Five Predictions for Retailers in 2025

As the year is coming to a close, and Cyber Week is looming ahead, it's about that time of year we start to look forward. Let's dive into five predictions for retailers and eCommerce professionals in 2025!

1. AI, AI, and more AI

AI has moved beyond a buzzword.

"In 2025, generative AI is creating shopping experiences that feel almost telepathic. Walmart's AI is already playing party planner, customizing Super Bowl spread suggestions based on your previous game day purchases," said Bernard Marr in a recent Forbes article .

It doesn't stop there....according to Slack 's Fall 2024 Workforce Index , a whopping 99% of executives surveyed are investing in AI in 2025. Looking forward, the shift goes from trial and error to trial and success. It's not about who is using AI, but about who is using it and seeing results.

2. The Marketplace Mad Dash

Michael Erickson Facchin , host of The PPC Den podcast, told Kiri Masters for her recent Forbes article that he predicts an "evolution from 'Amazon-only' brands to true 'e-commerce brands' that embrace a multi-marketplace strategy."

Brands like Nordstrom and Michaels Stores are entering the marketplace race . But why? David Marcotte , SVP of Global Retail at 凯度 told Modern Retail , “It’s a minimal cost depending upon how they handle it. In terms of shoppers, it gives them a different option and keeps them on the website.”

3. Social Commerce Continues to Rise (+ TikTok Isn't Going Anywhere)

And we're all leaning in...like way in. Including us here at eTail? , go shoot us a follow - https://www.tiktok.com/@etailnews/

Forrester agrees, reporting in their Predictions 2025 Report on B2C Marketing & CX that despite intense pressure from the US government to divest TikTok from Chinese-owned ByteDance, the immensely popular platform is sticking around. Which was reinforced even more so by the two substantial presidential campaigns ran on the platform.

For eTailers, TikTok presents a unique opportunity to engage with younger consumers and specific demographics of audiences. 1 in 4 Gen Z say they’re more likely to buy a product with lots of “likes” or positive comments, but that's just the tip of the iceberg. Melissa Yeung , Global Social Media Strategy Manager at Duolingo said in a TikTok panel at eTail Boston, "its all about the momentum, so for us it's about building an iconic brand that's entertaining people, and the growth will come."

Social media ads are the top way Gen Z find new brands and products . In fact, the difference between social media ad discovery and search engine discovery within this generation has grown from 5% in Q1 2021, to 12% in 2024 ( GWI ).

Krysta Lewis , Director of Marketing at CAKES body said in the eTail panel that while TikTok shop is a hot topic right now, there's a reason for it, and it's important to ride the momentum. For CAKES body that includes repurposing content for TikTok shop on Meta, where they are seeing a direct correlation in performance!

4. Retail Media is Still Rising

Although Amazon dominates the space with 70-80% of retail media ads, other retailers are rapidly developing their own networks, as Ananda Chakravarty from 国际数据公司 covered in a fireside chat at eTail? Boston this August.

Among the top 100 retailers in the U.S., 80% have already started building or are working with a third party to build out a retail media network.

In the just-released eTail Palm Springs agenda, there is an entire track dedicated to performance marketing & retail media. Check it out here .

5. Sustainability

Sustainability has evolved from a nice-to-have to a much-nicer-to-have in 2025.

"Today’s consumers are shopping with their values. They’re seeking brands that align to the overall wellbeing of our planet and person. By prioritizing sustainability, we’re not only meeting customer expectations but also building trust, loyalty, and a brand that truly makes a difference," said Leucepe Alexander M. , Program Director at eTail? .

How are retailers responding? By implementing practices they know will cater to the conscious consumer such as sustainable packaging solutions, carbon-neutral shipping, and providing more product transparency.

In Conclusion

As we look forward and continue to navigate the retail landscape of 2025 and beyond, it's more clear than ever before that those not embracing change and keeping up with the trends are falling behind. Whether that be technological innovation, diversifying channels, aligning with consumer values, and beyond, the future of retail is here, and it's more personalized, connected, and conscious than ever before.

What are your predications for top retail and eCommerce trends in 2025? Drop us a comment and let us know what you think!

Check out our upcoming events:

eTail Palm Springs, February 24-27, 2025, Palm Springs, CA

Commerce Media Brand Summit, March 10-11, 2025, Atlanta, GA

eTail Connect East, May 7-9, 2025, Hilton West Palm Beach, FL