The top trends leading to the retailer’s surprising success

The fashion and e-commerce retail sectors outperform forecasts for 2024, creating significant opportunities for retailers for the remainder of the year. In the United States alone, revenue from online sales of fashion, clothing, footwear and accessories is expected to exceed $145 billion. Apparel and accessories lead the U.S. e-commerce market, representing more than 19 percent of total e-commerce retail sales. This market is expected to grow at a compound annual growth rate of 9.4%, reaching over $1 billion by the end of 2027.

These impressive numbers are confirmed by the latest customer data included in the Global E-commerce BigCommerce 2024: Fashion and Apparel report, which shows global gross merchandise value (GMV) growth of 10.7 percent, driven by order growth of 7.2 percent. Additionally, the average order value worldwide saw an increase of 3.23%, from $160 in Q1 2023 to $165 in Q1 2024.

Also noteworthy in the report is the stunning growth of the fashion sector in EMEA and APAC. The EMEA region saw a 25.6% increase in GMV, coupled with a massive 41.3% increase in orders, while the APAC region saw an equally impressive 24.6% increase in GMV, driven by a 24.3% increase in orders.

Seize the moment with the top four e-commerce fashion trends

With customers exceeding purchase projections, there has never been a better time for apparel retailers to re-evaluate and refine their e-commerce strategies. Here are the top four trends, all focused on creating customer-centric experiences:

1. Implementing seamless checkout

Minimizing friction at checkout is key to maximizing conversions. By simplifying and speeding up checkout steps, businesses can reduce cart abandonment and provide their customers with a more seamless shopping experience. In fact, Cornell University research shows that customers who use one-click payment services increase their spending by an average of 28.5%.

For online brands and retailers, revenue growth depends on two critical conversion points – checkout conversion rate and visit conversion rate – and offering alternative payment options such as PayPal Wallet, ApplePay or Stripe. A recent independent study by Incisiv found that customers using BigCommerce’s native one-page payment method and PayPal or Apple Pay wallet achieved a 58.9% checkout conversion rate compared to 52.9% without this method. Since the report’s release, the e-commerce platform’s flagship checkout visit conversion rate has increased from 2.33% to 2.67%, still performing well above the industry average conversion rate of 1.94%.

Take, for example, BigCommerce customer Rohan, a British outdoor and travel clothing brand. Rohan significantly improved the quality of transaction execution thanks to cooperation with the leading payment service provider Stripe. Stripe’s optimized checkout suite, which includes a built-in payment component that supports over 40 payment methods and Stripe Radar for fraud detection, has led to a 6.5 percent increase in Rohan’s online customers in just two months.

Every touchpoint in the checkout process is evolving with new efficiencies, and apparel retailers should continue to make these improvements to take advantage of the current market climate.

2. Improving the after-sales experience

Consumers now expect excellent post-purchase service, including fast shipping, detailed delivery information and simple returns policies. In fact, the two main causes of cart abandonment among online shoppers are high shopping costs and long delivery times.

By implementing services such as buy online, pick up in store (BOPIS) and buy online, return in store (BORIS), brands can significantly improve the customer experience, reduce cart abandonment due to high shipping costs, and create opportunities for upselling or cross-selling. when customers visit a physical store. As most shoppers are aware of BOPIS, this model is only expected to grow, as evidenced by the 19.4% increase in BOPIS U.S. retail sales in March 2024.

Using BigCommerce agency partner Rusty Monkey, Rohan launched a custom BOPIS integration tailored to support one-click transactions. Customers can easily navigate the BOPIS process using the store locator map, which displays the nearest stores based on zip code or city, along with store details, directions, contact information and opening hours. Additionally, the delivery information page clearly describes every step of the pickup process, including pricing and typical wait times, providing a level of transparency and ease widely desired by shoppers.

3. Using artificial intelligence for better personalization

Artificial intelligence and machine learning are essential tools to ensure personalized shopping experiences. Research shows that 92 percent of companies are using AI-powered personalization to drive growth, and 56 percent of consumers are more likely to become repeat buyers when they are offered a personalized shopping experience.

Brands can use AI to offer personalized product and pricing recommendations, which can speed up purchasing decisions. For example, BigAI Copywriter from BigCommerce uses large-language AI generative modeling to create effective SEO-optimized product descriptions to attract shoppers and convert them into loyal customers. Once a brand reaches the right customers, companies like RecCommerce, BigCommerce’s technology partner, can generate personalized upsell and cross-sell opportunities based on customer preferences.

In the fashion industry, where individual style and fit preferences are paramount, the use of artificial intelligence for personalization is especially important to meet customer expectations and increase brand loyalty.

4. Creating a unified omnichannel experience

Shopping habits are undergoing a major shift, with customers often viewing the same product across multiple channels – in-store, on third-party marketplaces, on brand websites and via social media – before making a purchase decision. Capital One’s research found that not only do 73 percent of consumers shop across multiple channels, but retailers that use three or more channels experience 251 percent greater consumer engagement than those using just one.

For clothing retailers, a unified omnichannel experience is crucial. This strategy involves meeting customers where they are, such as in markets, on social media and in stores, which improves the overall shopping experience and increases engagement.

If managing multiple channels seems overwhelming, product feed management tools like Feedonomics, a subsidiary of BigCommerce, can help fashion brands and retailers by syncing product and catalog data across hundreds of channels, saving time and increasing discoverability.

Some retailers are taking it a step further by implementing creative, omnichannel-oriented tactics, such as experiential loyalty programs, to increase customer engagement. According to Statista, not only are customers already opting into loyalty programs, but an astonishing 50 percent of U.S. customers surveyed said they are likely to increase their participation in such programs.

Francesca’s, a boutique clothing chain with over 400 stores, is an example of innovative methods of connecting customers with its brand. The popular FranClub loyalty program bridges the omnichannel gap by offering digital benefits and hosting in-person events for members, thereby strengthening connections and increasing sales.

With sales exceeding expectations, fashion brands and retailers are in an ideal position to capitalize on current market dynamics. By providing an expedited checkout process, improving the post-purchase experience, leveraging artificial intelligence for personalization and creating a unified omnichannel experience, brands and retailers in this sector can position themselves for lasting success.

Meghan Stabler is Senior Vice President of Marketing at BigCommerce.