The fashion and retail e-commerce sector is outperforming 2024 projections and creating significant opportunities for retailers for the remainder of the year. In the US alone, online sales of fashion, clothing, shoes and accessories are expected to exceed $145 billion. Apparel and accessories lead the U.S. e-commerce market, accounting for more than 19 percent of total retail e-commerce sales. This market is expected to grow at a compound annual growth rate of 9.4 percent, reaching over $1 billion by the end of 2027.
Such impressive figures are further supported by the latest customer data from BigCommerce’s 2024 Global E-commerce Report: Fashion and Apparel, which shows a global gross merchandise value (GMV) increase of 10.7 percent, driven by an increase in orders with 7.2 percent. In addition, the average order value worldwide increased by 3.23 percent, from $160 in the first quarter of 2023 to $165 in the first quarter of 2024.
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Also striking in the report is the dizzying growth of the fashion sector in EMEA and APAC. EMEA saw a 25.6 percent increase in GMV, coupled with a whopping 41.3 percent increase in orders, while APAC saw an equally impressive 24.6 percent increase in GMV, fueled by a 24.3 percent increase in the number of orders.
Seize the moment with the four top e-commerce fashion trends
As customers exceed purchasing forecasts, there has never been a better time for fashion retailers to reassess and improve their e-commerce strategies. Here are the four top trends, all focused on creating a customer-centric experience:
1. Implementing a seamless payment experience
Minimizing checkout friction is key to maximizing conversions. By simplifying and speeding up checkout steps, businesses can reduce shopping cart abandonment and promote a more seamless shopping experience for their customers. In fact, research from Cornell University shows that customers who pay with one click increase their spend by an average of 28.5 percent.
For online brands and retailers, sales growth depends on two crucial 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 from Incisiv found that customers using BigCommerce’s proprietary one-page checkout system and PayPal Wallet or Apple Pay saw a checkout conversion rate of 58.9 percent, compared to 52.9 percent without. Since the report’s publication, the e-commerce platform’s checkout conversion rate has increased from 2.33 percent to 2.67 percent, continuing to perform well above the industry average of 1.94 percent.
Take BigCommerce customer Rohan, a UK-based outdoor and travel apparel brand, for example. Rohan has significantly improved its payment experience thanks to the partnership with leading payment provider Stripe. Stripe’s optimized payment suite, with its embeddable payment element supporting more than 40 payment methods, and Stripe Radar for fraud detection, led to a 6.5 percent increase in Rohan’s online customers in just two months.
Every touchpoint of the checkout process is evolving with new efficiencies, and fashion retailers must continue to integrate these improvements to take advantage of the current market upturn.
2. Improving the post-purchase experience
Consumers now expect a superior post-purchase experience, including fast shipping, detailed delivery updates and easy returns policies. Two of the top reasons for cart abandonment among online shoppers are high shopping costs and long shipping times.
By implementing services like 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 ups and downs. cross-selling when customers visit a physical store. Now that most consumers are aware of BOPIS, the model is only expected to grow, as evidenced by the 19.4 percent increase in U.S. BOPIS retail sales through March 2024.
Rohan leveraged BigCommerce agency partner Rusty Monkey and launched a custom BOPIS integration tailored to the one-click checkout experience. Customers can easily navigate the BOPIS process using a store locator map that displays the nearest stores by zip code or city, along with store details, directions, contact information and opening hours. Additionally, the delivery information page clearly displays each step of the pickup process, including prices and typical wait times, providing a level of transparency and convenience universally desired by shoppers.
3. Use AI for improved personalization
AI and machine learning are essential tools for delivering personalized shopping experiences. Research shows that 92 percent of companies use AI-powered personalization to drive growth, and 56 percent of consumers are more likely to become repeat buyers when offered personalized shopping experiences.
Brands can use AI to offer personalized product recommendations and pricing, which can speed up purchasing decisions. For example, BigCommerce’s BigAI Copywriter uses generative AI large-language modeling to craft effective SEO-optimized product descriptions to attract shoppers and convert them into loyal customers. Once a brand is in front of the right customers, companies like RecCommerce, a technology partner of BigCommerce, can generate personalized upsell and cross-sell opportunities based on customer preferences.
In the fashion industry, where individual style and fit preferences are paramount, using AI for personalization is especially critical to meeting customer expectations and increasing brand loyalty.
4. Creating a unified omnichannel experience
Shopping behavior is undergoing a major change, with customers often viewing the same product across multiple channels (in-store, on third-party marketplaces, brand websites and via social media) before making a purchasing decision. A Capital One study found that not only do 73 percent of consumers shop omnichannel, but retailers who use three or more channels experience 251 percent higher consumer engagement than those who use just one channel.
For fashion retailers, prioritizing a unified omnichannel experience is critical. This strategy involves meeting customers where they are, such as marketplaces, social media and physical stores, improving the overall shopping experience and increasing 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 improving discoverability.
Some retailers are taking it a step further by implementing omnichannel-focused creative 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. shoppers surveyed said they would likely increase their participation in such programs.
Francesca’s, a boutique clothing chain with more than 400 stores, is an example of innovative methods of connecting customers with its brand. The popular FranClub loyalty program bridges the omnichannel divide by offering digital benefits and hosting in-person events for members, strengthening bonds and driving sales.
With sales exceeding expectations, fashion brands and retailers are ideally positioned to capitalize on the current market momentum. By enabling an accelerated checkout process, improving the post-purchase experience, using AI for personalization and creating a unified omnichannel experience, brands and retailers in this sector can position themselves for sustainable success.
Meghan Stabler is senior vice president of marketing at BigCommerce.
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