Walmart Embraces Amazon MCF: A New Era of Cross-Platform Fulfillment for eCommerce
Walmart Embraces Amazon MCF: A New Era of Cross-Platform Fulfillment for eCommerce
While merchants are taking a breather from summer sale events like Amazon Prime Day, the holiday season is already speeding up to them. Notably, these summer events have already claimed an estimated 15% of overall 2024 holiday season sales, siphoning consumer attention away from the biggest shopping events of the year – Black Friday and Cyber Monday. How can eCommerce merchants effectively gain customer attention and boost sales during the holiday season 2024?
The changing dynamics of the retail giants are impacting consumer behavior as seen in the aftermath of the summer sale 2024 events, extending far beyond July and August. This blog post will help online merchants analyze and understand the impact of summer sale 2024 events by retail giants like Amazon, TikTok, and Walmart. Furthermore, it will also provide insights on what you can expect from the upcoming holiday season to shape your eCommerce strategies for success.
Holiday Season 2024: Setting Up the Stage
Forecasting Predictions Based on Holiday Season 2023
As predicted by eMarketer, the US eCommerce holiday sales are predicted to reach $1.353 trillion. Additionally, over 16% of US shoppers have already started shopping for the upcoming holiday season, kickstarting the spending earlier compared to 2023. With the advent of the sales events in October, eCommerce merchants should lay the groundwork early for the holiday season to ensure they don’t get left behind.
Hence, the first step to ensure your holiday season is a success is to recognize patterns in the summer sales 2024 events by leading marketplaces.
Amazon Prime Day 2024
A Record-Breaking Event for Amazon Sellers
Amazon’s Prime Day 2024 witnessed unprecedented success. Why ‘unprecedented’? We’ll discuss this in the later section of the blog. (A hint: eCommerce industry critics claim that other retailers attempted to get their share of success by challenging Prime Day).
The summer Prime Day event drove a record $14.2 billion in sales, by featuring deep discounts and steal deals ensuring boosted customer engagement and sales. Sales data reports from Jungle Scout showcased how these curated offers not only gained traction during but also post Prime Day. This notoriously famous event was held on the 16th and 17th of July, observing higher AOV (average order values) and increased participation from third-party sellers.
CedCommerce, a leading multichannel enabler helped its merchants process over 40K orders on Amazon during the Prime Day 2024 event. Click here to check out how this happens:
Amazon Prime Day attained 11% sales higher than last year’s $12.7 billion total. It is also to be noted that independent third-party sellers on Amazon generated more sales than Amazon’s own retail business.
Prime Day 2024 was a huge success thanks to the millions of Prime members globally who turned to Amazon for fantastic deals, and our much-appreciated employees, delivery partners, and sellers around the world who helped bring the event to life for customers. – Amazon
Amazon Prime Day 2024 Strategies That Worked for Merchants
- Optimized Product Listings: Enhance descriptions with SEO keywords for better search visibility + attracts more customers.
- Exclusive Prime Day Deals: Offer limited-time discounts to create urgency + drives quick decision-making among buyers.
- Bundling Products: Combine related items for a better deal + increases average order value and customer satisfaction.
- Sponsored Product Ads: Invest in targeted ads on Amazon + ensures top visibility during high-traffic times.
- Enhanced Brand Content: Use A+ content to improve listings’ visuals + boosts customer trust and conversion rates.
- Inventory Management: Ensure adequate stock levels before the event + avoids stockouts during peak sales periods.
- Early Bird Promotions: Launch deals slightly before Prime Day + captures early shoppers and maximizes sales window.
- Leveraging Reviews: Highlight positive customer reviews on product pages + builds trust and encourages new purchases.
- Prime Day Exclusives: Offer products only available on Prime Day + creates a unique selling proposition that attracts shoppers.
- Social Media Hype: Promote deals on social platforms before and during the event + drives external traffic to Amazon listings.
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TikTok’s ‘Deals for You Days’
A Rising Star
TikTok is the growing behemoth of the eCommerce industry, capturing over 37% of eCommerce sales with its ‘Deal for You Days’ event during the week ending July 11, 2024. This social commerce platform has entirely disrupted the entire online shopping industry. With its live stream, in-platform shopping, shoppable videos, and many more features that capture Gen Z’s interest, TikTok Shop is providing amazing growth opportunities to eCommerce merchants.
This ‘Deals for You Days’ event featured live streams from consumer favorite brands like L’Oréal Paris, Our Place, Too Faced, and Zwilling USA. These brands offered huge savings on thousands of products on TikTok Shop. TikTok is projected to have 40.7 million US social buyers in 2024. And, currently, out of its 1 million active user base, 62% of users actively engage in eCommerce purchases. This outlines the booming growth potential this platform holds for brands during the holiday season.
Walmart Deals 2024: The Biggest Savings Event
Walmart’s “Deals for You Days” in 2024 was a strategic response to Amazon Prime Day and TikTok’s Deals for You Days. Held in July, this event aimed to capture early holiday shoppers and capitalize on the mid-year shopping surge. This event is part of Walmart’s broader strategy to position itself as a strong competitor in the eCommerce space, directly challenging other major retail giants.
While exact sales figures for Walmart’s Deals for You Days 2024 event aren’t publicly disclosed, estimates suggest that the event generated billions in revenue, driven by aggressive discounting and a vast assortment of products. The sales growth was significant compared to the previous year’s event, with a substantial increase in online traffic and conversions.
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Prime Day Vs Deals for You Days
TikTok vs Amazon: An eCommerce David vs Goliath? Not really.
Amazon Prime Day’s success was called “unprecedented” above in this blog. It was done so because several eCommerce critics claimed that retailers including TikTok and Walmart attempted to challenge the Prime Day event. Critics argued that the aftermath of TikTok and Walmart’s summer events didn’t dent Prime Day’s success. However, it is to be noted that TikTok Shop’s growth potential is remarkable given its launch in September 2023. Additionally, for merchants, it is crucial to understand the growing opportunities provided by all these leading retail platforms including TikTok, Amazon, and Walmart to strategize their holiday multichannel strategy effectively.
Ana Barrett, Director of Social Commerce at LiveCraft, noted that for some clients, TikTok Shop delivered their highest sales week ever during the event.
Both Amazon and TikTok are moving towards a common goal – more opportunities for eCommerce merchants. This is why, they’ve recently partnered up with each other. In this partnership, TikTok has integrated Amazon shopping into its platform. This integration will allow users to explore, check prices, and purchase products on Amazon without leaving TikTok.
Holiday Season 2024 Strategies for Merchants
From the Aftermath of the Summer Sales Events
Early Promotions – Capture Early Shoppers
- Impact: By starting promotions in September, you can capitalize on the early shopping trend seen in summer events.
- Reason: With 16% of shoppers starting as early as July, it’s vital to engage customers before competitors.
Mobile-First Approach – Optimize for Mobile Commerce
- Impact: Ensure your site is mobile-optimized to tap into the growing trend of mobile commerce.
- Reason: Mobile commerce sales are expected to rise by 13.4% in 2024, reflecting a significant shift in consumer behavior.
Influencer Collaborations – Drive Sales with Authenticity
- Impact: Collaborating with influencers, especially on platforms like TikTok and SHEIN, can significantly boost sales.
- Reason: Influencer-driven sales during summer events highlighted the importance of social proof and authenticity.
Dynamic Pricing – Stay Competitive
- Impact: Implement dynamic pricing to stay competitive during peak shopping days.
- Reason: Retailers using dynamic pricing during summer events saw improved conversion rates by quickly adapting to market demands.
Inventory Management – Avoid Stockouts
- Impact: Maintain optimal stock levels based on predictive analytics from summer sales data.
- Reason: The increase in early shopping means potential sales lost if products are out of stock during peak times.
Bundle and Upsell – Increase Average Order Value
- Impact: Use product bundles and upsell strategies to increase the average order value.
- Reason: Summer sales events showed a significant increase in AOV with bundled deals and strategic upselling.
Personalized Marketing – Enhance Customer Experience
- Impact: Leverage data from summer events to personalize marketing campaigns for the holiday season.
- Reason: Personalization leads to better customer engagement, as seen in the targeted ads and promotions during summer sales.
Social Media Engagement – Boost Traffic and Sales
- Impact: Increase your presence on social media, focusing on platforms like TikTok for direct sales and engagement.
- Reason: The success of TikTok’s ‘Deals for You Days’ emphasizes the power of social commerce for driving conversions.
Buy Now, Pay Later (BNPL) Options – Facilitate Larger Purchases
- Impact: Offer BNPL options to encourage larger purchases during the holiday season.
- Reason: With BNPL sales projected to rise by 12.3% in 2024, it’s a key feature that can drive conversions.
Post-Sale Engagement – Build Long-Term Loyalty
- Impact: Focus on post-sale engagement to turn holiday shoppers into repeat customers.
- Reason: Retaining customers from the holiday season can lead to sustained revenue growth into the new year.
Need help in effectively growing your sales this holiday season? Reach out to CedCommerce experts for effective solutions.
FAQs
- When is the retail holiday season in 2024?
The retail holiday season in 2024 typically begins in late October and runs through the end of December. Key shopping events like Black Friday, Cyber Monday, and Christmas are the focal points, driving significant spending. - What is trending this holiday season?
In the 2024 holiday season, expect trending products to include smart home devices, sustainable and eco-friendly gifts, and tech gadgets like wearables. Social commerce, particularly through platforms like TikTok, is going to be a major driver of holiday sales. - When is Black Friday 2024?
Black Friday 2024 falls on November 29th. This day traditionally kicks off the holiday shopping season, offering deep discounts and limited-time deals both online and in stores. - Does Amazon have Black Friday deals?
Yes, Amazon is famous for its extensive Black Friday deals, offering discounts across various categories, including electronics, home goods, and fashion. Prime members often receive early access to these deals. - Who has the best Cyber Monday deals?
Cyber Monday deals are highly competitive, with top retailers like Amazon, Walmart, and Best Buy leading the charge. The “best” deals often depend on the specific products you’re looking for, so it’s worth comparing offers. - When is Cyber Monday 2024?
Cyber Monday 2024 is on December 2nd. It’s a key day for online shopping, featuring exclusive deals that often rival or surpass Black Friday offers. - Does Amazon have any upcoming sales events?
Yes, Amazon will have several sales events leading up to the holidays, including Amazon Fall Prime Day Sale, Amazon Labor Day sales, Amazon BFCM sales, etc.
