Juphy’s Weekly E-Commerce News Express – 18-22 November 2024
Ceyda Duz
Welcome to this week’s edition of e-commerce and AI news, where we dive into the key insights you need to stay ahead this holiday shopping season, including trends shifting towards credit cards and BNPL options, a promising forecast for Cyber Week, and bring you the latest product updates from StackAdapt, Shopify, Google, and TikTok. Grab your coffee, and let’s catch up on the must-know trends and innovations shaping the future of retail and online shopping!
Holiday Shopping Trends: Credit Cards and BNPL on the Rise
As the holiday shopping season kicks off, many consumers are relying more on credit cards and Buy Now, Pay Later (BNPL) options to finance their purchases. This shift in spending is driven by a combination of economic factors and changing shopping habits.
Economic Pressures and Growing Debt
Inflation has stretched household budgets, prompting a rise in credit card use as consumers seek ways to cover the costs of holiday gifts. According to Salesforce, credit card balances in the U.S. have surged to over $1 trillion, marking a significant increase from the previous years. Additionally, nearly 85% of shoppers expect to rely on credit or other forms of borrowing for their holiday spending, with some planning to charge up to half of their purchases to credit cards.
Changing Shopping Preferences
The trend isn’t just a result of financial necessity—many consumers are also drawn to the rewards that come with using credit cards. With cash-back offers and loyalty programs becoming more popular, shoppers, especially Millennials and Gen Z, are increasingly motivated by the perks tied to their purchases. A survey by Smarty revealed that 80% of consumers plan to take advantage of cash-back deals this holiday season.
In addition, BNPL options are on the rise. These programs allow consumers to break up their payments into smaller, more manageable amounts, making it easier to shop without paying everything upfront.
Retailers’ Role in Shaping Spending Habits
While credit use is up, experts like the National Retail Federation (NRF) believe many consumers are still in a good position to manage their holiday spending. With strong household incomes and rising savings rates, shoppers are expected to keep spending, though they may do so with more credit in hand. Retailers are increasingly catering to this demand by offering flexible payment options and rewarding customers with loyalty incentives, which help drive purchases and encourage repeat business.
As it turns out, this holiday season shoppers are balancing the need for convenience with the desire for rewards, while retailers are embracing these payment trends to boost sales.
Cyber Week Sales Forecast: AI, Mobile Orders, and Discounts Lead the Way
As we head into Cyber Week, the first week of November has shown promising signs for e-commerce, with online sales up 8% compared to the same week last year. This uptick in early November activity sets the stage for an exciting holiday shopping season, as Salesforce predicts global sales will reach $311 billion during Cyber Week, with $75 billion of that total coming from the U.S. alone.
What’s Driving the Growth?
While overall online sales were slightly down (1%) from October to mid-November, the surge in early November suggests a strong start to the holiday shopping period. Key categories like makeup, active footwear, and handbags saw notable growth, with year-over-year increases of 10%, 9%, and 8%, respectively. Discounts also saw an uptick, averaging 20%—a 17% increase compared to last year, making it clear that retailers are gearing up for a competitive holiday season.
Cyber Week: What to Expect
Cyber Week, which spans from the Tuesday before Thanksgiving through Cyber Monday, is expected to be a major driver of e-commerce activity. Salesforce anticipates a 5% increase in sales over last year, forecasting total sales of $311 billion globally. In the U.S., shoppers will likely take advantage of discounts, which are predicted to average 30%.
One of the biggest factors influencing Cyber Week sales is mobile shopping, with more consumers turning to their phones to make purchases. Additionally, artificial intelligence is expected to play a significant role, influencing 19% of orders during Cyber Week, equating to $61 billion in global sales.
AI and Personalization in Retail
Salesforce’s optimism about AI’s impact is backed by its recent launch of Agentforce, which aims to help retailers personalize customer experiences through AI-generated content. These innovations are expected to help brands provide more timely, efficient, and personalized service—key factors for winning over holiday shoppers.
With 45% of global consumers waiting for Cyber Week to make their holiday purchases, the combination of better deals, AI-driven personalization, and mobile-friendly shopping is shaping up to make this holiday season one to watch.
StackAdapt and Shopify for Better Campaign Optimization
StackAdapt has launched a new app on the Shopify App Store, allowing store owners to easily integrate the StackAdapt pixel. This integration helps merchants track conversion events and optimize their advertising campaigns. With automatic pixel installation and audience activation, users can also leverage predefined templates to segment audiences based on specific rules, making it easier to tailor campaigns for better performance.
Google Maps Adds Product Search for In-Store Inventory
Google Maps has rolled out a new feature that allows users to search for specific products and check real-time availability at nearby stores. This update makes it easier for shoppers to find exactly what they’re looking for and access local pickup options right from the Maps interface. For businesses, it’s important to keep inventory and Google Business Profile details up-to-date through the Google Merchant Center to ensure accurate product listings.
TikTok’s AI Video Creation Tool for Advertisers
TikTok has launched Symphony Creative Studios, an AI-powered platform designed to help businesses, creators, and agencies generate custom video content. Part of the broader Symphony creative suite, this new tool includes features like Symphony Assistant and Digital Avatars, enabling users to automate tasks and streamline content creation. This update allows advertisers to more easily tailor content to their brand and optimize their campaigns through TikTok’s ads manager.
Boost Your Holiday Sales with Juphy AI: The Ultimate 24/7 Shopify Assistant
As we approach the holiday season, there’s no better time to equip your Shopify store with a reliable, AI-powered assistant that’s ready to guide, assist, and sell to your customers 24/7. Juphy AI is more than just a time-saver—it’s an invaluable resource that ensures your customers get the royal treatment they deserve. After all, the customer is king! What makes Juphy AI the perfect tool for your Shopify store? With its ‘Built for Shopify’ badge, easy one-click setup, and features like seamless retraining, it’s a powerful addition that will make your store stand out. Plus, with integrations like Zendesk and Gorgias, Juphy AI can automatically create support tickets for any issues it can’t resolve, streamlining the management of complex queries and ensuring smooth transitions for customer interactions—just in time for the busiest sales season of the year. Get ready for a stress-free holiday season that drives sales and keeps your customers happy! Try Juphy AI today: apps.shopify.com/juphy
Key Takeaways
Holiday Shopping Trends: More shoppers are turning to credit cards and BNPL options to manage holiday spending. With inflation putting pressure on household budgets, consumers are increasingly relying on credit for purchases, motivated by rewards like cash-back offers. Retailers are responding with flexible payment options to encourage spending.
Cyber Week Sales Forecast: Salesforce predicts Cyber Week 2024 will see $311 billion in global sales, with a 5% increase from last year. Mobile shopping and AI are expected to drive much of the growth, with AI influencing 19% of orders. Retailers are offering bigger discounts and improving personalization through AI.
StackAdapt & Shopify Integration: StackAdapt has launched a new app for Shopify merchants, helping them optimize their advertising campaigns with automatic pixel installation and audience segmentation. This integration allows merchants to track conversions and tailor their campaigns for better efficiency.
Google Maps In-Store Product Search: Google Maps now lets users search for specific products and check availability at nearby stores in real-time. This feature makes it easier for consumers to find items locally and pick them up in person. Retailers can improve visibility by keeping their product listings updated in the Google Merchant Center.
TikTok’s AI Video Creation Tool: TikTok has introduced Symphony Creative Studios, an AI-powered platform that simplifies video content creation for advertisers. With features like Symphony Assistant and Digital Avatars, users can automate tasks and create custom content tailored to their brand, enhancing campaign optimization.
