We hope you had a wonderful holiday! As we make our way toward the new year, we’re reflecting on the highs and lows of 2023 — and looking forward to what seems to be a very bright future. Here are some of the biggest stories this week:
Amazon was 2023’s most popular online holiday shopping destination, beating out rivals like Walmart and Target.
With the global supply chain in flux, retailers are rethinking their strategies moving into 2024.
Across both brick-and-mortar and e-commerce, businesses are implementing new strategies to keep return rates in check.
Keep your Q1 2024 sales strong with 5 abandoned cart recovery strategies.
The Amazon Corner
The Reigning Champ: Amazon Was 2023's Most Popular Online Holiday Shopping Destination
Amazon once again claims the top spot: According to CNBS’s All-America Economic Survey, 57% of consumers did most or all of their holiday shopping online, and of those, 74% preferred Amazon over other retailers. Notably, this is down from an all-time high of 81% in 2019, showing that competitors have worked hard over the past few years to carve out their own corner of the holiday market. According to Amazon, customers purchased an astonishing billion items during the five-day Cyber 5 period.
Coming in at second place in 2023 was Walmart, which was the preferred destination for 16% of those who shopped primarily online, while once-dominant companies like Target and Best Buy saw sharp traffic declines during this year's Cyber 5 period. Of note for smaller sellers is the fact that a substantial number of shoppers (14% of those who shopped primarily online) preferred to patronize local businesses’ websites or Etsy this holiday season.
One Step Ahead: How Leading Global Shippers Are Preparing for 2024
Modern problems require modern solutions: Faced with market volatility and geopolitical conflict, global shippers are reevaluating their current strategies and investing in new technologies to help them keep things running smoothly in 2024. According to the online logistics platform Container xChange, “fierce competition, reduced profits, and possible mergers and acquisitions” may characterize the global shipping landscape next year.
Supply chain diversification is one major factor impacting the industry, with many companies choosing to adopt a “China Plus One” approach — while they’re not shifting away from Chinese manufacturers entirely, many U.S.-based importers are now adding India, Pakistan, and countries in Southeast Asia to their list of global partners. Despite the shakeups, 74% of supply chain professionals anticipate positive growth in the industry next year, according to a recent Container xChange survey.
Send It Back: Retailers Navigate the Tricky World of Returns
Thinking about returning some of those holiday gifts? A fresh report from real estate brokerage CBRE notes that third-party logistics providers are the biggest leasing parties of industrial space in the U.S., reflecting the ever-increasing need for shipping support — and the management of returned merchandise. CBRE anticipates that the maximum value of online returns will reach $82.1 billion this year (based on a projected return rate between 15% and 30%).
Predictably, there are stark differences between traditional retail and e-commerce when it comes to returns. In brick-and-mortar settings where shoppers can inspect products firsthand before buying, the average return rate sits between 8% and 10%, while e-commerce sellers see rates closer to 20%. In addition to outsourcing returns, some retailers are pushing back with stricter return windows and return fees — moves that are unpopular with customers but which have nonetheless successfully hemmed in the rate of online returns from 22% in 2021 to 17% in 2022.
Try this. Strive for tonal consistency between emails and landing pages to give customers a seamless experience.
FUN FACT
iOS shoppers convert more frequently than Android shoppers.
LISTEN UP
Podcasting isn’t just for morning entertainment with your coffee and breakfast. On this 116th episode of The E-Comm Show, Andrew Maff sits down with Seth Greene, CEO of Market Domination. Seth offers a unique perspective into the world of podcasting and how sellers can leverage it to reach new and desired audiences.
With years of successful experience under his belt, Seth discusses the power of audio and video engagement, how to turn listeners into purchasers, and the benefits of e-commerce sellers hosting their own podcasts.
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