by Vinny O’Brien, E-Commerce Trainer and Consultant at Vinny&Co
Some really interesting ‘shifts’ are happening in e-commerce. Remember, a shift is not a trend. This is real displacement. We are in coming into peak season don’t forget.
Digital ad spend is growing but not where you would think.
Search volumes are down year-on-year in many categories on Amazon (good indicator). Also, factoring in Amazon Prime day 2, there are a lot of offers “in your face” search volume would naturally be lessened (IMO).
However, something to note in these graphs, as I have seen them both a lot recently. Media spend is shifting into retail platforms as seen on the spend graph. Spend has been declining all year on search platforms but is down 36%. I would like to think “other” here includes catch-up TV or TV in general but I cannot be certain.
We are all entering the shopping season a little more cautious and also trying to be certain – browse and discovery behaviour is fundamentally changing. We are increasingly going to retailer and marketplace sites with specifics in mind – conversion rates will be pretty high, I am guessing. So your campaign planning for 2023 will have to be shaped differently. People will want certainty.
Other factors that will drive conversions – these are marginal but important gains:
- Loyalty programmes – where do I get my free shipping or additional savings
- Proximity and speed – can you get this to me quickly
- Do I trust you have stock
- Discounts have been pretty aggressive already – where can they possibly go on Black Friday and Cyber Monday – my guess – bundles and an attempt to increase AOV and basket size
Consumers are making these shifts happen – an increasingly important strategic shift will be your channel strategy in 2023 and beyond. It has never been more challenging or apparent that what has worked up to now is under scrutiny – adaptability, scrappiness and watching your customers’ behaviours are key. Catalogue curation, brilliant basics and a focus on profit per channel.
Nothing new here, only strong macro evidence to support the fact behaviours have shifted. The next generation of shoppers are already different in their approach – we need to be too.
P.S. Media planners around the world (if upskilled) may be your next most important hire.
