In 2023, the global online retail industry may usher in a new round of reshuffle. Where will consumers spend more money online? Which age group of consumers will cut back online shopping? Will consumers also care about brand sustainability? How it affects the dropshipping business? Focusing on the above issues, the research institute have summarized the top10 major trends dropshipping from China to USA in 2023.
Consumers will increase the frequency of online shopping in 2023
According to data released by Zeitgeist in May 2022, almost half of the surveyed consumers believe that they will shop online more frequently in the future, and only 12% of the respondents said they will reduce online shopping. Global data, however, suggests brick-and-mortar retail remains competitive. Two in five Gen Z consumers say they prefer to shop in-store rather than online, a number that has remained unchanged since 2020. This result really shocked people. After all, during the epidemic, large-scale stores were closed. In addition, since the epidemic, the upgrading of logistics and distribution capabilities around the world has further facilitated consumers to pick up and return goods. Online shopping has become the general trend.
The survey shows that retailers are accelerating their pace of expansion to physical stores, especially retailers that focus on clothing and grocery categories, such as Ted Baker, Lidl, Moss Bros, and Screwfix, all plan to open new stores in 2023. Amazon Fresh, which is owned by Amazon, is also one to watch, with 260 stores launching across the UK over the next three years.
Personal financial situation will improve
Although the importance of product prices in the minds of consumers continues to rise, consumer optimism is gradually returning over time. According to the survey in July 2022, 70% of the surveyed consumers expressed optimism about the current economic situation, and many people even buy luxury goods for entertainment. According to a recent survey, 57% of consumers believe that their financial situation will improve in the next 6 months.
Top4 product categories dropshipping from China to USA:
· Apparel (37%)
· Accessories (28%)
·3C products (28%)
· Beauty products (22%)
While the realities surrounding inflation and rising prices continue to dampen consumer enthusiasm for shopping, trends suggest consumers are still willing to spend money online.
More sensitive to luxury prices
Price-conscious consumers are buying less luxury, and some are spending more on it than ever. The number of U.S. consumers interested in buying a Ferrari or Lamborghini has jumped 121% since the second quarter of 2022.
Consumers’ willingness to pay for environmentally friendly products declines
Indeed, most consumers would rather pay more for environmentally friendly products. However, the crisis of survival caused by a series of emergencies in recent years has continued to spread. Consumers can’t help but turn their attention to themselves. After two years, they are willing to pay for sustainable products. The percentage of consumers who paid a premium fell by 6%. As the cost of living rises further, supporting sustainable products is becoming a “luxury,” which means consumers will only buy sustainable products if they can afford it, especially for American consumers.
Core Plus found similar trends after studying four major European markets. For example, when choosing an energy supplier, the number of consumers shopping for environmental certificates has plummeted by 14% since 2021.
The “perfume effect” is becoming more and more obvious
Compared with this time in 2022, there will be more consumers traveling. The proportion of purchases of travel services increased by 15% year-on-year, and the purchase of concert tickets increased by 26%. With this in mind, purchases of fragrances, shoes, and hair products all rose accordingly. This corresponds to a key trend in the early recession, that is, in times of economic hardship, consumers will buy low-priced and affordable products, such as cosmetics. Economists call this the “lipstick effect,” and Coty recently redefined it as the “perfume effect.”
Conversely, it will only be more difficult for large-scale goods such as home appliances and furniture to find buyers in the future. Compared with 2022, consumers not only reduce the time spent at home, but also reduce the proportion of purchasing home fitness equipment, outdoor furniture, and indoor furniture, by 15%, 9%, and 13% respectively.
Baby boomers prefer to shop with coupons
Coupons and discounts are hugely attractive to consumers, but compared to 2021, the time consumers spend looking for coupons has decreased. According to the survey, older consumers are more sensitive to coupons. 42% of baby boomers said that coupons can stimulate their desire to spend. Retailers targeting older consumers should pay more attention.
Overall, consumers are more concerned about quality (53% of surveyed consumers) than cost (36% of surveyed consumers) when choosing a product. Consumers now value value for money more, and reliable and trustworthy retailers will be favored by more consumers.
AR Technology Helps the Development of E-commerce Industry
Brands in the beauty and fashion industry used AR technology to provide consumers with virtual try-ons and product services during the epidemic, which greatly promoted the development of online shopping during the epidemic. Today, AR technology has become an inseparable part of social media e-commerce, and its scope of application is increasing. Many big brands have invested in this track.
Walmart said it is planning to launch two new app-based AR tools to enhance the online shopping experience. These tools will allow consumers to remotely view Wal-Mart furniture, and can also make personalized advertisements based on consumer preferences. The retail giant also forayed into metaverse shopping, launching two new features in Roblox aimed at younger consumers.
Leveraging retail trends to make the virtual shopping experience more personal and entertaining, it’s critical for brands to continually experiment with social media marketing to engage today’s consumers.
40% Gen Z will make an impulse purchase every 1-2 weeks
Research shows that Generation Z is the number one impulse shopper today because they spend more time using social media to research products. Impulse shopping is a huge business opportunity in the e-commerce industry. Some sellers worry that impulse shopping may affect returns. However, the survey shows that 65% of impulsive consumers are satisfied with the results of most of their impulse purchases.
With the help of big data, retailers will push target consumers more accurately in the future, and monitor product descriptions, pictures, and parameters to be more credible, so as to win the trust of young consumers.
Social media online shopping will increase in 2023
Since 2020, the number of monthly Instagram shoppers has increased by 14%. Social media shopping is slowly gaining traction. Almost one-fifth of impulsive consumers say social media is one of the channels they use to make unplanned purchases. Retail trends show that the practice of simply clicking on the viewed product to check out can increase consumers’ willingness to shop. With the development of technology, this function will be further optimized to bring consumers a smoother shopping experience.
Consumers have a strong will to return unsatisfactory products online
54% of online shopping returners said that they would spend money to send back unwanted or disliked items to a certain extent. The epidemic has brought a huge impact on the logistics market, especially the supply chain. Free returns and exchanges are costly for companies, but many consumers still believe that free returns and exchanges are the minimum service standard. With the cost of living climbing, any extra spending could put them off a purchase.
While the inability to offer free returns may turn off some consumers, the golden age of free returns may well be coming to an end. At present, brands that have publicly stated that they will charge consumers for returns and exchanges include Zara, Next, UNIQLO, Sports Direct, etc. Boohoo has also recently joined the ranks.
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