Juphy’s Weekly E-Commerce News Express – 02-09 September 2024
Ceyda Duz
Welcome to this week’s e-commerce and AI roundup, where we explore the latest trends and developments shaping the industry. Last week, Klaviyo’s latest report revealed despite economic challenges, e-commerce remained resilient, Etsy enhanced its search and discovery features, and exciting product updates from top players like Shopify & Onfleet, Walmart, and Google were the hottest topics. Dive in to stay informed about the fast-paced world of online retail, shopping, and AI innovation!
E-Commerce Spending Trends Stay Positive Despite Economic Challenges
Despite ongoing economic uncertainty – including inflation, market volatility, and supply chain issues – the e-commerce world remains optimistic about the future. According to Klaviyo’s recent “2024 State of the E-Commerce Industry” report, both brands and consumers expect positive growth, though their perspectives on what drives a good shopping experience differ.
A Disconnect Between Brands and Consumers
The report, based on surveys from over 1,400 e-commerce brands and 800 consumers, reveals a growing “influence gap”. Brands are increasing their focus on discounts and loyalty programs, but consumers want more than financial incentives. While 50% of brands offer loyalty programs and 48% provide mobile apps, the majority of consumers (86% and 84%, respectively) actively use these services when available. Interestingly, brands are investing in features like livestream shopping and AR/VR experiences, which consumers currently don’t prioritize. Only 18% and 15% of consumers engage with these features, while 51% and 36% of brands offer them.
Influence Gaps and Changing Priorities
Klaviyo’s study highlights that brands might be underestimating the importance of certain channels. For instance, 58% of consumers claim that paid/organic search influences their buying decisions, yet only 31% of brands see it as critical. Likewise, broadcast advertising and event marketing have a much larger influence on consumers than brands might realize.
Profits Amid Discounts
Brands that have adapted to consumer demands, especially in terms of offering discounts, are still seeing strong profits. While 59% of brands increased discounts and 54% reported higher costs, 67% also experienced increased profits, showing that offering value isn’t diminishing their bottom line.
Though e-commerce growth may not match the pandemic-era surge, the industry remains healthy for continued expansion. Consumers are still willing to spend when presented with the right product and price, reinforcing the importance of understanding shopper preferences.
Etsy Enhances Search and Discovery
As Etsy navigates a challenging retail environment with slowing sales and growing competition, the company has announced some important upgrades to its online search and discovery experience. These updates revealed on August 28, are aimed at improving the customer journey by making it easier for shoppers to find high-quality, trustworthy items across a broader product range.
Focus on Search Improvements
The new search enhancements are designed to prioritize listing quality, which now takes into account detailed product descriptions, high-quality images, and seller customer service history. The goal is to surface the best, most reliable products for buyers without overwhelming them with countless listings. A recent experiment demonstrated early success: during a 30-day test period, Etsy saw an increase in four- and five-star reviews along with fewer refund requests, signaling greater customer satisfaction with the new search system.
Expanding Product Visibility
In addition to refining search algorithms, Etsy is widening product visibility for its sellers. According to Etsy, 70% of shops on the platform saw increased visibility in search results, helping more sellers gain exposure. This update comes at a crucial time, as Etsy continues to face pressure from competitors like Temu, and Shein. To help sellers navigate these changes, Etsy introduced the Etsy Search Visibility Page, offering tips on improving search rankings, including guidance on image quality, shipping policies, and customer response times. Sellers can now monitor their progress in real-time, giving them more control over their online presence.
In spite of these improvements, Etsy is still facing some bumps on the way. For the third consecutive quarter, the company reported a decline in GMS, with Q2 2024 seeing a 2.1% drop to $2.95 billion. However, Etsy remains committed to renewing growth by clarifying seller standards and introducing features that improve the shopping experience, such as personalized gift lists and occasion pages. Looking ahead, Etsy is also preparing to launch a paid Insider membership program for U.S. buyers, offering exclusive perks like free shipping and special offers. With gifting now representing 27% of Etsy’s total GMS, the company is focused on maintaining its edge in the online gift market.
Etsy’s efforts to enhance search and discovery come at a pivotal moment, as the platform seeks to differentiate itself in an increasingly crowded market. These upgrades are not only benefiting customers by streamlining their shopping experience but also providing sellers with the tools needed to succeed in a competitive landscape.
Onfleet & Shopify for Streamline Delivery
The last-mile delivery management platform Onfleet has teamed up with Shopify to enhance the shopping and delivery experience. This integration automates the creation of Onfleet delivery tasks from Shopify fulfillment orders, allowing merchants to manage their deliveries more efficiently. Shopify merchants will also gain real-time visibility into delivery statuses, including scheduling confirmations, departure times, and arrival updates.
Walmart Expands Marketplace with Premium and Pre-Owned Offerings
Walmart is expanding its Marketplace with new premium beauty products and a broader selection of collectibles and pre-owned items. The new “Resold at Walmart” section features pre-owned goods, while sellers can now offer preorders for collectibles to generate buzz. Additionally, eligible sellers can enjoy 0% commission fees on collectibles through October 31, enhancing the appeal of Walmart’s evolving platform.
Google Enhances Merchant Center with New Features
At its Think Retail virtual event, Google introduced new updates for the holiday season. The revamped Merchant Center will soon offer insights into shopping trends and popular queries, organized by topic and product. Additionally, Google is adding two generative AI features: insight summaries for product performance and a tool that generates custom reports from user requests.
Juphy AI: Elevate Your E-Commerce Experience
Creating the perfect shopping journey for your e-commerce customers is an art that requires a fine balance between attention and assistance. Overwhelming or underwhelming your customers can disrupt their experience – but with the right touch, they’ll find exactly what they’re searching for or discover something they didn’t even know they needed, just like an in-store sales associate! This is where Juphy AI comes in. With its quick, one-click setup, you can integrate a ChatGPT-powered Shopping Assistant into your Shopify store. Juphy AI strikes the perfect balance for each customer, delivering personalized product recommendations tailored to their tastes while offering helpful guidance on every item in your store. Available 24/7, Juphy AI works tirelessly as your ultimate AI Sales Rep, educating, assisting, and guiding your customers through a seamless shopping experience – day or night. It’s like having an all-star employee that never gets tired! Best of all, it helps boost your sales by up to 10x! Ready to transform your Shopify store into an unforgettable shopping destination? Try Juphy AI now and experience the difference: apps.shopify.com/juphy
Key Takeaways
E-Commerce Spending Trends Remain Strong: Despite inflation and market volatility, e-commerce remains positive. Klaviyo’s 2024 report shows both brands and consumers are optimistic. However, there’s a disconnect, with brands focusing on discounts and tech features like livestream shopping, while consumers prioritize loyalty programs and practical incentives.
Etsy Enhances Search and Discovery Features: Etsy updates its search and discovery experience to improve product visibility and quality. The enhancements prioritize detailed listings and high-quality images, leading to better customer satisfaction. Additionally, Etsy is expanding product visibility for sellers and providing tools to help improve search rankings.
Onfleet & Shopify for Delivery Management: Onfleet partners with Shopify to streamline delivery management. The integration automates delivery task creation and offers real-time delivery status updates, improving efficiency and transparency for merchants.
Walmart Marketplace’s New Categories: Walmart broadens its Marketplace to include premium beauty products and a range of collectibles and pre-owned items. The new “Resold at Walmart” section features pre-owned goods, and sellers can offer preorders with 0% commission fees through October 31.
Google’s Merchant Center Updates: Google introduces new features in the Merchant Center, including insights into shopping trends and generative AI tools for performance summaries and custom reports. These updates aim to help retailers better prepare for the holiday season.
