Top industry news for the eCommerce world for June 2021 with Ideoclick expert and VP of Strategy, Andrea Leigh.
The accelerated growth of ecommerce is undeniable. If you’re looking to grow your brand on Amazon, not only do you need to develop a viable growth strategy, but you must stay up to date on the latest ecommerce news and insights. To help set your brand on the path of long-term growth, check out some of the top industry news in June.
6/21 Ecommerce News Update
Prime Day 2021 is Projected to Reach Record Spending Amounts
Forbes, June 16, Adobe predicts that Amazon Prime Day spending is expected to top $11 billion by Joan Verdon
Amazon’s Prime Day sale next week is expected to drive record amounts of online spending and rival Black Friday and Cyber Monday as the biggest e-commerce sales event of the year, according to an Adobe Digital Economy Index forecast. While online spending in May declined from the pandemic-driven surge of Spring 2020, the continuing strength of the e-commerce economy, and consumer enthusiasm for the Amazon-invented annual sales event are expected to push Prime Day spending past last year’s $10.4 billion to over $11 billion.
Amazon and Walmart Are Adding New Online Shopping and Ad Capabilities
Progressive Grocer, June 16, Amazon Fresh and Walmart unveil new online shopping capabilities by Bridget Goldshmidt
Amazon Fresh and Walmart have revealed new capabilities from e-commerce management platform provider CommerceIQ that will help grocery brands carried by the online retailers succeed in one of the fastest-growing segments of e-commerce, which is projected to reach $100 billion this year. In the wake of launching omnichannel coverage for all major online retailers, CommerceIQ now provides real-time, retail-aware advertising for Walmart and Amazon, with additional ZIP code-level precision to ensure localized availability for Amazon Fresh customers.
Shopify is Expanding Their Ecommerce Platform
Bloomberg, June 15, Shopify Expands E-Commerce Pact With Google and Facebook by Danielle Bochove
Shopify Inc. will open up its e-commerce checkout system to all retailers selling through Google and Facebook Inc., expanding an existing collaboration with the two U.S. giants and marking the first time the Canadian technology company has offered a product to merchants that don’t use its platform. Retailers who sell products through Facebook or Google properties such as Instagram, YouTube or Google Maps will be able to offer shoppers the chance to pay for their purchase using Shop Pay, starting in July for Facebook and later in 2021 for Alphabet Inc.’s Google. Shop Pay is a checkout product that stores users’ information, speeding up online transactions.
Amazon is Expected to Pass Walmart as the Largest U.S. Retailer in 2022
CNBC, June 15, JPMorgan says that Amazon as set to pass Walmart as the largest U.S. retailer next year, by Jesse Pound
The dramatic growth of e-commerce over the past 18 months has accelerated Amazon’s rise to dominance, and even the largest traditional retailer may soon fall behind, according to JPMorgan. Analyst Doug Anmuth reiterated in a note to clients that Amazon is one of the firm’s top picks and said that the company could cross a major milestone next year. Anmuth estimated that e-commerce penetration in the retail market was pulled forward three years by the coronavirus pandemic, bringing Amazon neck and neck with Walmart.
U.S. Media Ad Revenue Could Grow to Record Heights
AdAge, June 14, Manga forecasts 15% growth in the U.S. media and revenue, by Brian Bonilla
Interpublic Group’s Magna forecasts a 15.1% increase in 2021 U.S. media ad revenue, now expected to reach a record $259 billion. Magna says this represents the strongest ad revenue acceleration in 40 years. The new forecast, an all-in tally including cyclical events (U.S. elections, Olympics), is significantly higher than Magna’s March forecast that predicted ad revenue growth of 6.4%. The change is due to a better-than-expected start of the year and an increasingly strong economic outlook for the coming months, according to the report. Excluding cyclical events, Magna forecasts that U.S. ad revenue will rise 17.4%.
6/21 Ecommerce News Update
Amazon Prime Day 2021 Results
AdWeek, June 24, Can retailers keep up with the Prime Day juggernaut? by Lisa Lacy
Amazon’s seventh-annual Prime Day helped generate $5.4 billion in online shopping sales for the retail industry on Day 2, for a total of more than $11 billion for the 48-hour event.
Amazon’s seventh annual Prime Day helped generate $5.4 billion in online shopping sales for the retail industry on Day 2 for a total of more than $11 billion for the 48-hour event. That’s according to data from Adobe’s Digital Economy Index. It also puts Prime Day 2021 in the pantheon of marquis shopping dates like Black Friday and Cyber Monday. The distinction, of course, is Prime Day and related summer sales are focused more on self-gifting than buying for loved ones. In fact, marketing software company Bazaarvoice found 83% of consumers shopped for themselves this Prime Day.
Fashion Sustainability: Second Hand Fashion Market Growth
WWD, June 23, ThredUp says that the second hand market might be twice the size of fast fashion by 2030, by Kaley Roshitsh
The industry may still be recovering from its Covid blow, but resale is resilient. It may come as no surprise given the recent traction in the resale space, but the category is growing 11 times faster than broader retail and will be worth $77 billion by 2025, resale marketplace ThredUp noted in a new report. By 2030, secondhand is expected to be twice the size of fast fashion, with the former valued at $34 billion and the latter at just $40 billion. (Fast fashion was valued at $36 billion in 2019, according to ThredUp’s report, and the platform expects secondhand will slow the impact of fast fashion).
A New Ad Strategy is Emerging in a Post-Pandemic World
Modern Retail, June 22, Out-of-home advertising is trying to evolve to the post-pandemic world, by Cale Guthrie Weissman
According to recent MTA data, subway ridership is still between 50% and 60% lower than it was pre-pandemic.
As cities open back up, out of home is coming back into play — but a new strategy is emerging. For one, subways aren’t the holy grail they once were. Subway ads were previously critical to startups like Casper and Thinx, who shelled out hundreds of thousands of dollars to bombard New York commuters. According to recent MTA data, subway ridership is still between 50% and 60% lower than it was pre-pandemic. Back then, a brand would spend six-figure sums to take over entire subway cars, but that’s no longer such a hot commodity. Instead, brands are increasingly turning to digital signage — as well as outdoor spaces where people feel more comfortable. But, every company is still trying to figure out what the hottest destinations are in a post-pandemic world.
Supply Chain Snarls and Rising Costs Contribute to Prime Day Disappointments
Bloomberg, June 21, Amazon Prime Day deals are expected to disappoint as costs surge, by Spencer Soper
The deals during Amazon.com Inc.’s annual Prime Day sale will be stingier this year, according to merchants, thanks to rising shipping costs, higher advertising rates, and scarce inventory. The two-day event, which begins Monday, arrives as the world grapples with the lingering effects of the pandemic. Supply-chain disruptions — including the Suez Canal shut down earlier this year and a spike in Covid cases that has hobbled two of China’s busiest ports — have pushed up costs and made Amazon suppliers wary of selling too much during a profit-crushing sale. Many say they’re also holding back inventory in case shipping delays persist through the busy Christmas holiday shopping season.
Instacart’s Growing Ad Business and Competition With Retail Ad Power
Business Insider, June 19, Instacart wants to build a billion-dollar ad business — advertisers break down what it needs to do to snag their budgets from rivals like Amazon and Walmart, by Lauren Johnson and Tom Dotan
Instacart faces tough competition from Amazon and retailers like Walmart, Target, Walgreens as it tries to build an ad business that will hit $1 billion by 2022. Advertisers laid out the advantages and challenges it faces as it tries to get a bigger piece of their budgets. When advertisers buy campaigns from retailers they rely on for distribution, like Walmart, Target, and Amazon, those ad budgets are typically baked into large contracts that include distribution deals. Since Instacart doesn’t have those distribution relationships, it gets dollars that brands are siphoning off from other channels, which is easier to get than dollars tied to distribution deals, said ad buyers.
Stay up to date with insights in the eCommerce world by checking out Ideoclick’s In the News category. Ideoclick is your eCommerce services and growth partner dedicated to helping you win the internet.