Aussie Retailers Dilemma

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Sydney, Sept 27: According to the freshly released Feed Marketing Report 2022, from DataFeedWatch by, Australian online stores have yet to recover from product availability problems and stand at a 23 per cent OoS (out of stock) level, far higher than the global benchmark of 16.7 per cent.
And when it comes to multichannel advertising Australia remains behind again, advertising on 22 per cent fewer channels, on average, than the rest of the world.
Feed Marketing Report 2022 (FMR 2022) reveals that Australian online retailers have not yet overcome the widespread supply chain problems witnessed during the COVID-19 pandemic peaks.
With 23 per cent of total products out of stock, they sit substantially higher than the global average of 16.7 per cent.
Furthermore, Australian merchants advertise their products on average across only 2.5 channels, far below the global average of 3.2 channels.
Does this mean Australia-based eCommerce businesses are less active in promoting, advertising, and selling their products across different channels, platforms, and marketplaces?
“Strong multi-channel strategies allow finding customers in various niches and increase advertising effectiveness,” explains Jacques van der Wilt, General Manager of Feed Marketing at
“Focusing on channels that work is one of the proven tactics that will be used during economic
slowdown by many online stores. It’s possible that Australian merchants focus on channels that convert and this may prove an effective strategy for the coming Q4 sales.”
The report also found that almost two third of eCommerce businesses are removing their products from advertising. This marketing strategy stems from a shift in consumers re-prioritizing their spending against a backdrop of growing inflation, an increasingly likely recession, and ongoing problems with product availability. 
The report found that nearly 65 per cent of eCommerce businesses reduce the size of their advertised product catalogues due to the growing price sensitivity in the market and continued product shortages. Although a number of industries have managed to recover from constant stock availability problems, many of them are still struggling to maintain stock levels. For example, the Vehicle & Parts and Sporting Goods industries, still face out-of-stock levels of 57 per cent and 40 per cent respectively.
These shifts in marketing strategies show the need for retailers to effectively manage ad budgets (across channels like Google, Facebook, and Pinterest) towards a satisfying ROI. 
DataFeedWatch’s data analysis of over 15 thousand online stores across 60+ countries reveals multi-channel advertising benchmarks and retail coping strategies against the emerging challenges of 2022. The first of its kind within the industry, the Feed Marketing Report 2022 delivers an inside look into four critical retail areas: the Products retailers are selling, the Channels being used to advertise, the most common Errors, and the most prevalent optimization Tactics. Captured in the first half of the year, the report equips advertisers with a competitive benchmarking tool, just as we’re headed into the peak retail season.

Retail businesses stand to face new economic challenges

According to the Bloomberg monthly survey of economists in July, the probability of a recession now stands at 47.5 per cent, compared to only 20 per cent in March. Retail brands are bound to shift strategies as they gradually move past the COVID-led supply issues to face the challenge of climbing global inflation, the latter paired with consumers re-prioritizing their daily expenditures. 
“Most retailers continue to lean on the search-based [over 90 per cent of merchants] and social channels [54 per cent] as the foundation of their online presence,” Jacques van der Wilt, General Manager of Feed Marketing at said.
“However, with the looming recession and declining performance on meta channels like Facebook or Instagram, we expect the affiliate channels to grow in popularity. They pose a cost-effective way for retailers to bulletproof their revenue streams. And that’s what they need right now,” he adds.

Where is the eCommerce market headed?

Despite the economic slowdown, Morgan Stanley forecasts that global eCommerce sales in 2022 will reach the 3.3 trillion dollar mark. With this new set of challenges on the horizon and the unfaltering growth of global eCommerce, businesses are bound to look for new ways of optimizing their advertising operations.

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