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24 Jan 2025

Whats Next for eCommerce? Trends and Predictions for 2025

Whats Next for eCommerce? Trends and Predictions for 2025
By Ellie-Rose Davies, Content Executive at IMRG 2024 brought mixed revenue performance, declines in traffic, changes in customer behaviour, and new innovations that shaped the industry - but - what is to come for eCommerce in 2025? Happy New Year to all! To help us bring in the new year officially, we will be anticipating what is to come for eCommerce this year, with insights from industry experts to help you strategise growth. Read on to hear more on:
  • Predictions for 2025
  • AI and creative
  • AI and search
  • Managing risks
  • Accurate and valuable data
  • Sustainability and fulfilment

Predictions for 2025

IMRGs prediction for total market revenue growth for 2025 is (drum roll please) +1% Year-on-Year! Considering that online revenue growth was on an upward trajectory in the latter half of 2024, and since September there has been four months of consecutive growth, we believe that things could be looking slightly more positive this year. We have seen that growth has been more fruitful for mid-market and premium retailers, suggesting that customers may be inclined to spend more on high value purchases now. The product category that is driving the most growth for the online sector is Health & Beauty, particularly by the subcategories Fragrance and Haircare in the last 4 months (see chart). health & beauty Well be reporting weekly data as usual in 2025, so visit our Digital Dashboard to stay alert of current trends, on demand. Joelle Mullin, Partnership Development Director at Awin exclaims, The early drop in inflation in 2025 has sparked optimism among marketers, with positive retail forecasts from an online perspective. In the first two weeks of January, Awin UK saw a +4% YoY revenue increase, following a +6% growth in 2024 despite tough eCommerce conditions. With a slight dip in borrowing costs and a rise in the pound, these trends may boost disposable income for retail in 2025. Joelle reveals that Awin predicts key eCommerce investments for growth this year include Brand Partnerships, Technology Partners (such as Card-Linked Offers, CSS, and Influencers), which proved effective in 2024 and are expected to continue driving online revenue.  She says that low-risk digital partnerships can also help with boosting CLTV, increasing AOV, and improving CR.
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