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In Brazil, for example, a report from Opinion Box and Americanas Advertising showed digital buyers preferred retailer brand websites over search engines by a margin of 62% to 50% when hunting for deals. The physical store as an ad vehicle: Our report concludes reliance on search engines and linear TV will wane as Latin American marketers invest in ad formats that are likely to deliver higher returns.

Marketplaces like eBay, Etsy, and Facebook Marketplace give digital buyers easy access to a far more extensive selection than what physical channels like thrift and consignment stores can offer. In 2023, growth for ecommerce resale will normalize after pandemic spikes. This is due to consumers returning to stores and supply chains improving.

That’s barely outpacing the rate for US digital buyers, which will be 1.8% in 2023 and 2024. Prime’s penetration among the US population is still inching forward, but at a much slower pace compared with previous years. Prime Day isn’t what it used to be. The hype around the members-only sales event, which is generally a big driver of subscription growth, has died down in recent years.

One-fifth of digital buyers will engage with online fashion resale by 2026. This level of adoption will be driven by Gen Z and younger millennial buyers. Resale platform Poshmark claims that 90% of US millennial females are registered users, but it is also the most popular fashion resale platform among US Gen Z adults, per Morning Consult.

Digital shoppers expect depth of product information and customer insights before making a purchase, and a failure to provide it at the physical shelf adds unnecessary friction. Digital shelf technology that delivers insights at the moment of truth means more products added to the shopping cart, and it also reduces the likelihood that the wrong item will need to be returned.

In Brazil, more than 4 in 5 digital buyers have been influenced by a retail media ad they saw while shopping online, per an August 2022 Opinion Box and Americanas Advertising survey. The study found retail media to be an effective driver of sales among consumers of all ages. Top retail media networks emerge, bringing major scale and innovation.

Facing regulatory concerns over its purchase incentives and recommendation algorithm, Temu could be forced to revamp its interface or face fines.

Despite ongoing economic headwinds, US consumers will continue to spend more on online purchases—going from an average of $5,213 per digital buyer this year to $6,164 in 2025, per our forecast. Retailers will simply follow the money. Retail will be the second fastest growing industry for digital ad spending this year—and the clear leader in dollar terms.

But online spend per digital buyer will grow much faster than the number of digital buyers through 2026. Key Trends We’re Watching. Mcommerce Remains the Major Driver of Ecommerce Growth. Ecommerce is growing across devices, but rates are uneven in the US:. Computers are still the top device for online shopping, but they’re losing share as consumers spend less time on them.

Only half of UK digital buyers would be happy to pay more than a £3 delivery fee for an online order, per a November 2022 survey by Attest. More than 1 in 10 (14.4%) shoppers would be put off purchasing online if delivery is not free. After booming, demand for ultra-fast delivery is waning.

For example, mcommerce accounts for 82.1% of India’s ecommerce sales, so any digital shopping experience will have to be optimized for the mobile consumer. Apparel retailers also have to take into account the fact that traditional garments, like saris, account for around 65% of the women’s apparel market, per BoF, which could require brands to develop product lines specific to the country.

The gap between the two has only widened, especially in Brazil, where digital buyers said they prefer to search for deals on retailers’ websites over search engines by double-digit percentage points. Predictions. Marketers will reallocate ad dollars to bottom-funnel performance ads on retailers’ digital properties, as they face mounting pressure to deliver solid returns on investments.

Ecommerce still remains an important channel as consumers embrace a mix of physical and digital shopping. Sellers who deliver a seamless experience across both channels will have the advantage. That could include click-and-collect options, mobile apps that enable customers to scan and go, and AR and VR technology. Reduce friction points for better shopping experiences.

Total retail ecommerce sales per digital buyer will surpass $5,000 in 2023 and will exceed $7,000 in 2027. While existing customer spending growth (about 8%) trails overall retail ecommerce growth, it does so only by a few fractions of a point. Repeat, omnivorous shoppers are prime targets for advertisers.

The pace of change in social media won’t slow in 2024. The rising number of disruptors—whether it’s AI, creators, social search, or TikTok Shop—will both reshape old trends and create new ones.

Grocery is set to become the largest US ecommerce category by 2026.

Sweater weather has arrived, meaning pumpkin spice-flavored everything will flood retail shelves. But consumers’ price consciousness could make it difficult for retailers to encourage spending on discretionary purchases. That’s why Amazon, Target, and Albertsons are expanding their private label brands, leaning on fun, seasonal flavors and small indulgences to get consumers to splurge beyond their normal groceries.

The UK’s economic crisis has dragged into 2023, and consumers there have pulled back from digital shopping. This will pull down the figures for Western Europe. However, if we disregard the UK’s numbers, every region in the world will see an uptick in ecommerce penetration this year. China is such an outlier in its embrace of ecommerce that it’s best to pull its figures to the side.

That’s compared to 7.4% growth in average spend on ecommerce per digital buyer. We predict the average spend will continue to grow in double-digits through 2027. What does this mean for retailers? Future growth will come from encouraging existing mobile buyers to spend more—so personalization, loyalty programs, and user experience will be more important than ever.

As long as ecommerce remains healthy, retail media is likely to benefit since most retail media ads are tied to digital shopping and buying activity. On the media side, digital ad spending will grow by 12.0% in 2023. Further, digital ad spending will maintain relatively high levels of growth, tapering down only slightly to 10.8% by 2026.