As we settle into the steady rhythm of the new year, we’re feeling more excited than ever about what the future holds for e-commerce! Here are this week’s biggest stories:
Amazon rethinks its brick-and-mortar strategy, shuttering its bookstores and apparel shops.
Online holiday shopping exceeded expectations in 2023, growing 7% year over year.
TikTok delves further into e-commerce with the announcement of a new partnership with Peloton.
Crucial email marketing KPIsevery e-commerce seller should be tracking.
The Amazon Corner
Rebalancing Act: Amazon Refocuses Its Brick-and-Mortar Ambitions
One door closes, another door opens: Amazon has scaled back some of its brick-and-mortar offerings in 2023, including its bookstores and apparel stores. Nonetheless, the company continues to operate Whole Foods grocery stores and its own Amazon Go locations while also licensing the latter’s “grab and go” tech to third-party retailers.
Amazon CEO Andy Jassy explained the company’s shifting brick-and-mortar strategy in a recent earnings call, noting that some areas of physical business were not performing as “big needle movers” and had, therefore, been shuttered. Of course, Amazon’s place at the top of the e-commerce food chain is safe; even after a year of tough decisions, their stock jumped 80.9% in 2023.
Against All Odds: 2023 Online Holiday Spending Exceeded Expectations
Still riding high on the big holiday season: According to data from fraud prevention vendor Signifyd, U.S. holiday sales increased from 2022 to 2023 by 7% — beating out an already rosy forecast of 5% growth. Analysts note that online holiday shopping started early this year and stayed strong for the duration of the season, which refutes predictions that retailers relying on early sales and promotions might see some slowdown toward the end of the year.
Signifyd Chief Customer Officer J. Bennett noted that 2023 “felt like a return to normalcy” and that last year’s holiday resembled pre-COVID shopping patterns. Categories that saw the most substantial growth in 2023 included online grocery sales (up 24% YOY), alcohol, tobacco, and cannabis sales (up 19%), and leisure and outdoor product sales (up 11%).
Another Contender: TikTok Makes Waves in the World of E-Commerce
Social media and e-commerce go together like peanut butter and chocolate: In a move that solidifies TikTok’s emerging status as an e-commerce heavyweight, Peloton has announced plans to introduce fitness videos to the platform — the very first time the company has created content for a third-party channel. The partnership seems primed for success, as nearly a third of Gen Z TikTok users say they’ve made purchases inspired by the platform’s popular “get ready with me” and “routine” videos.
TikTok first launched its shopping platform in the U.S. in September of last year, giving its 150 million American users the option to make purchases directly within the app. Moving into 2024, the company is hoping to compete with Amazon for online shoppers, setting a lofty goal of $17.5 billion in U.S. e-commerce sales for the year.
Try this. Incentivize customers to tag your brand with promotions, giveaways, and coupons.
FUN FACT
26% more time is spent viewing ads on Twitter than other social media platforms
LISTEN UP
In this 118th episode of The E-Comm Show, host Andrew Maff discusses a wide range of e-commerce topics, including key tenets of marketing and brand-building across platforms like Instagram, LinkedIn, and Google. If you’re curious about which trends to follow in the new year, there’s a lot to dig into here.
Topics discussed include new influencer marketing tools on Instagram Reels and IGTV (and how to capitalize on their power), what LinkedIn’s new stories feature means for sellers (and why story platforms are so important), and the effectiveness of Google Smart Shopping campaigns. Additionally, Andrew ponders the role of dedicated marketing specialists in 2024.
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