ECommerce is a mess right now.
Luxury platforms are crashing. Social commerce is booming (but probably not for long). CAC is through the roof. And somehow, despite all this, brands still need to find a way to stand out, sell, and make money.
If you’re running an eCommerce brand in 2025, here’s what’s actually working—and what’s just hype.
Social Commerce is Exploding (But Can It Last?)
Where it works: Getting in front of new customers
Social commerce is the Wild West of eCommerce right now.
- TikTok Shop and Temu are pouring billions into discounts and seller incentives.
- Gen Z shoppers want to buy where they scroll—on TikTok, Instagram, and YouTube Shorts.
- The algorithm is your best (or worst) friend. One viral moment can move thousands of units overnight.
What to do now:
Test TikTok Shop. If you sell consumer-friendly products, you should be experimenting here.
Work with creators, not just ads. Creator-driven commerce beats traditional paid ads every time.
Use in-platform deals. TikTok boosts products with exclusive platform discounts—take advantage while it lasts.
🚨 Reality check:
Social commerce is heavily subsidized right now—meaning TikTok and Temu are practically paying for your customers. This won’t last forever. If you’re relying on TikTok sales, start building retention strategies NOW.
CAC is Out of Control—Retention is Your Lifeline
Where it works: Keeping customers after the first sale
Acquiring customers has never been more expensive. It’s up 222% over the last eight years. If you’re just focused on getting new buyers, you’re losing.
Instead, the best brands in 2025 are doubling down on keeping the customers they already have.
What to do now:
Fix your post-purchase experience. Great tracking, fast shipping updates, and personalized follow-ups make a huge difference.
Build a habit-forming loyalty program. Make repeat purchases rewarding—points, VIP perks, early access.
Automate retention emails & texts. If you’re not sending post-purchase emails or abandoned cart reminders, you’re leaving money on the table.
🚨 Reality check:
Retention isn’t just about throwing discounts at people. It’s about making your product something they want to keep using and talking about.
Luxury eCommerce is Dying—Here’s Why
Where it works: If you’re selling high-end products
Luxury eCommerce is in freefall.
- Farfetch went from a $23B valuation to a $500M fire sale.
- Matchesfashion went bankrupt.
- Net-a-Porter is begging for a buyer.
Why?
They all looked the same. No differentiation, no unique brand positioning.
They pretended to be tech companies when they were just retailers.
They tried to acquire profitability instead of actually fixing their margins.
What to do now:
If you sell premium, act premium. Don’t race to the bottom with discounts—focus on exclusivity and experience.
Go DTC the right way. If you cut out the middleman, make sure your brand experience makes up for it.
Find your niche. MyTheresa survived because it hyper-focused on ultra-high-net-worth buyers. Who’s your audience?
🚨 Reality check:
Trying to scale luxury eCommerce like fast fashion doesn’t work. The brands that win in high-end retail are obsessively curated and customer-focused.
4. AI is Running the Show (And That’s a Good Thing)
Where it works: Making every part of eCommerce smarter
Amazon set the standard for hyper-personalized shopping. Now, AI is making that level of precision available to everyone.
What to do now:
Use AI for product recommendations. Show the right products to the right customers at the right time.
Automate your retention game. AI can trigger emails & texts based on real-time shopping behavior.
Test AI-generated content. AI can help create ad copy, product descriptions, and personalized website experiences faster than ever.
🚨 Reality check:
AI isn’t a magic bullet. It’s just a tool. If you’re not feeding it the right data, it won’t move the needle.
The Future of B2C eCommerce in 2025
The eCommerce game is changing, and what worked five years ago won’t work now.
Here’s what you need to focus on:
Social commerce is booming—but brands must plan for when the subsidies disappear.
Retention beats acquisition. Keeping customers is more important than ever.
Luxury eCommerce is collapsing because it failed to evolve. If you sell premium, act premium.
AI-driven personalization is a must-have, not a trend.
💡 Final Thought:
2025 isn’t about who has the biggest ad budget—it’s about who understands their customers best. If you’re not optimizing for retention, personalization, and differentiation, you’re already behind.
