As we rapidly approach the retailer and eCommerce holiday season, which officially kicks off with Black Friday and Cyber Monday, it’s important to take a moment and analyze the last few months – and highlight the marketplace trends. The past year has been a tumultuous one, with many shifts and changes reshaping the retail and eCommerce industries.
Traditionally, a retailer is a business that sells goods directly to consumers through various channels, including physical stores, online platforms, and marketplaces. However, in a rapidly evolving retail landscape, adapting to multiple sales models isn’t just an option; it’s a competitive advantage.
The current retail challenge
In today’s landscape, a retailer is no longer just a business connecting products to consumers, but a versatile operator engaging customers seamlessly across both physical and digital Platforms. We just published a report that explores the standout performance of spring and summer of 2024, comparing it to 2023, and highlighting why embracing diverse sales channels is crucial for future success.
For example, medium-sized retailers, primarily operating in North America, showed remarkable resilience despite a modest 4.5% decline in sales from 2023 to 2024. Their success is a testament to their focus on casual fashion and innovative digital engagement strategies, such as expanding to social media. As they continue to refine their multichannel approach, medium retailers are well-positioned to leverage future growth opportunities, especially in expanding their online reach and adapting to evolving consumer trends.
How can retailers thrive in today’s landscape?
By tapping into specific customer needs and streamlining operations through dropshipping, medium-sized retailers have unlocked significant potential for scaling their businesses. Small retailers have also found immense opportunities to grow by expanding into additional niche categories, exploring global markets, and further proofing their digital capabilities.
Moreover, the year-over-year sales data from 2023 to 2024 reveals several intriguing trends that emerged over the past spring and summer. These trends are both driven by retailers diversifying their sales channels, focusing on dropshipping and online marketplace sales, but are also influenced by external variables such as social commerce, AI, consumer sentiment, and even weather patterns.
How did inflation influence the retail landscape?
One of the major findings in our Pre-Holidays Marketplace Trends of 2024 report is that inflation and unemployment significantly influenced the retail and eCommerce industries.
Inflation eased in 2024, initially boosting consumer confidence and retail sales by 1%. However, despite this temporary relief, inflationary pressures continued to shape consumer behavior. Shoppers became increasingly price-conscious, seeking value-driven products and comparing prices across various platforms before making purchases. This shift in consumer mindset forced retailers to adapt their strategies Rapidly.
How to turn data into profitable experiences?
Moving forward to 2024’s holiday season and into 2025, brands that wish to maximize sales and achieve significant growth should make informed, data-based decisions. As the retail and eCommerce landscape continues to rapidly evolve, brands must take into consideration the possibilities of multichannel sales models, marketplaces, and dropship programs, for example.
At Cymbio, we understand the importance of this dynamic environment and the necessary steps for achieving growth through multi-channel sales. We encourage you to download our Pre-Holidays Marketplace Trends of 2024 report and embrace innovation to thrive in this ever-changing retail landscape.