CommerceNext has published the results of its survey, which suggests that the majority of eCommerce enterprises are optimistic about continued revenue growth. Following stronger-than-expected holiday quarter retail results and record-high stock index readings, CommerceNext says large consumer eCommerce businesses are positive about revenue growth in 2024. Furthermore, 42% are already planning to invest further in technology to boost their businesses this year.
The findings were revealed in the new eCommerce Business Sentiment study from CommerceNext. The company partnered with Sucharita Kodali, Forrester Research’s lead retail analyst, on the survey. The study was conducted January 9–19, 2024, among senior executives at 113 enterprise-sized consumer eCommerce businesses. These enterprises, when combined, represent more than $32 billion in online revenue.
Very positive or positive
When eCommerce executives were asked how they felt about digital business revenue in 2024, 57% were very positive or positive. This compared to 21% who said they feel negative. The majority of respondents’ positive sentiment about 2024 follows reports of fourth-quarter sales results that were better than expected. 56% of retailers surveyed saw online revenue increase year over year in the fourth quarter, while 34% saw a decrease.
“It’s been a tumultuous period for eCommerce since 2020, with many highs and lows,” said CommerceNext co-founder Scott Silverman. “Our industry is ready to return to a sense of normalcy and steady growth. This fresh data shows that we’re headed in that direction.”
When asked about the level of digital investment they plan to make in their business this year, 42% said they plan to invest in areas such as hiring, marketing, and technology and infrastructure upgrades.
“2023 was another record year in eCommerce, on top of extraordinary growth during the pandemic. So, most retailers and brands are optimistic,” said Sucharita Kodali, VP, Principal Analyst, Forrester Research. “But business leaders are still cautious that anything could happen. Particularly given the uncertainty around inflation, interest rates, upcoming elections and global stability. As a result, 2024 will be the year of scrutinising digital investments. Ensuring they are as efficient and effective as they can be.”
Enterprise Times: What this means for businesses.
Some analysts suggest that 2023 started off slowly from a digital spending perspective. Data suggests that spend increased in pace towards the end of the year. Peaking during the holiday season to end the year on a high. Some have suggested this growth was propped up by deep discounting from retailers. In addition, there has been spectacular growth in the use of Buy Now Pay Later services. This suggests that consumers are still keeping a close guard on their purses.
The study suggests enterprises are following the money and planning to invest further in technology to boost businesses this year. Unfortunately, the study does not provide any further details on the specific technologies enterprises plan to invest in. However, consumer spending can be fickle. The latest flare-up in Gaza, the re-routing of 15% of world trade away from the Suez Canal and the rise in commodity prices threaten consumer prosperity and global eCommerce spending. Enterprises have to keep an eye on various global events on screens, as well as activities in the digital marketplace.