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We鈥檝e heard this before, from furniture rental company Fernish, ecommerce site Overstock.com, and more. The challenge for brands is finding the right micro-influencers. 3. Reactivity can beat proactivity on social. Scrappiness can be a virtue for social media campaigns, especially when you鈥檙e riding the dialogue brand loyalists are already posting.

Many industries have diverted funds away from traditional advertising channels and toward direct-to-consumer marketing, where they can avoid dealing with ad exchanges and attempt to maintain loyalty through a potential consumer spending downturn. 42% of survey respondents said they would be spending more on digital advertising next year鈥�50% are planning to cut 鈥渙ffline鈥� ad spending.

Offering objective research on key topics like retail and e-commerce trends for 2023, marketplace growth, direct selling strategies for CPG brands, and insights on Gen Z buying power, and more. Make informed decisions with confidence. Learn more today at insiderintelligence.com. Sara Lebow:. Hello, listeners. Today is Wednesday, September 20th.

Nearly half (48%) of all Amazon sellers, brands, and businesses have leveraged AI or implemented AI-powered tools to help manage their ecommerce operations. The most common usage of AI by far is writing and optimizing product listings, cited by 34% of Amazon sellers, per Jungle Scout.

Snap is having trouble monetizing because Snapchat is primarily a chat platform, and 鈥渕essaging apps are notoriously difficult to monetize,鈥� according to our analyst Jasmine Enberg. The company could lean into its software as a service retail offerings, but consumers also aren鈥檛 sold on AR for shopping. Just 12.4% of US adults use AR for shopping, according to our forecast.

More Prime Day events can help with ecommerce and ad slowdowns, according to our analyst Andrew Lipsman, who believes Amazon could run an event each season. For its part, Amazon鈥檚 economists said in a November 2022 report that there was a 30% likelihood of a recession in the US in the next six months. And the ecommerce giant is taking preemptive cost-cutting steps to shore up its finances.

In mid-2021, Ulta and Target began rolling out a shop-in-shop partnership that incentivizes shoppers to become members of both Ultamate Rewards and Target Circle, providing the opportunity to accumulate points with both when they make purchases.

Costco鈥檚 membership doesn鈥檛 include many ecommerce benefits, proving the enduring appeal of in-store shopping. The retailer has been reluctant to invest in this area. It doesn鈥檛 offer free same-day shipping on grocery orders, and it no longer offers click and collect as a fulfillment option for grocery.

The pandemic ecommerce boom that drove online sales is over. But marketplaces will continue to expand their share of US retail ecommerce, contributing almost 40% of the $588 billion in US online sales growth that we forecast over the next five years.

Companies with D2C channels鈥攂rands, publishers, media networks, and retailers鈥攚ant to leverage that data for targeting, personalization, and attribution. The challenge is that first-party data is often limited in scale, outside of giant walled gardens, and it still needs to be matched with other online and offline data sets in a privacy-compliant way. Data clean rooms.

Yeah, Victoria's Secret was founded on every 2000s trend that's gauche now, like ultra-thin models, no diversity, and they're also being undercut by D2Cs. Sarah Marzano (02:40):. Yeah, I think it's an interesting move to bring on Super. Savage Fenty famously has been one of the brands that's taken market share away from Victoria's Secret.

So Gatorade has launched an omnichannel loyalty program and also the idea is that it's also going to boost its D two c e-commerce site. Now, I'm not saying that this D two C site is going to be uber successful, but what I think is interesting is the loyalty part of things.

US retail marketplace e-commerce sales will grow by 10% year over year this year to nearly $385 billion. That's according to our forecast, which comes from Whitney and which Sky wrote the report on. That represents over a third of total retail e-commerce sales, that $385 billion.

On today's episode, in our "Retail Me This, Retail Me That" segment, we discuss what the customer journey currently looks like, where folks are discovering products, and how the funnel is collapsing. Then for "Pop-Up Rankings," we rank the top four personal frustrations in the customer shopping journey. Join our analyst Sara Lebow as she hosts analysts Sky Canaves and Suzy Davidkhanian.

So I think that luxury e-commerce is kind of taking a hit there as well. Zak Stambor:. Yeah, I think that's right.

Well, it's that Amazon is becoming a much bigger direct-to-consumer healthcare player. It's now expanding its services for Amazon Clinic, as you mentioned, video and text-based healthcare services. It's got Amazon Pharmacy, it rolled out a discounted RX pass for generic medications. So, it's really playing to the consumer in the consumer's healthcare needs.

I will say that there is a notable discrepancy between the approaches of small, independent, maybe D2C type brands and larger more heritage and tradition bound enterprise or legacy brands. If you have several generations of dos and don'ts in your brand guidelines, or you employ multiple creative agencies, you're a lot less likely to let this technology just spit stuff out willy-nilly and deploy it.

Two companies will build what they're calling an expansive and open games and entertainment universe that offers opportunities for folks to play, watch, shop, and engage with content, characters and stories from Disney, Pixar, Marvel, Star Wars, Avatar, and more, so a bunch of the different Disney brands.

So that's why you see a lot of DTC brands as they expand they'll eventually start advertising in linear television. And a lot of the largest tech companies in the world like Amazon and Apple, Facebook are among the largest out-of-home ad spenders each year.

On today's podcast episode, in our "Retail Me This, Retail Me That" segment, we discuss Walmart's purchase of Vizio, its brick-and-mortar strategy, and whether they can attract more upper income shoppers. Then, in a mini "Shark Tank"-style segment, we predict what the next big move for Walmart will be. Join our analyst Sara Lebow as she hosts senior director of media content Becky Schilling and analyst Zak Stambor.

But basically their mission now is to sort of become an entertainment app where you can shop. You see the shop ads are now at a $2 billion run rate across Meta. That also includes Facebook, but I would imagine most of that happens on Instagram. And what's going to be interesting is just try to compare and contrast the balance that the two apps can strike.

Health and beauty is Amazon's fastest growing e-commerce category in the US but it still has room to grow penetration. So this year, health and beauty is projected to have 24% growth according to our forecast and health and beauty e-commerce penetration is at 32% for Amazon.

So in some cases it could be worse depending on what your need is and that shortage has really been pushing patients to seek other options, whether that's retail health or direct to consumer telehealth, if it's not a serious issue, or urgent care, or in the worst case emergency care. But we're already seeing the impact.

But I think certainly among Gen Zs, there is an appetite for AI and shopping, but only if it's actually going to reduce frictions and not just create more frustration. Sara Lebow:. Yeah, with recommendations and shopping assistance I think there's a tightrope to walk because on one hand you might like it if you feel that these products are picked specifically for you based on technology.