Skip to content
Home Β» How Brands Can Dominate E-Commerce in 2025

How Brands Can Dominate E-Commerce in 2025

  • by
how brands can dominate e-commerce in 2025

As we step into a new year, the e-commerce industry faces an intriguing mix of opportunities and challenges for brands. While 2024 was marked by economic stabilization and recovery, 2025 seems poised to test the resilience of e-commerce brands globally. Predictions for the year ahead are speculative, but identifying key trends can help businesses stay competitive. As the CEO of an e-commerce marketing automation platform, here are three pivotal areas I believe will shape the e-commerce landscape in 2025.

1. Possible Headwinds for E-Commerce Businesses

Economic uncertainty is a recurring theme as we move into 2025. The potential imposition of tariffs on imports from Canada, Mexico, and China by President-elect Donald Trump could significantly disrupt the e-commerce ecosystem. Such tariffs would likely increase the cost of goods, potentially triggering a domino effect:

  • Higher prices may reduce consumer spending power.
  • Retailers, especially smaller ones reliant on imports, could face financial strain.

Large retailers like Amazon and Walmart, with diversified revenue streams, may absorb these cost increases better than smaller businesses. However, small and medium-sized enterprises (SMBs) could struggle to stay afloat. If these economic conditions materialize, the barriers to entry for new e-commerce players may also rise, leading to fewer startups in the sector.

How to Prepare:

  • Diversify sourcing and consider local suppliers to mitigate potential tariff impacts.
  • Focus on optimizing costs and improving operational efficiency.
  • Develop strategies to maintain consumer loyalty, even with potential price increases.

2. First-Party Channels Gain Prominence

As paid social and search advertising costs become increasingly volatile, brands are expected to double down on first-party marketing channels like email and SMS. These channels offer greater control over messaging and predictable returns on investment, making them indispensable tools for brands navigating economic uncertainties.

Why First-Party Channels Matter!

  • Direct communication with engaged customers.
  • Leveraging consumer data for personalized, relevant messaging.
  • Automation potential, with research showing automated emails contributing significantly to sales.

Despite these advantages, many brands underutilize automation. For example, automated emails account for 41% of orders from just 2% of sends, according to internal research. This untapped potential presents a major growth opportunity.

How to Prepare:

  • Prioritize collecting email addresses and mobile numbers with clear opt-ins.
  • Invest in advanced automation tools to enhance customer engagement.
  • Use personalization to build deeper relationships with your audience.

3. AI’s Growing Role in E-Commerce

Artificial intelligence continues to advance at an extraordinary pace, reshaping how e-commerce businesses operate. However, its most immediate impact in 2025 will likely center on improving execution and efficiency rather than introducing transformative industry shifts.

Key Uses of AI in 2025

  • Automating routine tasks like writing product descriptions and generating email copy.
  • Creating high-quality visual content for marketing campaigns.
  • Supporting smaller brands in producing professional visuals and targeted campaigns.

Social commerce, fueled by platforms like TikTok Shop, is also poised for growth, with AI playing a critical role. Tools that enable creators and brands to develop targeted content more efficiently are expected to drive innovation. However, there’s a potential downside: oversaturation of shoppable products could lead to consumer fatigue, impacting user experience.

How to Prepare:

  • Experiment with AI tools to streamline content creation and marketing efforts.
  • Monitor social commerce trends to identify opportunities without overwhelming consumers.
  • Balance automation with a focus on authentic, engaging customer interactions.

Actionable Advice for Brands

actionable advice for brands

The unpredictable nature of 2025 underscores the importance of adaptability and innovation for e-commerce businesses. To thrive, brands should:

  • Enhance first-party channels: Collect email addresses and phone numbers to reduce reliance on costly paid ads.
  • Embrace AI tools: Identify areas where AI can save time and resources, such as marketing, customer service, or inventory management.
  • Focus on customer experience: Use insights and tools to create seamless, personalized shopping journeys.

While challenges like tariffs and economic uncertainty loom, the businesses that invest in efficient practices and customer-centric strategies will emerge stronger. The key lies in leveraging these trends to build resilience and remain competitive.

Final Reflections

As 2025 unfolds, e-commerce brands must navigate a complex landscape shaped by economic challenges, technological advancements, and shifting consumer expectations. Those that prioritize innovation, embrace first-party channels, and leverage AI will be well-positioned to succeed. Ultimately, adaptability will determine which brands thrive in this evolving market.

Stay prepared, stay agile, and seize the opportunities that come your way in 2025.