New Study Reveals 42% of Online Retailers Plan Further Technology Investment in 2024
Following stronger-than-expected holiday quarter retail results and record-high stock index readings, CommerceNext today announced that the majority of large consumer ecommerce businesses are optimistic about their revenue growth in 2024 and that 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, which 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 that together represent more than $32 billion in online revenue.
When ecommerce executives were asked how they feel about their digital business revenue in 2024, 57% said they were very positive or positive compared with 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. More than half (56%) of retailers surveyed saw their online revenue increase year over year in the fourth quarter, while 34% saw a decrease.
"It's been a tumultuous period for e-commerce 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, more than four in 10 survey respondents (42%) said they plan to invest in areas such as hiring, marketing, and technology and infrastructure upgrades.
"2023 was another record year in e-commerce, 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 scrutinizing digital investments and ensuring they are as efficient and effective as they can be."
About CommerceNext
CommerceNext is a community, event series and conference for marketing, ecommerce and technology leaders at retail and direct-to-consumer brands. In addition to the annual CommerceNext Growth Show, CommerceNext produces and hosts two executive retreats, regional networking events, podcasts, webinars, industry research, an executive dinner series and an online community. CommerceNext is part of CloserStillMedia, which owns the largest global ecommerce events portfolio, including Ecommerce Expo UK, E Show Madrid, E Show Barcelona and Ecommerce Expo Asia. To learn more, visit CommerceNext.
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