D2C Digest #43 | Frustrated online shoppers, Google's new AI search results, and more

Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing.

Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

😣 More than 80% of online shoppers were frustrated with their experiences

The "2024 Online Retail Trends Report" by Celigo, which surveyed over 1,500 consumers in the U.S. and U.K., indicates that a vast majority of shoppers were dissatisfied with their online shopping experiences last year due to issues like increased pricing, late deliveries, and high shipping costs.

The report highlights that 88% of U.S. and 79% of U.K. consumers felt online retailers didn't meet their expectations at least once. Inflation and the high cost of goods are significant concerns, leading 42% of U.S. and 44% of U.K. respondents to plan on reducing their online shopping.

Key findings include:

  • High expectations for free, on-time shipping and significant discounts.
  • A notable generation gap, with Gen Z expressing the highest levels of dissatisfaction.
  • Priorities for U.S. shoppers include lower prices, free and fast shipping, while key dealbreakers involve inaccurate product descriptions, excessive shipping costs, and delays.
  • A strong intent among consumers to spend as much or more in the upcoming holiday season, driven by the convenience and variety offered by online shopping.
  • The importance of reviews and social media in purchasing decisions, especially among younger consumers.
Online shoppers

📉 Google’s AI could result in $2 Billion ad revenue loss

The introduction of Google's Search Generative Experience (SGE) is poised to significantly transform Google Search, especially affecting how search results are displayed and potentially impacting the visibility of SMBs. Here’s a breakdown of what to expect and how to prepare:

Understanding SGE

SGE represents a major shift in how Google processes and presents search results. By leveraging AI, SGE aims to place generative AI content prominently at the top of search result pages, potentially above traditional organic listings. This shift comes as Google adapts to changing search habits, with platforms like Pinterest and TikTok attracting younger audiences.

Implications for SMBs

  1. Increased Competition: With AI-generated summaries or answers taking prime real estate at the top of search result pages, businesses may find it harder to secure high visibility in Google’s SERPs. This can make it more challenging to stand out in a crowded digital landscape.
  2. Impact on Traffic and Revenue: The potential relegation of organic search results in favor of AI-generated content could lead to a significant drop in organic traffic to websites.
  3. For publishers and businesses relying on ad revenue, this shift could translate into substantial financial losses, with predictions suggesting a possible $2 billion loss in ad revenue industry-wide.

To adapt effectively, consider:

  1. Video SEO: Prioritize video content optimization, especially on platforms like YouTube, as SGE favors video. Ensure your videos are SEO-optimized for better search visibility.
  2. Humanize Your Brand: Stand out by showcasing authentic stories and perspectives.
  3. Stay Informed and Flexible: Keep abreast of SGE updates and adjust your SEO and content strategies accordingly

😬 D2C brands are worse than other eCommerce merchants in customer satisfaction

A PYMNTS Intelligence report, created with Adobe and based on a survey of over 3,500 U.S. consumers, found that direct-to-consumer brands are lagging in customer satisfaction compared to traditional retailers and online marketplaces.

Only 72% of consumers reported being very or extremely satisfied with their shopping experience on D2C brand platforms, which is lower than the 76% satisfaction rate for retailer websites or apps and 80% for online marketplaces.

Enough bad news today…

📺 A brand new fireside chat series - D2C Unfiltered

Last week we told you about our brand new fireside chat series. Here is a reminder!

We know, the internet is already overflowing with webinars and online events, and many of them might seem like they're just rehashing the same old stuff. But we promise ours is going to stand out from the crowd!

Introducing "D2C Unfiltered," a fireside chat series from D2CVille! Join us as we delve deep into the world of D2C brands with entertaining conversations between team members. Get ready for unique insights and plenty of fun!

Our aim with these fireside chats is to offer a transparent, authentic, and enjoyable look into the world of D2C. We want to highlight the real dynamics of business operations and inspire D2C founders everywhere.

We're putting the final touches and will share all the details with you soon. So, stay tuned for updates!

🤓 This week’s reading recommendation/s

1. Wanna do email marketing the right way?

Check out Klaviyo’s latest report with tips for email and SMS marketing!


2. Instagram Marketing Guide by Shopify

Here's your ultimate guide to mastering Instagram marketing, created by none other than Shopify! Inside, you'll find step-by-step instructions for crafting a winning strategy tailored to your brand


Are you following D2CVille on LinkedIn? We share daily wisdom nuggets and podcast highlights with successful D2C entrepreneurs. Check it out if you haven’t already for being part of a huge D2C community!

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