The State of Ecommerce

A comprehensive guide to the biggest consumer trends in 2024.

Consumer behavior is quickly evolving in response to shifting values and technological leaps.

While we found that web traffic to all ecommerce sites remained stable in 2023 (-1% YoY), retailers face new challenges in 2024 in light of cost-conscious spending and expectations for personalized buying experiences.

So how can you stay ahead in an industry that’s constantly in flux? With The State of Ecommerce as your guide.

This comprehensive analysis of current market trends, challenges, and opportunities will help you align and adapt your strategy for the year ahead.

The State of Ecommerce 2024: Digital Trends and Strategies for Success

  • After a slight slump in 2022, the ecommerce sector saw 1.4% growth in the last 12 months, indicating a gradual rebound in online shopping
  • The Beauty & Cosmetics and Jewelry & Luxury categories saw the most growth in the last year – 10.5% and 15.8%, respectively
  • China, Japan. and South Korea are taking the ecomm world by storm: Temu's website experienced a huge 839% YoY increase in traffic, and Korean Beauty brands grew by +127% YoY on Amazon US

US Financial Services 2024: Inflation’s Impact on Consumers, Mortgages & SMB Banking

  • Credit cards are ‘in’ with 58M searches last year, but it’s those that help people manage or minimize debt and rebuild credit scores that are most in demand
  • Mortgages are back on the rise with traffic to lenders in the US up 11% YoY - certain banks lead the way with a superior pre-approval process, cash-based incentives, and AI driven processes (resulting in a 96% customer retention rate)
  • Small businesses are also feeling the financial pressure - challenger banks looking to serve the SMB market like Found are making waves with digital-first products and cutting-edge solutions

AUS Financial Services 2024: Inflation’s Impact on Consumers & SMB Banking

  • There’s been a huge shift in credit interest with searches for ‘credit cards’ growing by 46% YoY to 5.6M in March 2024
  • Credit card features highest in demand were reward programs, particularly those with travel perks - searches for ‘travel credit’ surged by 85%
  • Innovative financial providers like Wise enjoyed more than 40% growth on both web and mobile apps thanks to its digital-first niche offerings that outshine traditional players
  • Convenience is key for small businesses, with banks offering one-stop-shop solutions to alleviate customer challenges experiencing the most growth

UK Financial Services 2024: Inflation's Impact on Consumers, Mortgages & SMB Banking

  • While searches for ‘credit cards’ in general exceeded 18M last year, it’s reward credit cards that are front and center - American Express has nearly 1M monthly active app users
  • Consumers expect more flexibility from their purchases - airlines that used BNPL in 2023 saw over 70% YoY growth
  • Digital innovation is the key to success as online brokers and banks with mobile-first features saw the most significant growth in the last 12 months
  • Businesses are also feeling the financial pressure of finding the right banking and credit fit, and challenger banks like Monzo are slowly pushing out the top players with slick user experiences and technology-first products

A New Equation of Value: Can Brands Meet the Evolving Needs of Consumers in 2024?

  • Convenience will remain a driving force of consumer spending going into 2024 – traffic to subscription services like meal kits doubled between Q3 and Q4 2023
  • Gen Z and Millennials are the most eco-conscious consumers – 40% of consumers under the age of 25 actively care about their carbon footprint (and are even willing to pay extra for sustainable products)
  • With AI on the rise, the possibilities for personalization will transform the customer journey in 2024 and beyond
equetion_LP Image

TikTok: Reshaping the Face of the Beauty Industry — With Statista Primary Data

  • TikTok was the top social media platform for the Beauty category in the USA in 2022, a category which drove 89% of the platform’s product purchases
  • Over 80% of TikTok's beauty sales are generated from live commerce vs. prerecorded videos, peaking at 91% in October 2022 and 89% in January 2023
  • Among the top 4 social platforms in September 2023, TikTok had the highest proportion of female users (50%) and its largest age demographic was 35-44 (32%)
TikTok_LP Image

The Data-Driven Planning Guide for an Unpredictable Holiday Season

  • Prime Day July 2023 saw an average revenue growth of 8.5% vs. the previous year, revealing that consumers are still spending during inflation
  • Shoppers are becoming more strategic, comparing prices and gravitating towards private-label brands: Amazon brands represented 8% of revenue
  • Social commerce saw a 25% increase in 2023, with TikTok contributing to a 28% year-over-year increase in product views for the Beauty & Personal Care category
Holiday season_LP Image

State of US Consumer Digital Spending - Sentiment & Purchase Behavior

  • 6% YoY decrease in desktop converted visits to 2000+ major ecommerce sites shows the impact of inflation on online spending
  • 67% of Americans quote inflation as the reason for the decrease in “spare and extra spending money”
  • Consumers adopt new behaviors to keep spending: affordable options, second-hand goods, postponable purchases, and alternative financing

The categorical rise of Buy Now, Pay Later (BNPL)

  • BNPL market size is estimated at $241B. By 2026, it is projected to grow to $526B
  • 37% of US citizens have used BNPL to finance a purchase
  • US online retailers that offer BNPL saw a better average for YoY converted visits (+2%) performance than those who don’t (-11%)
The Categorical Rise of BNPL

Global outlook - adaptation to meet new demand is vital

Consumar_LP Image

The State of Ecommerce
UK Edition

  • Traffic to UK's marketplaces category, the 7th largest in the world, decreased 16% in 2022 and an additional 11% in 2023
  • Out of the seven industries analyzed, only ‘Beauty and Cosmetics’ saw positive growth in 2022 (+1%)
  • Home & Garden also dropped 14% in the UK (vs. +7% worldwide), as people are less likely to furnish or renovate new homes

The State of Ecommerce
Germany Edition

  • In 2022, Germany saw the fifth largest decrease in visits among the top 10 ecommerce markets, with a year-over-year (YoY) decrease of -7%, compared to the global decrease of -3%
  • The Home & Garden category had the greatest YoY traffic drop at -12% compared to +7% worldwide
  • Similarly, the Luxury & Jewellery category increased 9% globally, but decreased 2%
GER_LP Image

The State of Ecommerce
France Edition

  • Despite the global trend of the ‘Lipstick Effect', France's beauty industry saw a decrease in online traffic of -3% YoY, even as French beauty brands boosted sales figures worldwide
  • The 'Home & Garden' category experienced the most decline in the past year at -15%
  • Companies implementing digital tech for ecommerce saw most growth in France, especially online groceries (+1% vs. global avgerage of -2%)
The state of ecommerce

Gain tailored insights to expand your digital presence and win your market