"Publishers such as Future saw huge boosts from the e-commerce capabilities of its magazine portfolio, while individual sellers across sites including Etsy and Depop reaped the benefits of new audiences. Older cohorts took to buying and selling digitally in a way that they might not have done unless spurred on by the pandemic. Buying online led to further dominance of incumbents such as Amazon, which has access to consumer journey data smaller sellers and marketplaces cannot compete with."
"According to Shopify's 2022 Future of Commerce report, conducted in partnership with Forrester Consulting, the biggest challenge facing e-commerce is around customer acquisition. The cost of attracting new customers is set to rise in the face of increased direct-to-consumer (DTC) competition and the increasing cost of advertising. While the report states the e-commerce market is expected to grow by almost $11tn between 2021 and 2025, that growth has attracted a vast number of competitors within the space."
E-commerce boomed over the past two years, enabling publishers and individual sellers to reach new audiences across platforms such as Etsy and Depop. Older consumer cohorts adopted digital buying and selling, accelerating market participation. Incumbents like Amazon strengthened positions by leveraging consumer journey data unavailable to smaller sellers. Supply-chain disruptions and intensified competition are expected to create headwinds to future e-commerce growth. Customer acquisition costs are rising due to growing direct-to-consumer competition and higher advertising costs. Return on ad spend is decreasing as privacy regulations and ad-blocking reduce targeting effectiveness. Lower barriers to entry via platforms such as Shopify, Wix and Squarespace have increased market competition.
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