Juphy’s Weekly E-Commerce News Express – 23-27 December 2024
Ceyda Duz
Welcome to the final episode of 2024’s E-Commerce & AI News! As we bid farewell to this year and gear up for an exciting 2025, we’re diving into the top retail trends to watch, the potential TikTok ban and its impact on e-commerce, plus the latest product updates from Swap, Google Merchant Center, Bell Media, and Shopsense. Let’s ring in the new year with all the essential insights!
Retail Trends to Watch in 2025: Key Shifts Shaping the Industry
As we approach 2025, the retail landscape continues to evolve rapidly. With shifting demographics, growing consumer expectations, and the integration of new technologies, staying ahead of these changes will become crucial for success and sales. Here are the key trends retailers need to focus on:
The Growing Influence of Gen Z
Gen Z’s purchasing power is growing, and they are reshaping the retail world. As digital natives, Gen Z expects mobile-first shopping experiences and seamless integration across sales channels. Social platforms like Instagram and TikTok are where they’re making purchases, with more than 50% of Gen Z shopping directly on these platforms. However, they’re not abandoning physical stores entirely—47% of Gen Z still value in-store discovery. Retailers must create hybrid shopping experiences that blend digital convenience with in-store engagement to capture this generation’s loyalty.
Conscious Consumerism and Sustainability
Despite economic uncertainty, sustainability continues to be a significant consideration for consumers. According to PwC’s 2024 Voice of Consumer Survey, 22% of global shoppers plan to shop more consciously, prioritizing eco-friendly products and brands with transparent practices. Gen Z, in particular, is highly motivated by sustainability and demands brands align with their values. Retailers need to communicate their sustainability efforts clearly and prove their commitment through actions like carbon-neutral shipping or supporting local brands to build trust with these conscientious consumers.
The Rise of Hybrid Retail
Consumers are increasingly blending online and offline shopping experiences, creating a more complex journey to purchase. Research shows that 56% of shoppers now research products online before completing purchases in-store. Services like click-and-collect are growing in popularity and are expected to account for 20% of e-commerce spending by 2027. Retailers must integrate both their online and in-store operations to offer a seamless, unified experience that encourages customer loyalty. Focusing on creating unique in-store experiences that can’t be replicated online will also be essential in attracting and retaining shoppers.
Generative AI’s Role in Retail
Generative AI is drastically changing retail operations, from automating customer service to personalizing marketing strategies. This technology is enabling businesses of all sizes to operate more efficiently and provide tailored experiences for their customers. For small retailers, AI offers tools that were once reserved for larger businesses, leveling the playing field. However, simply adopting AI isn’t enough. Retailers must integrate it into their existing data systems and tailor it to their specific needs to truly reap the benefits. Those who do will be able to provide smarter, more personalized experiences, driving customer satisfaction and loyalty.
Preparing for Success in 2025
Retailers who embrace these key trends—whether it’s catering to Gen Z’s digital shopping preferences, prioritizing sustainability, offering hybrid retail experiences, or leveraging AI—will be in a strong position for success in 2025. Staying adaptable and focused on customer-centric strategies will be key to thriving in an increasingly complex and competitive retail environment.
TikTok’s Potential Ban: A Major Blow for E-Commerce Sellers
As the possibility of a TikTok ban in the US looms large, e-commerce sellers on the platform face uncertain times. If the app is removed from US app stores in January, many creators may continue thriving on other platforms. However, for merchants relying on TikTok Shop, finding an alternative could be challenging.
The Unique Value of TikTok Shop for Merchants
TikTok has developed a powerful ecosystem that combines entertainment, live shopping, and a massive audience into a seamless shopping experience. For merchants, this integration has been key to driving sales. While platforms like YouTube, Instagram, and others offer similar features, none provide the same combination of tools in one place. TikTok’s commitment to building out social-commerce tech, including warehouses to support fulfillment, sets it apart.
The Rise of Livestream Shopping and Social Commerce
TikTok has pioneered live shopping in the US, and its success is evident in figures like over $100 million in sales on Black Friday alone. This shift toward shopping through live streams has become a powerful trend. If TikTok is banned, consumers may move to other platforms, but the shopping habits they’ve developed will likely remain.
Competitors Could Fill the Void—But It Won’t Be the Same
While platforms like Instagram and YouTube are exploring their own social-commerce strategies, they don’t offer the same depth of services as TikTok. Even with efforts from platforms like Flip, Whatnot, and Shopify, there’s no clear alternative that integrates entertainment and e-commerce so seamlessly. TikTok’s potential ban could trigger a wave of competition to fill the gap, but it will be difficult for others to replicate its success.
Looking Ahead: Adapting to Changing Platforms
While the fate of TikTok in the US is still uncertain, e-commerce merchants will need to stay adaptable. As consumers grow accustomed to shopping via livestreams, platforms will likely adjust to meet this demand. If TikTok does get banned, sellers will need to pivot quickly to ensure they maintain their sales and customer engagement on alternative platforms.
Preparing for a Shifting E-Commerce Landscape
The potential ban of TikTok is a significant event for the social-commerce world. E-commerce sellers on TikTok Shop should prepare for the possibility of losing their primary platform and explore alternative avenues for continuing their sales. As the landscape continues to evolve, staying adaptable and exploring new platforms will be crucial for long-term success.
Swap’s AI-Powered Returns for Shopify
Swap, an e-commerce operating system for direct-to-consumer brands, has launched an AI-powered feature to streamline return processes for Shopify stores. The tool enhances shipping, tracking, package protection, and cross-border returns, offering a more efficient post-purchase experience for merchants and their customers.
Google Merchant Center Introduces First-Order Discounts
Google Merchant Center now allows retailers to offer exclusive discounts for first-time buyers. This new feature lets merchants create percentage-based promotions targeting new customers directly through their accounts, enhancing their ability to attract and convert initial buyers.
Bell Media and Shopsense AI Launch Shoppable TV in Canada
Bell Media has partnered with Shopsense AI to introduce shoppable TV experiences to Canadian audiences. Debuting on shows like ‘The Good Stuff with Mary Berg’ and ‘Etalk’, the feature allows brands to sponsor key moments on-air and across social media, reaching over 1.5 million followers.
Juphy AI: Empowering Your E-Commerce Store for the New Year
As 2024 comes to a close, AI is solidifying its position in e-commerce, making AI-powered tools essential for staying competitive and exceeding customer expectations. Tools like AI chatbots are your strongest allies in providing instant, personalized customer service, and Juphy’s ChatGPT-powered AI Agent for Shopify is leading the way. With its ‘Built for Shopify’ badge and a one-click setup, Juphy AI integrates seamlessly with your Shopify dashboard. After a quick configuration, you can test its performance, make tweaks, and launch your new AI-powered sales associate—ready to deliver 24/7 personalized shopping experiences. From tailored product recommendations based on browsing history to expert knowledge of your store, Juphy’s AI Agent is designed to enhance every interaction. Take your Shopify store to the next level in the new year. Try Juphy AI today: apps.shopify.com/juphy
Key Takeaways
Retail Trends to Watch in 2025: The retail landscape in 2025 will be defined by Gen Z’s growing purchasing power, sustainability efforts, hybrid retail experiences, and the integration of generative AI. Retailers must adapt to these shifts to stay competitive and meet evolving customer expectations.
TikTok’s Potential Ban: With a possible TikTok ban in the US, e-commerce sellers relying on TikTok Shop could face significant disruption. Although platforms like Instagram and YouTube offer alternatives, TikTok’s seamless blend of social commerce and entertainment remains unmatched.
Swap’s AI-Powered Returns for Shopify: Swap has launched an AI-powered returns system for Shopify stores, enhancing post-purchase experiences by automating shipping, tracking, and cross-border returns. This tool is designed to simplify returns processes, saving time and improving customer satisfaction.
Google Merchant Center’s First-Order Discounts: Google Merchant Center now allows retailers to offer exclusive discounts to first-time buyers. This new feature empowers merchants to attract new customers, improving conversion rates by offering targeted promotions at the beginning of the shopping journey.
Bell Media & Shopsense AI’ Shoppable TV: Bell Media has partnered with Shopsense AI to introduce shoppable TV in Canada. This new feature allows viewers to purchase items directly from TV shows, creating new opportunities for brands to engage audiences and drive sales through curated, interactive content.
