Dec 16,2022
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As the 2024 Black Friday shopping season approaches, the global e-commerce landscape is witnessing unprecedented competition and innovation. With Thanksgiving falling on November 28 and Black Friday on November 29, retailers are launching promotions earlier than ever to capture consumer attention and maximize revenue.
A recent report from Slickdeals indicates that up to 70% of Americans plan to shop during the Black Friday and Cyber Monday sales.
Notably, 38% of respondents have already started selecting gifts, while 42% intend to begin their holiday shopping in December. This heightened consumer engagement underscores the significance of the holiday season for retailers.
Major E-commerce Platforms' Competitive Strategies
Amazon commenced its promotional campaign on November 21, leveraging its vast logistics network to ensure timely deliveries. TikTok Shop began even earlier, on November 14, utilizing its social commerce platform to engage shoppers directly. Walmart initiated its first event on November 11, with in-store promotions starting November 15, emphasizing its digital channels and Walmart+ subscription service through exclusive online deals. Best Buy set an even earlier start date for its Black Friday push on November 8.
TEMU, a rapidly growing cross-border e-commerce platform, has surpassed eBay in global traffic. Its aggressive market strategy, including an early launch on November 2, signals its ambition to dominate the Black Friday period. In September, TEMU was the most downloaded shopping app in Brazil, with 5.8 million downloads, surpassing competitors like Shopee and Mercado Libre, which had 2.5 million downloads each. This is particularly impressive given that TEMU has only been operating in Brazil for four months and stands out against an industry trend of a 19% average decline in downloads. With 25 million active users in September, TEMU is now among the top three shopping apps in Brazil, trailing only Mercado Libre and Shopee.
TEMU's Growing Threat and its Competitor's Approach
SHEIN, once a leader in fast fashion e-commerce, has seen its growth slow to 23% in the first half of the year, down from 40% in the previous year. The emergence of TEMU as a formidable competitor has contributed to this deceleration. Shein's profitability dropped significantly by over 70%, with profits below $400 million and revenue hitting $18 billion. As Shein prepares for a public listing in London, the company is also refining its logistics strategies. It recently announced a new initiative for its fully managed model (AliExpress Semi-managed: 20,000 Merchants a Month Increased by 100%), providing overseas fulfillment partners access to its Europe and U.S. warehouses for free. This strategic move aims to optimize cross-border e-commerce logistics by enabling sellers to store inventory directly in Shein's facilities and benefit from streamlined order fulfillment. Such actions highlight the essential role of robust cross-border e-commerce logistics management and sophisticated logistics management systems.
The Crucial Role of Logistics Management Systems
Efficient logistics management systems are vital for logistics providers during peak shopping seasons like Black Friday. They enable retailers to handle high order volumes, ensure timely deliveries, and maintain customer satisfaction. Advanced systems offer real-time order tracking, inventory management, and data-driven decision-making capabilities, which are essential for managing the complexities of cross-border e-commerce.
WallTech's logistics management system exemplifies the importance of robust logistics solutions. In a notable case, the eTower platform, developed by WallTech, assisted a logistics service provider in managing TEMU's U.S. logistics orders. Leveraging AWS (Amazon Web Services) global cloud deployment and strong system architecture, eTower efficiently processed over 300,000 TEMU orders for a TEMU logistics provider on the first day.
The platform's advanced algorithms, extensive experience in cross-border logistics information management, and features like millisecond-level latency, high load capacity, global localized access, and real-time updates enabled the logistics provider to handle the Black Friday surge without errors.
The 2024 Black Friday season highlights the intense competition among e-commerce platforms and the pivotal role of efficient logistics management systems. Logistics providers must adopt advanced IT solutions to manage high-volume operations and ensure timely deliveries for platforms.
If you want to learn about WallTech and our logistics IT solutions, book a demo or apply for a free trial by visiting www.etowertech.com
