Juphy’s Weekly E-Commerce News Express – 15-19 July 2024
Ceyda Duz
In this week’s episode of all things e-commerce and AI, we delve into the latest trends: from moderate retail growth amidst cautious consumers to record-breaking Amazon Prime Day sales and new product updates from TikTokShop and HSN. Join us as we explore the hottest topics and the latest insights in online shopping, retail strategies, and the impact of AI.
Moderate Growth in Retail Sales Amid Cautious Consumers
Recent data from the National Retail Federation and CNBC reveals that online retail sales experienced a significant increase in June, growing more than five times faster than total retail sales. This trend reflects consumers’ ongoing prioritization of essential purchases despite economic challenges and uncertainties.
Key insights from the NRF’s Retail Monitor include:
Overall Growth: Compared to May’s growth rate, June’s total retail sales increased by 0.47% month-over-month and 3.42% year-over-year.
Core Retail Sales: Core retail sales rose by 0.3% in June compared to May and saw a 3.07% increase year over year.
Online Sales: In June, online and other non-store retail sales jumped by 1.78% month over month and an impressive 23.08% year over year.
Consumer Spending Trends
Despite economic challenges, consumers have shown resilience by shifting their spending towards essential goods and seeking value in their purchases. Inflation has significantly decreased for goods but remains a concern for services, influencing spending patterns. The data collected by the NRF and CNBC indicates a stable economic environment, with a slight improvement in consumer confidence.
Looking Ahead
As we move into the second half of 2024, several trends are emerging. Travel-related spending is expected to increase as families plan vacations, continuing the strength seen in June. The back-to-school season is expected to drive increased spending on school supplies, clothing, and electronics. However, consumers are likely to remain cautious, focusing on value and discounts due to ongoing economic uncertainties.
The retail sector remains strong, with beauty and general merchandise stores showing significant growth. Online sales continue to outpace other categories, demonstrating the ongoing shift towards online shopping. As the year progresses, retailers can expect continued growth in essential categories while keeping an eye on the evolving economic landscape and consumer behavior patterns.
Amazon Prime Day 2024: Record-Breaking Sales
Amazon’s Prime Day 2024 has once again proven to be a monumental event in e-commerce, driving substantial sales across the industry. While Amazon did not disclose its specific sales figures for the event, the outcome underlines its profound impact. Consumers spent a remarkable $7 billion online outside of Amazon on the second day alone, according to data from Adobe Analytics. This spending fever marked a 10.4% year-over-year growth and brought the total U.S. online retail sales, excluding Amazon, to $14.2 billion during the Prime Day event, reflecting an 11% year-over-year increase and setting a new record for online sales.
Independent sellers on Amazon also experienced significant success, with over 200 million items sold, predominantly from SMBs. This highlights the event’s role in supporting smaller enterprises within the Amazon marketplace. Additionally, mobile commerce played an important role, accounting for 49.2% of online purchases on the second day. Buy Now, Pay Later options contributed to $1.08 billion in spending, representing almost 8% of online orders.
Amazon’s 48-hour Prime Day event drew millions of Prime members who shopped millions of deals across more than 35 categories. Amazon reported that this year’s Prime Day saw more items purchased than any previous Prime Day shopping event. Adobe Analytics data revealed that specific product categories saw remarkable sales growth during the Prime Day event.
- Electronics sales increased by 61%, with tablets leading at 117%, followed by televisions (111%), headphones and Bluetooth speakers (105%), fitness trackers (88%), computers (80%), smartphones (71%), and cameras (60%).
- Home, furniture, and appliance categories also saw significant growth, with small kitchen appliances increasing by 76%, kitchenware and cookware by 25%, and mattresses by 21%.
- In the apparel category, suits saw a 36% sales growth, with outerwear, footwear, and accessories each growing by 17-19%.
Salesforce data further illustrated the event’s influence, showing that North American online sales grew by 3% year-over-year during Prime Day, with the U.S. leading the growth and Canada seeing an 8% increase. Health & Beauty, Active Footwear, and General Footwear were among the top-performing categories by sales growth, while General Apparel, Beauty & Makeup, and Home & Furniture enjoyed the highest discounts globally.
Overall, Amazon Prime Day 2024 not only broke sales records for Amazon but also significantly boosted the broader e-commerce sector. As retailers prepare for the upcoming holiday season, the trends and insights from this year’s Prime Day will undoubtedly shape strategies and expectations, with deep discounts and value-driven offerings poised to capture consumers’ attention and drive further growth.
TikTok Shop U.K. Launches £1 Million Club
TikTok Shop U.K. has launched the £1 Million Club, a strategic initiative designed to propel new merchants towards achieving significant revenue milestones. Through this program, participants can enjoy up to 90 days of 0% commission-free sales, along with complimentary storage and fulfillment services through Fulfilled by TikTok. Additionally, members benefit from priority seller support services and dedicated promotional assistance aimed at enhancing visibility and driving sales.
HSN Partners with Impact.com to Launch HSNfluencer Platform
HSN has teamed up with Impact.com to introduce a new creator platform called HSNfluencer, which is aimed at enhancing its livestream shopping experience. This collaboration enables influencers and content creators to engage with HSN’s offerings through curated product collections and affiliate links. Powered by Impact.com’s technology, the platform facilitates recruitment, management, and analysis of creator partnerships, prioritizing customized experiences and content generation that aligns with HSN’s brand vision.
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Key Takeaways
Moderate Growth in Retail Sales: June’s retail sales increased by 0.47% month-over-month and 3.42% year-over-year. Online sales surged by 1.78% month-over-month and 23.08% year-over-year. Consumers are prioritizing essential purchases and seeking value amidst economic challenges.
Amazon Prime Day 2024—Record-Breaking Sales: Prime Day 2024 had a huge impact on e-commerce, with U.S. online retail sales, excluding Amazon, hitting $14.2 billion. Consumers spent $7 billion online outside of Amazon on the second day alone. Independent sellers on Amazon sold over 200 million items, with mobile commerce accounting for 49.2% of online purchases.
TikTok Shop U.K. Launches £1 Million Club: TikTok Shop U.K. introduces the £1 Million Club, offering new merchants 90 days of 0% commission-free sales, free storage and fulfillment via Fulfilled by TikTok, priority seller support, and promotional assistance to boost visibility and sales.
HSN Partners with Impact.com: HSN collaborates with Impact.com to launch HSNfluencer, a creator platform enhancing livestream shopping. Influencers access curated product collections and use affiliate links supported by Impact.com’s technology for partnership management and performance analysis, emphasizing tailored content.
