US ecommerce sales will grow 9.3% to reach $1.137 trillion in 2023, per our forecast, thanks to cost-conscious consumers looking for better deals and an increasing number of digital grocery buyers. As 2023 wraps up, ecommerce will go out on a high note, with online holiday sales growth outpacing brick-and-mortar sales.

Amazon turns to Meta, Snap partnerships to keep TikTok at bay: As the retailer moves in on social commerce, TikTok is beefing up its supply chain.

Amazon is on track for its first-ever $100 billion holiday season, boosted by its unbeatable delivery speeds, while click and collect gives Walmart an omnichannel edge, and Temu draws in price-conscious consumers. Plus, TikTok and mobile apps help retailers connect with consumers and stand out among the competition.

TikTok’s latest strategy to boost social commerce sales relies on AI: The social platform is testing a feature that automatically links users to TikTok Shop without creator input.

Despite the rise of ecommerce, nearly 85% of US retail sales still occur in-store, according to our forecast. To attract customers to physical stores, brands must continually innovate to offer memorable experiences.

Amazon’s search capabilities are set for an AI-powered upgrade: The retailer will incorporate a chatbot to offer customers personalized suggestions based on their queries and shopping history.

The store is no longer the only place where consumers can discover and shop for consumer packaged goods (CPG) products. Younger generations are finding products via search and social media, while Amazon Prime Day offers shoppers the opportunity to stock up on essentials for less.

Grocery shoppers are omnichannel shoppers, our analyst Blake Droesch said on a recent “Behind the Numbers: Reimagining Retail” podcast. That means consumer packaged goods (CPG) brands should employ a mix of digital and in-store advertising strategies to engage customers where they shop.

Affiliate marketing is maturing into a multidimensional, full-funnel channel. But not everyone is convinced of its potential, said Alexandra Forsch, president of Awin Americas. For senior decision-makers, affiliate marketing is “considered a very tactical channel and not a strategic one, and as such, it’s not as attractive,” Forsch said on a “Behind the Numbers” podcast episode.

Gen Z shoppers diverge from the general population in terms of where they find and buy products, consumers are still into influencer-driven ads, and live shopping hasn’t taken off yet. Here are five charts to help elevate your social commerce strategy.

Google continues to lose ground to Amazon: Amazon is holding steady as shoppers’ search engine of choice for products, even as TikTok and other social platforms attract Gen Z consumers.

Social media and TV are the top channels that consumer packaged goods (CPG) consumers use to find new products, but in-store still plays an important role in product discovery. Meanwhile, Amazon and Walmart are fighting to capture share of CPG product searches, though in-store consumers are more likely to turn to Google for help.

Gen Zs are more likely to start their shopping journey on TikTok than Google: They’re also less likely to cut back on discretionary spending, despite inflation.

Amazon is the latest company to copy TikTok: The retailer is adding a continuous, shoppable feed to its app to enhance product discovery and grow sales.

Despite relatively low levels of adoption, social commerce features multiply: Meta-owned platforms lead the way when it comes to social commerce features, but TikTok, Pinterest, and others are working hard to catch up.

Find out how AI can solve common commerce pain points by taking simple mistakes

The dominant digital path to purchase begins with a product search—often unbranded—during which the consumer demonstrates intent. They are subsequently delivered paid and organic results for relevant brands and retailers, steering them in the direction of a conversion event. But what about all those times when a consumer doesn’t know what they want? That’s the opportunity for discovery, and where social commerce platforms are beginning to fill the void.

Social commerce has reinvented itself many times over but has yet to prove itself as a solid sales tactic. Next year, the version that has been evolving during 2018 could finally take hold.