#27 - Are you ready for 2024?
Consumer preferences in shipping. EU rules against VAT fraud. Livestream commerce insights. 2024 Forecast: Shopping trends and strategies. Shopify prepared for competition in retail sector.
Happy New Year 🥳
Hope you’ve rested and took some deep breaths, over the holidays - because this year will be wild!
Not sure if you’re used to use that time to reflect over the past and plan for the future. I was feeling a bit lazy to do it, but I got the impulse I needed from Jeremy on Linkedin, so I decided to put together my own list of goals and aspirations for next year. You can read them on LinkedIn, Twitter/X or even on Threads. Let me know what you think and share your ambitions too, so we can inspire each other.
Now it’s time to get back to business as usual and grow together in our journey. Let’s check out this week’s insights.
5 - Consumer preferences in shipping
Shipping holds paramount importance in consumers' online purchasing choices and satisfaction levels. Statista's September 2023 survey of 6,000 U.S. consumers highlights free delivery as the top priority, shaping buying decisions. The data reveals that 89% of respondents emphasize free delivery, surpassing other factors like easy return shipping (65%) and next-day delivery (36%). Gender-wise analysis indicates that 92% of female respondents highly value free shipping compared to 85% of males. Additionally, Ryder's September 2023 survey of 1,077 U.S. online shoppers suggests that younger consumers exhibit greater patience for online order deliveries, with 67% of 18-29 year-olds willing to wait longer. Notably, free shipping remains a key influencer in consumers' choice of where to make an online purchase, standing at 64% according to the Ryder survey respondents.
4 - New EU cross-border payment rules against VAT fraud
From January 1, new transparency rules in the EU aim to combat Value-Added Tax (VAT) fraud, especially in e-commerce, where such fraud is prevalent. These regulations require payment service providers (PSPs) handling over 90% of EU online purchases to monitor and transmit information on payees receiving more than 25 cross-border payments quarterly. This data will feed into the new European database, CESOP, accessible to Member States via Eurofisc, aiding in identifying non-compliant online sellers and strengthening fraud prevention efforts. The initiative seeks to address VAT non-compliance, particularly by businesses operating outside the EU, ultimately safeguarding tax revenues that fund crucial public services. Commissioner Paolo Gentiloni emphasizes these rules' pivotal role in curbing VAT fraud and restoring lost government revenues, applauding the collaboration with payment service providers to tackle e-commerce fraud effectively.
3 - Livestream commerce insights
Livestream commerce is on the rise in the US, driven by initiatives like TikTok Shop. Coresight Research projects potential sales of $50 billion by 2023, constituting over 5% of US ecommerce by 2026. Currently, only 12% of Americans have made live shopping stream purchases, led by Gen Z and millennials. Brands can enter this space through social media platforms like TikTok and YouTube, built-in livestream platforms such as Amazon Live, and comprehensive third-party integrations like Bambuser and Livescale. As this trend gains traction, brands should gauge customer interest before fully committing.
2 - 2024 Forecast: Shopping trends and strategies
In 2024, expect ecommerce and retail to offer expanded shopping avenues driven by AI innovations, blending digital and physical experiences seamlessly. Marketers leverage AI to create versatile retail landscapes, bridging online feedback gaps for brick-and-mortar stores. AI-driven chat aims to emulate in-store warmth online, emphasizing tone and consistency for effective brand communication. Shoppable ads gain traction, particularly among Gen Z, enhancing brand recall and interaction on streaming platforms like Roku. Additionally, retailers are shifting towards flexible, composable commerce systems, offering agile and innovative customer experiences across various touchpoints, crucial for extensive product catalogs and complex customer journeys.
1 - Shopify prepared for competition in retail sector
In 2024, Shopify ventures into big retail commerce, eyeing larger enterprises. Despite a stock dip in 2022, strategic moves boosted its value, though it's yet to reach peak levels. Targeting larger clients with Shopify Plus, the company competes by offering cost-effective and swift solutions. However, this shift brings challenges, demanding proof of increased sales from bigger clients and possibly slower decision-making. Ecommerce expert Rick Watson highlights this risk, emphasising that Shopify's enterprise venture needs substantial sales to offset fewer merchants, despite its agile offerings.
App of the week: LOCO
Yesterday I’ve had a very interesting meeting with the company behind this app. LOCO is an e-commerce app that blends AI and human oversight to streamline content creation, translation, and integration directly into online stores. It offers AI-driven content creation, translation, and management for product categories, catering to startups, large enterprises, and translation agencies seeking efficient multilingual content management. It’s still on its early days, but their potential is huge. If you are selling internationally more than 500 SKUs, you should probably connect with them to save some time and resources.
Ecommerce Prague 2024
The time is getting closer and closer. If you haven’t yet, make sure you grab your tickets before we sell out. If you were afraid this would be one more Ecommerce conference with plenty of SaaS companies and agencies trying to sell their fish, don’t be afraid. You’ll be in very good company, with some of the most successful Ecommerce brands in our region.
Thanks for reading Ecommerce BizTech Digest! Subscribe for free to receive new posts and support my work.