Juphy’s Weekly E-Commerce News Express – 26-30 August 2024
Ceyda Duz
In this week’s e-commerce and AI roundup, we discuss the latest trends in online marketplaces and consumer behavior for 2024 and discover the details of Ikea’s exciting new pre-owned furniture marketplace. Plus, get the scoop on fresh updates from YouTube, Amazon, and GoDaddy and catch up on last week’s hot topics and key developments to stay ahead in the retail and online shopping world. Dive in to stay informed!
Online Marketplace Trends and Consumer Behavior in 2024
As e-commerce continues to evolve, online marketplaces are becoming increasingly prominent in how consumers shop. New research from Digital Commerce 360 and Bizrate Insights highlights the current trends, behaviors, and concerns shaping marketplace shopping in 2024.
Frequency and Preference of Marketplace Shopping
The survey reveals that nearly all online shoppers are active on marketplaces, with a significant portion making purchases regularly. Amazon remains the first choice and dominant player, with 75.81% of respondents having purchased from its marketplace. However, many consumers are unaware if their purchases come from Amazon directly or third-party sellers, underlining Amazon’s strong brand presence and customer trust.
While Amazon leads, other marketplaces are also popular. Over a third of consumers, almost 38%, have bought from Walmart’s marketplace, and around 38% have explored other U.S.-based marketplaces beyond Amazon, eBay, and Walmart. Special marketplaces, such as Etsy and Newegg, serving niche segments, have also gained traction, with 27.53% of respondents purchasing from these platforms.
Consumer Behavior and Purchase Drivers
Price remains the greatest motivator for consumers choosing marketplaces over direct retailers, with more than half of the respondents citing better prices as the primary reason. Free or discounted shipping follows closely behind, with approximately 50% noting it as a key factor. Additionally, consumers appreciate the convenience of marketplaces, particularly the ability to find specific items easily and the availability of in-stock products.
Despite these advantages, the survey highlights some challenges associated with marketplace shopping. The most commonly cited issue is the perception that prices on marketplaces have risen in 2024 compared to the previous year, with 35.5% of respondents reporting higher prices. Concerns about increased shipping fees were noted by almost 27%, and longer delivery was cited by 23% of respondents. Additionally, about 21% of consumers find it difficult to distinguish between third-party sellers and items sold directly by the marketplace, leading to hesitations regarding the authenticity and origin of products.
Age-Related Differences in Marketplace Shopping
The same survey also uncovers significant differences in shopping behavior across age groups. Older consumers, particularly those aged 65 and up, are more likely to maintain their current level of marketplace shopping, with about 76% indicating they will buy the same amount in 2024 as in 2023. In contrast, younger consumers, particularly those aged 18 to 29, are more inclined to increase their marketplace shopping, with 30.5% planning to buy more.
This trend is also reflected in their engagement with product ratings and reviews. A notable 69% of consumers aged 18 to 29 always check ratings and reviews before making a purchase, compared to just 36% of those aged 65 and older, highlighting the importance of trust and social proof for younger generations.
Challenges and Concerns in Marketplace Shopping
While marketplaces offer convenience and variety, they are not without challenges. The survey highlights several concerns, with high shipping costs topping the list at approximately 39%. Long shipping times and the prevalence of inauthentic products are closely followed, cited by 37% and 33% of consumers, respectively. Additionally, 29% of respondents are concerned about the lack of return options, and around 28% question the validity of customer reviews.
The 2024 landscape of online marketplace shopping is one of both opportunity and challenge. Understanding and addressing the diverse needs and concerns of consumers will be critical for e-commerce businesses to stay competitive in this ever-changing environment.
Ikea Launches Marketplace for Preowned Furniture
Ikea, the Swedish furniture giant, is taking a significant step towards expanding its online revenue while embracing sustainability with the launch of Ikea Preowned, a marketplace for pre-owned Ikea furniture. This new platform is currently being tested in Spain and Norway and is set to allow customers to sell their used Ikea products directly to other consumers.
A C2C Marketplace for Ikea Furniture
Ikea Preowned operates as a customer-to-customer (C2C) marketplace, where users can upload their Ikea furniture for sale, complete with photos and prices set by the sellers themselves. To improve the selling experience, the platform uses AI to add professional advertising images, correct product dimensions, and even provide assembly guides and care instructions. This not only simplifies the selling process but also ensures that buyers have all the necessary information to make informed purchases.
Simplifying Transactions, Reducing Waste
One of the striking aspects of Ikea Preowned is that it does not handle logistics, meaning buyers are responsible for picking up the purchased items directly from the seller’s location – keeping the costs low. Sellers are encouraged to list their products with the option to receive either direct payment or an Ikea coupon that includes a 15% discount, adding further value to the transaction.
The Pilot Phase and Future Prospects
The pilot for Ikea Preowned launched this summer in Oslo and Madrid and will continue until December. During this testing phase, Ikea is closely monitoring customer behavior and interest in the digital second-hand marketplace. This period will be crucial in determining the feasibility and potential scale of the platform. With an already 10% of the global second-hand home furnishing market that is comprised of Ikea products, the platform is seen as an opportunity to enhance the experience for both buyers and sellers.
With this move, Ikea is reinforcing its reputation as an innovative and adapting company that is willing to evolve according to changing consumer behaviors while maintaining its commitment to sustainability. As the pilot progresses, it will be interesting to see how Ikea Preowned turns out and what impact it will have on the broader second-hand furniture market.
YouTube and Shopify’s Expanded Video Shopping
YouTube and Shopify have deepened their partnership by expanding video shopping opportunities for U.S. Shopify Plus and Advanced merchants. Now, these qualified merchants can sign up for YouTube Shopping’s affiliate program directly through the Google and YouTube app on Shopify. This integration allows Shopify merchants to collaborate with creators to showcase their products in YouTube videos, enhancing their reach and engagement. Through the Google Merchant Center, merchants can easily manage their affiliate program, track analytics, and oversee content and products, streamlining the process of leveraging video content for e-commerce success.
Amazon’s Prime Big Deal Days in October
Amazon has announced its Prime Big Deal Days sale, which is set to take place in October of this year. The event aims to offer exclusive deals to Prime members ahead of the holiday shopping season. Amazon has already notified U.S. FBA (Fulfillment by Amazon) sellers to ensure their inventory is delivered by September 13 for the event and by October 19 for the upcoming Black Friday and Cyber Monday sales. To support sellers during this busy period, Amazon is offering a limited-time discount of 25% off the base rate for storage fees and 15% off the base rate for processing and transportation fees.
GoDaddy’s AI-Powered Digital Marketing Tools
GoDaddy has introduced a new AI-powered product called Digital Marketing, designed to provide entrepreneurs with comprehensive tools for managing their online presence. This all-in-one solution offers capabilities for social media management, search engine optimization (SEO), and email marketing. By leveraging GoDaddy Studio and GoDaddy Airo, users can create branded images, videos, and effective email marketing campaigns. Additionally, Digital Marketing offers an upgrade option that unlocks generative AI tools, including digital ads from Yelp, support from the Airo assistant, and a marketing calendar to help entrepreneurs streamline their marketing efforts.
Juphy AI: Your Ultimate E-Commerce Ally
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Key Takeaways
Online Marketplace Trends in 2024: Online marketplaces are increasingly dominating the shopping landscape. Amazon remains the top choice, with 75.81% of shoppers using its platform. Price and convenience are major purchase drivers, though concerns about rising prices and shipping costs persist.
Ikea’s Marketplace for Pre-Owned Furniture: Ikea introduces Ikea Preowned, a C2C marketplace for buying and selling used Ikea furniture. Currently, in the pilot stage in Spain and Norway, the platform uses AI to enhance product listings and facilitate low-cost transactions with buyers responsible for pickup.
YouTube and Shopify’s Video Shopping: YouTube and Shopify enhance their partnership to expand video shopping capabilities. U.S. Shopify Plus and Advanced merchants can now join YouTube’s affiliate program via Shopify, allowing them to collaborate with creators and manage video content and analytics more effectively.
Amazon’s Prime Big Deal Days in October: Amazon announces its Prime Big Deal Days sale for October, offering exclusive deals to Prime members. Sellers are advised to prepare inventory and benefit from temporary discounts on storage and processing fees.
GoDaddy’s AI-Powered Digital Marketing Tools: GoDaddy unveils AI-driven Digital Marketing tools, including capabilities for social media management, SEO, and email marketing. The new features, such as AI-generated ads and marketing calendars, aim to streamline entrepreneurs’ digital marketing efforts.
