E-Commerce Growth Trends for Retail Performance

Are you making the most of social commerce, or missing out on one of retail’s biggest growth engines? As consumers spend more time on social platforms, the line between browsing and buying has blurred. Social shopping now drives nearly 17% of all online sales and is projected to top $1 trillion globally by 2028. Platforms like TikTok, Instagram, and Meta (Facebook) aren’t just about discovery anymore. They’re now fully integrated sales channels, blending content, commerce, and community into a seamless journey from inspiration to checkout. Successful retailers aren’t leaving this to chance. They’re investing in shoppable content, livestream shopping events, and authentic influencer partnerships to reach audiences where they’re already engaged. Leveraging AI-powered personalization, user-generated content, and exclusive social promotions, these brands are fostering real-time relationships, building loyal communities, and making every interaction count. The key is to continuously test, analyze, and adapt. Using data-driven strategies to ensure social commerce efforts stay relevant and impactful. If you’re not already integrating social commerce into your omni-channel strategy, now is the time to act. Consider how your brand can create meaningful, interactive experiences on the platforms your audiences love most.......because the future of retail is already happening on social. #SocialCommerce #RetailInnovation #Ecommerce #ShoppableContent #DigitalStrategy

Excited to share my latest appearance on the "Experts Talk" episode on MarketScale! (Thanks to Daniel Litwin for the invite!) 🎙️ As we kick off 2024, it's clear that the Western social commerce sector is on the brink of a major transformation. In the U.S., a staggering 36% of internet users are engaging in social buying, with giants like TikTok, Instagram, and Meta leading the charge. This booming sector is on track to hit a whopping $100 billion market value by 2025! 🚀 The driving force behind this growth? The skyrocketing popularity of short-form video content and the influential power of social media influencers. 📹✨ These trends are reshaping brand-consumer interactions, echoing the social commerce success seen in the Asia-Pacific, particularly in China with platforms like WeChat. But it's more than just a trend. It's a fundamental shift in consumer behavior, sparking essential conversations about integrating social commerce into omni-channel retail strategies. Success in this evolving field hinges on brand authenticity and performance, as we strive to turn creator popularity into real sales. 🛍️ Yet, this journey is packed with challenges. So, what does the rise of social commerce mean for retailers and brands in 2024? How can they effectively weave this trend into their broader retail strategies to resonate with today's consumers? 🤔 Key Discussion Points included: 1️⃣ The Role of Influencers and Content: Delving into how influencers and content creation are not just driving sales but also shaping consumer preferences in the world of social commerce. 2️⃣ Platform Dynamics: Exploring the unique challenges and opportunities that various social commerce platforms present, especially for SMBs. 3️⃣ Integrating Social Commerce into Omni-Channel Strategies: Discussing strategies to seamlessly blend social commerce into existing retail frameworks. A big shout-out to my fellow panelists for their incredible insights: Joyce Mueller, bringing her tech-forward perspective and expertise in modernizing retail systems through data and AI, emphasized the vital role of integrating social commerce across the entire omni-channel journey. Jon Reily, with his extensive experience in both online and offline commerce, shed light on the strategic shifts essential for businesses to excel in this new era. And myself, Alessandro Bogliari, CEO & Co-Founder of The Influencer Marketing Factory, where I delved into the profound impact of influencers and content creation in fueling the growth of social commerce, marking a shift from traditional e-commerce to a more dynamic, interactive buying experience. #ExpertsTalk #MarketScale #SocialCommerce #RetailInnovation #InfluencerMarketing

Shifting Tides in Online Shopping: The End of Free Shipping Dominance? ▸ Unveiling the evolving landscape of online shopping decisions! ▸ Since Amazon's Prime debut in 2005, FREE shipping has ruled the e-commerce realm. But hold on! A recent survey signals a change in this trend. Survey Snapshot: ▸ 62% of consumers prioritize shipping costs in their online shopping decisions. ▸ Examining generational attitudes, a whopping 91% of Gen Z is willing to PAY for shipping! ▸ 1/3 of shoppers are ready to splash $10 or more on shipping this holiday season. ▸ Expectations on fast shipping are shifting; 2022's 2-day demand now leans towards 3-5 business days. Impact on Retailers: ▸ Great news for retailers battling giants like Amazon and Walmart! ▸ Any saved shipping costs will significantly boost year-end figures amid a modest holiday spending forecast. Strategic Insights: ▸ Shoppers willing to spend $15+ on shipping are 2.5 times more likely to splurge this season. ▸ More categories, luxury gifts, and social media-driven searches dominate higher spenders. ▸ Develop personalized offers for this group to enhance margins. Key Takeaway: ▸ Actionable data is gold! Retailers need to understand where shoppers are willing to spend more. ▸ It's not just about discounts; 87% are ready to pay full price for the right gift. Looking Ahead to 2024: ▸ Dive deeper into consumer behavior data for targeted strategies. ▸ Identify levers to encourage specific shopper segments for a substantial impact on the bottom and top lines. Credit to Viki Zabala at First Insight, Inc. for insightful article in Total Retail. #RetailTrends #ECommerce #ShippingStrategies #ConsumerBehavior #RetailInsights

It’s clear that right now that a ton of 7/8 figure e-comm brands are experiencing "revenue whiplash" — with Facebook being expected to bring in the lionshare of their daily revenue. Some days of the week revenue is way up! Other days it’s way down. And, the overall trend of the business is slowly declining year over year. What’s happening is either: 1. They’ve had the attention of the market and lost it 2. Or, they’re failing to capture the attention of the market at the same velocity as their competitors.     They haven’t maintained an exciting product release schedule. Their products are likely becoming more commoditized. And, they dont have the brand marketing muscle to keep and grow audience mindshare. If this sounds like you or your brand, here are 4 things to look at to help triangulate where to place focus:     - Social engagement     - Organic search     - Retail distribution     - Product vertical velocity 𝗦𝗼𝗰𝗶𝗮𝗹 𝗠𝗲𝗱𝗶𝗮 𝗘𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁 Do you have hundreds of thousands of followers, but limited engagement? - Look at the engagement ratios of the best-in-class social content brands - Look at amount of DM sends and comments—not just likes - These brands are setting the new benchmark to hit in 2024 Looking into this with a critical lens may show you that you’re losing relevancy by not bring novel content to audiences. This requires a strong creative force within a brand, ideally from the leadership level. You need to have a vision and a brand voice to match it — otherwise your content becomes stale. 𝗢𝗿𝗴𝗮𝗻𝗶𝗰 𝗦𝗲𝗮𝗿𝗰𝗵 & 𝗧𝗿𝗮𝗳𝗳𝗶𝗰 𝗦𝗵𝗮𝗿𝗲 Use Google Trends, SimilarWeb, and other search platforms to look at your brand name / keywords relative to your competitors. 𝗥𝗲𝘁𝗮𝗶𝗹 𝗦𝘂𝗿𝗳𝗮𝗰𝗲 𝗔𝗿𝗲𝗮 Are you generating or capturing demand for your brand outside of pulling traffic to your site? - Nordstrom? Urban? Neiman Marcus? Macy’s? - Target? Walmart? Whole Foods? Costco? - Have you launched an Amazon or Walmart Connect presence? Now, this is a catch-22, because if your brand doesn’t exist online AND offline, there’s a ceiling to your growth. However, if you can’t generate demand for your brand, your sales velocities in retail will suffer and become a bigger burden for you. 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗩𝗲𝗿𝘁𝗶𝗰𝗮𝗹 𝗩𝗲𝗹𝗼𝗰𝗶𝘁𝘆 A few main questions to ask yourself: - Are you reliant on one product SKU to bring 80%+ of your revenue + seeing declines in traffic & conversions? - OR on the flip side, do you have too many products and not enough concentration? - Have you launched any new products or verticals that are objectively generating more demand and building a higher velocity of sales momentum? Have a more strategic product roadmap is most likely where you can generate the most new hype to reinvigorate your market, while diversifying your business. #facebookads #brandmarketing #ecommercegrowth

Recent research from Insider Intelligence by eMarketer underscores the rapid growth trajectory of the eCommerce sector. A notable forecast suggests that by 2027, US retail eCommerce sales will reach $1.720 trillion, representing over 20% of the total retail sales. This growth is not a mere spike. The data predicts a consistent annual increase of over 10% from 2024 through 2027. Significant drivers of this trend include essential categories like food and beverage sales, which are projected to grow by 20.0% this year, and health & personal care, forecasted at an 18.9% increase. It's essential to note that while inflation contributes to some of this growth, a considerable portion is due to budget-conscious consumers utilizing online platforms to compare prices and find the best deals. For businesses operating in this space, these numbers signify more than just a trend. They highlight the increasing importance of leveraging data and analytics in eCommerce. Tools such as demand intelligence, catalog optimization, and price benchmarking will become indispensable. At Cluster, we understand the evolving landscape and are dedicated to equipping businesses with the insights and tools necessary to not only compete but excel in this space. Firms that do not prioritize this intelligence risk being sidelined in an increasingly competitive market. For those keen on staying updated with the latest in disruptive industries, I'd recommend subscribing to eMarketer's 'Chart of the Day' newsletter. It's an excellent resource for deep insights and evolving trends. #eCommerce #RetailTrends #DataIntelligence #DataCluster

This one's for all the "e-commerce growth was just a pandemic trend" folks: E-commerce sales will grow to 1/5th of total retail sales worldwide and increase 8.8% in 2024 (the fastest rate of growth since the pandemic). I have to admit — e-commerce isn't without its challenges and (plenty of) frustrations. But here's the reality: e-commerce IS commerce. We're not sitting in 2000 anymore where shopping online is still a new phenomenon — you can order virtually any product, at any moment. But e-commerce and retail aren't exactly opposites. All e-commerce has done is expose the weak points of retail: ➝ Friction to product access ➝ Lack of personalization ➝ Time investment ROI The most successful brands hone in their physical and digital experiences together, making the customer experience seamless no matter how someone chooses to shop. I'm not big on the "e-commerce > retail" or vice versa arguments — we can always learn from one another, but the data proves e-commerce isn't going anywhere. Brands in or considering retail must continue to adapt with e-commerce in mind. Do these numbers surprise you? 

Leading in #ecommerce has driven a disproportionate share of growth for retailers in recent years. However, we see the ability to digitize in-store engagement as the next battleground. Retailers who invest today in their in-store digital capabilities are building long-term advantages in customer retention, cross-channel engagement, and monetization. Kroger, Sam's Club and SEPHORA are leading the way here and we expect retailers globally to make in-store digital a priority in 2024 and beyond.

To craft a successful #digital strategy, it's imperative to grasp the ever-evolving digital landscape, both as it exists today and as it will shape up in the future, rather than clinging to outdated paradigms. There are four pivotal factors to keep in mind: 1. Distinguish Digital #Commerce from #eCommerce: Digital commerce and eCommerce aren't interchangeable terms. To thrive in the digital realm, you must strategically deploy digital technologies, information technology (IT), and artificial intelligence (AI) assets throughout your entire organization. Moreover, you need to adapt to the dynamic landscape of digital commerce. 2. E-commerce Faces Disruption: The landscape of eCommerce is currently undergoing a profound disruption, fueled by a blend of macroeconomic and microeconomic forces, technological advancements, and shifting consumer preferences. The traditional marketing and sales funnel model is breaking down, and the economics of eCommerce are proving challenging for many businesses. The cost of acquiring consumers, managing #logistics, and controlling the cost of goods sold (COGS) has reached historic highs, making it tough to achieve scalable margins and profitability. 3. Understand the Three Retail Paradigms: Today's retail environment consists of three distinct paradigms: -Habitats (Online and Offline): Your strategy should encompass both online and offline realms, recognizing that consumers interact with your brand through multiple touchpoints. -Marketplaces and Ecosystems (e.g., Amazon, Walmart, Target, Chewy, TikTok, Temu): Leveraging these platforms is crucial, as they offer extensive customer reach and engagement opportunities. -Platforms (e.g., Twitch, Netflix, YouTube): Incorporating these entertainment and content platforms into your strategy can broaden your brand's visibility and appeal. 4. eCommerce is evolving to "Immersive Commerce" with #video commerce as the foundation.  Techniques like QR codes, augmented reality (AR), virtual reality (VR), extended reality (ER) 3D, livestreaming, and shoppable content are revolutionizing the eCommerce landscape. These innovations not only reduce costs but also drive higher website traffic, improved conversion rates, increased average order value (AOV), enhanced customer lifetime value (LTV), and lower return rates. An effective digital strategy should leverage all four paradigms to maximize your reach and impact.

Despite the global slowdown in online sales compared to the pandemic peak, the e-commerce era is far from being over, continuing to offer significant long-term growth opportunities for both retailers and CPG companies. My BCG colleagues recently conducted an analysis of retailers and CPG companies worldwide that not only weathered the initial pandemic surge but also achieved substantial growth beyond. They identified common factors contributing to their success, including substantial investments in digital technologies and e-commerce, greater agility, and the pursuit of more ambitious e-commerce initiatives. In my recent work in the e-commerce realm, I've also observed that success is further influenced by two other key factors, such as optimizing user experiences and fostering seamless digital interactions. Considering the value that can be unlocked through the implementation of e-commerce, it's clear that e-commerce maturity is a journey that brands should continue to navigate in order to thrive in today's competitive market. #CPG #Retail #UX #ECommerce BCG X https://lnkd.in/gnSn_Fdg