Seven out of ten e-retailers predict that their growth will be weak, negative or completely absent in the coming months, e-commerce indicator shows. Interest rate increases, inflation and high electricity prices continue to hit e-tailers hard. Before 2023, many believed in weak growth – something that turned out to be a reality. Now seven out of ten e-retailers believe that their growth will be weak, negative or completely absent in the coming months.
In our e-commerce indicator, which was answered by 502 e-retailers, roughly 36 percent answered that growth was weak during the first three months of the year. 25 percent answered that it was completely absent. The forecast for the next three months – April, may and June – looks almost unchanged. 42 percent believe in weak growth during the quarter, while 21 percent believe that there will be no growth. Only 27 percent of e-tailers believe in strong or very strong growth. When the e-tailers compare with the second quarter of the previous year, 21 percent now believe that sales will be worse this year. Approximately 38 percent of e-tailers believe that sales will be approximately the same as last year. 24 percent are optimistic and think it will be better this year.
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The deteriorating economy has the biggest impact according to the e-tailers, it is primarily the deteriorating economy among households that will negatively affect growth. That is stated by 67 percent. Interest rate increases and inflation are also believed to have a major impact according to 59 percent, which goes hand in hand with household finances deteriorating. As in the previous quarter, some still expect that the increased energy and fuel prices will slow down growth. It states 38 and 33 percent, respectively. You can also try your luck playing at https://www.jackpot-town.com/en-ca to make some handsome money.
The fact that consumption is decreasing as a result of the deteriorating economy obviously has a clear impact on the e-tailers' growth and sales. The past year has been a big change from the pandemic years, when e-commerce skyrocketed. Many now have to rearrange their business and their priorities in order to get through this tough time, expert on digital consumption at bank.
Good customer service and effective marketing are believed to strengthen growth
The e-tailers, on the other hand, predict that good customer service and effective marketing will be the thing that affects growth most positively during the second quarter. It states 36 percent and 30 percent, respectively. Many also believe that increased demand, improved economy and lower interest rates and inflation will contribute positively to e-commerce in the coming months. Like the first quarter, many e-retailers have increased social media marketing to prepare their e-commerce store for the second quarter of the year, 40 percent say. Designing the real money online casino campaigns and offers as well as search optimization of your e-commerce store are also common strategies. This represents 37 and 28 percent, respectively.
We clearly see that in tougher economic times, marketing in social media continues to be important. We also see that good customer service is a growing focus. The competition is tough right now and a good buying experience with associated good service is now vital to winning over the consumer, expert in digital consumption at bank.