act of buying is multiplying for more and more customers in stores with more and more visits. Today, Fevad estimates that e-commerce accounts for 12.5% of total sales in France. After years marked by Covid-19, social distancing and the closure of physical stores considered “non-essential”, the Internet has gradually established itself as a salutary and essential solution. But this trend has not gone away: it has become a habit for millions of online shoppers.
Share of e-commerce in 2022: what developments?
Online shopping habits persist since the Covid crisis
The impact of the virus on French people’s daily lives has transformed the online shopping experience. In 2022, growth in the online tourism and leisure sectors continued, with an increase of 55% over the year and +16% compared to 2019. Buyers who responded to Channel Advisor’s 2021 study on their online purchases are 55% to buy as often as before the pandemic, and still 40% to admit to buying more frequently on the web than before the pandemic.
Mobile ordering: a growing trend
During the health crisis, computers dominated e-commerce. Indeed, telecommuting means working from home, via a computer screen, for the majority of professionals and companies. Teleworkers take advantage of their breaks to make online purchases, especially product purchases.
By 2022, predictions have been confirmed regarding the importance of m-commerce, online sales via smartphone. The results show that mobile purchases now account for 59% of online sales, and this share rises to 84% for the sector’s leaders. According to Médiamétrie, 22.3 million French people make their purchases on cell phones, more than 1 in 2 French people make their purchases on cell phones, and more than 1/3 of them place orders on cell phones at least once a month. Mobile use in e-commerce is also present in the search for product information: 42% of users consult Internet pages for information before placing an order online.
Social commerce takes root
Digital commerce has come of age because of – or thanks to – the health crisis. Beyond pure technology and user experience, new levers of discovery have emerged. To replace the need to visit a physical store and gain direct access to retailers’ catalogs, social networks have diversified into what is known as Social Commerce for Social Shopping. While, according to Channel Advisor, these channels represent only the 5th source of discovery overall, the share of platforms reaches 54% among 18-25 year-olds – tomorrow’s buyers. Deloitte forecasts that this market will exceed $1,000 billion by 2024. What’s more, networks like Instagram, Facebook, Pinterest and even TikTok are becoming essential to online sales, and the coming months hold great news in terms of E-commerce in Europe.
2023 trends
How has the average shopping basket changed?
In the ten years prior to the crisis, the average shopping basket was in free fall, due to the widespread use of online shopping and the decline in the value of the average basket. During the crisis, the average basket increased – a rare occurrence. What is rare is the correlation between the growing number of transactions and the increase in the average basket. In 2021, with the return of service purchases on the Internet and the reopening of physical points of sale, the average E-commerce basket has become more nuanced. In 2022, with prices on the rise, the average basket reached €65, up 6.9% year-on-year.
What technologies are on the horizon?
The artificial intelligence market and new technology players at the service of customers and businesses have boosted the world of e-commerce, and buyers are on board. Social commerce, i.e. online sales via social networks, is becoming part of French habits: Instagram, Facebook, Pinterest and even TikTok offer and will soon offer new functionalities to help your online sales business accelerate thanks to the immediacy and proximity of content. Among technological tools, we find the rise of voice commerce: according to a Havas and Paris Retail Week report, 57% of French people rely on their voice assistant to do their shopping. It is now possible to buy products or services directly by voice, without having to go through the “screen”. These techniques will become more important over time, bringing new challenges to the increasingly demanding world of e-commerce.
These technological advances will also help tools to gather highly precise data on consumption patterns. In this way, customer data will help redefine your e-commerce activity and guide the user experience on online sales sites. The keys to your success will be not only more accessible, but also more numerous!
For e-tailers, artificial intelligence can generate SEO-optimized texts in record time. It can generate quality texts in record time, allowing you to concentrate on other important business tasks. No need to spend hours writing product descriptions or blog posts: AI does it for you!
More local and responsible e-commerce?
Shopkeepers had to pull down their curtains. At the same time, the French have also embarked on a new consumer philosophy. Out of a sense of solidarity, and to counter the effects of the economic and health crisis, shoppers turned to their local merchants whenever possible. Local has become central, and transparency an imperative.
Eco-responsibility, respect for nature and people: consumers’ commitment to these values is becoming the norm. An Ipsos study reveals that 72% of French people expect brands to demonstrate transparency. Even more committed, 89% of French people are ready to boycott a brand if they feel they lack information or if they feel duped.
The market for second-hand products is also booming, and e-commerce forecasts are promising for this sector: the penetration rate of this market in France has tripled in 5 years, reaching 41% in 2022, according to FoxIntelligence.
Eco-responsibility, respect for nature and people: consumers’ commitment to these values is becoming the norm. An Ipsos study reveals that 72% of French people expect brands to demonstrate transparency. Even more committed, 89% of French people are ready to boycott a brand if they feel they lack information or if they feel duped.
The market for second-hand products is also booming, and e-commerce forecasts are promising for this sector: the penetration rate of this market in France has tripled in 5 years, reaching 41% in 2022, according to FoxIntelligence.
By 2023, it’s likely that the proximity between the retail site and the consumer, and the link between image and reality, will be a priority, leading to a new definition of physical stores and e-commerce. From the smallest structures to the largest companies, the message and the shopping experience must no longer be “global” but “closer”, like a return to the essentials that brands are generalizing on their sites, their social networks and their customer care. Second-hand products, second-hand goods, Made in France… Retail is in the midst of a transition to new challenges, with e-tailers becoming ever more demanding and retailers having to reinvent their priorities.
What future in the light of data?
E-commerce has proved its resilience in the face of economic and social upheaval, and its ability to adapt to new challenges. Consumers have become accustomed to shopping online, which increases their confidence in this method of purchasing, and strengthens the position of companies that know how to adapt in real time to changes and new buyer expectations. The leaders of the ranking are still in great shape, but there is still room for other brands, provided that e-tailers ask themselves the right questions to become competitive. Home delivery, after-sales service, new customer experiences: nothing should be left to chance. To achieve this, there are a few key areas to consider.
The success of online shopping depends to a large extent on the success of delivery. Customers want to receive their purchases quickly and hassle-free. E-tailers therefore need to ensure that their delivery processes are smooth and efficient. This can include express delivery options or free delivery offers for large orders. After-sales service is also crucial to the success of e-commerce businesses. Customers want to know that they can count on fast, efficient support in the event of a problem. E-tailers therefore need to ensure that their customer service is fast and competent, with easily accessible contact options.
