How do online sales forecast for the last quarter of 2023? eCommerce news no. 54

The last days of summer in the eCommerce industry are passing under the sign of changes and summaries. You will find a subjective compilation of the most interesting news about sales platforms in the 54th edition of Advox Press. What exactly will you read about? You will learn, among other things: why e-commerce owners are losing $100 billion a year. You'll learn about online predictions for online sales during the upcoming holiday season. You'll also find out about TikTok Shop - the online store of the most popular social networking app. Curious?

Why are e-commerce owners losing $100 billion a year?

Users set up multiple accounts on an eCommerce store to take advantage of newly registered promotions. This is an example of shoppers' actions that, although seemingly harmless on the surface, cause losses for eCommerce owners. This type of behavior is called "friendly fraud" in English. Globally, it can cost online store managers as much as $1,000 billion a year. That's the conclusion of a recent study by Riskified, a company dedicated to providing cutting-edge solutions to combat online fraudsters.

The study surveyed more than 300 online companies with revenues of more than 500 million a year. What other conclusions are drawn from the study?

• About 90 % of the companies surveyed said that offering attractive return terms and promotions to increase sales and customer loyalty is important to their business strategies.
• Friendly fraud can also include practices such as buying multiple items intentionally with the intention of returning most of them, or using a product with the intention of sending it back later.
• 55% of those surveyed said that the costs associated with these types of tactics were very noticeable in 2022. This suggests that this kind of abuse has become more common.

In some cases, "friendly fraud" is considered a fixed cost of doing business that is impossible to eliminate completely. You can read about ways to counteract fraudulent practices in the full version of the report. Are you experiencing this problem in your eCommerce as well?

Will online shopping during this holiday season break a record?

The last quarter of the year is a busy time for the eCommerce industry. The holiday season and seasonal promotions such as Black Friday and Cyber Monday translate into consumers placing orders more frequently. What are this year's predictions for online sales in the final months of the year?

According to forecasts by consulting firm Deloitte, online stores could globally generate up to $284 billion between November and January 2024. In the previous year (2022), that figure was $252 billion.

The increase in the value of orders may be largely influenced by rising inflation around the world, but the growth of the eCommerce industry can also continue. The increased popularity of online shopping during the holiday season is influenced by, among other things:

• attractive prices - online stores often offer products at lower prices than stationary stores,
• efficiency of sales platforms - customers appreciate fast and convenient online shopping, especially in times when shopping malls are sometimes crowded,
• flexibility - new solutions used in online stores are positively received by customers.

This year, one more change in shopping behavior can be noticed - what is it? According to a survey conducted by the developers of the LTK app, almost 40% of shoppers began Christmas preparations much earlier than usual, as early as September.

Detailed forecasts for sales levels in the final months of this year can be found here. Is your eCommerce ready for increased sales?

TikTok Shop makes its debut in the United States

You've been reading about reports of the eCommerce industry debut of TikTok, the most popular social networking app, for some time now. More than once we have written about the Chinese giant's activities in the pages of Press Gazette. The beginning of September this year (2023) proved to be a breakthrough for the app's developers, who announced the completion of testing of their eCommerce platform. TikTok Shop can already be used by residents of the United States. What distinguishes the solution?

TikTok Shop is a tool fully integrated into the core application. Sellers can showcase products on their account. Buyers, on the other hand, can place an order without being redirected to another site. In addition, analytical and advertising tools are also provided as part of the solution.

The platform's biggest differentiator is expected to be its expanded live shopping feature, or live shopping. The creators of TikTok Shop also plan to support sellers in warehousing and shipping goods through a fulfilment service.

To encourage users to use the app's e-store, the developers have prepared an intensified promotional campaign. It is likely to launch as early as mid-October.

Will TikTok Shop be as spectacularly successful as the app itself? You can read more about the app's debut in the e-commerce industry here.