In today’s customer-centric environment, changing behaviors, attitudes, and preferences are core drivers for business innovation. Even after Covid, many settled for the digital life, with a 16.2% rise in online shoppers in the U.S. since 2020, and shoppers have since realized they prefer the convenience of eCommerce over the personalized brick-and-mortar experience. Further, over half of consumers today are more cost-sensitive toward non-essentials as inflation continues to raise prices. With these factors in mind, retailers today must consider how they need to evolve to better meet those expectations for high-value and convenience. 

Focusing on fashion retailers specifically, the latest changes in customer buying habits warrant a total re-evaluation and adjustment to current eCommerce strategies. Almost 60% of consumers today won’t purchase new apparel if they don’t feel that the value outweighs the cost. Considering apparel is seen as a non-essential, clothing retailers need to go above and beyond to prove their products are worth the cost to obtain. Below, we break down three key eCommerce strategies for fashion retailers to fine-tune their approach for the remainder of 2024 and satisfy evolving customer demands.  

Social Commerce: TikTok Shop 

Social commerce blends the framework of social media with eCommerce, centralizing product discovery and purchase onto one social media platform. While this isn’t a new concept, social commerce hadn’t seen much success with existing platforms like Instagram and Facebook until the recent launch of TikTok Shop in September 2023.  

TikTok is trending for cleverly integrating their machine learning algorithm with product marketing so users can find and purchase the products they need without ever leaving the app. Previously, with Instagram and Facebook shops, users had to make an intentional search to purchase or come across a targeted ad to discover a new product. Now with TikTok shop, featured product content will reach customers regardless of whether they’re on the app to buy something or not. Users can discover and purchase products directly in-feed, or they can find more featured products on TikTok’s virtual storefront. As of 2023, apparel is the leading category for products purchased on social media, and brands like Shein and Nike have already gained a significant profit from TikTok sales.  

For retailers, this seamless integration of targeted product marketing with subconscious scrolling not only increases brand awareness, but it also encourages impulse purchasing and offers a more convenient shopping experience. Having sold 1.98 billion products since its launch, 15% of those being womenswear, fashion retailers should consider expanding their eCommerce strategy to include TikTok Shop. 

Subscription Commerce: Online Fashion Rentals 

Earning more than $1 billion in revenue in 2024 ,and expected to grow to over $2 billion by 2029, the online clothing rental market has become increasingly popular among customers. Clothing rental subscription boxes offer specially curated pieces based on shoppers’ personal preferences and the latest apparel trends. With a subscription, customers rent the clothing they want and return what they no longer wear, so keeping your closet up to date is easy and cheap. Online clothing subscriptions are convenient for product discovery and delivery, offer a cheap alternative to purchasing on-trend apparel, and provide a unique and personalized experience for each user. 

Fashion retailers should consider the benefits of rental subscription services when forming their eCommerce strategy. These clothing boxes take advantage of the fact that trends fluctuate constantly and give retailers the freedom to expand their product offerings so their customers can always stay on trend. When shoppers like what they receive and renew their subscription, it produces a consistent revenue stream despite volatile demand. Then, returned clothing is refurbished and resold to live longer than its trending expiration date. Adopting this circular strategy can help minimize overall fashion waste, align inventory with the latest trends, and increase total eCommerce revenue. 

reCommerce: Secondhand Online Retail 

Along with low prices and convenience, customers also take sustainability into account when considering the value of apparel. More than half of consumers bought secondhand clothing in 2023, and several big corporations have recently launched resale initiatives. reCommerce has become increasingly popular as it not only promotes sustainable practices, but it also allows customers to buy unique clothing at a lower price than it was retailed for. Something as simple as a “Buy-Back” system or even partnering with a consignment platform like Thred-up allows both customers and retailers to benefit from reCommerce.  

Using a similar circular strategy, customers can get reimbursed in rewards for returning their clothing while retailers have the opportunity to resell the clothing to actually make a profit from the return. With inflation causing prices to rise, 63% of customers felt they had to cut back on their apparel purchases in response, so online fashion re-sale is a great alternative for cheaper clothing from a convenient online source. For the retailer, investing in a reCommerce strategy encourages sustainability and brings profit instead of loss from apparel returns. Further, reCommerce helps retailers elongate the clothing lifecycle to continue driving their sales and encourage a circular inventory strategy. 

eCommerce Strategies for Fashion Retailers 

When purchasing new apparel, shoppers today give careful thought to product value and convenience. The best approach for a fashion retailer to sufficiently satisfy these evolving needs is to innovate and modify their eCommerce strategies. Retailers can leverage new eCommerce trends and business models, such as social commerce and reCommerce, to personally engage with customers, offer products at the best value, and better tailor the shopping experience. Proactive retailers who strive to fulfill customer demands can distinguish themselves from the competition and thrive in today’s dynamic retail climate. 

Clarkston recognizes the importance of fulfilling your shoppers’ needs and elevating your eCommerce strategies. By connecting with our industry experts, we can help you determine how to efficiently deliver the best online shopping experience so you can satisfy customer demands and thrive as a digital fashion retailer. 

Contributions from Bella Gordon