7-8 minute read
Retail Media, Social Commerce, Omni-channel, AI, Strategy
Introduction
The commerce landscape in the UK is evolving rapidly, with businesses navigating a complex digital and retail ecosystem. Over 100 retailers are generating more than £100 million in online revenue, and with Amazon having 35 million UK users, alongside the rise of TikTok Shop and direct-to-consumer (DTC) brands, the growth opportunities are significant. However, these opportunities also come with new challenges, including shifting consumer expectations and the increasing dominance of Retail Media and social commerce.
As technology advances and consumer purchasing behavior changes, traditional marketing and sales approaches are disrupted. Retailers and brands must adapt to a fragmented purchasing journey, where product discovery and conversion occur across multiple platforms. To remain competitive, businesses need a deep understanding of these trends and a strategy that aligns with them.
This article explores the key commerce trends shaping 2025 and outlines practical steps businesses can take to stay ahead.
Key Trends Shaping Commerce in 2025
The Expansion of Retail Media Networks
Retail Media Networks (RMNs) are becoming a crucial part of digital marketing, enabling brands to reach consumers when they are ready to purchase. Platforms such as Amazon Ads, Walmart Connect, Argos, Uber, and Klarna allow businesses to target high-intent shoppers through first-party data insights.
As traditional paid search and social advertising become more competitive, RMNs offer a scalable way to refine audience targeting, optimize ad spend, and increase conversion rates.
Why It Matters:
- Emerging brands can leverage RMNs to enhance visibility cost-effectively, competing against established players without solely depending on traditional pay-per-click (PPC) campaigns.
The Acceleration of Social Commerce
Social platforms like TikTok, Instagram, and Facebook have transformed how consumers discover and purchase products. Through in-app purchases, influencer-driven marketing, and live shopping events, social commerce makes it easier for brands to transition from awareness to conversion in a single journey.
The shift toward content-driven commerce allows businesses to engage with customers in more interactive and personalized ways, capturing attention earlier in the buying process.
Why It Matters:
- Businesses can connect with consumers at key moments of discovery, thereby shortening the path to purchase
- Additionally, social commerce creates another direct-to-consumer sales channel, allowing brands to reduce their dependency on traditional retailers and marketplaces.
The Role of AI in Driving Commerce Growth
Artificial intelligence (AI) is increasingly influencing commerce operations, enhancing efficiency, customer experience, and profitability.
From AI-powered chatbots to predictive analytics in supply chains, companies incorporating AI into their operations gain a competitive edge.
Furthermore, AI tools are transforming digital advertising by automating campaign management, refining audience segmentation, and optimizing budget allocation.
Why It Matters:
- AI-powered pricing models assist businesses in remaining competitive while optimizing margins.
Leveraging Data for Smarter Decision-Making
As advertising costs rise, businesses are investing in advanced analytics and multi-touch attribution models to better understand the impact of both digital and offline campaigns.
Platforms like Amazon Marketing Cloud (AMC) provide deeper insights into consumer behavior, enabling brands to allocate resources more effectively.
A data-driven approach allows brands to optimise marketing investments and refine customer engagement strategies for long-term growth.
Why It Matters:
- Brands using data-driven decision-making can improve ad spend effectiveness and gain better insights into customer journeys, allowing for the refinement of messaging, pricing, and promotional strategies.
Solutions for Staying Ahead
To remain competitive in 2025, businesses must proactively integrate these trends into their strategies.
1. Investing in Retail Media Networks:
Brands should allocate advertising spend to Retail Media platforms such as Amazon Ads, Walmart Connect, and Klarna, utilizing first-party data insights to target high-intent shoppers efficiently.
2. Strengthening Social Commerce Strategies:**
Leveraging live shopping, influencer marketing, and shoppable content will be essential for attracting and converting audiences on social platforms.
3. Prioritising a Unified Commerce Strategy:**
Brands must align online and offline retail strategies, ensuring consistent pricing, promotions, and inventory visibility across all channels.
4. Using AI for Smarter Operations:**
AI-driven automation will help businesses improve demand forecasting, enhance personalization, and optimize marketing campaigns for better returns on investment (ROI).
The Future of Commerce in 2025 and Beyond
Commerce is evolving at an unprecedented pace, and businesses that fail to adapt will find themselves outpaced by competitors who embrace innovation. Retail Media is transforming digital advertising, social commerce is reshaping consumer buying behaviours, and AI is driving efficiency at scale.
The brands that will succeed in 2025 and beyond are those that act decisively. Businesses must invest in Retail Media strategies to gain visibility where purchasing decisions are made, strengthen social commerce tactics to engage customers where they spend their time, and integrate unified commerce to deliver seamless, cross-channel experiences. AI must become a core component of optimisation and automation.
For businesses looking to stay competitive, grow market share, and future-proof their operations, 2025 will provide the tools to get ahead. The opportunities are there for those who embrace the change, lead with data, and execute with precision.
Sources:
- Retail Media Growth
- eMarketer, Retail Media Ad Spend Forecast (2024)
- https://www.emarketer.com/content/us-retail-media-ad-spending-forecast
- Social Commerce Expansion
- El País, The rise of social commerce in global markets (2025)
- https://elpais.com/extra/publicidad/2025-01-25/redes-sociales-a-modo-de-bazares-orientales.html
- Wall Street Journal, Influencer marketing investment and social commerce growth (2025)
- https://www.wsj.com/articles/influencer-startup-shopmy-raises-77-5-million-to-expand-into-new-ad-categories-5ef297c4
- Unified Commerce & Omnichannel Trends
- The Retail Bulletin, How brands are prioritising seamless omnichannel strategies (2024)
- https://www.theretailbulletin.com
- AI and Machine Learning in Retail
- Retail Times, AI-driven personalisation and efficiency in e-commerce (2024)
- https://www.retailtimes.co.uk
- Sustainability and Ethical Consumerism
- RCS UK, The growing importance of sustainability in retail (2024)
- https://www.rcs-uk.com
- Data-Driven Decision-Making & Advanced Attribution
- L’Oréal Case Study, Leveraging Amazon Marketing Cloud for better media allocation (2024)
- https://www.amazonadvertising.co.uk
