The Quarter-Year Check-In: Staying Atop Trends and New Developments in E-Commerce
More than halfway through 2024, e-merchants are evaluating a host of angles impacting their business. Some are relatively uncomplicated; others are gargantuan.
Take pricing trends. This is one element over which you have direct control, and as every business owner knows, it involves a guarded dance between profit and customer participation. An ever-evolving landscape requires constant monitoring to make sure your balance is workable.
Artificial Intelligence (AI) will be a surprisingly common topic among all sellers, and its impact on your pricing strategy may have escaped you. AI integrates into pricing mechanisms as a useful tool to predict trends, decide on markdown pricing, move items to the clearance rack, and optimize pricing in a manner that places you as a favorite among buyers.
Watch for companies to adopt variable and new AI models that can make your job easier. The refinement of this technology is being handled by the pros; you as a seller can take advantage. Whether it’s to maximize and optimize your profitability, or figuring out initial launch pricing, AI gathers relevant data from around the web and guides sellers based on selling patterns, real-time statistics, and other factors you may never have considered. Try your hand at wading into the AI world with this excellent book.
Aside from the revolutionary artificial intelligence, there are real considerations to incorporate into an online store. The decision to expand primary sales channels is not for the faint of heart, but depending on your sales, your niche, or your goals, it may be time. Amazon, Shopify, Instagram, and countless platforms open the door to merchants. The devil is in the details, so to speak, as each as benefits and drawbacks. Brand visibility is a huge consideration, but if you’re a fledgling merchant and not well established, you’ll likely want to just keep an eye on marketing at that scale.
A natural flow of marketing efforts and pricing turns out to be extremely useful, particularly for smaller sellers with lower budgets. In that dynamic environment you can find disruption affecting your Return-on-Advertising statistics. Though investing in a future goal of growth is never a bad idea, the need to avoid failure for overspending on marketing and advertising remains critical.
As we inch closer to the winter holidays, seasonal considerations pop up for both inventory and marketing. Consumers have moved back and forth with respect to how and when they shop, so staying on top of a balanced strategy is critical. More importantly, fixating on the Christmas and Hanukkah seasons is short-sighted; remember that recreational activities such as skiing, rafting, and hiking occur mostly year-round, with some shoppers planning well in advance.
We can’t stress enough how essential your constant involvement in reading the room is when it comes to your e-commerce shop. Answers are not as easy as they may be for stores with physical locations (although their challenges are rapidly increasing), so it’s in your best interest to do searches, join groups and associations, and even go to your base – your buyers – to find out what you are doing wrong, what you are excelling at, and what your future plans should include.