State of Ecommerce Report
State of Ecommerce Report
State of Ecommerce Report
ECOMMERCE INDUSTRY
Insights from both marketers and consumers
TABLE OF CONTENTS
02 Executive summary
24 Key takeways
EXECUTIVE SUMMARY
Defying global economic headwinds, two recent global surveys—one
Despite lingering fears of a recession and financial
of over 1,400 ecommerce retail executives and marketers at businesses
uneasiness due to inflation, new research reveals with over $30 million in revenue, and another of over 800 consumers—
ecommerce giants are forecasting robust growth— reveal the future is bright for leading ecommerce brands.
and many consumers won’t be slowing down their But ecommerce success is not guaranteed. Though large brands are
reporting promising performance, marketers must successfully capture
spending anytime soon. shoppers’ attention and engage them in an increasingly crowded digital
landscape where consumer behavior has shifted over recent years.
02
A RISING TIDE FOR THE ECOMMERCE INDUSTRY
03
A RISING TIDE FOR THE ECOMMERCE INDUSTRY
Our findings indicate positive trends across these key growth drivers. Consumer & Retailer YOY forcasted spending and revenue change
But even though shoppers aren’t pausing their purchases, comparing Klaviyo 2024 state of ecommerce consumer survey Q11: Please indicate how your spending for x products will change from last year to
this year. (n808) Company survey Q14: Please indicate by what degree you think your company’s annual revenue will change from last
ecommerce marketer sentiment to consumer spending plans suggests year to this year. (n1402)
The bottom line is a high bar My spending/our revenue is likely My spending/our revenue is likely
to stay the same to decrease slightly
When asked about their spending habits, over a third of consumers Consumer 46% Consumer 13%
are forecasting greater YoY spending across ecommerce categories— Retailer 8% Retailer 2%
04
A RISING TIDE FOR THE ECOMMERCE INDUSTRY
Regionally, ecommerce companies in North America are the most By ecommerce vertical, home & garden and apparel & accessories
bullish on their revenue growth prospects by year end, with nearly half retailers forecast the most significant YoY revenue increases.
expecting their revenue to grow significantly. APAC follows at 44%
and EMEA at 31%. In EMEA, more companies expect their revenue
to grow slightly.
Ecommerce company revenue YoY forecasted change by region Ecommerce company 2024 revenue YoY forecasted change by vertical
Klaviyo 2024 state of ecommerce company survey Q14: Please indicate by what degree you think your company’s annual Klaviyo 2024 state of ecommerce company survey Q14: Please indicate by what degree you think your company’s annual
revenue will change from last year to this year. (n770) revenue will change from last year to this year. (n770)
Total
Likely to increase
NA APAC EMEA Total 41% 48% 8% 2% 1% significantly
Likely to increase
Home & garden slightly
Increase significantly 47% 44% 31% 41%
51% 41% 6% 1% Likely to stay
the same
Increase slightly 45% 42% 56% 48%
Apparel & accessories Likely to decrease
slightly
53% 36% 8% 3% 1%
Stay the same 6% 12% 9% 8%
Likely to decrease
significantly
Health & beauty
Decrease slightly 2% 2% 4% 2%
35% 53% 8% 3% 1%
05
A RISING TIDE FOR THE ECOMMERCE INDUSTRY
While about a third of consumers plan to increase their spend in Consumer 2024 spending YoY forecasted change by vertical
those categories, as well as in health & beauty, the largest proportion Klaviyo 2024 state of ecommerce consumer survey Q11: Please indicate how your spending for x products will change from last year
to this year. (Apparel & accessories n720, Food & beverage n775, Health & beauty n682, Home & garden n587)
of consumers (50%) expect to increase their YoY spend on food &
beverage products—revealing a greater need for essentials than Home & garden
Likely to increase significantly Likely to stay the same Likely to decrease significantly
06
A RISING TIDE FOR THE ECOMMERCE INDUSTRY
Netting out: increased costs and discounts 2024 performance indicators for ecommerce companies
Klaviyo 2024 state of ecommerce company survey Q35, Q34, Q31, Q33, Q32: Over the last 12 months, your organization has . . . (n770)
aren’t making a dent in profits and margins
Apparel & Food & Health & Home &
Total
Footwear Beverage Beauty Garden
Evidently, the teams behind large brands are combatting higher
Generated higher profits 67% 67% 63% 66% 72%
incurred costs with healthy profits and margins, likely due to their ability Generated the same profits 28% 27% 32% 29% 24%
to balance strategic price hikes with doubling down on discounts. Generated lower profits 5% 6% 5% 4% 5%
Just over half of ecommerce companies (54%) experienced higher costs Generated higher margins 64% 63% 59% 66% 70%
than last year, while 67% of ecommerce companies across categories Generated the same margins 31% 32% 37% 29% 26%
generated higher profits and 64% generated higher margins. Generated lower margins 5% 5% 5% 5% 4%
to assuage reluctance to buy. Experienced the same level of costs/COGs 37% 31% 41% 41% 38%
bottom line, this data signifies a shift in how economic factors have Discounted at the same rate 36% 32% 41% 36% 36%
Decreased discounting 5% 6% 5% 3% 5%
07
A RISING TIDE FOR THE ECOMMERCE INDUSTRY
required them to reconsider their discounting strategies in order to 12 month internal & external marketing staff hiring plans
Klaviyo 2024 state of ecommerce company survey: Q18 and Q20: Over the next 12 months, which best reflects your internal
incentivize today’s shoppers. marketing full-time staff hiring plans/external marketing staff hiring plans? (n1402)
08
A RISING TIDE FOR THE ECOMMERCE INDUSTRY
Large ecommerce retailers are planning to hire for numerous internal 12-month internal role hiring plans
roles spanning the marketing funnel, with a slight emphasis on hiring Company survey Q19: What full-time marketing roles are you most likely to hire in the next 12 months? Select all that apply. (n1402)
driving long-term success—and prioritizing brand-building efforts CRM marketer 29% Media planner/buyer 15%
in the quest to become household names.
Digital marketing manager 29% Product marketing manager 14%
But whether they’re new hires or seasoned veterans, marketers will Community manager 29% PPC (pay-per-click) manager 12%
only succeed in retaining customers and acquiring new ones by
Affiliate marketing manager 26% Retention marketing manager 8%
understanding why people buy, what they buy, where they buy, how
Email/SMS marketing specialist 25% SEO specialist 7%
to most-effectively reach them, and what engagement tactics to use.
Engagement marketer 23% Social media manager 7%
09
THE INFLUENCE GAP
10
THE INFLUENCE GAP
These are also the top priorities for ecommerce companies across Top marketing priorities for ecommerce companies in 2024 by region
EMEA and North America, while APAC companies report a more Klaviyo 2024 state of ecommerce company survey Q21: Please stack rank your marketing priorities based on the list
below by dragging your No. 1 priority to the first position, your No. 2 priority to the second position, etc. (n770)
even split and are also focused on increasing average transaction
size (40%) and activating dormant customers (40%). Acquiring new customers Activating dormant customers
APAC 36%
EMEA 37%
NA 35%
Total 36%
11
ACCORDING TO SHOPPERS, PRICE (78%) AND
QUALITY (77%) ARE TOP OF MIND WHEN IT COMES
TO FACTORS THAT INFLUENCE THEIR PURCHASES.
IN OTHER WORDS, IT’S ALL ABOUT VALUE.
THE INFLUENCE GAP
Quality 77%
It’s also the factor most likely to be influenced by external forces— Brand reputation 41%
but plenty of factors that influence consumer purchase decisions are Reviews/customer testimonials 38%
well within the control of ecommerce brands.
Customer service 38%
Return/warranty policy
Most consumers aren’t willing to sacrifice product quality for a good 36%
Loyalty programs
deal, for example—shoppers want to feel confident that if they’re 32%
opening their wallets, it’ll be worth the price tag. Selection 32%
Payment plans
Similarly, the next highest-ranking consumer selection criteria, such (e.g., buy now, pay later)
12%
Celebrity/influencer endorsements 4%
Family/woman/minority-owned 3%
business
13
THE INFLUENCE GAP
Ensuring a frictionless and seamless shopping experience will be Top company revenue and consumer purchase channels
critical for large brands in this highly competitive space. Additionally, Klaviyo 2024 state of ecommerce company survey Q12: Which of the following best describes how your organization currently
derives its revenue? Please select all that apply. - Selected choice (n1402); Consumer survey Q10: Where do you purchase the
rewarding customers for loyalty—such as placing repeat purchases following products? Please select all that apply. (n808)
65%
Physical retail store
66%
33%
Across the ecommerce industry, brands’ owned and operated physical Social commerce
5%
stores rank significantly ahead of other options as the location where
consumers are most likely to purchase (66%). 20%
Pop-up store
6%
14
THE INFLUENCE GAP
Compare this to the channel where brands report driving the most revenue—
their owned and operated ecommerce website (69%). Next, retailers most
commonly derive revenue from third-party ecommerce sites and owned and
operated physical stores. Third-party physical stores are a distant fourth.
This data makes one fact clear: while many retailers have been focusing
heavily on their ecommerce presence, today’s consumers value in-person
experiences. They want to feel, touch, see, and take home their purchases
instantaneously—underscoring the critical importance of an omnichannel
approach that integrates both online and offline shopping channels.
15
THE INFLUENCE GAP
marketing investments
apply. (n1402); consumer Q18: How influential are each of these marketing channels on your purchase decisions? (n808)
Company Consumer
marketing activities purchase influence Influence gap
With big budgets and seemingly endless potential marketing channels
Email marketing 36% 59% 23%
to invest in, it’s easy for larger retailers to allocate their dollars to the
wrong place—especially when attribution gets murky. Paid social marketing/ads 34% 55% 21%
But consumer insights on which marketing channels most influence their Influencer marketing 34% 33% -1%
purchase decisions help shed light on which marketing opportunities Paid/organic search 31% 78% 47%
are most worthy of dollars.
Broadcast advertising (e.g., television, radio) 31% 58% 27%
By contrast, large ecommerce companies use email marketing, paid SMS marketing 26% 39% 13%
social ads, and influencer marketing the most to reach consumers. In-app marketing/push notifications 26% 43% 17%
16
THE INFLUENCE GAP
Paid and organic search, broadcast advertising, event marketing, and email
marketing, for example, are all channels that have a high influence on consumer
purchase decisions—and therefore hold the most promise for increased
use by retailers.
But it’s possible that the saturation of influencer marketing across social media
has made it less impactful among consumers: the lowest proportion of them
(33%) say influencer marketing has a bearing on their decision to purchase.
17
THE INFLUENCE GAP
One channel that shouldn’t be ignored: Percent of companies increasing YoY spend by activity
Klaviyo 2024 state of the ecommerce company survey Q24: For each of the marketing activities your organization uses, please indicate
mobile whether this year’s spend on that activity has increased, had no change, or decreased compared to last year’s spend. (n1402)
For brands looking to innovate in the future, consumers care most Paid social marketing/ads 69% Broadcast advertising (e.g., television, radio) 58%
about access to a brand’s mobile app, with an overwhelming 84% of
Programmatic advertising
65% Organic search 57%
respondents saying they currently use them. (e.g., automated network advertising)
Fortunately, 63% of marketers already are committing to invest more Programmatic display advertising 61% Out-of-home (e.g., transit, billboards) 53%
in in-app marketing and push. But whereas SMS marketing influences
Public relations 61% Direct mail 53%
39% of consumers, it’s the channel the least amount of marketers are
planning to increase their investment in (50%). Influencer marketing 60% SMS marketing 50%
Though it may seem like SMS marketing has been widely adopted Event marketing 59%
1718
THE INFLUENCE GAP
19
THE INFLUENCE GAP
reviews, and quick check-out Consumer survey Q12a/b: Please indicate which best describes your usage of these offerings in the last 12 months? (n808)
While many ecommerce companies are attempting to meet consum- Discounts/sales 60% 92% 32%
er needs with tactics like discounts, product reviews, quick check-out, Product reviews 60% 79% 19%
and personalization, they’re not necessarily offering everything shop- Quick checkout 55% 78% 23%
marketers have increased discounting across verticals, and that 60% Quick commerce/same/next day delivery 51% 61% 10%
of large ecommerce companies offer discounts and sales. Livestream shopping 51% 18% -33%
But consumers also stick around for incentives that don’t have a dollar Buy online pick up in store (BOPIS) 50% 55% 5%
content, BNPL options, and product origin stories. On the other hand, Product origin stories 46% 31% -15%
they may be under-investing in loyalty programs, discounts and sales, Secondhand commerce or rentals 38% 38% 0%
1920
THE INFLUENCE GAP
54%
Ecommerce brands—and consumers—are
use personalized
still figuring out marketing personalization content
90%
content. Additionally, nearly 60% of consumers say it’s important,
have benefited from
and of those that have engaged with it, nearly 90% say it has
personalized content
benefitted them.
21
THE INFLUENCE GAP
In this realm, ecommerce marketers are one step ahead: customer Data investment for ecommerce companies 2024
data collection is on 70% of respondents’ radars. Klaviyo 2024 state of ecommerce company survey Q36: Over the last 12 months, your organization has . . . (n770)
efforts? Large ecommerce companies cite purchase history data Invest more in collecting and leveraging data 70% 72% 71% 66% 70%
(63%), behavioral data (62%), channel engagement data (59%) and Invested the same in collecting and leveraging data 29% 27% 27% 33% 29%
demographic data (59%) as most important. Invested less in collecting and leverging data 1% 1% 1% 1% 1%
Gender 44%
We do not target 3%
22
THE 2024 STATE OF THE ECOMMERCE
INDUSTRY REPORT REVEALS A LANDSCAPE OF
OPTIMISM AND OPPORTUNITY, TEMPERED BY
THE NEED FOR STRATEGIC ADAPTATION.
KEY TAKEAWAYS
24
KEY TAKEAWAYS
OMNICHANNEL DOMINANCE
Physical stores remain crucial, with consumers showing a strong preference As the industry continues to evolve, staying attuned to consumer needs,
for in-person shopping experiences alongside digital options. leveraging data effectively, and remaining agile in marketing approaches
will be key to success in the dynamic world of ecommerce.
25
ABOUT THIS STUDY
Consumer survey demographics Company survey demographics
The Klaviyo state of ecommerce industry company
• 808 respondents • 1,402 respondents
and consumer surveys were fielded in July 2024 by
• Sole or shared purchase decision • Retailers with revenue >$30M USD
Paradoxes, Inc. Paradoxes is a strategic marketing maker for household and >250 employees
• Age:
18-27: 8% 28-43: 36%
44-59: 31% 60+: 25%
26
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