Juphy’s Weekly E-Commerce News Express – 11-15 December 2023
Ceyda Duz
Welcome to this week’s whirlwind of e-commerce news! We’re zooming in on hot topics like Shopify’s late holiday shopping insights, the tricky world of return policies, and what’s buzzing in European online retail. Plus, we’ve got the scoop on exciting partnerships and product launches that could give your online business a real edge. Ready to get the lowdown on what’s shaking things up in e-commerce?
Insights from Shopify’s Latest Survey on Late Holiday Shoppers
Following its thriving Black Friday success, Shopify has just dropped some juicy insights on late holiday shopping trends for this year. According to the Shopify-Gallup Holiday Shopping Pulse survey, nearly half of U.S. holiday shoppers are planning to make the majority of their purchases in December. Talk about a last-minute rush! This could be a game-changer for how you plan your sales strategy.
Diving deeper into the findings, a gender difference emerges, with men exhibiting a higher likelihood of engaging in last-minute holiday shopping due to procrastination. However, age also plays a role in this phenomenon. Younger shoppers (under 50) are more inclined to leave their holiday shopping in December, mentioning budget considerations as a primary reason.
The survey also sheds light on the preference for in-person shopping experiences during December, as 56% of shoppers opt for physical stores due to concerns about shipping issues causing anxiety and stress.
For e-commerce business owners, these insights offer valuable cues for strategic planning. Recognizing the late shopping trend as an opportunity, businesses can tailor their approach by offering ready-to-buy products like digital gift cards or special gift sets, preparing gift guides, ensuring fast shipping, and managing inventory effectively. By keeping popular items in stock throughout December, businesses can create a relaxed and frustration-free shopping experience for latecomers. Thank you, Shopify, for this insightful survey. May the last-minute holiday games be a success!
E-Commerce Returns: Challenges, Trends, and Solutions
This holiday season, e-commerce is in full swing, but alongside the flow in purchases, retailers deal with returns, causing $816 billion revenue loss – 16.5% of product purchases in the U.S. The overall ‘free’ returns trend, particularly in fast fashion, causes costly consumer behavior, with shoppers frequently buying multiple sizes and returning items.
To reduce return-related costs, retailers adopted ‘just keep it’ policies, urging customers to keep items due to high expenses. Notably, 59% of retailers, according to goTRG, offer ‘keep it’ services for returns believed not worth collecting, with 27% considering items priced up to $20 eligible.
As the year ends, retailers reassess return strategies, turning to technology, including AI and experiences, as a solution to manage and reduce return rates. Recognizing the importance of a holistic approach, retailers invest in systems that enhance the shopping experience and grow customer loyalty.
As the December holiday season unfolds, the effectiveness of these tools in managing returns will be put to the test. We remain optimistic about their impact and hope for the best!
European E-Commerce Outlook: Forrester’s Projections
Let’s jet over to Europe, where things are looking up in the e-commerce arena. Forrester’s latest research predicts a strong 9.2% annual growth in online retail for major European countries – Germany, the UK, France, Italy, and Spain, which account for 70% of Western Europe’s GDP. Despite a drop in 2022, online retail is expected to recover to pre-pandemic levels next year. Forrester projects a significant increase in online retail sales, reaching 579 billion euros by 2028. That marks a 56% increase over the next five years! But Forrester is not the only one with such a prediction, GlobalData also expects a 9% e-commerce growth in Europe until 2027. We think there are exciting times ahead for European online retailers!
Google’s Cutting-Edge Innovation: Gemini AI
Google has introduced its latest breakthrough, Gemini AI, a strong language model available in three versions. First, there’s Gemini Nano, a light edition designed to run natively and offline on Android devices. Next up is Gemini Pro, the powerhouse behind Bard, anticipated to soon drive Google AI services. Lastly, we have Gemini Ultra, Google’s most potent Large Language Model (LLM) tailored for data centers and enterprises, set to launch shortly.
Remodeling Sustainability on Shopify: Alcove’s Carbon Credit Management
Alcove, a carbon credit inventory management platform, has introduced its latest Shopify app. This latest tool lets carbon credit project developers on Shopify efficiently manage and sell credits generated by various carbon removal or avoidance projects. The integration not only streamlines operations but also opens new roads for developers to create additional revenue streams, thereby scaling their carbon credit initiatives with ease.
Amazon’s Three-Year Partnership with IPG Mediabrands for Prime Video Ads
Amazon Ads has revealed an exciting collaboration with IPG Mediabrands, the media and marketing arm of Interpublic Group, which has been going on for three years. This strategic alliance aims to leverage Prime Video ads to connect brands with their target audience by 2024. The initiative will unfold in two phases, initially covering the U.S., U.K., Germany, and Canada, followed by expansion to Australia, Mexico, and additional European countries such as France, Italy, and Spain.
Expanding Horizons: Ayden and Klarna Strengthen Collaboration
Ayden, a global payment platform, has revealed plans to strengthen its longstanding partnership with Klarna, a famous and recognized buy now pay later provider. Building on over a decade of collaboration, this alliance sees Ayden taking on a key role as one of Klarna’s acquired banks for consumer offerings. The enhanced partnership kicks off in Europe, North America, and Asia, marking a significant shift in their joint efforts.
Lastly
And that wraps up our e-commerce adventure for the week! What a ride, right? From Shopify’s eye-opening insights on the December shopping frenzy to the latest twists in return strategies, we’ve covered a lot of ground. As we sign off, keep your eyes peeled for more buzz-worthy news from the e-commerce universe. Here’s to making those last-minute holiday strategies shine – you’ve got this!