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Your order this week:
eCommerce tool of the week 🪛
Half of e-commerce Cyber Week sales came from mobile
Making your ecommerce content DYNAMIC and more helpful
How Temu and SHEIN impact ad spend
Surge in “Keep It” policies amidst soaring returns
eCommerce Course of the Week 📚
eCommerce Tool of the Week
(not a sponsor just a tool we like)
Inventory Planner by Sage is the #1 inventory forecasting & planning software for e-commerce merchants.
More than half of e-commerce Cyber Week sales came from mobile
This Cyber Week, mobile shopping has officially outpaced desktop sales, constituting 51.8% of online transactions, up from 49.9% last year.
The shift is indicative of a broader trend in consumer behavior, accelerated by the post-pandemic surge in online shopping.
DTC brands like Kendra Scott and Apothekary experienced a significant portion of their Cyber sales from mobile users, with 59% of Thanksgiving Day spending occurring through mobile platforms.
Data indicates that shoppers are increasingly comfortable with mobile transactions, driven by brands optimizing sites for mobile, focusing on aspects like load time and navigation. Mobile traffic success is also attributed to enhanced online experiences, like Kendra Scott’s virtual try-on feature.
Notably, Apothekary saw 81% of sales from mobile, citing factors like a mobile-friendly site rebrand, increased influencer marketing, and diversified ad spend.
The rise in mobile transactions extends beyond the holiday season, with year-to-date spending reaching $409 billion, reflecting a shift towards mobile as the new normal in consumer purchasing behavior.
How to make your ecommerce content more helpful
Ecommerce websites face increasing pressure from Google’s content system to enhance the value they provide to users. Let’s explore some practical strategies to improve your ecommerce content without starting from scratch.
Dynamic Content on Category Pages
Historically, ecommerce category page content lacked quality. Which opens up the opportunity for optimization to increase sales for your ecommerce store as well as increase SEO rankings. What Google mentions:
Google emphasizes the need for additional content beyond product links for higher search rankings.
Dynamic merchandising components, like a “gifts for men” block, can add value and serve users with ambiguous intent.
Dynamic product blocks act as helpful content and offer temporary linking to products.
User Reviews and UGC
Incorporating user reviews and user-generated content (UGC) builds trust but can be optimized.
Collecting the right information through static questions and quantitative variables enhances the user experience.
Suggestive questions influence responses and can be effective across all product pages.
Creating summaries of user reviews adds dynamism to product specifications and boosts credibility.
Creating Helpful Ecommerce Content
Ecommerce sites can enhance content without a complete overhaul by incorporating dynamic elements on category pages and optimizing user-generated content.
These practical methods not only improve search engine rankings but also elevate the user experience, providing valuable information and building trust with potential customers.
Temu’s Super Bowl Stint and Market Impact
Chinese-backed retail powerhouse Temu is set to grace the Super Bowl stage for the second consecutive year.
The company, known for its aggressive spending, is investing in multiple ad units for the February 11 broadcast as part of a broader strategy to expand beyond online advertising.
Financial Investment and Industry Influence
Temu’s commitment to Super Bowl ad units comes with a significant financial investment, with 30-second slots ranging from $6 million to $7.2 million.
The company’s robust spending, alongside competitors like Shein, is reshaping the landscape of online advertising,
impacting costs on major platforms like Google and Meta.
Temu’s Market Growth and Strategy
Despite a mixed reception to its initial Super Bowl ad, Temu has climbed the ranks to become the fourth most-visited retail site in the U.S., trailing behind retail giants Amazon, Walmart, and eBay.
Temu’s strategy revolves around leveraging a substantial ad budget to amass a massive customer base, prioritizing customer acquisition over immediate profitability.
Financial Performance and Valuation
PDD Holdings, Temu’s parent company, reported impressive Q3 results, boasting a 94% increase in revenue and a substantial 60% rise in profit.
Reflecting this success, Goldman Sachs now values Temu at a noteworthy $37 billion, signaling a significant uptick from its previous valuation of $20 billion.
Surge in “Keep It” Policies Amidst Soaring Returns
As post-holiday returns in the U.S. are anticipated to reach $173 billion, a notable shift reveals that 59% of retailers now offer “returnless” or “keep it” policies for items with return costs exceeding their value.
A recent survey by returns services firm goTRG, including major players like Walmart and Amazon, underscores the adoption increase from last year’s 26%. With returns expected to rise by 28% this year, reaching $173 billion, retailers are revising policies to tackle the impact on profits, considering options such as store credit and in-store returns.
Retail Giants’ Strategies and Customer Impact
Retailers like Amazon, Chewy.com, eBay, Temu, Keurig, and Wayfair advise customers not to return items valued from $20 to $300, citing convenience and cost considerations.
The surge in returns, almost double pre-pandemic levels, stands at 16.5% of total U.S. retail sales, amounting to $816.8 billion.
Fraud Prevention and Customer Relations
To prevent fraud, retailers use technology to extend these services to trusted customers while maintaining a balance between fraud prevention and customer satisfaction.
Despite efforts to combat fraud, some anti-fraud measures have faced criticism, with customers expressing dissatisfaction with wasteful practices.
The evolution of return policies reflects retailers’ strategies to navigate challenges posed by surging returns, emphasizing cost considerations and customer satisfaction.
eCommerce Book of the Week
E-Commerce Growth Strategy: A Brand-Driven Approach to Attract Shoppers, Build Community and Retain Customers
E-commerce Growth Strategy shares valuable insights and practical strategies to help businesses thrive in the rapidly accelerating e-commerce landscape.
Signing off,
The Merchant @CartHustle