Overall e-commerce sales in the United States have increased due to the influence of the pandemic, and the EC temporary sales ratio has increased to around 15%, but it remains at 13% in 2021. We discussed with Los Angeles-based marketer Kris Irizawa on Shopify-centric marketing trends that are gaining attention in North America.
-How are North American digital marketing trends changing?
As many companies invest in expanding their online business, it is expected that e-commerce innovation and new marketing trends will emerge.
Under these circumstances, Shopify has played an important role in revitalizing e-commerce stores. Platforms like Shopify have made it easier for brands to sell their products on DTC (Direct to Consumer) and gain new insights.
From Shopify and DTC centered events, you can envision some marketing trends to note in the future.
The US European market is strong
– Please tell us about the European US market situation.
The American e-commerce market is growing year after year.
In 2020, U.S. online retail sales (in-kind products) reached $431.65 billion and are expected to approach $563.4 billion by 2024.
In addition, the ratio of EC sales to retail sales increased and the share of EC sales reached around 14% in the third quarter of 2020.
The online retailer Shopify next to Amazon and eBay
-Shopify is getting more and more attention in Japan. How big is the platform in the world?
Shopify is a platform that helps in the development and operation of the EC site, which was founded in 2004 in Canada. It now has more than 1.7 million stores in 175 countries and is now the third largest online retailer in the United States after Amazon and eBay.
* Over 10,000 businesses (merchants) use Shopify Plus globally.
The total payout (GMV) in 2020 is approximately 12 trillion yen
Nearly 457 million people worldwide purchase products (up 52% from 2019)
Shopify’s total sales by commercial operator (merchant) is around 30 trillion yen.
参考：Huge Shopify Stats in 2021: Facts, Market Share, and More
Entry into the Japanese market
– Please tell us about Shopify’s growth potential in Japan.
Shopify is also expanding into the Japanese market. New member stores in Japan include, for example, “BAKE The Online”, “Mashiko WEB Ceramics Market”, “Orion Beer”, “Tiger Thermos” and “Tansu Gen Main Store”.
The total distribution amount (GMV) in the Japanese market in 2020 will increase by 323% compared to 2019, and its growth rate would be higher than in other countries. In addition, the growth rate of new store openings increased by 228% over the previous year, which is also ranked among other markets.
Reference: Announcing Shopify’s Growth Rate in 2020 | PR TIMES
3 latest marketing trends
-What marketing trends have you seen with the advent of Shopify?
Trend 1: Shopify Capital / New business lending activity
Shopify has grown its financial service, Shopify Capital, over the past five years and announced that it is now providing $2 billion in funding to business owners.
The feature of this financial service is “A loan decision can be made by machine learning (whether it is possible to further increase sales if financing is provided) from sales data of business owners making business at Shopify and website traffic data.” That is to say.
Data used by Shopify for forecasts
- Store sales data (online/offline)
- Store performance (online)
- Store product sales trends (including other sites) from the perspective of 70 million data points
It is the high accuracy of loan decisions that makes this service possible. The current machine learning model is said to be able to predict a business owner’s minimum sales amount with 90% accuracy.
参考：How Shopify aims to level the playing field with its machine learning-powered lending model | Tech Crunch
Trend 2: Zero Party Data
-Is there anything eye-catching about post-cookies?
Zero-Party Data (ZPD) is your own data that consumers actively and intentionally share. For example, this includes data such as preferences, purchase intent, personal context, and how you want your brand to be recognized.
The ZPD is getting a lot of attention because browsers have removed third-party cookies and Apple has allowed users to opt out of sharing IDFAs (IDFAs).
ZPD earning metrics include voting, quizzes, widgets, and newsletter signup.
However, the essence of ZPD is the relationship of trust with customers. Indeed, you can only get meaningful data if your customers trust you. For this reason, B2C marketers also pay attention to “reliability with customers” and “if they can sympathize with us”.
Trend 3: Increased investment in data infrastructure
-It seems that you will now be led to make better use of data.
Investments in infrastructure and data management around web marketing are increasing. In the top three priorities for marketers (2021), increasing new customer acquisition (65%) is followed by improving data management (44%).
▼ AI, zero-party data investment
More than 80% of marketers said they could incorporate artificial intelligence (AI) as part of their 2021 marketing strategy. 84% are currently developing or planning to develop AI capabilities in-house.
In 2021, 78% of marketers plan to use stakeholder-free data to further personalize their messaging experience.
* A survey of 500 B2C marketers in the US and UK
The point of investing in AI and so on is in the corona disaster, and what was found in the August 2021 CMO survey is that the use of artificial intelligence and machine learning is less than 11% in marketing optimization and automation. Over the next two years, the use of AI for marketing will continue to be an area of focus.
American Principle Initiatives
– Please let us know if you have examples of Shopify in your business.
Eboost, a US subsidiary, uses GTM and data feeds to audition and set Shopify and advertising tags (FB, Google Ads) in advertising projects for customers who use Shopify. The current situation is that many customers are not properly using marketing tools to properly acquire data.
Not only focusing on advertising performance, we also analyze behavioral data and SEO-related data obtained from websites, share KPIs and overall performance with clients, and manage campaigns so clients add value.
▼ Summary of Marketing Trends by Mr. Kris Irizawa
- E-commerce continues to grow under the pandemic, with many businesses launching DTC sites on Shopify.
- Shopify’s new business lending business, Shopify Capital, uses retailer data (behaviour, customers, sales, products, etc.) to make lending decisions. As platforms get smarter with AI and machine learning, the line of CX improvement required by enterprises is expected to increase.
- The focus on zero-party data is accelerating. With the removal of third-party data cookies, the relationship of trust with customers will be key to obtaining user information in the future.
- Investments in infrastructure and data management around web marketing are increasing. After starting an EC business with Shopify, etc., data usage is most important for further development.
Principle also has a base in the US and has a well-developed advisory system in tune with local trends. We will continue to pay attention to trending information from the perspective of local merchants.