Juphy’s Weekly E-Commerce News Express – 30 September-04 October 2024
Ceyda Duz
This week’s e-commerce and AI news roundup has it all: from holiday spending trends amid economic uncertainties to the growing but gradual adoption of live shopping in Germany. Plus, explore exciting new product updates from major players like TikTok, Amazon, Hubspot, and Trustpilot. Stay ahead of the latest trends in retail, innovation, e-commerce tech, and online shopping. Let’s dive in!
Holiday Spending Meets Economic Uncertainty
As the 2024 U.S. presidential election approaches and the holiday season countdown starts, many consumers are wrestling with rising inflation and economic uncertainty. A recent survey by Bankrate reveals that 33% of shoppers intend to spend less on holiday gifts this year, while almost a quarter express concern about the financial strain. Despite this, Deloitte forecasts a slight increase in holiday retail sales, expecting an increase of 2.3-3.3%, bringing total sales to around $1.59 trillion.
While the economic outlook is unclear, brands have a prime opportunity to connect with shoppers and navigate these uncertainties effectively.
Building Loyalty for Long-Term Gains
For businesses, winning over holiday shoppers requires more than a last-minute push. Brands that have nurtured their customer relationships throughout the year via loyalty programs and personalized engagement are in a stronger position. With inboxes flooded during peak shopping days like Black Friday, brands that have already earned consumer trust with engaging content will deal with the hustle more easily.
Loyalty programs that go beyond simple discounts, like offering personalized perks or interactive content, can play a key role in keeping customers engaged long before the holiday rush.
The Role of Rewards in Shaping Consumer Behavior
Loyalty programs are a powerful tool for shaping shopping habits, especially during tighter economic times. Research from YouGov highlights that 65% of U.S. and UK consumers planned to use loyalty points to save on 2023 holiday purchases. As consumers increasingly participate in multiple programs, brands need to focus on offering creative, value-driven rewards that stand out from the competition.
Amplifying Reach Through Word of Mouth
Perhaps one of the most overlooked benefits of a successful loyalty program is its ability to drive word-of-mouth recommendations. Research consistently shows that people trust recommendations from friends and family more than any other marketing channel. As holiday gift-giving lists circulate, personal suggestions often carry more weight than online reviews or ads.
Even if a loyal customer doesn’t make a holiday purchase themselves, they are likely to recommend your brand to their network. This influence can extend your brand’s reach during the busy season and help attract new customers, making it a successful holiday season for brands.
Live Shopping on the Rise in Germany, but Adoption Still Slow
Live shopping is gaining traction among German consumers, with six out of ten now familiar with the concept – double the number from three years ago. Despite this growing awareness, actual usage remains limited. A recent survey by ECC Köln found that only 8% of Germans have participated in live shopping, where products are showcased in real-time through online demonstrations. While this is a notable increase from 4% in 2021, it’s still a small percentage, highlighting a slow but steady rise.
A Generation Gap in Interest
The same survey revealed a sharp difference in enthusiasm across age groups. Only 21% of the overall population can see themselves engaging in live shopping in the future, but this figure increases to 34% among 18 to 29-year-olds. However, even among younger audiences, the majority remain hesitant to fully adopt this shopping format. This generational gap may indicate that live shopping needs more time and perhaps some fine-tuning to resonate with a wider audience in Germany.
Comparing Europe to Asia’s Live Shopping Boom
While live shopping has taken off more slowly than expected in Europe, the trend is flourishing in Asia, particularly in China. There, live shopping draws millions of viewers daily, becoming a core part of the e-commerce ecosystem. The gap between Asian and European adoption has led platforms like TikTok to delay the rollout of its TikTok Shop in continental Europe. However, Spain is expected to launch TikTok Shop later this year, and other countries like Ireland will follow, which could spark greater interest in live shopping across the region.
Challenges and Opportunities for Brands
Despite the slow uptake in Germany, the growing familiarity with live shopping presents an opportunity for retailers to experiment with new engagement methods. Popular brands like Zara are already rolling out live-streaming initiatives in Europe, offering a new way to showcase products directly to consumers. As the trend continues to evolve, brands with an innovative approach to integrating live shopping into their online presence may be able to capture the attention of curious consumers and drive future growth.
TikTok Launches Search Ads Campaign for Keyword-Based Targeting
TikTok has introduced its new Search Ads Campaign, allowing brands to target users directly on TikTok’s search results page with keyword-based ads. This feature gives advertisers more control over how their content appears, ensuring that relevant creatives are shown to the right audience. Designed to boost traffic and web conversions, Search Ads Campaigns offer flexibility by supporting both video and image carousel formats, providing brands with a powerful new way to scale and optimize their ad performance on the platform.
Amazon Introduces Fully Managed Supply Chain Service
Amazon has launched its fully managed Supply Chain by Amazon service, offering sellers a hands-off approach to product movement. Sellers simply provide product details and pickup locations, and Amazon takes over from there, handling everything from carrier pickup to inventory consolidation and fulfillment center placement. The service also optimizes logistics based on demand, inventory levels, and costs, giving sellers the option to streamline their supply chain operations with minimal effort.
Trustpilot Integrates with HubSpot to Boost Review Collection
Trustpilot has integrated with HubSpot, making it easier for businesses to collect reviews directly through HubSpot’s platform. This integration helps businesses automate review invitations at key moments in the customer journey, improving customer experiences and building trust. By leveraging Trustpilot’s marketing assets, companies can use reviews to enhance credibility, drive conversions, and strengthen relationships at scale. Now available in the HubSpot App Marketplace, this tool streamlines feedback collection and boosts brand trust.
Juphy AI & Instagram: Transforming Holiday Shopping
As the holiday season approaches, building a loyal customer base is more critical than ever. While loyalty programs help foster trust, capturing social media shoppers can be a game-changer. Many customers browsing Instagram for products often face the hassle of navigating to a website, searching for the product, and finding answers to questions before making a purchase. This drawn-out process can lead to frustration and even lost sales. Enter Juphy AI – your all-in-one, ChatGPT-powered Shopping Assistant for Shopify. With Juphy AI, you can easily integrate a smart, responsive sales assistant directly into your Shopify store and Instagram DMs. It works 24/7, answering customer inquiries, guiding them to the right products, and simplifying their purchase decisions right from Instagram or your website. No more lost customers during the holiday rush! Let Juphy AI help you capture every sale, day or night, by being there for your customers when they need it most. Ready to prepare for the holiday shopping frenzy? Try Juphy AI now and watch your sales increase like never before. Give it a try now: juphy.com
Key Takeaways
Holiday Spending Faces Economic Uncertainty: With inflation and financial concerns looming, 33% of U.S. consumers plan to reduce holiday spending. Despite this, Deloitte forecasts a 2.3-3.3% increase in retail sales, reaching $1.59 trillion. Brands with strong loyalty programs and personalized rewards are poised to thrive this season.
Live Shopping Slowly Gains Ground in Germany: Awareness of live shopping has doubled in Germany, but only 8% of consumers have participated. Younger audiences are more open to this format, but brands need to innovate to capture interest. Europe still trails Asia, where live shopping is a booming trend.
TikTok Launches Search Ads: TikTok’s new Search Ads Campaign enables brands to target users based on search queries, using video or image carousels. This feature helps advertisers increase visibility and drive conversions through keyword-based targeting.
Amazon’s Fully Managed Supply Chain Service: Amazon’s new Supply Chain by Amazon service offers sellers an automated solution for product logistics, from pickup to fulfillment. This streamlined approach optimizes costs and inventory management, making it easier for sellers to scale.
Trustpilot Integrates with HubSpot: Trustpilot’s integration with HubSpot automates review collection during key customer interactions, enhancing credibility and driving conversions. This new tool helps brands strengthen trust and manage feedback efficiently.
