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- Friday, December 4
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🚨 In today’s newsletter 🚨
Make your shop stand out this Xmas
Amazon advertising cost in 2024
Strategies for sustainable dropshipping
Let’s get into it👇
#1 -🎄 Innovating the 2022 holiday retail rush
📰 TL;DR - Retailers are facing a more subdued holiday rush this year, but smart businesses can still stand out to willing spenders. This article suggests five ways to grab customer attention. Like, remove any purchasing roadblocks, whether online or in physical stores, since ease drives sales. Get social with target shoppers beforehand to build a bond.
It also talks about analyzing previous sales data to optimize what drew past holiday crowds. Invest in happy staff who facilitate that festive atmosphere. And partnering with a charity so buyers see you care about more than just revenue. For merchants who creatively meet shoppers' needs now, this Christmas can still deliver.
💡 Insight - After reading this piece, I strongly believe retailers seeking an edge this Christmas need to focus less on competing and more on charming. Streamlining online checkouts and decorating physical stores sets the stage. Using social media creativity to preempt browsing keeps your brand top-of-mind.
Mining previous years' data arms you with customer insights to optimize inventory and staffing. Bolstering team morale fosters festive cheer that's contagious. And pairing up with charitable causes spotlights values beyond the bottom line. If you make customer experience the priority, you build brand affinity and still achieve your aims.
#2 - #️⃣ Amazon Gives Insight into 2024 Ad Cost
📰 TL;DR - With Amazon advertising continuing to grow, sellers need to understand the costs. This article analyzes the numbers behind various Amazon ad types in 2024. For example, keyword targeted Sponsored Product ads average $.58 per click across all verticals. And the average cost-per-click for Headline Search ads is $1.03.
While Sponsored Brands see more variability in bids based on category competitiveness, the average is $1 per click in 2024. Knowing the numbers is key so brands can set realistic budgets and maximize campaign performance.
💡 Insight - The holiday shopping season presents a prime opportunity for Amazon sellers to capture critical sales and review data to inform strategies for 2024. By testing different ad types and budget allocations, brands can determine the right product focus and campaign mix to provide momentum after the holidays when competitors retreat to the drawing board.
I always appreciate granular performance reporting that reveals trends like "ROAS on ad X tripled in week 1 before declining," as that level of insight empowers data-driven decisions on where to concentrate efforts in the new year.
📣 Want to promote your brand to 12,000 DTC businesses? Start here…
#3 - 📉 The ups and downs of dropshipping
📰 TL;DR - Dropshipping is on the rise as an appealing business model, but the road to success is not as easy as it may seem. Though the low barriers to entry are tempting, around 90% of dropshipping ventures fail quickly.
By choosing profitable niches, securing reliable suppliers, and providing top-notch service, entrepreneurs can beat the odds. Customer satisfaction through quick fulfillment and returns policies cement loyalty. Adapting to market changes helps sustain companies over the long haul. With strategic planning and dedication, this flexible ecommerce approach can be viable and lucrative.
💡 Insight - What stands out is that though dropshipping seems an easy online business startup, dedication is key for sustainable success. Choosing profitable niches and marketing cleverly matter. Specialize but stay flexible too.
Supplier relationships ensuring efficiency and reliability are crucial to please customers. Adapt to market changes but don't overextend early on. Approach realistically, resolve inevitable startup problems through due diligence. Refine strategies, learn from mistakes, and profits can steadily drop.
#4 - 🛒 Mobile rules the ecommerce kingdom
📰 TL;DR - Mobile rules the kingdom. This year over half of online sales during Cyber Week came from tiny thumb shoppers. That's up from just under 50% last year.
Brands like Kendra Scott saw 4 out of 5 online shoppers tapping away on phones. Late afternoon on Black Friday seemed a popular time to settle in and self-gift shop. Behind phone screens, brands focus on keeping pages fast and fluid while finding new ways to text timely deals right to our palms.
💡 Insight - Mobile hasn't fully supplanted desktop yet for ecommerce, but this Cyber week saw it cross over 50% for the first time. Mobile optimization is now clearly no longer just a "nice to have" but central to customer experience and conversion.
Brands that invested early in elements like one-click checkout and personalized push notifications are seeing it pay dividends, while others play catch-up. And it's bigger than just mobile sites - integrations with payment platforms and digital wallets that enable seamless transactions are becoming standard. The mobile shopping train is moving fast, and it pays to be an early adopter.
#5 - 🎅🏻 Consumers ready for jolly holiday spending
📰 TL;DR - Santa's got some jolly numbers to deliver this year, with US consumers expected to spend an average of $1,652 per person. That's a 13.5% increase over 2022 and finally exceeds pre-pandemic spending levels according to Deloitte's research. Brick-and-mortar stores will still claim the lion's share at 80% of total retail holiday sales.
However, online retail should see 11.3% year-over-year growth as deal-seeking shoppers continue to flock to the internet. With strong GDP and record-breaking Cyber Week numbers, the stage is set for shoppers to finish out the year with determination, wrapping up that last 50% of gifts and purchases leading up to Christmas Eve.
💡 Insight - The pandemic disrupted so many habits and routines, but this holiday season is different - it presents a real opportunity. As consumers get back to pre-pandemic spending levels, they'll be looking to reconnect and create new traditions.
eet them where they are - highlight values like family, giving, gratitude and togetherness. Share stories and gift ideas that facilitate meaningful moments. Retail's important, but it's the memories people will carry with them long after the season's over.
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