The Future Of Marketing Innovation In E-Commerce

Brands that previously criticized Amazon are now increasingly utilizing the platform, indicating a notable trend for 2024. Here are some other developments I anticipate: When Allbirds' CEO published an article on Medium criticizing Amazon for imitating its product at a lower price, it was unexpected that Allbirds would later join Amazon as a seller. Yet, that's precisely what happened. Allbirds products are now available not only on Amazon but also at REI and Nordstrom. This move is part of a broader trend where DTC-first brands are diversifying their distribution channels, encompassing marketplaces, traditional brick-and-mortar retail, wholesale, and their own stores. A notable benefit of this expansion, as per Shopify's data, is the 'halo effect' on eCommerce: brands entering physical retail see, on average, a 37% increase in website traffic. As we transition away from cookies, brands are expected to increasingly focus on owned channels. Amazon has been a pioneer in this area with the introduction of its marketing cloud, which enhances brands' abilities to understand customer journeys and target specific audiences. Utilizing first-party data allows brands to maximize ROI on marketing expenditures and provide more personalized shopping experiences. This trend likely influenced Amazon's launch of Buy with Prime, enabling brands to combine fast delivery with ownership of customer data. Sustainability will remain a crucial factor in brand visibility and loyalty. I anticipate Amazon and other retailers will give more prominence to brands committed to sustainability. Those with climate pledge certification or using the Ships in Own Product Packaging program will likely see benefits (aside from savings on fulfillment costs). Consumers are also expected to demand greater transparency in supply chains, including sustainable last-mile delivery methods like electric vehicles. AI's impact on customer search and discovery is a major focus for Amazon. We may see conversational search alter how we find products (e.g., "show me gift ideas for boys age 4-6 with over 1000 4.5 stars between $25-35"). AI will bring more personalized recommendations, optimize pricing, enhance customer service, and improve customer segmentation. Social commerce is also expanding. With the launch of TikTok shops and the ability to buy Amazon products on Meta platforms, this trend is set to grow. I predict that brands will soon use Amazon data to target shoppers on Meta for purchases either through Amazon.com or Buy with Prime. Finally, Livestream shopping, AR, and VR – key questions for 2024 include: Will Livestream shopping gain as much traction in the US as it has in China? Will augmented and virtual reality shopping experiences become more mainstream? I’d love to hear your thoughts and predictions for the future of commerce in the comments.

Every ecommerce leader I know is running on the same hamster wheel: growth targets keep rising, but the rules of the game are being rewritten under their feet. When you place a leader and later sit down with them to swap insights, you’re reminded why the right talent shapes entire industries. I had a great conversation with Julian Exposito-Bader (ex-Amazon, TAG Heuer) about what’s really shaping the future of ecommerce, and he boiled it down to four pillars every executive should have on their radar: 1. Tariffs & Supply Chain Disruption Tariffs are no longer background noise. They’ve reshaped global commerce. Chinese manufacturers are redirecting from the US into Europe, flooding marketplaces with B-brands and copycats. Leaders who win will be the ones who diversify sourcing, master customs optimization, and use bonded warehouses strategically. 2. Sustainability as a Competitive Advantage It’s no longer acceptable to send a small product in three layers of plastic. Lastmile innovation (bike couriers, drones, reusable packaging) is moving from “PR play” to “bottom-line differentiator.” Zalando is pushing hard here. Consumers are watching, and they notice who’s lagging behind. 3. AI-Powered Commerce Revolution Gen Z isn’t Googling “best running shoes”, they’re asking ChatGPT or Alexa. LLMs are the new storefront. The question is: do brands have a strategy to influence those models? Add in 10-minute delivery in Southeast Asia (coming soon to Europe) and AI-driven fraud vs. fraud detection… the entire purchase journey is being re-engineered. 4. Channel Strategy & ROI Focus Social commerce is expensive and messy, but TikTok Shop is where the next generation buys. DTC remains the highest margin, but demands world-class storytelling. Amazon gives you traffic, but only if you’re willing to pour money into ads. And let’s not forget the “lipstick effect”, beauty keeps outperforming even when wallets tighten. The takeaway? Ecommerce leaders aren’t just choosing a channel anymore, they’re orchestrating these four forces simultaneously. For me, it was also a reminder of why the right hire matters: leaders like Julian don’t just react to market shifts, they anticipate and shape them. I’m curious, in your markets, which of these four pillars is hitting hardest right now? #ecommerce #fmcg #trending

Ecommerce Trends That Will Define 2025 I’ve spent 15+ years in eCommerce—building, scaling, and investing in brands. Here are the biggest shifts happening right now (and how to stay ahead): ~~ 1. Amazon is eating the market Three years ago, many brands refused to sell on Amazon. Now, they have no choice. 2025 will be the year even die-hard DTC brands fully embrace it—or get left behind. == 2. Brands will stop relying on Meta ads CACs keep rising. Data is worse. And ad fatigue is real. Smart brands are diversifying into: • Amazon ads (better targeting, lower costs) • Wholesale (Nordstrom, Target, etc.) • Community-driven growth (UGC, affiliates, and referrals) • Applovin- especially for older demos == 3. AI-powered personalization will be standard Generic emails won’t cut it. AI will help brands send hyper-personalized messages, from abandoned carts to post-purchase upsells—based on real user behavior. == 4. More brands will offer memberships instead of discounts Discounting kills margins. In 2025, brands will shift toward paid memberships with perks like free shipping, exclusive drops, and loyalty rewards—modeled after Amazon Prime. == 5. The return of retail Retail isn’t dying—it’s evolving. Brands will use physical stores as acquisition channels, not just sales hubs. Having a presence in the right locations will boost online sales. == 6. Subscription models will get smarter The old “subscribe & save” model is dead. In 2025, brands will focus on: • Flexible subscriptions (skip, swap, pause anytime) • Bundled perks (like cashback on future orders) • One-time membership fees instead of recurring billing == 7. One-click checkout will dominate Every extra step kills conversions. In 2025, brands will integrate Amazon-like checkout (Shopify Shop Pay, Apple Pay, Bolt) to remove all friction. == 8. Brands will build moats around retention, not just acquisition Loyalty will be the new growth strategy. The best brands will: • Build post-purchase sequences • Offer reorder incentives • Use text and email strategically to bring customers back == 9. TikTok & UGC will drive more sales than paid ads 2025 will be the year brands fully shift from polished ad creatives to authentic, raw customer content—because it converts better than anything else. == 10. AI-powered customer service will take over Live chat? Too slow. Email support? Too late. The best brands will integrate AI chatbots that can instantly resolve issues, process returns, and even make product recommendations. == The eCommerce landscape is shifting fast. The brands that adapt will thrive. The ones that rely on old playbooks? Not so much. Follow Josh Payne for more eCommerce, SaaS, and investing insights.