E-Commerce & Retail Rewind 2024 ⏪

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The times they are a-changin’, Bob Dylan once sang, and 2024 proved just how true that is in the ever-evolving world of retail and e-commerce. This year brought seismic shifts — from groundbreaking policy changes to record-breaking sales and everything in between. It was a year defined by dramatic highs, challenging lows, fierce rivalries, and even moments of unexpected bipartisanship.

In this round-up, we delve into the key moments that shaped retail and e-commerce in 2024.

1. De Minimis loophole to get closed with bipartisan support

In a decisive move to level the playing field in U.S. e-commerce, the Biden-Harris Administration is pushing to close the de minimis loophole, a rule allowing goods valued under $800 to enter the U.S. tariff-free. This loophole has been a key gateway for Chinese e-commerce giants like Shein, Temu, and Alibaba, enabling them to flood the U.S. market with low-value shipments while avoiding import duties.

The numbers behind this issue are staggering. In 2015, 134 million packages entered the U.S. under the de minimis rule. By 2023, that number had skyrocketed to over 1 billion shipments annually. Each day, nearly 3 million parcels arrive from China alone, bypassing tariffs and regulations. Platforms like Shein and Temu dominate this trend, accounting for over 30% of these shipments, according to a 2023 report by the House Select Committee on the Chinese Communist Party.

The disparity is stark for American retailers. In 2022, companies like GAP and H&M paid $700 million and $205 million in import duties, respectively. Meanwhile, Shein and Temu, by exploiting the de minimis rule, paid $0 in tariffs. This unfair advantage allows these platforms to undercut U.S. businesses, disrupt market competition, and overwhelm regulatory systems designed to ensure product safety and compliance.

The surge in de minimis shipments also raises concerns about consumer protection. With limited oversight, unsafe and non-compliant products can easily enter the market, posing risks to American buyers. The proposed reforms, backed by bipartisan support, aim to safeguard American workers, businesses, and consumers from this flood of unchecked imports.

2. Amazon launched Haul to challenge Shein and Temu

Amazon has never shied away from taking on its competition — and obliterating them or buying them off — so in 2024, it set its sights on Chinese e-commerce giants Shein and Temu. These platforms have been dominating the low-cost e-commerce space in the U.S., winning over price-conscious shoppers with ultra-cheap fashion, home goods, and lifestyle items. 

To counter Temu and Shein’s growing dominance, Amazon launched Haul—a new storefront within its mobile app that caters to budget-conscious buyers with products priced at $20 or less. 

Amazon’s move into this space comes at a time when Shein and Temu have rapidly gained traction, reshaping the low-cost e-commerce landscape. Shein, with an estimated annual revenue exceeding $30 billion, now dominates nearly 50% of the U.S. fast fashion market. 

Meanwhile, Temu, backed by Chinese e-commerce powerhouse Pinduoduo, has aggressively expanded its presence in the US. In 2023, it achieved a gross merchandise value of $15.33 billion and secured a 17% share of the U.S. discount store market. These platforms’ budget-friendly pricing and extensive product ranges have made them formidable in the US e-commerce market, prompting Amazon to respond with Haul.

Interestingly, Haul takes a different delivery approach from Amazon’s two-day Prime shipping. Its delivery times are one to two weeks. This matches Shein and Temu's longer shipping windows, which result from shipping directly from manufacturers. This suggests Amazon is working with overseas suppliers, likely in China, to keep prices low and stay competitive.

While slower delivery times might diverge from Amazon’s usual standards, the company’s established logistics network provides a reliable backbone, offering a level of assurance that its competitors may lack.

As 2024 concludes, Haul is a clear signal that Amazon is not standing idle as competitors encroach on its market.

3. Walmart hit the bullseye, while Target missed its mark

Some get the world, while others see decreased revenue quarter-over-quarter; we’re talking about the contrasting performances of Walmart and Target. In Q3 2024, Walmart reported an impressive $169.6 billion in revenue, a solid 5.46% increase from 2023. Meanwhile, Target faced a more challenging quarter, bringing in $25.7 billion—a modest 1.1% rise—while its net income dropped by 12% to $854 million.

Walmart’s success is rooted in its focus on everyday essentials. Groceries now dominate its sales mix — in fact, groceries account for nearly 60% of Walmart’s sales – and by leveraging its extensive store network as fulfillment hubs, Walmart has seamlessly integrated online and in-store shopping. This omnichannel approach has driven a 4.6% growth in same-store sales and solidified its position as the go-to retailer for budget-conscious shoppers.

Target, however, is struggling to keep pace. A steep decline in demand for discretionary items like apparel and home goods – which Target is famous for – led to a 4.9% drop in same-store sales. With a heavier reliance on non-essential categories, Target has found it harder to adapt as consumers increasingly prioritize necessities.

While Walmart’s agility and focus on value continue to widen the gap, Target is working to recalibrate, rethink its product offerings, and cut costs. For now, Walmart’s adaptability and strategic investments keep it firmly ahead in the retail race.

Check out CrossDock’s in-depth coverage of Walmart vs Target

4. Shopify’s purple patch continued 

In a year filled with shifts and surprises across the e-commerce landscape, Shopify stood out as one of the biggest success stories of 2024. The platform entered a purple patch of growth, consistently delivering strong results that solidified its position as a global leader in online retail.

A key highlight came in Q3 2024, when Shopify reported a 26% revenue increase, climbing to $2.16 billion from $1.71 billion in the same quarter last year. This marked the sixth straight quarter of 25%+ revenue growth. Gross Merchandise Volume (GMV) surged 24% to $69.72 billion, surpassing expectations and demonstrating the platform’s growing importance to merchants worldwide.

Shopify also strengthened its grip on the U.S. market, commanding 30% of the e-commerce platform share by 2024 – dominating rivals like WooCommerce and Wix. The platform’s profitability shone as well, with free cash flow reaching $421 million and net income nearly doubling to $344 million in Q3.

Beyond the numbers, Shopify’s global impact was unmistakable. During Black Friday, sales on its platform in Spain soared by 52% compared to 2023. This international growth reinforced Shopify’s adaptability and global reach.

5. Will TikTok get banned in the US?

2024 was a pivotal year for TikTok, with the platform facing mounting scrutiny and potential bans worldwide. The most significant development came from the United States, where legislative and legal actions brought TikTok to the brink of a nationwide ban.

In April, President Joe Biden signed the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), mandating TikTok’s parent company, ByteDance, to divest its U.S. operations by January 19, 2025. The legislation, which had strong bipartisan support, was driven by concerns over TikTok’s Chinese ownership and its potential risks to national security. Lawmakers argued that the platform could allow the Chinese government access to sensitive user data or influence public discourse.

TikTok responded by challenging the law, claiming that a forced sale or ban would violate the First Amendment rights of both the company and its 170 million US users. However, a federal appeals court upheld the legislation in December, prompting TikTok to appeal to the U.S. Supreme Court. The court agreed to hear the case, with oral arguments scheduled for January 2025, leaving the platform’s future uncertain.

Adding to the drama, President-elect Donald Trump, who initially supported the ban, suggested he might reconsider. His comments injected uncertainty into an already contentious debate.

As the year ends, the clock is ticking for TikTok in the U.S., with a potential ban looming. The case has ignited broader conversations about national security, digital privacy, and freedom of expression, setting the stage for a critical showdown in 2025 that could shape the future of the platform and its millions of American users.

Check out our latest coverage of TikTok ban in the United States

6. Albertsons and Kroger merger gone wrong 

Retail business dramas are sometimes more interesting than Hollywood thrillers, and 2024 gave us one of the most gripping sagas yet. This year, Albertsons and Kroger took center stage in a high-stakes showdown that had everything—ambition, conflict, and a dramatic fallout. 

So, what exactly went down? Let’s break it all down for you.

In October 2022, Kroger announced its ambitious plan to acquire Albertsons for $24.6 billion. Together, the two grocery giants aimed to combine their networks of over 5,000 stores and nearly 700,000 employees across 48 states, creating a powerhouse capable of taking on industry leaders like Walmart and Amazon.

But the road to this mega-merger was anything but smooth. In February 2024, the Federal Trade Commission (FTC), along with attorneys general from multiple states, filed a lawsuit to block the acquisition. Regulators argued that the merger would reduce competition, hike grocery prices, and hurt workers’ wages and benefits.

In an attempt to appease regulators, Kroger and Albertsons proposed selling 579 stores to C&S Wholesale Grocers. However, this didn’t sway the FTC, and in December 2024, a federal judge issued a preliminary injunction to halt the deal, citing unresolved antitrust concerns.

The fallout was swift and dramatic. Albertsons, feeling betrayed, terminated the merger agreement and sued Kroger in Delaware Chancery Court. Albertsons accused Kroger of failing to take adequate steps to secure regulatory approval, demanding a $600 million termination fee and additional damages. Kroger fired back, claiming Albertsons was trying to deflect blame for the failed merger.

7. Biggest Amazon labor strike 

Amazon’s largest labor strike to date occurred during the holiday season of 2024. Nearly 10,000 workers walked off the job at seven key delivery hubs across the United States. Organized by the Teamsters Union, the strike affected facilities in Southern California, San Francisco, New York City, Atlanta, and Skokie, Illinois.

The timing couldn’t have been more strategic. With Amazon capturing 29% of global order volume in the two weeks leading up to Christmas (up from 21% during Thanksgiving and Black Friday), the holiday season is the company’s busiest and most logistically demanding period. 

Teamsters General President Sean M. O’Brien made the union’s position clear: “If your package is delayed during the holidays, you can blame Amazon’s insatiable greed.”

The workers’ demands centered on higher wages, better benefits, and safer working conditions. The union also pressed for Amazon to recognize delivery drivers, who were classified as subcontractors, as direct employees, a longstanding point of contention. 

Despite these demands, Amazon dismissed the strike as a “publicity stunt,” claiming most participants were not its employees and emphasizing its $2 billion investment in higher wages and benefits, including raising driver pay to $22 per hour.

Amazon maintained that its logistics network and partnerships with carriers like UPS kept operations running smoothly, downplaying the strike’s impact. The strike comes right after a Senate report from Vermont Senator Bernie Sanders accused Amazon of manipulating the numbers on warehouse worker injuries and ignoring internal research aimed at improving workplace safety. 

8. Walmart breaking up with JD.com

Walmart has officially ended its partnership with JD.com, signaling a shift in its e-commerce strategy in China. The move marks the close of a significant chapter in Walmart’s journey to establish a foothold in one of the world’s largest online retail markets.

In August 2024, the retail giant sold approximately 144.5 million shares in JD.com for $3.6 billion. This move comes nearly a decade after Walmart first partnered with JD.com to enter the booming Chinese e-commerce sector.

Selling its JD.com stake was not merely a financial decision for Walmart but a strategic pivot. The sale allows Walmart to focus on what it does best — building its own retail network and enhancing its in-house digital operations. 

Walmart is now doubling down on the continued growth of Sam’s Club stores, which have become favorites among China’s rising middle class. In addition to physical stores, Walmart has also deepened its partnership with Meituan, China’s leading food delivery platform. 

9. U.S. retailers faced record store closures in 2024

The U.S. retail industry faced a profound transformation in 2024, with store closures reaching unprecedented levels. According to CoreSight Research, over 7,100 stores have been announced for closure as of November—a 69% increase compared to the same period in 2023. This surge highlights the mounting pressures reshaping the retail industry, driven by economic challenges, shifting consumer behaviors, and operational hurdles.

Rising operational costs are a significant factor. Inflation-driven increases in rents, utilities, and wages are squeezing retailer margins, forcing many to scale back. Chains like Party City and Rite Aid, already burdened by significant debt, filed for bankruptcy and began shutting stores nationwide. 

Meanwhile, Family Dollar is set to close over 600 locations as leases expire, and Big Lots is eliminating more than 280 stores as part of its streamlining efforts.

At the same time, consumer preferences are shifting decisively toward e-commerce, leaving brick-and-mortar stores struggling to attract foot traffic. Online shopping continues to dominate, prompting retailers like CVS to pivot. The pharmacy giant is reallocating resources to strengthen its digital infrastructure and is closing nearly 900 stores as part of a strategic transformation.

Adding to these challenges is the alarming rise in retail theft, which has surged by 93% since pre-pandemic levels. 

Interestingly, retailers like Costco and Walmart are thriving by integrating e-commerce with in-store experiences, leveraging consumer loyalty to remain resilient. 

10. Walmart vs Amazon showdown intensifies

Walmart is stepping up its e-commerce game once again. This year, the retail giant launched Walmart Multichannel Solutions (MCS), a bold move to compete directly with Amazon’s Multi-Channel Fulfillment (MCF) service. 

Walmart opened its doors and fulfillment networks to help sellers fulfill orders not only from its marketplace but also from platforms like Amazon, Etsy, and eBay.

This isn’t Walmart’s first strategic move to compete directly with Amazon. Back in 2020, they launched Walmart Fulfillment Services (WFS), a direct competitor to Amazon’s legendary Fulfilled by Amazon (FBA) program. 

FBA has been a money machine for Amazon, raking in billions by handling storage, packing, and shipping for third-party sellers. And Walmart wanted to imitate the success. Today, 66% of Walmart’s 140,000 sellers now use WFS. 

But why is Walmart so steadfast in its e-commerce expansion? Well, it’s been a goldmine for Walmart lately. In 2024, their e-commerce sales shot up by 27%, and their stock price jumped an impressive 82%. Digital growth, marketplace expansion, and fulfillment services like WFS and MCS are driving these numbers, positioning Walmart as a serious contender in the online retail space.

Want to know the details of this epic e-commerce battle - Check out our detailed coverage

11. The quick commerce wars heat up in India

There’s a fierce battle brewing in India’s quick commerce market, with major players racing to dominate the ultra-fast delivery space. Once a niche segment before COVID-19, quick commerce has exploded post-pandemic, reshaping consumer habits and creating one of the fastest-growing e-commerce sectors globally. Valued at just $100 million in 2020, India’s quick commerce market surged to $6 billion in 2024 and is projected to hit $40 billion by 2030.

Leading the charge is Zepto, the 2021 startup that has become a market leader with its 10-minute delivery promise. Zepto raised over $1 billion in funding this year, boosting its valuation past $5 billion. 

Blinkit, backed by Zomato, is another heavyweight, leveraging its parent companies ’ vast user base to expand its quick commerce operations. Blinkit now processes millions of daily orders across thousands of SKUs, solidifying its presence in the market. Swiggy Instamart, on the other hand, has expanded to nearly 43 cities with over 12,000 product offerings.

However, the high moment in the quick commerce plot was Amazon’s entry. Known for its logistical prowess, Amazon will now begin testing a 15-minute delivery model in India. While it’s late to the party, Amazon’s deep pockets and established infrastructure make it a serious contender. Analysts predict the company may invest over $1 billion in the next few years to catch up with its competitors.

As the year closes, India’s quick commerce wars show no signs of slowing down. With billions at stake and companies pushing boundaries in speed, scale, and service, the battle to win India’s consumers is intensifying.

This newsletter was written by Shyam Gowtham

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