Trends and

Predictions for
E-Commerce and
Retail in 2024

The Year in Review: 2023 Influences
As the curtains close on the tumultuous chapter of
2023, a single word echoes through the corridors of
time—chaotic. This year unfolded against a backdrop
of economic unpredictability and global turbulence,
with rising bond yields, climbing interest rates, and
the relentless surge of oil prices taking center stage.
Geopolitical uncertainty heightened with ongoing
conflicts in Ukraine and the recent Israel-Palestine
war.
Inflation remained a persistent concern, leaving
consumers to navigate through an environment
where disposable income felt the strain.
E-commerce, once the undisputed champion of
growth, experienced a subdued performance,
marking its slowest ascent since the echoes of
the 2009 recession. Amidst this chaos, artificial
intelligence (AI) emerged as a disruptive force,
reshaping industries and challenging norms.
1
Marketplace Pulse 2023
2
Statista 2023
3
CNBC 2023
4
Reuters 2023
5
YCharts 2023
6
The Street 2023
2
Before we make our predictions for 2024, let us
examine the key plot points that shaped the narrative
of 2023.
JANUARY 2023
High Inflation Persists:
Persistent high inflation, peaking at 6.4%,
impacted living costs, consumer behavior,
and business operations. It leveled out
around 3% by year-end.2
JANUARY 2023
Amazon Raises Fees:
Beginning in January, industry giant Amazon
raised its fees, contributing to the changing
dynamics of online retail as sellers faced
even greater pressure on their margins in an
already tight spending market.
FEBRUARY 2023
Google Launches AI Counterpart to
ChatGPT:
In a direct response to ChatGPT, Google
launched Bard, powered by the company’s
large language model, LaMDA, or Language
Model for Dialogue Applications.3 The hope
is that it will be able to directly compete
with ChatGPT.
MARCH 2023
Escalating Raw Material Costs:
Rising raw material costs posed challenges
for industries, impacting production,
pricing, and supply chains. The current
U.S. manufacturing PMI is 46.7, signaling
contraction in a sector that constitutes
11.3% of the economy.5
MARCH 2023
Banking Crisis and Regulatory Response:
Silicon Valley Bank, Silvergate Bank,
and Signature Bank—experienced failure,
triggering a sharp decline in global bank
stock prices.6 Regulators responded swiftly
to prevent potential global contagion, as
many well-known start-up companies were
patrons, highlighting the interconnected
nature of the financial landscape.
© F E E DV I S O R
THE YEAR IN REVIEW: 2023 INFLUENCES 3

AUGUST 2023 As we reflect on these defining moments, it

Supply Chain Disruptions: becomes evident that 2023 will be remembered
Yellow Trucking’s closure in 2023 disrupted as a year that tested resilience, required adaptive
supply chains, causing a ripple effect on strategies, and showed the interconnected nature
e-commerce as logistical challenges and of our global community.
increased shipping costs impacted online
retailers and consumers alike. The threat
of a strike from United Parcel Service (UPS) Knowing what we know now, we have put
further exacerbated the turmoil, posing together a list of trends and predictions
a significant risk to an already fragile for 2024 that we believe will shape
distribution network. Meanwhile, the United e-commerce as we know it.
Auto Workers (UAW) strike added cause
for concern. As these events unfolded, the
global supply chain faced unprecedented
disruptions, exposing its vulnerability to
unexpected challenges.

SEPTEMBER 2023
Surging Oil Prices:
Oil prices surged, blamed on declining global
inventories,1 adding complexity to economic
calculations, impacting transportation
costs, and influencing energy-dependent
industries.

OCTOBER 2023
Geopolitical Unrest:
Geopolitical tensions remained a prevailing
theme, introducing uncertainties that
rippled through financial markets, trade
relations, and global stability. The most
significant factors have been the Ukraine
and Russian war, the politically divided U.S.,
and the most recent war between Israel and
Gaza.

OCTOBER 2023
Student Loan Payments Resume:
The resumption of student loan payments
added financial pressure, influencing
spending patterns and overall economic
dynamics. Economists argue that gross
domestic product growth could drop by an
estimated 0.1% in 2023 and 0.3% in 2024,
increasing the likelihood of a recession.2
1
US Energy Information Administration 2023
2
Forbes 2023

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 4

10 Trends and Predictions Influencing the

Future of E-Commerce
As the economy continues to ebb and flow, retailers
and brands must pay attention to what is captivating
What to do:
consumers and opening their wallets. In the coming
months, we predict these ten factors will remain To thrive in this turbulent market, businesses
strong influences on consumer purchasing behavior should anticipate market uncertainties,
and, in turn, e-commerce: especially in the first half of the year. To
effectively engage with today’s consumers,

1
Inflation will continue to exert pressure
on consumer purchasing, making room
for trading down.
The ongoing global inflation pressures will
significantly impact consumer shopping
behavior in the foreseeable future, but not in
the way we would expect.
a strategic realignment of product catalogs
is essential, emphasizing competitively-
priced entry-level models. The pivotal
factors influencing consumers’ purchasing
choices include pricing and added value
offerings. Incorporating strategic discounts,
promotions, and technology-driven dynamic
pricing to align with demand fluctuations is
imperative for your early 2024 initiatives.

Consumer spending has been strong, rising 0.4%

in September, even after adjusting for inflation,
demonstrating a resilience that has confounded
economists.1 Yet the sustainability of purchasing
power remains to be seen.

Shoppers will likely continue purchasing at the

current rate, but they will prioritize essential goods
purchases, seeking value and affordability in their
daily expenses. This trend may involve a sustained
shift towards private labels or generic brands as a
cost-saving measure. Consumers may also exhibit
more cautious spending patterns, emphasizing
necessity over luxury.

This is particularly evident, as according to Amazon,

consumers purchased more Amazon Renewed
items than any previous Black Friday and Cyber
Monday holiday shopping event.2 The most popular
refurbished items purchased were the Samsung
Galaxy S21 5G, Vitamix Explorian Blender, and Xbox
Series X Console.

1
AP News 2023
2
Amazon 2023 © F E E DV I S O R
10 TRENDS AND PREDICTIONS INFLUENCING THE FUTURE OF E-COMMERCE 5

2
Social commerce will continue to
be fueled by smartphones as mobile
expands its dominance and capabilities.
Smartphones are unmistakably establishing
themselves as the prevailing conduit for
multichannel engagement. During Cyber Five, over
half of platforms like TikTok and Instagram reshaped
product discovery by becoming marketplaces.
Connecting research, engagement,
and purchase is an opportunity to be
addressed in 2024.
TikTok has been attracting merchants to its TikTok
Shop marketplace, and as a direct threat to Amazon,
it has added a shipping and logistics capability
in the UK. Preemptively, Amazon’s partnerships
with Meta,1 Snapchat,2 and Pinterest3 allow in-
app purchasing. We will see if Amazon draws the
elusive audiences of Gen Z and Alpha while fending
off TikTok’s advance.
Shoppers are also using mobile phones as a
tool to price compare in-store as well.
While shopping in-store, 72% of adults in North
America use their smartphones to research price
comparisons, making it the most popular type of
mobile in-store research.4
What to do:
To ensure a robust presence across multiple
social commerce platforms, businesses
should ensure their shopping experience
is mobile-friendly and easily accessible
on various social platforms. Connect social
product ads from platforms like TikTok, Meta,
and Pinterest to Amazon through deep links
or direct commerce within the social app. By
enabling users to seamlessly transition from
social product ads to Amazon, businesses
can capitalize on a broader audience and
provide a convenient and efficient shopping
journey, reinforcing their presence and
engagement across the social commerce
landscape.
Optimize your online platforms for mobile
compatibility, guaranteeing a seamless
shopping experience on smartphones
and tablets. Invest in the development
of user-friendly mobile apps to enhance
accessibility and the user experience.
Tailor your marketing strategies specifically
for smartphone users, creating content
and promotions designed to resonate with
mobile audiences.
Capitalize on the wealth of data generated
through smartphone interactions
to analyze consumer preferences
and behaviors, enabling data-driven
decision-making. By drawing insights from
smartphone interactions, businesses can
develop a highly personalized and curated
shopping experience, akin to what social
media platforms provide.

1
CNBC 2023
2
Tech Crunch 2023
3
Pinterest 2023
4
Insider Intelligence 2023 © F E E DV I S O R
10 TRENDS AND PREDICTIONS INFLUENCING THE FUTURE OF E-COMMERCE
3 Consumers will prefer video and
livestream content over all others.
The landscape of consumer preferences is shifting
towards a strong desire for video and livestream
content, with 92% of consumers watching digital
videos each week and 27% watching livestreams
weekly.1 Meanwhile, streaming platforms account
for 38% of all TV viewing, creating new advertising
prospects and emphasizing the growing importance
of addressable media.2
Online video (OLV) consumption is scaling up, and
short-form videos, ranging from 10 to 60 seconds,
are emerging as a significant content marketing
trend. Fueled by tools like Instagram Reels and
YouTube shorts, these bite-sized videos are
becoming the preferred means of discovery and
education, particularly for Gen Z and Gen Alpha.
As we approach 2024, brands must embrace video
content to effectively showcase, storytell, and
educate about their products and brand values.
1
Restream 2023
2
Neilsen 2023
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6
What to do:
To succeed in this evolving
landscape, companies need to
adapt by incorporating video
into their media plans. Online
video (OLV) serves as an ideal
starting point, offering lower
CPMs and a more accessible entry
point budget-wise. Overcoming
the hurdle of acquiring video
assets can be addressed by
repurposing existing social or TV
creative for programmatic video advertising,
as long as they are in the right horizontal
format and resolution.
Companies must also craft visually
appealing and genuine video content that
resonates with their target audience on
these platforms. Let go of the notion that
video content must be extravagant or
bandwidth-intensive — modern consumers
prioritize authenticity and relatability.
Consider opting for influencer-created
content, a more accessible option that not
only saves time and bandwidth but also adds
social proof with a ready-made audience.
Choose influencers who connect with your
target audience, allowing them the creative
freedom to address audience concerns.
While some guidance is beneficial,
overly monitored content raises red flags
for consumers, who can easily identify
inauthentic sponsored material. Trust
influencers to intuitively connect with their
audience and create content that resonates
authentically.
© F E E DV I S O R
10 TRENDS AND PREDICTIONS INFLUENCING THE FUTURE OF E-COMMERCE
4 Trendjacking and long-term influencer
collaborations will become the norm.
Trendjacking has emerged as a powerful strategy,
aligning marketing campaigns with the latest trends
and cultural phenomena. This approach involves
seizing the moment and placing a brand at the heart
of current chatter, amplifying its presence through
the use of popular hashtags, viral challenges, or
association with trending cultural moments.
This past summer, Barbie1 and Oppenheimer
marketing campaigns sprung up, as brands and
retailers looked to capitalize on the success of both
movies despite not having formal collaborations in
place, and most recently, there has been a surge
in Taylor Swift and Travis Kelce campaigns. When
combined with influencer marketing, trendjacking
becomes a game changer, as influencers play a
pivotal role in riding the wave of popularity. But
consumers know when a brand is welcome and
when it is not, calling out brands that jumped on
the bandwagon when they should not have.
Aligning with your audience will be key this
year, which is why we predict more long-term
influencer collaborations over one-off campaigns
with various individuals. This transition is fueled
by the authenticity and trust that develop when
an influencer consistently endorses a brand.
By favoring sustained partnerships, brands can
transform sporadic promotions into an engaging
narrative, making their presence in the influencer’s
content feel more genuine and less like random
advertising. Regular, consistent endorsements
from a trusted influencer not only enhance brand
loyalty and credibility but also contribute to a
more meaningful and lasting connection with the
audience.
1
Modern Retail 2023
7
What to do:
Businesses should prioritize agility,
employing teams capable of swiftly
identifying and capitalizing on emerging
trends for effective trendjacking, while
setting aside budget for just these moments.
Authenticity is crucial in this endeavor,
ensuring seamless integration into
trending conversations without appearing
opportunistic. Data-driven insights should
guide decision-making, informing strategic
hashtag usage, and timely content creation.
In long-term influencer collaborations,
careful influencer selection based on
shared values and authentic connections
with the brand is key. Investment in creative
content, consistent brand messaging, and
ongoing measurement of campaign impact
are vital elements for success. By embracing
these strategies and fostering genuine
relationships with influencers, businesses
not only navigate the ever-changing
landscape of commerce with agility but also
authentically connect with their audience.
This approach becomes a driving force for
marketing and sales success, creating a
harmonious blend of trend responsiveness,
authenticity, and strategic influencer
partnerships.
© F E E DV I S O R
10 TRENDS AND PREDICTIONS INFLUENCING THE FUTURE OF E-COMMERCE
5
Instant engagement and personalized
experiences fueled by AI are the new
consumer imperatives.
As consumer expectations rapidly evolve towards
instant engagement and personalized experiences,
the traditional sales funnel is giving way to a demand
for on-demand information and interactive buying
processes. Voice and text commands are now
commonplace for brand interactions, necessitating
efficient chatbots and voice-enabled customer
service for businesses to stay competitive.
The key to success lies in providing seamless,
omnichannel support that aligns with consumer
preferences, ensuring availability 24/7.
By leveraging advanced AI-driven tools, delivering
real-time assistance, and tailoring experiences
to individual needs, companies can meet these
changing expectations, fostering lasting customer
relationships in the digital age.
Looking ahead, AI’s role extends beyond this
year’s buzzword, driving rapid advancements in
conversational search, commerce, and service.
Initiatives like Google’s Search Generative
Experience and Amazon’s experiential,
conversational search and shopping signal a shift
towards contextually rich content and dynamic
interactions.
Anticipate more responsive service experiences,
including instant query responses, always-on
shopping assistants, personalized promotions, and
enhanced order tracking. Marketers stand to benefit
from more efficient AI solutions, encompassing
auto-generated text and images, enhanced media
operations, and real-time feedback, shaping a
transformative landscape in the coming year.
8
What to do:
Businesses should be informed
of AI advancements, especially in
conversational search and shopping,
empowers businesses to explore dynamic
interactions, personalized promotions,
and improved order tracking. It also helps
anticipate challenges, like the potential
decline in the significance of organic search
results. As conversational search advances,
prioritizing ad spend on online marketplaces
ensures continued product discoverability
despite potential changes in search engine
page dynamics.
Enhance media operations with auto-
generated content and utilizing AI for real-
time feedback and insights streamlines
marketing efforts and ensures adaptability.
Lastly, prioritize the
implementation of efficient
chatbots and voice-enabled
services for instant, personalized
interactions. Offering seamless
omnichannel support ensures
accessibility on consumers’
terms, while leveraging advanced
AI tools facilitates tailored
experiences and contextually
rich content.
© F E E DV I S O R
10 TRENDS AND PREDICTIONS INFLUENCING THE FUTURE OF E-COMMERCE
6 7
Tailoring shopping experiences to
emerging generations, especially Gen Z,
will take top priority.
Appealing to the shopping habits of each generation
will become a key focus in 2024. Gen Z is currently
the second largest generation, making up 21% of
the global population and one of the most racially
and ethnically diverse groups.1 This generation has
a pronounced inclination towards social platforms
for their shopping preferences and relies heavily on
platforms like TikTok for product research.
Simultaneously, businesses need to keep an eye on
the emerging Gen Alpha, even though they may not
have disposable income yet, by understanding the
purchasing behaviors of their Millennial parents.
Millennials themselves continue to be a crucial
demographic for retailers. Both Millennials and
Gen Z prefer to buy from ethical brands that help
people or organizations. This was evidenced during
Black Friday and Cyber Monday, when, according
to Amazon, customers purchased more Climate
Pledge-friendly items this year than any other.2
What to do:
To appeal to different generations,
businesses must recognize and respect
the unique preferences inherent in each
age cohort. Uncover nuanced trends
within each generation by posing targeted
questions to extract granular data and
actionable insights, such as their device
usage, preferred engagement categories,
and more. By identifying trends like Gen
Z’s prevalence on TikTok compared to
Gen Alpha’s affinity for video content,
businesses can refine their objectives to be
more precise and tailored to each unique
generation.
1
Statista 2023
2
Amazon 2023
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9
Unprecedented political ad spend
spikes will increase competition for
brand messages.
Entering a pivotal election year, the influx of political
dollars is set to raise costs in linear and streaming
TV, paid search, and social media. Brand messages
may be overshadowed by political rhetoric and user-
generated content. Marketplaces stand to benefit
as brands shift their dollars away from crowded
channels, seeking more effective and cost-efficient
avenues amid the election noise.
What to do:
To thrive in the upcoming election year’s
dynamic advertising landscape, businesses
must strategically navigate rising costs
and increased competition well in
advance. Anticipating the surge in activity,
particularly in the fourth quarter – a peak
period marked by new shows, major sporting
events, and the upcoming political election
– is key to planning effectively, especially
in the face of escalating expenses on
traditional channels. Consider collaborating
with a trusted advertising optimization
solution to refine your Q4 strategy.
Leveraging such a partner’s expertise in
navigating market complexities and utilizing
advanced algorithms allows for a more
agile, diverse, and efficient allocation of
advertising budgets, enabling businesses
to capitalize on cost-effective,
neutral platforms such
as marketplaces as they
divert funds from politically
dominated channels. Such
a move helps businesses
target their audience more
effectively, ensuring a more
precise and cost-effective
reach amid the political noise.
© F E E DV I S O R
10 TRENDS AND PREDICTIONS INFLUENCING THE FUTURE OF E-COMMERCE 10

8 The realignment of the supply chain will

exert upward pressure on prices.
In recent years, the economy has experienced a
significant transformation marked by the seismic
impact of Covid. This global event triggered a supply
shock, causing goods scarcity alongside a decline
in consumer employment. Supply chain disruptions
hindered inventory replenishment, leading to
product shortages and subsequent price surges.
In response, brands and merchants increased
supply by 12%, flooding the system as economic
uncertainties tempered demand, resulting in
widespread markdowns throughout 2023.1
What to do:
Businesses should remain attuned to
consumers’ continued price sensitivity
and prioritize essential products in their
offerings. Smart pricing strategies and
considering the price elasticity of demand
will be key for striking the right
balance between moving inventory
and protecting margins. Additionally,
fostering operational flexibility and
swift responsiveness to market
dynamics will position businesses to
adapt and thrive amid uncertainties,
ensuring sustained resilience.

Looking ahead, continuing inflation will mean

consumers, facing diminished cash reserves,
will likely maintain a focus on price sensitivity
and essential purchases. However, brands and
merchants are grappling with tighter inventory and
slimmer margins, and will face upward pressure on
prices.

As we approach 2024, understanding the

price elasticity of demand becomes crucial
for finding the optimal price point to move
inventory while safeguarding margins.

1
McKinsey 2023 © F E E DV I S O R
10 TRENDS AND PREDICTIONS INFLUENCING THE FUTURE OF E-COMMERCE
9 Channels will become even more
connected than they already are.
In 2023, Amazon’s Buy With Prime (BWP) initiative
ushered in a new era of connectivity, allowing
shoppers to seamlessly log in and make purchases
on direct-to-consumer websites using their
Amazon credentials while enjoying the swift and
free delivery promise synonymous with Amazon’s
service. Amazon’s reported 25% average increase
in conversion rates (CVRs) through BWP signals a
paradigm shift, with expectations that this model will
soon become a standard feature on Shopify sites.1
Amidst this evolution, the landscape of marketplace
and retailer competition intensifies as they vie for
the attention of today’s consumer, who navigates a
web of interconnected channels while researching
and price shopping. The competitive pressure is
such that large marketplaces are unwilling to be at
a price disadvantage and are ready to penalize
brands or merchants who undercut pricing in
alternative channels. Navigating this intricate
ecosystem, brands and merchants must actively
manage their channels to ensure consistency
and parity across the evolving interconnected
landscape.
1
Amazon 2023
11
What to do:
Businesses can succeed in the era of
interconnected channels by adopting
omnichannel strategies, ensuring a unified
view of customer data, and leveraging
technology solutions such as AI and
machine learning. Collaborating with
ecosystem partners, optimizing for mobile,
and providing seamless cross-channel
experiences is crucial for a positive customer
journey. Educating customers about
the benefits of interconnected services
and staying agile to adapt to changing
landscapes is essential. Monitoring key
metrics, prioritizing data security, and
complying with regulations round out the
strategies for success in this evolving trend.
© F E E DV I S O R
10 TRENDS AND PREDICTIONS INFLUENCING THE FUTURE OF E-COMMERCE
10
Holistic multi-channel pricing will
become imperative for brands and
retailers to maintain margins across
channels.
The imperative for e-marketplace expansion,
coupled with the adoption of BWP and heightened
consumer price sensitivity, underscores the
urgency of embracing holistic multi-channel
pricing. For merchants to effectively oversee their
ecosystem while fine-tuning pricing strategies,
they must adopt a multi-channel pricing system.
This dynamic management system automatically
adjusts the prices of SKUs in the primary channel
and synchronizes these changes across subsequent
channels. This approach ensures consistency
across channels and prevents price suppression.
Relying solely on price increases is akin to
engaging in a battle of yesteryear when demand
was seemingly limitless. While such a strategy may
secure transactions at higher prices, what happens
if overall sales volume diminishes? The upcoming
year demands technological solutions equipped
with algorithms finely tuned to price elasticity for
the implementation of genuine dynamic pricing.
This technology should possess the capability to
respond instantaneously to all supply and demand
scenarios, accounting for ever-changing price
elasticity models.
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12
The ultimate solution lies in integrating these
algorithms with competitive signals and real-
time inventory positions. This combination forms
an unparalleled predictive optimization solution,
poised to navigate the complexities of the evolving
market landscape.
What to do:
For businesses looking to
excel in the anticipated market
dynamics, the priority for 2024
should be to adopt multi-
channel pricing systems
with dynamic management
capabilities. To effectively
implement genuine dynamic
pricing and stay ahead in
the competitive landscape, businesses
should consider partnering with specialized
optimization solution providers. These
partners bring expertise and advanced tools
tuned to price elasticity algorithms, ensuring
rapid responses to changing supply and
demand scenarios. By integrating these
solutions with real-time competitive signals
and inventory positions, businesses can
gain a strategic edge. Collaborating with
optimization partners not only facilitates
agility and cross-channel parity but also
equips businesses with the essential
resources to navigate the complexities of
e-marketplace expansion and consumer
price sensitivity, ultimately enhancing their
chances for success in the evolving market.
© F E E DV I S O R
 13

Looking Ahead
While the future of consumer behavior promises
to be shaped by a dynamic interplay of trends
that underscore the evolving nature of the retail
landscape, navigating this future will require the
same agility and adaptability businesses have
used before. This time, the only change is a greater
need for businesses to be attuned to the plight of
consumers facing hardship.

Embracing these shifts presents opportunities

for innovation, growth, and the cultivation of
enduring relationships with an even more
diverse range of shoppers.

To harness the latest retail trends, businesses

within the e-commerce landscape must adopt AI-
powered technology and implement comprehensive
optimization strategies.

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