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- Promising ecom growth despite declining prices, Amazon Prime Day, and TikTok trends | D2C Digest
Promising ecom growth despite declining prices, Amazon Prime Day, and TikTok trends | D2C Digest
Weekly D2C News
Berkay Erol
July 24, 2024
Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing.
Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!
📈 Declining online prices led to ecommerce growth in June
Okay, here is the good news for consumers: Inflation is slowing down, and prices are declining. But apparently, it’s also good news for merchants, as these declines lead to growth!
In June, U.S. online spending increased by 8% year-over-year, driven by a significant drop in ecommerce inflation, according to Signifyd's Ecommerce Pulse data. Grocery and general merchandise led the growth, with the Ecommerce Consumer Price Index falling 1.14% compared to June 2023.
U.S. inflation also saw its sharpest slowdown in three years, with the Consumer Price Index rising only 3% year-over-year, according to the Bureau of Labor Statistics.
"June’s lower ecommerce prices were mainly due to significant decreases in electronics and luxury goods," said Signifyd Senior Data Analyst Phelim Killough. General merchandise sales soared 30%, while apparel sales rose 8%, attributed to declining prices.
Here's a quick look at the numbers for June 2024 vs. June 2023:
Source: BusinessWire
How was your category affected?
💪 Amazon Prime Day hits $7.2 billion in sales on opening day
What a crazy time last week’s Prime Days were!
The first day raked in a whopping $7.2 billion in U.S. sales, according to Adobe Analytics, reported by Reuters. The two-day event also saw a massive 210% spike in back-to-school spending compared to June.
Total online sales jumped 11.7% on Tuesday, July 16.
This year, Amazon offered early access to deals, boosting participation. Data from Numerator showed the average spend per order was $60.03, up from $56.64 last year.
Adobe’s data revealed shoppers enjoyed big discounts: 23% off electronics, 20% off apparel, and 15% off toys. Sales in the first few hours were up 12% from last year.
“Consumers are spending strategically, which benefits sales like Prime Day,” said Sky Canaves, an analyst at EMarketer.
Prime Day 2023 saw Amazon’s highest-ever sales, with 375 million items sold globally and Prime members saving over $2.5 billion. Competitors like Walmart and Target also ran successful summer sales events, but Prime Day continues to dominate.
Ow, wow!
📱 TikTok Trend Helps Businesses Promote Products with Humor
Okay, let’s finish today’s newsletter with some fun news!
Have you seen the latest TikTok trend? Businesses are using hilarious videos to promote new products and deals. All it takes is a willing employee and a bucket of water.
The functional gadget brand Multitasky jumped on this trend to highlight their vegan leather waterproof laptop bag. The video starts with a splash of water, grabbing viewers' attention. The fun twist comes as the spokesperson struggles to finish the sales pitch, keeping viewers engaged till the end.
@multitasky Protect your laptop from #coconutwater with our Vegan Leather Water Proof Laptop Bag 😂 💦 #coconutsplashtrend #cocotrend #splashchallenge #... See more
This trend is an excellent way to showcase your brand's personality and is simple to create. Want to see the video? Click here.
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