Commerce Jam | December 2024 Edition

Happy New Year! I hope you all had a safe and joyful holiday season.

The end of the year has a way of asking us to pause, even briefly, to reflect on where we’ve been and where we’re headed. For many merchants, last year felt like a whirlwind. It was a year defined by rapid shifts in technology, evolving customer expectations, and the constant challenge of staying ahead of the competition.

At Shero Commerce, we witnessed this firsthand. From helping brands with migrations to refining SEO strategies and launching transformative projects, 2024 wasn’t just about navigating change; it was about embracing it. 

As we start 2025, the focus shifts to opportunity. What lessons can we carry forward? What trends will shape eCommerce next year? In this edition of Commerce Jam, we dive into insights, predictions, and strategies to ensure you step into the new year ready to thrive.

Let’s dive in!

📋 In this issue:

🎯 Predictions for 2025 + Insights from Industry Experts

📚 Continuing Education for eCommerce Teams

📊 2024 Year in Review for Shero

🛠 The Merchant’s New Year Checklist

✨ Inspiration Corner

📖 Resources and Suggested Reading

🧠 Book Picks for the Month

💬 Closing Thoughts

🎯 Predictions for 2025 + Insights from Industry Experts

Every story needs a plot twist, and 2025 promises to bring plenty of those. To help you prepare, I’ve outlined some key areas to focus on in 2025, except AI which is a no brainer. Additionally, I reached out to some of the brightest minds in eCommerce for their predictions. Here’s my list to watch:

1. Virtual Try-Ons and 3D Product Views

We're going to see eCommerce brands doubling down on making online shopping feel as real as possible. Here's where I think the biggest leaps will happen:

Virtual Try-Ons - Imagine "trying on" a pair of glasses or testing out a new jacket, all from the comfort of your home. Augmented reality tools like FittingBox, Ditto, and Wanna are already paving the way, and I predict they'll become the norm, not the exception. This kind of interactive experience will help build trust, reduce returns, and keep customers engaged.

3D Product Views - Static product images? They'll feel like relics of the past. With 3D modeling, customers will be able to explore products from every angle, zoom in on details, and even customize things like colors or textures. Platforms like Threekit, Sketchfab, and Shopify’s 3D & AR tools can help you get started.

2. Predictive Analytics 

I have mentioned first-party data, tracking, and attribution in previous newsletters heavily. In 2025, they will continue to be even more important. Additionally, this will be the year when predictive analytics become an indispensable tool for online retailers. Here's what I see coming: 

Dynamic Pricing and Inventory Management - AI-driven tools like DynamicPricing.ai and Sniffie.io are setting the stage for smarter, real-time decisions. Want to always have popular items in stock while keeping prices competitive without lifting a finger? These tools predict demand, optimize inventory, and automatically adjust prices—making eCommerce operations more efficient and profitable.

Personalized Shopping Experiences - Shoppers will increasingly expect personalization and predictive analytics to make their shopping experience seamless. Shopify merchants can use Shopify’s Product Recommendations to analyze customer behavior and offer personalized product suggestions. For those looking to take things further, platforms like Rebuy and Tagalys enable smarter upselling and cross-selling strategies that feel intuitive and natural to customers.

3. Sustainability as a Core Strategy  

Sustainability won’t just be a nice to have. It will be a defining feature of successful eCommerce brands. Here’s how I see this trend playing out:

Transparent Supply Chains - more and more buyers will want to support brands that reflect their values and demonstrate a genuine commitment to sustainability. Brands can showcase their sustainable sourcing practices, from biodegradable packaging to carbon-neutral shipping options. To foster trust and build stronger connections with eco-conscious buyers, I suggest adding sections on PDPs that detail the environmental impact of products.

Carbon Offset Programs - if and where applicable, you can use tools like EcoCart to calculate and offset the carbon footprint of shipping. Some tools even allow customers to contribute to sustainability initiatives directly at checkout, turning every purchase into an opportunity to make a positive environmental impact.

4. Social Commerce Expansion  

Social media platforms will become more than just places to connect. They’ll be full-fledged marketplaces. Platforms like TikTok and Meta will increasingly provide more integrated shopping experiences. Brands will utilize shoppable posts, live-streaming events, and influencer collaborations to drive direct sales through social media channels.

6. Subscription Services and Membership Models  

The subscription box model will continue to thrive as consumers prioritize convenience and personalization. Brands can use tools like Recharge and Bold Subscriptions to create tailored subscription services that cater to specific interests. These platforms enable recurring billing, personalized product offerings, and flexible management options, helping brands generate consistent revenue while building long-term customer loyalty.

7. Voice Commerce  

Voice commerce will play a bigger role as smart speakers and voice assistants become a staple in more households. Retailers should prioritize optimizing for voice search and enabling seamless voice ordering processes. Tools like Jetson AI and SoundHound AI can help brands stay ahead by integrating voice commands into the shopping experience and developing skills for platforms like Alexa and Google Assistant. Voice commerce not only enhances convenience but also positions your brand as a leader in innovation and accessibility.

8. Shopify Will Continue to Grow

Shopify’s growth will accelerate, driven by innovation and a stronger focus on meeting the needs of all types of merchants. Here’s what I predict:

Better B2B - Shopify will continue to release new features and expand its offerings for B2B merchants with advanced features like custom pricing, bulk ordering tools, and seamless integration with existing systems through Shopify Plus. These enhancements will make Shopify the top platform for businesses looking to scale their wholesale operations at a reasonable cost.

Global Expansion and AI Automation - Solutions like Managed Markets will simplify global reach for brands. At the same time, Shopify Magic will use AI-powered automation to streamline everything from customer service to marketing. These tools will help both D2C and B2B merchants unlock new opportunities and drive efficiency.

9. Hyper-Personalization  

As data collection methods advance, brands will leverage AI and machine learning to deliver uniquely bespoke shopping experiences, which include personalized marketing messages, product recommendations, and content that resonates with individual customer preferences. This trend is expected to grow, with the global personalization software market projected to reach $2.8 billion by 2025, at a CAGR of 13.5% from 2020.

Tools like SwiftERM offer advanced personalization capabilities for email marketing, autonomously selecting products based on individual customer data. Additionally, platforms like Dynamic Yield, Klayvio, and Bloomreach provide comprehensive solutions for real-time personalization across various touchpoints. 

10. Greater Focus on Customer Experience  

Customer experience will take center stage as competition will intensify. Here’s what I foresee:

Investment in Technology - retailers will lean heavily into tools like AI-driven customer support and chatbots to improve interactions. Solutions like Klevu’s Moi will set the standard by offering instant support and faster response times, enhancing customer satisfaction and reducing friction.

Omnichannel - delivering a seamless shopping experience across multiple touchpoints will be critical. Whether it’s online, in-store, or through mobile apps, brands that prioritize omnichannel integration will stand out by offering a consistent and cohesive journey.

Industry Experts Predictions

While these predictions highlight where I see eCommerce heading, let’s turn to some of the industry’s top experts for their insights on what will shape 2025.

"AI is crushing a lot of the SEO world, but eCommerce will be fine. That's because while AI is great at creating quick answers, SEO for eCommerce is about ranking for product categories and comparison queries. 2025 will be a good year for eCommerce brands."

"Making predictions is always difficult, and the acceleration of technologies like AI, no-code / low-code software as a service solutions, and open APIs for data make predicting what will be big in 2025 harder than ever. I think we can say with certainty that Shopify will continue to win more and more merchants with GMV over $250m and that platforms that offer the quickest implementation times and lowest total cost of ownership will continue to help the merchants that adopt them win in the competitive retail landscape. B2B and B2C will continue to merge as merchants digitize their B2B stack to realize cost benefits, and marketplaces will continue to fragment.  All of this means that hyper-automation through iPaaS is key to success and ensuring that the correct inventory is available at the correct time and the correct price."

"eCommerce brands need to have a growth strategy in 2025. A way to find new customers. This is not always easy but we can see that customers are finding new products in many ways and new places. Your growth strategy does not need to be complex but it should start with customers. Most of them are hiding in plain sight. Recommendations I would encourage: 

 - Stop doing things that are repeatedly failing you 

 --- Use profitability measures to reinforce marketing plans to help with this. 

 --- Sometimes customers give you signals you do not want to take - listen to those customers and take appropriate action. 

 - Start doing something new. 

 --- Open new channels

 --- Explore marketplace options for your customer base

- Do more of:

--- If you still exist today, there will be things you do well. Do more of them. 

--- We know BFCM excites and engages your customer - change your promotional cadence and get people to shop more frequently and get them on your side. 

eCom is in a tricky place no doubt, but the brands with the best trading plans will win. Of that I have little doubt."

"Site Search and AI will have a very exciting future ahead in 2025. I believe we will see transformative changes in how shoppers find what they want to buy. From shoppers' point of view, it will be all about being able to converse in natural language, find products that fit their use cases and also seeing products that are truly personalised to cater their needs. From retailers and tech providers' side, it will be all about hybrid search, that is, combining Semantic and Vector search with personalization. At Klevu, we call this building and spinning flywheel of 3Cs: Catalog, Consumer, and Commerce."

"There is no real sign of a reduction in ad costs next year, especially on Google. Brands will need to be more sophisticated with their ad spend to accommodate increasing costs and, in most instances CAC. Understanding which customers are more profitable and drive more LTV will justify continued investment. Focusing on products with higher margins and lower returns will again improve the bottom line of your marketing activity, essentially reducing the impact of increasing costs. 

Continued expansion of AI overviews - Initially, this will have more impact on organic - but expect to see conversation search drive more intent from a customer’s query as Google looks to refine a user search.

Increase in Long-tail Conversational Queries - Ensure shopping feed and PDPs have enriched content, which will map to more specific user queries."

"20% of all eCommerce orders in 2024 were cross-border. With tougher times due to inflation, supply chain issues and changes in consumer spending habits, brands must now unlock new regions to find growth. 

US brands who traditionally kept to their domestic market until much higher maturation points are moving cross-border earlier. UK brands who gave up on EU sales due to added complexity post-Brexit are having to figure it out again. 

Swap is in a great position to help these brands unlock cross-border revenue in a flexible, low-cost way, and with cross-border returns up 11% in 2024, we also can handle automated duty drawback to get that cash back in your bank account."

"In 2025, eCommerce will focus on consolidation and simplicity to keep costs low and operations efficient. Businesses will streamline tech stacks, prioritize clean, first-party data, and refine workflows to improve agility and enhance customer experiences.

Omnichannel convenience, including buy online, pick up in-store (BOPIS) and marketplace sales, will help brands meet customers where they shop while building loyalty. Eco-friendly practices, transparency, and competitively priced, high-value products will remain key drivers of consumer decisions.

AI and automation will enhance both personalization and efficiency, while mobile-first design and data privacy will be crucial to meet customer expectations. Success will depend on delivering seamless experiences, balancing price and value, and executing strategies with greater precision.

Thank you to all the incredible experts who took the time to share their valuable insights for 2025. Your perspectives inspire me and empower the eCommerce community to think bigger and aim higher. Beth Shero Josh Duggan Nilay Oza Andy Crestodina Vinny O'Brien Cian Wright Jim Herbert

📚 Continuing Education for eCommerce Teams

Now that you have a general idea of what 2025 has in store, I have compiled a list of training materials for your eCommerce team. These resources will not only help them meet and exceed the demands of your eCommerce ops but also prepare them to communicate effectively with outside vendors and handle tasks in-house. Here we go: 

eCommerce Platform Training

• Shopify Academy: Free courses on everything from store setup to advanced marketing strategies.
• BigCommerce University: Hands-on tutorials and webinars tailored for B2B and DTC merchants.
• WooCommerce Docs: Comprehensive guides and community support for WooCommerce store owners.

Marketing and Email

• Klaviyo Academy: Learn to build effective email and SMS campaigns with segmentation and automation tips.
• Google Ads Skillshop: Master the art of paid search and display advertising with Google's official training.
• Canva Design School: Enhance your team’s graphic design skills for creating stunning visuals that align with your brand.

SEO and Analytics Training

• SEMrush Academy: Tutorials on SEO, PPC, and content marketing, plus certifications to validate your team’s expertise.
• Ahrefs Academy: Deep dives into keyword research, link building, and competitive analysis.
• Google Analytics 4 (GA4) Training: Learn to set up, interpret, and act on the data in GA4 for smarter decision-making.

Inventory and Product Management

• QuickBooks Commerce Guide: Learn to streamline inventory tracking and product listings.
• Thrive/Shopventory Training: Insights on optimizing stock and managing product data across platforms.

Content Creation and Social Media

• HubSpot Content Marketing Certification: A great resource for building your team’s blogging and content creation skills.
• Buffer Social Media Academy: Tutorials and guides on crafting compelling social campaigns and analyzing results.
• Meta Blueprint: Meta's official training for advertising and building a strong presence on Facebook and Instagram.

eCommerce Growth and Optimization

• Conversion Rate Optimization (CRO) Training by CXL: A must for learning how to turn traffic into sales with data-driven strategies.
• Rebuy Help Center: Guides for implementing personalized upsells and cross-sells in your store.
• Hotjar Academy: Learn how to analyze user behavior to improve the shopping experience.

That’s it! Equip your team with these tools and resources, and you’ll have an eCommerce powerhouse ready to meet the challenges and opportunities of 2025. Which one are you diving into first?

📊 2024 Year in Review for Shero

In 2024, we pivoted from being a Magento agency to focusing exclusively on Shopify, primarily, and BigCommerce, deciding not to take on new Magento projects early in the year.

This wasn’t just about following trends; it was about aligning with a platform that offers better stability, innovation, and a lower total cost of ownership for our clients.

Furthermore, Shopify’s growing popularity and ability to deliver superior conversion rates made it an obvious choice.

By the end of the year, that decision had paid off: we gained 21 new clients, launched multiple Shopify projects, and exceeded revenue goals.

Let’s Talk About Magento

Magento was a great platform for its time, and there is no doubt about that. It may still be a good fit for certain use cases. But let’s be honest: continuing to believe Magento will make a comeback is like beating a dead horse. Many agencies I talk to still insist it’s the best platform, but if you look at market share shifts YoY, and listen to our existing and new clients, you’ll see firsthand why that’s no longer true.

The demand for Magento has been declining, and the platform’s inherent challenges negatively affected our client relationships. Increased costs from day-to-day upkeep, endless patches, and costly updates leave clients frustrated, and their frustration often reflects back on us. We often find ourselves spending more time dealing with platform issues than focusing on what really matters: helping clients grow and innovate.

Why Shopify?

Shifting to Shopify wasn’t without its challenges, but it was the right move. It required us to upskill our entire team. Our developers embraced this change, diving into hands-on project work to build their Shopify expertise. Meanwhile, our sales team and solutions architects completed Shopify training to understand the platform better and provide stronger guidance to clients.

One big change was a reduction in maintenance work. While this affected our maintenance revenue, it freed us to focus on higher-value services like feature development, A/B testing, and strategic consulting. To offset the revenue gap, we expanded into areas like email marketing automation, SEO, PPC, and creative work. These additional services not only diversified our offerings but also strengthened our relationships with clients.

Finding Our Groove

The Shopify ecosystem is competitive, especially in the mid-market and enterprise space. But we’ve found our edge. Our experience with large, complex Magento projects has been invaluable. It has enabled us to take on complex Shopify projects, particularly for B2B clients with complex integrations like ERPs, OMSs, PIMs, and DAMs.

This shift wasn’t just about moving platforms; it was about aligning with market trends and client needs. By transitioning to Shopify, we’ve improved our ability to deliver results, expanded our service offerings, and set ourselves up for long-term success.

Looking back, 2024 was a year of change that led to happier clients, stronger partnerships, and a clearer vision for the future. 

🛠 The Merchant’s New Year Checklist

2025 is here, bringing fresh opportunities to optimize, innovate, and grow. To help you seize them, I’ve put together a comprehensive checklist to kickstart your year with confidence and success:

1. Update Your Product Catalog

• Analyze Your Inventory: Take a close look at your sales data to pinpoint your top performers and those that might need a little extra love.
• Revamp Descriptions and Images: Refresh your product descriptions and images to make them more engaging and appealing. First impressions matter!

2. Optimize Your Website

• Conduct a Speed Audit: Speed is crucial. Run a thorough site speed audit and make necessary adjustments to improve performance.
• Ensure Mobile Compatibility: Make sure your website looks great and functions well on mobile devices—this is where many of your customers will shop.
• Implement Personalization: Use Dynamic Yield to create personalized experiences that keep customers engaged.

3. Improve Customer Experience

• Introduce Chat Support: Set up chatbots for 24/7 support. Your customers will appreciate the immediate assistance.
• Adopt an Omnichannel Approach: If possible, use Shopify and Shopify POS to ensure you’re available wherever your customers prefer to shop.
• Better Support: Leverage Gorgias to improve your customer support from good to exceptional.

4. Develop a Strategic Marketing Plan

• Create a Marketing Calendar: Use the 2025 eCommerce Holiday Calendar to map out key marketing initiatives throughout the year.
• Targeted Email Campaigns: Set up focused email campaigns using Klaviyo to reach the right audience with the right message at the right time.
• Prepare for Key Dates: Get ready for important dates like Chinese New Year by planning promotions in advance.

5. Upgrade Your Analytics

• Improve your tracking: Audit your Google Analytics 4 setup or Elevar for brands on Shopify to make more data-driven decisions.
• Insights: Use Glew.io for comprehensive insights that help you understand your business better.
• Competitive Intelligence: Optimize your pricing and stay informed about your competition using solutions like Competera.

6. Streamline Inventory Management

• Real-Time Tracking: Utilize tools like Veeqo for real-time inventory tracking, so you never run out of stock or overstock items.
• Plan for Supply Chain Issues: Be proactive about potential supply chain disruptions. Having a plan can save you headaches down the line.

7. Focus on Personalization

• Personalized Shopping Experiences: Implement Nosto, Tagalys, or Rebuy to create shopping experiences that feel personalized for each customer.
• Engage with Users: Use OptiMonk or Wisepops for popups and landing pages designed to convert visitors into buyers.

8. Kickstart the New Year

• Launch Engaging Campaigns: Create "New Year, New You" campaigns that resonate with your audience's aspirations.
• Highlight Relevant Products: Focus on products that align with common New Year resolutions, like health and productivity items.
• Clear Out Inventory with Sales: Set up post-holiday clearance sales to make room for new stock.

9. Review Your Policies

• Update Return and Refund Policies: Take a moment to review and update your return and refund policies, as clarity is key.
• Enhance Data Privacy Measures: With Data Privacy Day on January 28, 2025, ensure your data privacy practices are solid year-round.

10. Set Performance Goals

• Define Clear KPIs: Establish specific, measurable goals for the year ahead.
• Predictive Analytics: Utilize platforms like 42Signals for insights that help you meet those goals.

11. Focus on SEO

• Optimize Your Website's SEO: Focus on improving your website’s SEO to enhance visibility in search results.
• Keyword Research Tools: Use tools like SEMrush, AdWords Keyword Planner, or Ahrefs (my favorite) for effective keyword research and ranking racking.

12. Strengthen Your Social Media Presence

• Boost Your Social Engagement: Increase your social media presence. Be where your customers are active.
• Use Scheduling Tools: Keep your social media engagement consistent with tools like Buffer or Hootsuite.

13. Expand Your Sales Channels

• Explore New Marketplaces or Platforms: Consider branching out into new sales channels like marketplaces or social commerce platforms.
• Seamless Stock Management: Use platforms like Linnworks to manage inventory across all channels smoothly.

14. Foster Customer Loyalty

• Develop Retention Strategies: Create strategies aimed at turning one-time buyers into loyal customers.
• Implement Loyalty Programs: Consider using Smile.io or rise.ai to reward your best customers and encourage repeat business.

15. Stay Informed on Industry Trends

• Subscribe to Industry Newsletters and Webinars: Keep up-to-date by subscribing to relevant newsletters like Commerce Jam and attending webinars and conferences.
• Join Online Communities: Engage in online communities like LinkedIn groups, Reddit, or Facebook, where you can share insights and stay informed about market changes.

By addressing this checklist, you'll be well-prepared for a successful 2025. Remember, in eCommerce, staying stagnant is not an option. As Sun Tzu wisely notes in The Art of War, 'Victory is reserved for those who are willing to pay its price.' It’s a lesson as relevant today as ever, success comes to those who prepare and commit.

✨ Inspiration Corner

In this month's Inspiration Corner, we spotlight three brands that are redefining the eCommerce landscape with innovative features:

Luxury fashion house Brunello Cucinelli has unveiled an AI-driven website that offers an immersive user experience. The site features "Solomei AI," a bespoke tool that interacts with users, providing detailed brand stories and personalized assistance. By eliminating traditional navigation menus, the brand creates a seamless blend of craftsmanship and technology, enhancing user engagement.

Kith, a prominent lifestyle brand, has successfully integrated its eCommerce platform with physical retail and Shopify POS, providing customers with a seamless omnichannel experience. By utilizing Shopify's robust infrastructure, Kith offers synchronized inventory management, personalized marketing, and a cohesive brand experience across all touchpoints. This integration ensures that customers receive consistent service whether shopping online or in-store, enhancing overall satisfaction and loyalty.

Microfiber Wholesale, a leading supplier of microfiber cleaning products, has developed an intuitive B2B e-commerce platform on Shopify. Their website offers a seamless user experience with features such as detailed product information, bulk ordering options, and educational content to assist businesses in making informed purchasing decisions. This approach not only enhances customer satisfaction but also streamlines the procurement process for their clients. 

📖 Resources and Suggested Reading

SEO & Content Marketing

• SEO and Emoji: A Unique Perspective - this was a pretty interesting find with some good stats on how emojis can impact click-through rates (CTRs) and enhance SEO.
• Top 2025 SEO Trends - predictions from leading experts on what’s next in SEO, from AI advancements to search behavior changes.
• Google INP: What You Need to Know - a comprehensive guide to Google’s new Interaction to Next Paint (INP) metric and its implications for site performance and rankings.
• Google’s Updated Faceted Navigation Guidelines - best practices for optimizing complex product catalogs without hurting SEO.

Advertising & Social Media

• TikTok and the Changing Social Media Landscape - with the ongoing scrutiny around TikTok’s future in the U.S., this article dives into the implications for eCommerce brands reliant on the platform and offers tips for diversifying your social strategy.
• Google Merchant Center Updates - Google has eased its language policy requirements for product feeds, making it easier for multilingual merchants to maintain compliance and streamline ad management.

Ecommerce Innovations

• Shopify Winter 2025 Updates - explore Shopify’s newest (boring) features, including advanced B2B tools, AI-driven product discovery, and enhanced customization options.
• Wislr’s Bulk 301 Redirects - found this nifty tool that I plan on using on our next migration project for bulk 301 redirects.

🧠 Book Picks for the Month

This month, I read several books. Two of them are memoirs, which provide an interesting perspective on the founders of successful brands like Nike and Polaroid.

1. "The Lean Startup" by Eric Ries, a must-read for driving innovation and adaptability.
2. "Blue Ocean Strategy" by W. Chan Kim & Renée Mauborgne, learn how to create uncontested market space.
3. "Shoe Dog" by Phil Knight, just got this memoir. Reviews say it's a fascinating story of Nike’s rise, packed with entrepreneurial lessons.
4. Triumph of Genius: Edwin Land, Polaroid, and the Kodak Patent War by Ronald K. Fierstein is a riveting story of how Edwin Land revolutionized photography with Polaroid and fought an epic patent battle with Kodak.

💬 Closing Thoughts

The eCommerce landscape for 2025 is brimming with opportunities and challenges. The year ahead promises growth for those ready to adapt and innovate, from adopting innovative technologies like AI and AR to refining personalization strategies.

At Shero, we’re committed to helping merchants like you navigate these changes and turn them into opportunities for success. Whether it’s scaling your operations, enhancing your digital presence, or diving into new trends, we’re here to guide you every step of the way.

Thank you for being part of our journey in 2024. Let’s make 2025 even more remarkable together. 🎍🥳

Warm regards, Gentian Shero Co-founder, Shero Commerce

P.S. I’d love to hear your thoughts, please feel free to comment and share your feedback or ideas for future topics!

P.P.S. Reach out if you are going to NRF.