EcommerceBytes sees this year's holiday season as a promising one for sellers. For starters, online spending is expected to increase by 6.7% year-over-year, including online and in-store sales across all payment methods.
Last year's prediction wasn't this enthusiastic. So, experts are wondering: Is this because customers are less responsible this year?
💪 Empowered, not irresponsible
That's what Michelle Meyer, U.S. Chief Economist at Mastercard Economics Institute, believes customers are today. Shoppers have "taken their power back" after the roller coaster of the past holidays. She said this behavior shift will make this year significantly different from the last.
How different are we talking about?
Well, Mastercard SpendingPulse predicts a 3.7% growth in the U.S. retail sector during the holidays. Plus an over 2.9% rise in in-store spending.
But this isn't just the work of consumer behavior. Partly to blame for this is inflation, which dropped to below 4% from last year's 6%. And then there are the big discounts that'll continue to entice buyers to spend more.
And what does this mean for you?
Increased sales, for sure. But also, increased returns.
Holidays or not, returns are part of the selling business. So, if you want to bag some of that holiday spending, you should focus not only on marketing but also on polishing your quality control process to wane off return-related woes.
Just a few weeks after its U.S. launch, TikTok Shop is getting a lot of attention—but not in a good way.
Digital Commerce 360 reported that the platform features cheap products from China, raising concerns about data security and potential counterfeits.
🛍️ What's wrong with Shop?
Dubbed as the video app's "biggest bet for revenue growth," Shop aims to rival Amazon with the goal of raising $20 billion in sales. But so far, all it's raising are red flags like:
🙅Not yet Tik-ing the right boxes
It's too early to conclude TikTok Shop's fate. But bad first impressions are not a good way to start an ecommerce journey.
If you plan to sell on Shop, you might want to pause and weigh the situation first. Ensuring profitability always goes first over joining the bandwagon.
BITES OF THE WEEK
Friendly fraud tactics like making multiple accounts to exploit deals or buying stuff to return later might seem harmless. But they're not—especially for retailers that lose more than $100 billion per year, as CNBC reported.
📈 Rising policy abuses
A Riskified study involving over 300 global companies with more than $500 million in annual revenue found that:
What are retailers doing?
Unfortunately, they can't directly confront the issue due to a lack of resources and time. Not to mention the time-consuming process of validating return claims.
So, some companies have formed dedicated anti-fraud task forces to fight off fraudsters. But if you can't afford to do the same, you can start by checking customers' histories yourself to see if they’re a risk to your business. 🔎
Did you know Amazon has a program to help you increase the success of your product launch? It’s called the Born to Run program, which is an invite-only feature available on Vendor Central.
eComEngine shared how this program works and what benefits you can squeeze out of it.
🚶 Walk before you run
👌 The perks
Here are the benefits you can enjoy if you’re lucky enough to get invited to the program:
🏃 In summary, the Born to Run program offers a unique opportunity for you to kick-start your sales at minimal risks. If done well, this could be the starting line to your marathon to success.