Welcome to our first issue of 2025. We’re starting the year off hot today with the e-commerce news that every professional needs to know.
Here’s what we have this week:
Amazon's e-commerce hyperfocus and why, despite lack of retail stores, it’s still miles ahead of Walmart and Costco.
Retail proving its strength and why it’s not going anywhere despite post-Covid predictions.
2024 Holiday Spending Growth and how it compares to 2023 and 2022.
Your Next Q1 Strategy, tips and tricks for navigating Facebook and Google ads.
The Amazon Corner
No Retail, No Problem: Amazon's Laser Focus on E-Commerce
Amazon is dominating the world of e-commerce with its robust logistics network and diverse range of businesses. With an almost mind-bending lead, the company accounts for over 37% of all U.S. e-commerce sales, bringing in a whopping $159 billion in revenue in just the third quarter alone.
While it may not have a large physical retail presence to offer customers omnichannel options like Walmart and Costco, Amazon's pure-play e-commerce strategy has proven successful and continues to outpace competitors with impressive growth rates.
The Return of Retail: Brick and Mortar Stores Defy E-commerce
Despite predictions of a retail apocalypse brought on by the rise of e-commerce, recent data shows that traditional brick-and-mortar stores are proving their resilience. While the percentage of total sales represented by e-commerce hit a high of 16.4% during the height of the pandemic in 2020, it has since dropped back down to pre-pandemic levels at around 14%.
This is a clear indication that consumers still value the in-store shopping experience and are returning to physical locations as restrictions ease. For e-commerce professionals, this means considering an omnichannel approach where both online and in-store experiences are seamlessly integrated to cater to consumer preferences.
The 2024 holiday shopping season has come to a close, andearly insights show a promising increase of 3.8% in retail sales compared to last year. This growth was primarily driven by empowered consumers seeking value through promotions, with the last five days leading up to Christmas accounting for a significant portion of spending.
Additionally, there was an increase in demand for experiences such as dining out and strong online sales, particularly in cities like Tampa and Phoenix, with double-digit e-commerce growth. Overall, retailers were able to capture the attention of value-minded consumers both in-store and online with strategic omnichannel promotions.
Are you struggling to decide between using Google Ads or Facebook Ads for your e-commerce business?Our article breaks down each platform's strengths and limitations, helping you make an informed decision based on your goals, audience, and budget. Plus, learn how combining both platforms can boost ROI and take your campaigns to the next level. Ready to optimize your ad strategy? This article is waiting for you here...
QUICK TIP Try this! Regularly review and update your product descriptions. This helps SEO and keeps your customers informed. Make sure to include important details such as product materials, sizing information, and any special features or benefits.
FUN FACT
High prices are the main cause of cart abandonment.
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