Five eCommerce Threats and How You Should React
Most eCommerce thought leaders see an acceleration in digital commerce trends as consumers navigate a post-pandemic world. The eCommerce industry just experienced a “fast-forward” of sorts that leaves many sites in “catch up” mode. It’s this urgency to keep up with a fast moving industry that presents threats to eCommerce marketers.
- Pay-per-click budgets grow. Expect the future advertising to be more competitive as budgets grow making it more difficult to get noticed. Solution: Consider expanding your ideas of what makes your site unique.
- ROAS will fall. The demand for pay per click advertising will increase faster than the supply of clicks creating higher CPCs and a reduction in ROAS. Solution: Resist the temptation to fund unprofitable campaigns and work harder on loyalty campaigns.
- Customer loyalty will drop. Frankly this has already been happening for years. There’s a lot of data that suggests consumers are doing fewer branded product searches and more non-branded searches. Solution: Build a content strategy that emphasizes key relevant non-branded keywords.
- Marketplaces will dominate. In a post-pandemic world the strong are likely to get stronger. Solution: Sites like Amazon and Walmart are clearly winning, but large marketplaces also have obvious weaknesses that a specialty site can exploit by customizing the shopping experience to the product line.
- Failure to act. Those that don’t attempt to fast forward their eCommerce infrastructure this year are likely to get left behind. Solution: Invest in your eCommerce infrastructure and digital marketing campaigns.