As the e-commerce industry continues to thrive beyond the pandemic, companies must adapt to the evolving landscape. With new platforms and channels emerging, executives face both opportunities and challenges in engaging their customer base. While exploring innovative ideas like the metaverse and live selling, they must also balance their investments against profitability challenges. Agility is key, as companies must be ready to pivot quickly to keep up with changing trends.
The growth of e-commerce has presented new challenges for retailers, including how to increase margins and profitability. One solution is commerce media, which allows retailers to monetize their consumer data by selling advertising space to brands on their websites. With the rise of closed-loop channels built on user-consented first-party data, this approach has become even more attractive. Amazon's successful ad business has only added to the incentive for retailers to get involved. Many have already launched retail media networks, while others plan to follow suit soon.
The shift to online transactions has resulted in an unprecedented amount of data on consumer shopping behavior. Retailers are well positioned to capture this data and have been using it to create more personalized experiences for their customers. As a result, consumers now expect the same level of personalization from all companies. While consumer goods companies may not collect data as quickly as retailers, they must still invest in data management capabilities to keep up with the trend towards personalization and maximize returns on their investments.