Despite inflation, a volatile stock market, fragile supply chains and general economic uncertainty, ecommerce overall sees a bright future — although of course not all brands will win.
That’s the message from a new report, “2024 State of the Ecommerce Industry” from marketing automation platform Klaviyo. The data in the report is based on surveys of both ecommerce brands (over 1,400 medium-to-large) and the consumers (800) that buy from them. Brands are forecasting growth and consumers anticipate increased spending.
Brands and consumers not always aligned. The main message is consistently broadcast by both groups surveyed in this report. There are, however, disconnects. Brands understand that conversions can be driven by discounts and sales but consumers are interested in more than just dollars. Fifty percent of brands offer loyalty programs and 48% mobile apps; but 86% of consumers are using the former, 84% the latter, when they can find them. Only 60% of brands post product reviews, but 79% of consumers will read them.
Conversely, brands are offering things that consumers don’t seem to care much about. Fifty-one percent have livestream shopping; 18% of consumers take advantage of it. Thirty-six percent have AR/VR-enhanced shopping experiences; 15% of consumers care.
The influence gap. Brands also need to be aware that they may be making investments in channels that have little influence over their shoppers (and vice versa). Thirty-one percent of brands care about paid/organic search; 58% of consumers say it influences purchase decisions. There’s an “influence gap” of 27% when it comes to broadcast advertising and event marketing too; low investment by brands, big influence on consumers.
Adapting pays off. Giving consumers the discounts they value is not hurting profits, according to this survey. Fifty-nine percent of brands increased discounts over the last year (57% also raised prices) and 54% experienced higher costs. But 67% saw higher profits and 64% higher margins.
The full report can be downloaded here (registration required).
Why we care. Ecommerce might not be growing as it did at the height of the pandemic but it still seems to be in robust condition. Certainly, there are predictions of lower growth this year than last year — but growth is still growth. Consumers may be facing economic pressures, but they are going to open their purse-strings for the right product at the right price.
Dig deeper: Salesforce sees a shorter, more competitive holiday season in 2024