The Ecommerce Industry Is Changing – Here’s How To Keep Your Business Alive!

You may have already felt it in your e-commerce business, but there has been a BIG shift in the industry over the past 18 months…

Unfortunately, the e-commerce boom we saw post-pandemic is long gone. The period between 2020 – and late 2022 was the perfect circumstance for e-commerce businesses to develop and thrive. But the landscape has changed pretty drastically since then, and if you’re still trying to run your business the same way you did back in 2020, you might be finding yourself struggling to attract in new ideal customers to your brand and reach the big sales goals you’ve got. The truth is that businesses that haven’t adapted to the post-pandemic market will get left behind if you don’t make some changes, and if you want to not just survive but thrive in 2024, now is the ideal time to pivot.

E-commerce in 2020 was a pivotal moment for the online world.

Let’s rewind to 2020 – during the pandemic, e-commerce boomed in ways that no one could have anticipated. Brick-and-mortar stores were closed, and people had no choice but to shop online. This sudden shift created a massive opportunity for businesses, and many who had never ventured into e-commerce had the opportunity to enter into it almost overnight.

For those of you who started an e-commerce business during that time, you likely had a better-than-hoped-for amount of traffic and sales, even if you were new to the game. People weren’t just buying essentials; they were looking for new hobbies, home improvement, wellness products, and more. The demand was high, and many businesses thrived by simply existing online and jumping on opportunities that were presented in the market.

But here’s the thing: the market has shifted again and what was working in 2020 doesn’t necessarily work anymore.

How the e-commerce market has changed in 2024

Fast forward to 2024, and the industry has completely changed once again. The e-commerce world is more competitive, consumer behavior has evolved, and the economic climate is challenging worldwide. Here are some of the biggest changes we’re seeing:

1. Increased Competition: The surge in online shopping during 2020 brought an influx of new businesses to the market. While this was great for consumers, it means that as a business owner, you’re now competing with many more players. Standing out in this crowded space has become much harder. Only those that stay very true to their mission and offer a unique selling point are the ones making it.
2. Smarter Consumers: Consumers today are more knowledgeable and selective. In 2020, they were willing to try new brands because their usual shopping habits were disrupted. But now that things have settled down, customers have become more discerning. They’re looking for more than just a product; they want a brand they can trust, one that aligns with their values and provides a great experience – a brand that has a purpose bigger than just their products.
3. Changing Economic Conditions: Let’s not forget the impact of inflation and the cost of living crisis. In 2020, people had fewer opportunities to spend their money, and many were receiving government support payments. But as we enter 2024, things are different. Consumers are more cautious about how they spend their money, and businesses need to work harder to earn those sales.
4. New Shopping Platforms: The rise of TikTok Shop, Temu, Shein, and Ali Express has allowed consumers to buy directly from sources – offering cheap price points as the products are coming directly from the supplier, without the middleman price markups – it’s a huge problem causing mass overconsumption in my opinion, but it means the general shopping focus has shifted from “shop local” to “shop from source” because it’s cheaper, and with financial struggles being such a huge issue globally budget-conscious shoppers are leaning more towards this shopping style than finding the individual brands.
5. Customer Retention Over Acquisition: One of the biggest shifts from 2020 to 2024 is the focus on retention. It used to be all about getting new customers, but now, the businesses that are winning are the ones that prioritize keeping their customers coming back. With acquisition costs rising, especially with changes in online advertising, focusing on customer loyalty and retention has never been more important.

To give you some reassurance this isn’t the first time the world has seen challenges like this, businesses that are still around today have lived through many economic changes such as the likes of Burberry or River Island – I’ve shared a couple of stories about how and why these brands have survived for so many years on my recent episode of The Commerce Club podcast – you can give it a listen here! 

Why Your E-Commerce Business Needs to Pivot NOW

If you’ve noticed a slowdown in sales or feel like your business isn’t getting the traction it used to, it’s likely because you’re still relying on strategies that worked in 2020 but don’t anymore.

If that’s the case for you – it’s probably time for you to pivot. But what does that actually mean?

Pivoting doesn’t mean completely abandoning your current business model. Instead, it’s about evolving and adapting to the new market conditions. Here’s how:

1. Shift Your Focus to Customer Experience: It’s no longer enough to have a product that people want. Consumers expect an amazing experience from the moment they land on your website to the moment they receive their order. This includes a seamless checkout process, fast shipping, quality products, and personalized customer service. They want a brand that connects with them personally and makes their lives easier. If you’re not delivering that experience, they’ll find someone else who will.
2. Embrace New Marketing Channels: The digital marketing landscape has shifted, and strategies that worked to attract in new customers back in 2020 might not be as effective now. For instance, social media algorithms have changed, and paid advertising costs are rising. You need to diversify your marketing efforts, it you’ve been relying solely on Instagram to promote your business it is definitely the time to explore alternative channels like TikTok, UGC, Pinterest, or even podcasts. The key is to be where your audience is and engage with them in ways that feel authentic.
3. Get Smarter About Data: In 2024, businesses that aren’t leveraging data to make decisions are going to fall behind. You need to track your customers’ behavior, understand their preferences, and use that data to make informed decisions about everything from product offerings to marketing campaigns. If you’re not sure where to start with this, working with an experienced e-commerce mentor can be a game-changer. PS. I know how scary the numbers can be to a creative business owner – that’s why my online course Step Up Your Sales teaches you exactly how to use the data (in a super simple way) to be able to use it to create a new strategy and pivot your brand – you can learn how to use the data in your business here! 
4. Focus on Retention Strategies: As I mentioned earlier, retaining your customers is more important than ever. This means implementing loyalty programs, offering exclusive perks for repeat buyers, and consistently providing value even after the sale. It’s also about building a community around your brand, where customers feel connected and valued.
5. Stick to your mission: When you’re making a pivot, it can be tempting to overhaul everything, but don’t lose sight of your core mission. Your mission is the heart of your brand, and it’s what sets you apart. A successful pivot doesn’t mean abandoning your purpose; it means finding new ways to deliver on it in a changing market. Keep your mission at the forefront of everything you do, and let it inform every decision you make.
6. Get clear on your USP and how you message this: Your unique selling proposition (USP) is what makes your business stand out from the competition. As you pivot, you need to ensure that your USP remains front and center in your messaging. Whether it’s exceptional customer service, a one-of-a-kind product, or your brand’s values, make sure your audience knows exactly why they should choose you. Clear, consistent communication around your USP will reinforce your value and help you connect with the right customers in this new landscape.

Take Action To Pivot Your Your E-Commerce Strategy Today…

It’s easy to get stuck in the mindset of “if it worked before, it should work now,” and I hate to be the bearer of bad news, but the e-commerce market is not the same as it was in 2020. To succeed and thrive in 2024, you need to adapt and evolve. That’s where I come in. As an e-commerce mentor, I’ve helped 100’s of businesses navigate these changes, and I can help you too.

To find out more about pivoting your business and which actions to take here are a couple of free resources for you:

1. Download my free guide to learn how to convert more customers and keep them coming back. This guide is packed with actionable tips that you can implement right away to boost your sales and optimize your customer experience. Get access to it here! 
2. Tune into my podcast, The Commerce Club, where I dive deeper into these topics and share insights on how you can future-proof your e-commerce business. You’ll get practical advice so that you can start applying immediately. Listen here! 

The businesses that are going to survive these challenging times are the ones that will embrace the change and pivot when needed. Don’t let your business get left behind. Take control of your e-commerce business’s future and make the changes necessary to succeed in this new landscape we’re entering.

If you’re feeling stuck or unsure where to start, I’m here to help. Drop me a DM anytime to discuss what’s happening in your business and how to turn it around.