e-Commerce Trends 2019

eCommerce, ECRM, Instagram, Online Advertising, SEO, UX, Website

By Leon Merse on 08/09/2019

We are happy to present you the most significant e-Commerce Trends !

Below please find the most influential e-Commerce trends. For each article, our team of Digital Marketing experts left recommendations supporting you to make better decisions in this fast moving world:

 

AUGUST 2019

ALIBABA: EXPECTATIONS FROM 2018 GOT SURPASSED


The Chinese digital giant published its business report of Q1 2019. Figures such as 12.1 billion dollar revenue (a growth of 51%) surpassed all expectations. Alibaba mainly benefits from its cloud service which grew by 76% and now inhabits rank #3 of global cloud services, behind Amazon’s AWS and Microsoft. In their report, founder Jack Ma announced to expand further to western countries. AliExpress – the B2C e-Commerce platform – will enjoy higher attention within the company. The 380,000 square meters logistic centre which is currently under construction in Liege, Belgium will foster the expansion. Furthermore, Alibaba showed interest in acquiring German firms, the most prominent hereby: Zalando.

Our recommendation: Follow the development closely and consider investment.
The current trade war between China and USA is likely to slow down Alibaba’s expansion to western countries. However, the Chinese eCom giant proved its potential by its continous growth and success stories within the Asian markets. In Europe, it is currently mainly used by B2B businesses but the development of AliExpress should be alarming for all B2C firms to pay closer attention. 2019 and 2020 will be crucial to confirm the high ambitions of Jack Ma so that we recommend to follow the development closely and to consider an investment in case your brand fits the business.
[learn more] (German article)

 

MARCH 2019

AMAZON IS PILOTING “TARGETED PRODUCT SAMPLING”


Amazon will soon offer sending product samples proactively to users that are most likely to like and buy these products. The predictive system is fuelled by machine learning and a pilot case with brands such as Maybelline has already begun in the USA.

Paket zum Aufmachen
Amazon is using “Targeted Product Sampling” to send product samples to customer. 


Our advice: Research and prepare for the launch date.
In case you have an Amazon contact, ask when the targeted product sampling comes to your market. Furthermore, discuss what types of products (minis, sachets, full-sizes…) will be sampled and if Amazon plans to include a mechanism to receive ratings & reviews from these selected potential customers. If so, this mechanic could be even more attractive than Amazon’s VINE test program.
[learn more]

 

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FEBRUARY 2019

INSTAGRAM PLANS TO EXTEND ITS E-COMMERCE BUSINESS


Instagram was already interesting for brands: It has over 1 billion monthly users, 93% of all influencer campaigns happen on Instagram (2x more than Facebook) and users post 2x more stories than on Snapchat. Since 2017 users can even “swipe-up” from these stories to get forwarded to suitable landing pages. All this was complemented last year through “Shoppable Posts”, which let users shop directly what they see in the app. Now, Instagram is testing IG Shopping, a separate app dedicated to shopping only..

Our advice: Consider Shoppable posts & Observe IG Shopping.
As 80% of Instagram users already follow at least one brand and since shoppable posts generate 90m clicks monthly, we strongly recommend to evaluate Instagram’s shopping features for your brand. This is especially true when doing Influencer campaigns. Also, keep your eyes on IG Shopping. If it should cooperate with Amazon or other e-retailers, the app could swiftly evolve into a key e-Commerce player.
[learn more]

 

FEBRUARY 2019

GOOGLE: FAST GROWING SHOPPING ADS AS SEA OPPORTUNITY?


Google Shopping Ads (or Product Listing Ads) are growing rapidly and starting to challenge standard Google text ads. Google Shopping Ads are advertising spaces at the very top of the Search Engine Results Page. These placements get shown even above text ads and are bought, just like standard text ads. However, they also feature images and link directly to e-Retailers. This ad form has been constantly winning more impressions over the last quarters (+110% in Q4 2018, USA) and also clicks have increased +33% (vs. Q3, USA). By adding “Showcase Shopping Ads” in 2018, Google can now even serve Shopping ads to queries that are too general to show one specific product, a traditional field for text ads.

Our recommendation: Evaluate Google Shopping Ads for your brand
Shopping Ads are particularly interesting for visually appealing products, since they display videos or pictures of the product. Especially for users that are already further down the purchase funnel, this ad form may be a shortcut to conversion. On the other hand, these image-based ads offer almost no space for text explanations, hence traditional text-ads may be better for advertising information-intense products.
[learn more]

 

DECEMBER 2018

SNAPCHAT LAUNCHES SEVERAL E-COMMERCE FUNCTIONS


The video and picture-based social media platform headlines with two announcements of e-Commerce functions. Firstly, it partners with Amazon to establish a shopping function which lets users take a picture of a product or barcode to then get forwarded to its Amazon page. Secondly, shoppable ads are now available to all advertisers, allowing them to use two functions:
– Import your product catalogs to your postings
– Use tracking pixels to analyse specific consumer actions on one’s website

Our recommendation: Try Snapchat’s e-Commerce functions
All major Social Media platforms already offer direct shopping options. Hence, it is likely that consumers will get used to shopping through Social Media. Additionally, Snapchat’s product recognition which discovers the product on Amazon, makes purchasing even easier than on any other platform. Therefore, we recommend using Snapchat’s shopping functions, if you have a Snapchat channel.
[learn more]

 

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NOVEMBER 2018

HOW TO BENEFIT FROM MARRYING ONLINE AND OFFLINE CHANNELS


“ROPO” (Research Online, Purchase Offline) symbolises that seeing online and offline in silos is long outdated. Although e-Commerce is growing double digits each year, ¾ of consumers will still fancy shopping offline in future, according to a study from the German trade association. Marrying both channels works in various ways. The article presents best practises of chatbots, point-of-sale digitalisation and more.

Our recommendation: Evaluate ROPO opportunities for your brand. Although many brands run online and offline channels, opportunities to combine both are often missed out. Online might awake incentives for visiting the offline store or serve consumers with additional information and vice versa. Amazon “Go” stores show how to use online in-store to e.g collect helpful shopper data.
[learn more] (German article)

 

OCTOBER 2018

SHOPPING GAINS HIGHER IMPORTANCE AND FOUNDERS LEAVE INSTAGRAM


Instagram expands its e-Commerce business by rolling out its shopping function globally, as a channel in its “Explore” tab and within Stories. Via the “Explore” function, brands will be able to mark their products with a Shopping Bag-icon and additionally make them findable in a “Shopping” category. Additionally, Shopping placements can also be applied in Stories, which sounds attractive considering Instagram’s 400 million engagements per day.

These moves towards a more commercialized Instagram come at the same time as their two founders have announced to leave the company over major disputes with facebook CEO Marc Zuckerberg.

Our recommendation: Use Instagram Shopping function. Based on its almost purely image-driven nature and the high-quality images on the platform, Instagram is a perfect channel to present products and entice people to buy them. We therefore recommend using the “Shopping” feature directly, as its impact is likely to diminish over time, once users have become accustomed to it.
[learn more]

 

OCTOBER 2018

AMAZON ATTACKS ETSY & DAWANDA BY CREATING OWN CATEGORY FOR PRODUCTS FROM SMALLER BUSINESS


Amazon announced that it will add a new category which shows only products from small & medium businesses, in Germany, the UK and the USA. The category will be called “Storefronts” and works as follows: It will present different “Collections” of 25 products which are linked to one topic (e.g. Halloween products). Furthermore, businesses will be able to present themselves with a more personal touch (“Meet the owner”) and one business will be prominently featured as “Storefront of the week”, each week.

Amazon “Storefronts” made it into our e-Commerce Trends.

Our assessmentJoin Storefronts early. Amazon will support this new category with TV-Spots, which proves their commitment to the topic. If your company suits this category, we
advise to join Amazon early on, to have a head start against competition. At the same time, we recommend setting up alternative channels (e.g. Etsy DaWanda) to have a better bargaining position against Amazon once they start demanding for more.
[learn more]

 

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SEPTEMBER 2018

196 SQUARE METERS! BIGGEST AND THIRD “AMAZON GO” STORE OPENED


The e-Commerce giant seems to follow its ambition to not only lead online-trade but to gain shares offline as well. Just one week after their second store opened in Downtown Seattle, they unveiled their biggest shop yet, in South Lake Union. The convenience stores are cashierless and ask their customers to use an app when entering the shop. By using camera trackings, no checkouts are needed and customers can simply charge their amazon accounts.

Our recommendationWatch & Learn. Considering Amazon’s fast expansion strategies, it would not be surprising to see Amazon Go Stores rolled out further in the USA or even internationally. Hence, now is a good time to learn & react to how they might challenge traditional brick & mortar stores.
[learn more]



We hope this proves helpful to you and your team!

Best digital regards,

Watersky Digital Signature