The current state of ecommerce is all about quantity. Technology and digital communities are growing right along with a recent widespread adoption of online shopping. In the USA, ecommerce sales account for over USD 960 Billion–on track to reach 1 Trillion in 2022, In large part, this rapid growth can be attributed to the COVID-19 pandemic. Additionally, this era of ecommerce has been bolstered by a generally-prosperous worldwide economic situation over the last decade. However, some professional content creators, media outlet owners, and digital asset aggregators predict that this climate will soon change.
Not shockingly, Amazon is the most important player in digital commerce. Most recently, this platform’s sales have plateaued–and at the same time, operating costs have increased, according to MarketWatch. What’s more, consumer spending is beginning to slow down this year as the US faces increasing inflation and interest rates, according to CBS News. If this spending slowdown is the harbinger of a US (and possibly global) recession, then current ecommerce sellers and advertisers will have to focus on targeting more loyal audiences and higher quality conversion rates in order to stay afloat.
Digital Aggregators Step In
When ecommerce boomed before and during the pandemic, aggregators like Thrasio (among others) stepped onto the scene to buy smaller entities, like Amazon sellers (among other ecommerce companies). These firms acquired profitable ecommerce businesses and rolled them up into their brand portfolio. This business model uses a variety of brands under one corporate “umbrella” in order to achieve lasting profit. And as a result, businesses implementing an ecommerce aggregator model realized record profits during this surge in online shopping.
However, for professionals in this industry, questions still remain about how these sorts of aggregators will fare into the future. Currently, the noise is growing throughout all ecommerce channels. There has been an influx of sellers on Amazon, via Shopify, and through other digital market places. Even if online sellers are able to keep up their traffic and analytics numbers, it’s not certain these statistics will always convert to higher sales rates.
High-conversion traffic is the key to stimulating sales–whether the conversation’s about online shopping or in-person retail. The best way to secure high-conversion traffic is by knowing an audience and selling or referring to a product that he or she needs. As a result, the latest digital demand aggregators are targeting niche online communities with dedicated and more predictable audiences. The thought process for these corporations: Websites and online portals with the most tuned-in readers have the greatest power to influence consumer behavior. Plus, niche websites (about USA men’s basketball, for example) have less variation in readership. So, the newest digital asset aggregators are buying content websites that have outstanding organic traffic in a given segment.
“Our company has no one-to-one competitors,” explained Benjamin Schardt, the CEO of an aggregator startup called TreasureHunter. “We’re different because we’re acquiring independently-owned content sites, preserving their “DNA”, improving upon any current operational limits, and growing the sites for the future while scaling conversion-promising audiences.”
Above All, Content is King
At this point, some of the best blogs on the internet have 10-20 years of experience in creating digital content. Content websites and blogs that started out as side-gigs or passion projects are now beginning to achieve mainstream notoriety. Blog owners and content creators have amassed wide audiences who see their sites as “authorities” or “thought leaders” within their given niche. As a result, passion-driven website owners who distribute informative content are picking up some lucrative advertising income.
Whether it’s a travel blog, cooking website, or sports portal, the sites that garner attention from worldwide users are becoming viable, money-making businesses. For example, some of the most sought after blogs on the market are making hundreds of thousands in USD each year. These sites generate income from display ads, affiliate marketing (product promotion), and through CPC deals with advertisers or ad networks.
“We connect with many website owners and advertisers with our network called Reviewsales.io,” said Vesna Miletic, an Account Manager for ever-growing–a company that created this digital advertising network. “We’ve been growing our reach with partners who are mainstream media outlets, blog owners, ecommerce sellers, and more.”
Across the globe, advertisers are spending nearly USD 400 Billion on online advertising–and the numbers continue to grow, according to Statista. Furthermore, there are more avenues than ever before that allow digital businesses to generate passive income. As a result, the businesses that are beginning to find the most success are those that distribute informative content which receives truly organic search from interested online viewers. However, these advertising agreements and CPC deals only last if the audience(s) attention converts to sales somewhere down the line.
The teams that run content website aggregation firms like TreasureHunter have their work cut out for them. These professionals must service and bring value to all interested parties: Current viewers, prospective readers, writers, editors, advertisers, investors, and more. The industry in which these aggregators are involved is at the intersection of ecommerce technology and informative online content. The work must be done with “love and care” as well as with emphasis on profitability, SEO, etc.
The Changing Ecommerce Climate
As it stands, website statistics and advertising investment are both inflated. Website users generate online impressions that are at an all-time high–translating to greater online ad spend. But if sales conversion rates begin to falter, advertisers will look to online media outlets with the most devoted audiences.
While aggregators that “roll-up” Amazon sellers are currently thriving, digital asset aggregators that buy content websites believe they will be the next business concept to create success.
Traffic ownership is becoming more valuable and the ecommerce market is becoming much more competitive. It will be interesting to watch this market as the current economic climate begins to impact consumers’ online behavior.
“With TreasureHunter, we want to revolutionize the digital content segment and give small websites and blogs the exact tools, resources, and partners we could have only dreamed of back when we established our first blogs in 2013,” finished Benjamin Schardt who began his entrepreneurial endeavors with his own blog.