What to Sell Online in 2022: Top-Selling Products and Categories
If the previous two years of the pandemic are any indication of what the future of e-commerce holds, 2022 is another exciting year for businesses around the world.
With the challenges we've all faced in the business world, from disrupted operations to the technological and social changes we've had to undergo in response, e-commerce has undoubtedly emerged to become an even more integral part of our lives and culture. COVID-19 has changed the way we shop, shifting consumer behavior and shifting it more toward online stores rather than brick-and-mortar locations. Today's consumers are looking for fast, convenient online products and services.
It's an exciting time to look ahead and stay abreast of emerging e-commerce trends and products. So, in this article, we present the top 10 product categories and trends (in no particular order) that any online entrepreneur should be exploring in 2022.
1) Subscription services
One trend every online store owner should keep an eye on is the subscription business model in e-commerce.
For those unfamiliar with subscription services, what they are and their potential: a subscription service is when someone signs up to regularly receive a recurring service or package from a company. Today, fashion, personal care, pet care, and even food and entertainment companies are adopting the subscription approach because it generates regular monthly revenue from customers.
Consumers love subscription services because they allow them to subscribe to products and services that renew, whether it's a Netflix account or a monthly themed delivery of gadgets. In terms of box subscriptions, what's inside the box can be a surprise (depending on your business model) or specific products that customers sign up for. This is great for online coffee delivery businesses, pet stores, cosmetics stores, and even local grocery stores.
According to McKinsey & Company, 15% of online shoppers subscribe to a subscription service. Considering that the number of online shoppers is estimated to have reached 2.14 billion in 2021, 15% is a significant number.
2) Sustainable and eco-friendly products and services
As governments around the world employ delaying tactics to postpone robust climate change initiatives, people are taking a look at a potentially bleak future and making more informed choices, especially in the brands they support. According to a study conducted by Nielsen, 81% of respondents globally strongly believe that companies should accept social responsibility for the way their products are manufactured and distributed. This is especially true for Millennial, Gen Z, and Gen X consumers.
This year, it's time for your brand to jump on the social and environmentally conscious bandwagon and offer customers eco-friendly products and services. There are many ways a brand can do this, from offering biodegradable packaging to selling only reusable products. Many of today's brands are replacing plastic or attaching a social value to their products and services. This makes shoppers feel comfortable with their purchases because, in a sense, they're helping the community or minimizing their footprint.
It's important to note an interesting characteristic of the socially conscious shopper: the social value associated with their purchase can often transcend price. In other words, shoppers will spend more on items that align with their social and environmental values.
3) Vintage, second-hand and recycled products
Closely related to the previous section on sustainability and conscious consumerism, many of today's young consumers are turning to vintage rather than supporting mass-produced "fast fashion" brands. Shoppers now know that much of what fast fashion produces will end up in landfills, so in this time of rapidly evolving consumer consciousness, cheap, vintage, and secondhand businesses are the most interesting to support in 2022.
The secondhand market is huge right now and is expected to double in the next five years, reaching $77 billion by 2025. This is wonderful news for entrepreneurs who are passionate about finding vintage treasures and rare pieces you can only find in thrift stores and vintage markets. To spot the trend, take some time to browse Instagram, Etsy, and curated Shopify websites to find a renewed love for vintage clothing and items.
There are many reasons why young consumers are turning to thrifty items rather than new. It's a cost-effective, sustainable choice, and in line with young consumers' dedication to fashion and style, especially those of Generation Z, which is part of their personality. Furthermore, thrifting is an art. It's also a way to take a stand against the Forever 21s and Pretty Little Things of the fashion industry.
4) NFTs and digital art
The biggest and sometimes baffling phenomenon of 2021—exploring the potential of NFTs and digital art—might be worthwhile in 2022, especially if you're an artist looking for new ways to share and monetize your art online. From digital monkeys to NBA video clips, the NFT market has grown from $41 million in 2018 to $2.5 billion by the first half of 2021. Talk about making big leaps.
While some of the hype may be fading, NFT art continues to attract buyers and critics alike, but more importantly, it offers greater control for digital artists selling their work online, with digital versions that can finally be validated as originals.
NFT stands for Non-Fungible Token, meaning something that cannot be replicated. Every NFT purchased guarantees the buyer a verifiable version of the piece minted by the artist. When an artist mints an NFT, it becomes part of a public ledger or blockchain.
A commonly used blockchain for minting, storing, and selling NFTs is the Ethereum Blockchain, currently the most popular hub for NFT art. While NFTs are at best a speculative asset, they are bringing a greater sense of tangibility to the digital art world than ever before, for both artists and their patrons. Therefore, it's worth exploring the concept for digital artists in 2022, as it could help build your profile and reputation and perhaps even help you monetize your passions this year.
5) Home Improvements and Accessories
Not long ago, the home improvement industry was primarily run by brick-and-mortar businesses, but today, DIY e-commerce is one of the fastest-growing categories, and brands are doing what it takes to adapt to the needs of their online customers.
Something has happened to people, almost collectively, during the pandemic. Around the world, people have looked beyond the confines of their homes and makeshift study/office spaces and decided to invest in their homes like never before. More and more people are choosing to create more welcoming spaces and retreats, even if that means building a fantastic new hideaway in their basement.
According to Xian Wang, VP, Retail Insight, Edge by Ascential, "Even when the economy reopens, consumer behavior will remain unchanged, and future growth in the category, like all categories, will come disproportionately from online."
According to the European DIY retail market report, the market is expected to grow by USD 25.41 billion during the period 2020-2024, with a CAGR of over 3%.
There will be continued interest in refreshing our living spaces with products like new cushions, chairs, and small appliances. E-commerce has proven to be a fantastic platform for brands specializing in furniture and home improvement, thanks to their attractive prices and growing demand for online distribution.
6) Home office accessories
The pandemic has dramatically changed the way we work and study, placing greater emphasis on the need for home offices and study spaces. Even as we enter 2022, companies around the world have adopted a hybrid work model, and as a new generation of workers enters the workforce, the home office continues to gain more importance in the consumer consciousness.
Closely tied to improving life at home, which is now casually considered both a work and school environment, students and professionals are still trying to improve their home offices, investing in furniture like desks and chairs, and technology like monitors and peripherals. Companies are also continuing to extend work-from-home grants, helping their employees furnish their home offices for greater comfort and productivity. Home economics, indeed.
Brands specializing in home office products or with a dedicated category rely on visual platforms like Pinterest and Instagram to build a strong social media following. Product images are also becoming more prominent, as aesthetics play a more important role, as do competitive pricing. The goal here is also to provide value to customers, offering free shipping and exceptional customer service.
As remote work has become more common, technology and our culture have evolved. Projections cited in the E-Commerce: U.S. report predict that furniture, office equipment, and supplies will be one of the fastest-growing segments of e-commerce sales through 2024.
7) Personal care products and services
We don't just want to take care of our homes; we also need to take care of ourselves. Today, the global wellness market is worth $4.5 trillion and looks set to continue to dominate key aspects of our lives.
The wellness market is booming, and consumers are looking to spend money on areas that will improve their health, fitness, nutrition, appearance, sleep, and even their sense of mindfulness. These are all broad categories that e-commerce entrepreneurs can draw upon to see which areas they'd like to explore and capitalize on in 2022.
Shopify CEO Ritu Khanna, quoted in an interview with Forbes about what customers will be buying this year, said: "We expect there will be an even greater emphasis on personal health, beauty, and wellness products such as CBD and sleep gummies, massagers, water bottles and filters, exercise mats, and hair and skin care products."
Men and women of all ages believe that self-care is increasingly important for creating a healthier lifestyle and improving our overall sense of well-being. If you're an e-commerce entrepreneur, it's time to embrace this growing awareness, which casts a wide net on consumers' physical, emotional, psychological, social, professional, environmental, and spiritual well-being.
8) Coffee
People are avid consumers of caffeine. It's a cornerstone of cultures around the world, constantly evolving, and something we drink year-round. Coffee is a key commodity that drives economies through its productivity-enhancing properties, and consumers seem to love it.
While your favorite coffee shop has failed in the wake of the pandemic, and consumers have stayed home to experiment with things like dalgona coffee and flavored iced milk drinks, globally, coffee remains a multi-billion dollar industry that experts predict will grow, despite slowdowns in some parts of the world. The export market, with a CAGR of 4.22% for 2020-2025, is expected. We consider Europe to be the largest market, with South America the fastest-growing consumer market.
One of the growing trends we've seen in recent months is interest in ready-to-drink coffee, especially cold brew, and the online coffee subscription model, as more and more people want their coffee beans delivered directly to them as a recurring monthly service. For those interested in starting a Shopify store with coffee subscriptions, ReCharge is a Shopify app that lets you incorporate a subscription model into your store.
9) Pet products
With over 85 million households in the United States alone caring for at least one pet, the pet care industry has been a favorite of market observers for years. Despite the financial setbacks caused by the pandemic, the U.S. pet industry had a record year in 2020, reaching $107 billion, as reported in the U.S. Pet Market Outlook, 2021-2022.
Most of the growth in pet-loving homes we're seeing comes from millennials and Generation Z, who have embraced pet care more than previous generations. During this pandemic, pet ownership has increased as homebound consumers sought companionship to relieve stress and boredom, leading to a rise in dog and cat ownership and, consequently, a rise in industries specializing in pet products, from pet food to accessories and medicine.
Interestingly, pet care products purchased online versus in brick-and-mortar stores show a stark discrepancy. According to a 2017 report by Statistician on the Growth of Pet Care E-Commerce and Physical Sales in the United States, online pet care product sales grew by $3.4 billion, compared to $317 million for brick-and-mortar sales. This is simply excellent news for anyone dabbling in e-commerce.
It goes without saying that, with more than half of families embracing the pet-loving lifestyle, the pet care niche is a booming industry that's only growing as we love our pets more. For e-commerce entrepreneurs who love pets, this can be a great way to build a profitable business around your passion.
10) Virtual experiences
The pandemic years were a time of transition and innovation. With businesses forced to limit their operations and social distancing measures implemented, industries around the world had to scramble to adapt under intense pressure to survive, finding ways to transform what was once a physical space into a virtual experience.
Among the non-essential businesses that have had to adapt are gyms and fitness classes, travel services, and schools: these services have since adapted to the domestic economy.
Today, more people have signed up for home workout programs or signed up for yoga and other fitness classes online instead of buying a gym membership. People are also signing up for online cooking or photography courses. Travel has also gone virtual, as museums, national parks, and companies like Amazon and Airbnb now offer virtual tours so you can virtually travel the world.
While it initially seemed like a daunting challenge, creatives around the world recognized a tremendous opportunity. Now more than ever, individuals can provide virtual services to others, unconstrained by geography and time.
Are you a talented chef, barista, fitness coach, tour guide, or language teacher? It's time to remove barriers and ask yourself how you can create a virtual version of what you do best that you can share with people around the world.
Conclusion
There you have it, we've provided you with the top 10 ecommerce product trends and categories to explore in 2022, and now it's time to start selling. We hope this article helps you make informed decisions for yourself and your ecommerce business so you can thrive in the coming year and beyond.
