Recently in Logistics: Inflation rates have affected 73% of back-to-school shoppers, PacSun is dealing with an increase in fraudulent returns, Deloitte predicts holiday sales will only grow from 2.3% to 3.3%, Retailers are turning to AI and social media, with 57% of U.S. retailers boosting their ad spend and new eCommerce trends are pointing to more intuitive AI-driven shopping, and an enhanced return processes. Learn more by reading our latest logistics update
Inflation’s impact on back-to-school shopping in Canada in 2024
As back-to-school shopping ends, 73% of consumers have felt the impact of inflation. Parents are reusing items and buying second-hand to save, while electronics purchases have dropped. Store visits to Walmart and Dollarama stay high for value and convenience. Only 3% of shoppers prioritize sustainability, focusing more on affordability and quick, cost-effective shopping.
Online Returns Fraud Costs Retailers Billions Through Telegram
PacSun saw a rise in fraudulent returns this year, with one case involving $24,000 worth of bogus items. Fraudsters manipulate return labels and share tips on Telegram, tricking retailers into issuing refunds for empty packages. In 2023, over $100 billion in merchandise was fraudulently returned. Retailers are now tightening return policies and taking legal action to fight back.
Source: The Wall Street Journal
Deloitte Forecasts Moderate Holiday Sales Growth
Deloitte predicts holiday sales growth of 2.3% to 3.3% from November to January, slower than last year’s 4.3% but still positive. Total sales could reach $1.59 trillion, with ecommerce driving growth, expected to rise 7% to 9%. Inflation, while easing, still impacts consumer spending, with savings down and credit card debt rising. Retailers focusing on value and convenience will benefit from consumer loyalty this season.
Source: Forbes
Retailers Focus on AI, Social Media, and Discounts for Holidays
A new report from Fiverr shows retailers are boosting AI and social media strategies for the holidays, with 57% of U.S. retailers investing in social media ads. Key concerns include inflation and staffing shortages, but retailers are also offering deeper discounts. Gen-Z is a key target, with 54% using TikTok shop, and 68% of businesses using AI to streamline operations.
Source: Retail Insider
Top E-Commerce Trends Changing How We Shop in 2024
In 2024, e-commerce will evolve with intuitive shopping experiences powered by generative AI, the growing influence of the TikTok economy, and revamped return processes. Consumers now expect personalized online shopping, hassle-free returns, and viral marketing from social media platforms like TikTok. These trends highlight the need for brands to stay ahead with new technologies, cater to digital consumers, and improve customer loyalty.
Source: Forbes
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