Juphy’s Weekly E-Commerce News Express – 20-24 May 2024
Ceyda Duz
This week, the e-commerce world is discussing TikTok’s expansion into Europe, with TikTok Shop and US e-commerce sales holding strong in Q1 2024. But that’s not all – exciting partnerships between industry giants like Avalara, Shopify, and Astound Digital, promising innovation and growth, and a product update by eBay are also central to this week. Keep reading to stay ahead of the latest e-commerce, retail, and online shopping trends!
TikTok Expands E-Commerce into Europe
The role of social media in e-commerce has become increasingly vital, and TikTok Shop, the e-commerce arm of TikTok, is a testament to this trend. Initially launched in parts of Asia in 2022, TikTok Shop quickly expanded to the United Kingdom and the United States. Despite some setbacks in the UK, TikTok Shop became a popular social commerce channel in the U.S. among consumers, merchants, and influencers. Now, TikTok is preparing to extend its e-commerce presence into continental Europe.
Upcoming European Expansion
TikTok has started inviting merchants to beta-test TikTok Shop in Germany, France, Italy, and Spain. Reports from the South China Morning Post, based on anonymous sources, suggest that TikTok aims to introduce its e-commerce activities in Western Europe this upcoming summer. This expansion signifies TikTok’s strategic move to strengthen its foothold in the European market.
Current Reach and Future Plans
- Countries: With the addition of Germany, France, Italy, Spain, and Mexico, TikTok Shop will be active in 13 countries.
- Sellers: As of December 2023, TikTok Shop had over 15 million sellers globally, adding more than 6 million in the latter half of the year.
Potential for Further Expansion
TikTok Shop is expected to expand further into additional European countries. TikTok may also introduce fulfillment services in Europe, similar to its operations in the United Kingdom. Moreover, TikTok Shop is expected to launch in Mexico soon, broadening its global reach.
As TikTok Shop continues to grow, merchants and consumers alike will closely monitor its integration into the e-commerce landscape in Europe and beyond. This expansion highlights the ongoing changes and developments of social media platforms as key players in the e-commerce sector.
U.S. E-Commerce Records in Q1 2024
In Q1 2024, online sales in the U.S. saw significant growth, though they didn’t match the peak of the Q4 2023 holiday season. Digital Commerce 360’s analysis of U.S. Department of Commerce data, which excludes spending in segments like restaurants and bars, revealed that e-commerce penetration hit a record high for the first quarter, accounting for approximately 22% of total sales, up from 21% in Q1 2023. This marks the third-highest quarterly penetration to date, following the remarkable growth observed in Q4 2023.
Key Insights:
- E-Commerce Growth: Despite the drop from Q4 2023, Q1 2024 saw e-commerce sales totaling approximately $268.12 billion, marking an 8.5% increase compared to the same period in 2023.
- Retail Landscape: Total retail sales in Q1 2024 reached an estimated $1.820 trillion, with e-commerce accounting for a significant portion of the growth, representing roughly 53% of total retail growth for the period.
- Seasonal Variations: It’s common for e-commerce sales to decline in Q1 compared to the holiday-driven Q4. However, year-over-year growth in Q1 2024 outpaced total sales growth, with e-commerce sales growing at more than twice the rate of total sales.
As e-commerce continues to shape and slowly dominate the retail world, its resilience and growth course in the face of evolving consumer behaviors and economic fluctuations remains an important point for the industry.
Avalara’s Global Tax Compliance for Shopify Merchants
Avalara, a cloud-based tax compliance solutions provider, has expanded its collaboration with Shopify through its integration into the Shopify Tax Platform. This partnership extension helps merchants of all sizes on Shopify to handle and automate their global tax compliance needs efficiently. With Avalara’s inclusion in the Shopify Tax Partner Platform, Shopify customers gain access to a comprehensive suite of services, including managing sales tax, value-added tax, exemption certificate management, issuance of 1099 and W-9 forms, property tax management, and more.
Astound Digital and Shopify Partnership
Astound Digital and Shopify have teamed up to enhance outcomes for retail brands. This strategic partnership merges Astound’s expertise in crafting digital experiences for brands with Shopify’s unified commerce solution. Together, they aim to assist retailers in dismantling barriers between channels like D2C, B2B, and point of sale. The collaboration also encompasses training and certification on Astound’s capabilities to provide support beyond online commerce.
eBay Simplifies Reselling with New Feature
eBay has introduced a new feature, “resell on eBay”, to streamline the listing process for pre-owned clothing. This feature is seamlessly integrated into Certilogo’s Secure by Design digital ID, accessible by scanning a smart label on supported products. eBay intends to expand this resell service to additional brands utilizing Certilogo digital ID, with plans to integrate it as a default feature of its Secure by Design technology.
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Key Takeaways
TikTok Expands E-Commerce into Europe: TikTok Shop, the e-commerce arm of TikTok, is set to launch in Germany, France, Italy, and Spain, marking its expansion into continental Europe this summer, aiming to strengthen its foothold in the European market.
U.S. E-Commerce Records in Q1 2024: Despite not reaching the heights of the Q4 2023 holiday season, Q1 2024 saw significant e-commerce growth in the U.S., accounting for around 22% of total sales and totaling $268.12 billion, marking an 8.5% increase compared to the same period in 2023.
Avalara’s Global Tax Compliance for Shopify: Avalara expands its collaboration with Shopify to enable global tax compliance for merchants, providing access to a comprehensive suite of tax compliance services, including managing sales tax, value-added tax, and more.
Astound Digital and Shopify Partnership: Astound Digital and Shopify partner to elevate enterprise commerce outcomes by combining Astound’s expertise in crafting digital experiences with Shopify’s unified commerce solution, aiming to assist retailers in breaking down barriers between channels like D2C, B2B, and point of sale.
eBay Simplifies Reselling with New Feature: eBay launches a new feature, “resell on eBay,” integrated into Certilogo’s Secure by Design digital ID, aimed at streamlining the listing process for pre-owned clothing, with plans to expand this service to additional brands utilizing Certilogo digital ID.