Executives plan to invest in e-commerce technology despite challenges

E-commerce solutions provider Pattern has released its first E-commerce Executive Strategy Snapshot report, which examines the most common growth challenges facing retail and brand executives. The study also reveals where retail and brand leaders plan to invest.

Researchers surveyed more than 300 CEOs and founders of e-commerce companies in North America, representing sectors such as beauty and personal care, sports and outdoor recreation, home goods, and tools and home improvement, as well as other categories.

The research found that 25 percent of surveyed executives plan to increase their e-commerce investments by 31 to 98 percent over the next six to 12 months. “Only 6 percent of surveyed executives plan to reduce their overall financial investments over the same period,” the report said.

In terms of the most common challenges, Pattern found that 1 in 3 respondents said that “rising shipping costs and the inability to maintain inventory levels are key obstacles to their growth,” while 1 in 4 leaders said they “have difficulty managing unauthorized resellers and distributors—which is hurting their sales and wreaking havoc on their growth strategy.” The report also found that 25 percent of respondents said that “the inability to expand into new channels and markets is holding back their growth.”

Other notable findings include that 58 percent of surveyed executives said they plan to increase their investment in product photography, video, and copy for online product listings, while 51 percent said they plan to increase their investment in influencer marketing. Forty-three percent of respondents said they plan to increase their investment in branding and product packaging, and 41 percent said they are increasing their financial commitment to product design.

“Every brand is more successful when they can make data-driven decisions, but brands have historically lacked access to good data on what’s driving their competitors and how they’re planning for the future,” said John LaBaron, Pattern’s chief revenue officer. “This snapshot ensures executives don’t have to rely on guesswork when making key decisions about how to shift strategy for 2024 and beyond.”

Pattern customers include Wahl, Panasonic, Sorel, Tumi and Bosch.

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