Top industry news for the ecommerce world brought to you in a weekly update every Monday, with Ideoclick’s VP of Strategy, Andrea Leigh.
Hot Topic: Prime Day 2021 results; other retailers are struggling to keep up with Amazon
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. 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.
Hot Topic: Secondhand fashion market growth; fashion sustainability
WWD, June 23, Secondhand Market May be Twice the Size of Fast Fashion by 2030, Says ThredUp, 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).
Hot Topic: 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
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.
Hot Topic: Supply chain snarls and rising costs contribute to Prime Day disappointments
Bloomberg, June 21, Amazon Prime Day Deals 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 shutdown 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.
Hot Topic: Instacart’s growing ad business; competition with retail ad powerhouses like Amazon and Walmart
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 (attached as Word doc)
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.