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Build strong brands and reduce social dependency
There were e-commerce companies Once they were growing indefinitely and seeing a record profit, they were considered invincible. But lately, they are pushing for a new market framed by three major trends.
While these factors are often beyond the control of retailers, we are seeing a few new companies that are accustomed to joining existing customers and building their organic brand.
In this post, we will take a closer look at the key trends in the expansion of this new retail climate and their impact on e-commerce.
The new retail test
First, e-commerce growth continued as expected after the epidemic in percentage of global sales. A.D. By 2021 Q4, US retail sales stood at 12.9%, down 13.6 percent from the previous year. Perhaps a quarter of growth has been dragged forward and is now returning to its original course, although it is still high.
Most brands will find it difficult to promote growth by 2022.
At the same time, as Apple continues to implement and enhance privacy features, customer acquisition costs have increased due to recent iOS updates. Devices running the new operating system have third-party tracking capabilities, such as Facebook (or Instagram).
As broader audiences are no longer able to reach the level of targeting and optimization, brands are experiencing a decline in performance and overall purchasing costs, prompting many to switch costs from these platforms.
Finally, new threats are emerging rapidly and e-commerce is blurring the landscape: macroeconomic instability can be reduced at a reasonable cost. This is evident in the low incomes of major retailers such as Target and Walmart, as we see inflation accelerating due to inflation.
What can be done to combat these dangers? There are two main courses that e-commerce companies should pay attention to :- 1) making their customers stay longer and more expensive and (2) building a strong brand – reducing social dependency and conversion rates to get a better customer.
Enter existing customers
The first step is to reduce noise and increase the AOV average value. This helps brands maintain conversions and beat forecasts, as well as balancing profitable purchases as changes are reduced due to major industry changes (e.g. increase purchasing costs and supply chain issues).
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