Nothing is more important for ecommerce brands, businesses, and sellers than understanding your customer base, their preferences, and their shopping habits.
The first quarter of 2024 is nearly over, and our latest research into consumer trends behavior provides a detailed pulse check on where, when, and how people are shopping, what they’re buying, and what’s influencing their purchases — both on ecommerce platforms like Amazon and at brick-and-mortar retailers.
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Learn more about consumer spending, popular product categories, pricing trends, and more.
Key insights from the Q1 Consumer Trends Report
Our quarterly consumer survey delves into U.S. consumers’ shifting behaviors and spending patterns, surfacing invaluable insights for businesses that are growing, optimizing, and expanding their sales channels.
The latest edition also reveals new data on social media’s increasing influence over ecommerce, ways in which burgeoning technologies like AR and AI are changing the customer experience, and which categories are most (and least) susceptible to price sensitivity.
Here are 5 of our biggest takeaways:
1. 52% of consumers maintain consistent spending habits, but economic uncertainty is not over
While more than half of consumers reported consistent spending levels in Q1 2024 compared to the previous quarter, the percentage of those indicating increased spending reached its lowest point in three years, at just 16%. This suggests a cautious approach to spending that highlights the impact of ongoing economic concerns on consumer behavior.
The report also reveals generational gaps in spending behavior, both online and overall.
How can brands and sellers respond to this trend?
Use data analytics to implement dynamic pricing, offering targeted discounts during price-sensitive periods to boost demand and stay competitive.
Focus on value-added services like loyalty programs or bundled offers to incentive purchases without relying on price reductions.
2. One in three consumers browse TikTok Shop weekly
Social media is reshaping ecommerce, with TikTok in particular rapidly gaining influence. 35% of consumers now browse or shop on TikTok Shop every week, and 23% have purchased a product there.
The report highlights an especially high level of influence among Gen Z shoppers, with significant percentages turning to the app to discover and purchase products.
How can brands and sellers respond to this trend?
Adopt marketing strategies that resonate with TikTok’s user base, like collaborating with influencers to create content that increases brand visibility and drives traffic to product listings.
Invest in TikTok advertising, including native ads and sponsored content, to target relevant audiences and boost conversion rates.
How could a TikTok ban impact Amazon sellers?
Although TikTok’s popularity is rapidly rising in the United States, there are persistent talks about banning the platform due to national security concerns. The House of Representatives has recently approved a bill that would require ByteDance (TikTok’s parent company) to sell the social media channel or face a ban on U.S. devices.
Such a ban would have a significant effect on Amazon sellers, brands, and retailers.
“The reach of TikTok is insane, and a ban would have a huge negative impact on sellers’ businesses. For example, one product — “Gurunanda Pulling Oil” — has sold over 1.4 million times on TikTok Shop in the past couple of months. That’s $20 million in revenue just from TikTok! Many of those sales are driven by affiliates who earn a commission for promoting the product.”
Owner of Shore Boats
More than half of enterprise businesses use TikTok ads, and nearly 40% of U.S. consumers say they’re likely to purchase from TikTok Shop.
“I’ve seen firsthand how TikTok has helped grow brand awareness and sales. For Couple’s Coffee, we post nearly every day. We’ve invested a lot into the platform and plan to launch products on TikTok Shop. We’ve put time and money into building our presence on TikTok, inspired by the success of other brands. If the platform were banned, all of those efforts would be wasted. A ban would cut off a vital sales and marketing channel for us and many others.”
Owner of Couple’s Coffee
TikTok’s marketing capabilities can’t be understated. The platform is brimming not only with consumers researching and sharing products but also with some of the world’s most popular influencers, who are invaluable for helping brands penetrate new market niches and generate sales.
“A negative impact for many brands is that TikTok is a great channel for influencer marketing. Surely a ban would make it harder for Amazon brands to find and work with these influencers.”
Owner of Natural Events
It remains to be seen what will happen with the potential TikTok ban, but one thing is for certain: Whether it continues its meteoric rise or faces a ban, TikTok’s massive impact on ecommerce isn’t over.
Learn more about how a TikTok ban could disrupt ecommerce and hurt Amazon sellers. Download our latest TikTok research briefing.
3. 31% of Amazon shoppers who use AR say it has led to a purchase
As consumer awareness of augmented reality features like Amazon’s View in Your Room grows, the technology is becoming more valuable in facilitating purchases. Over half of consumers who are aware of View in Your Room use it when shopping, and nearly one in three say it has led them to buy a product on Amazon that they would otherwise only buy in person.
The report also explores how features powered by artificial intelligence, like AI-generated review summaries, are enhancing the customer experience.
How can brands and sellers respond to this trend?
Help online shoppers visualize products in real-world settings by investing in immersive AR shopping experiences that bridge the gap between digital and offline retail.
Leverage AI-driven insights from customer reviews to inform product development and marketing strategies, leading to more targeted, impactful campaigns.
4. Consumers are buying 20%+ more art supplies and pet products on Amazon
Jungle Scout Cobalt data shows that sales in Amazon’s Arts, Crafts & Sewing, and Pet Supplies categories have experienced the highest sales growth in the last year, with each category’s sales increasing by 20% or more. Other categories, however, have seen sales drop more than 25% year-over-year.
The report details which products consumers are buying more (and less) of this year by analyzing sales trends across 24 Amazon categories.
How can brands and sellers respond to this trend?
Expand your market reach and capture additional market share by researching niche opportunities and launching new products or variations.
Enhance brand credibility and increase visibility in high-growth categories by fostering strategic partnerships with influencers and investing in brand awareness campaigns.
5. 71% of consumers prioritize products with the lowest prices
Price remains a dominant factor influencing purchase decisions on Amazon, with almost three out of four consumers prioritizing products with the lowest prices when shopping. However, factors such as ratings, recommendations, and product features still play pivotal roles in purchase decisions for over half of shoppers.
In the report, consumers rank how much 10 different factors influence which brands and products they purchase on Amazon.
How can brands and sellers respond to this trend?
Improve conversion rates by optimizing product listings with videos, positive reviews, and descriptions highlighting unique features that set your products apart from competitors that are primarily competing on price.
Differentiate your products by offering exclusive features, customization options, clean formulas, and eco-friendly attributes that appeal to consumer priorities beyond just the lowest price.
Get the Q1 2024 Consumer Trends Report
There’s no better way to understand the full nuances of shopping behavior than by tapping into the very voices that drive the market forward: consumers.
NEW
Exclusive data:
- Quarterly changes in consumer spending
- Most/least popular products in Q1
- Employment and income trends
- The correlation between pricing and sales
- How AR and AI are changing digital shopping
- Social media’s growing influence
Jungle Scout’s Q1 2024 Consumer Trends Report provides a wealth of data imperative for gaining the perspective that brands and sellers need to compete successfully across multiple channels and markets.
LeeAnn Whittemore is a strategist and writer who creates content that helps brands leverage ecommerce trends and tools. Prior to joining Jungle Scout, LeeAnn was the Content Manager at an independent marketing agency serving clients ranging from solo entrepreneurs to nationally recognized brands.
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One comment on “5 Actionable Insights from Jungle Scout’s Q1 2024 Consumer Trends Report”
The potential ban on TikTok poses a significant challenge for numerous brands, particularly those leveraging influencer marketing strategies. TikTok has emerged as a powerhouse platform for influencer collaboration, offering a unique and engaging space for brands to connect with their target audience through creative content. For Amazon brands specifically, the ban could complicate efforts to identify and partner with influencers who have built substantial followings and credibility within the TikTok community, potentially disrupting established marketing strategies and limiting access to a highly influential demographic.