Welcome, everyone. Today we’re diving into one of the most pressing challenges for online retailers in 2025: keeping e-commerce sales growing during a recession. When buyers tighten their wallets, traditional discounting alone won’t sustain your business. In fact, leaning only on discounts can erode margins and damage brand value.
The good news? 2025 brings new tools, tactics, and consumer behaviors that give SMBs an edge—if used wisely. From AI-powered retention strategies to smarter product positioning, e-commerce businesses can thrive even in downturns.
This session will show you recession-era e-commerce playbooks that combine discounting, retention hacks, and customer experience tactics designed to increase sales and protect margins.
In recessions, e-commerce isn’t about selling more products—it’s about selling smarter.

2025 E-Commerce Trends SMBs Can Use (330 words)
1. Smarter Discounting (Value-Based, Not Blanket)
• Blanket discounts are out; targeted discounts are in.
• AI tools like Klaviyo Predictive Analytics or Shopify Audiences identify who needs a discount and who will buy without one.
• Discounts should reward behavior, not destroy margins.
2. Buy Now, Pay Later (BNPL) Normalization
• Platforms like Affirm, Klarna, Afterpay are now default checkout options.
• BNPL makes purchases feel lighter in recessions, increasing AOV (average order value).
• BNPL is no longer a luxury feature—it’s table stakes.
3. Bundling & Value-Add Offers
• Consumers want perceived value. Bundles (e.g., Starter Packs, Family Kits) sell better than single SKUs.
• Example: Fat Beluga bundles supplements by symptom category (Sleep & Energy Bundle).
• Bundling increases perceived value while moving more inventory.
4. Retention Becomes the Growth Engine
• Acquiring new customers is harder and more expensive.
• Retention tactics—loyalty programs, replenishment reminders, VIP perks—drive sustainable revenue.
• Retention is your cheapest growth lever in 2025.
5. Social Commerce and Live Shopping
• TikTok Shop, Instagram Live Shopping, and YouTube Live integrations make buying instant.
• SMBs can replicate QVC-style sales with minimal budgets.
• Live selling converts because it combines entertainment, urgency, and trust.
6. AI-Driven Product Recommendations
• Personalization at checkout and email drives higher conversions.
• Tools like Nosto, Rebuy, or Shopify’s AI Recommendations.
• AI-driven upsells can increase order size by 10–30%.

Step-by-Step Framework for E-Commerce SMBs (440 words)
Step 1: Audit Your Product Positioning
• Are your products positioned as essential or discretionary?
• Frame your product as a smart investment, not a splurge.
Step 2: Use Smart Discounting Strategies
• Segment customers:
o High-intent buyers → low/no discount.
o Price-sensitive buyers → targeted coupons.
o Lapsed buyers → win-back offers.
• A blanket discount is lazy marketing; segmentation protects profits.
Step 3: Embrace Flexible Payments
• Add BNPL options at checkout.
• Promote $10/month instead of $120 upfront.
• Ease the financial burden, and you’ll ease the buying decision.
Step 4: Leverage Bundling & Subscriptions
• Create bundled kits with clear savings.
• Offer subscriptions for essentials to lock in repeat sales.
• Subscriptions turn a one-time buyer into predictable revenue.
Step 5: Double Down on Retention
• Launch or enhance a loyalty program.
• Send personalized post-purchase emails (Here’s how to use your product better).
• Automate replenishment reminders.
• In 2025, your best growth hack is simply keeping the customers you already have.
Step 6: Invest in Social Commerce & Live Selling
• Run weekly TikTok/Instagram Lives showcasing products in use.
• Partner with micro-influencers for co-hosted lives.
• Live shopping is cost-effective storytelling with a buy button attached.
Step 7: Automate Product Recommendations
• Use AI to show personalized upsells at checkout.
• Example: Customers who bought this also bought…
• Upsells don’t annoy when they add real value.
Step 8: Monitor & Optimize
• Track KPIs: AOV, CAC, CLV, retention rate.
• Use AI dashboards (Shopify AI Insights, Glew.io).
• Optimization is not about adding more ads; it’s about increasing profitability per customer.

Case Study Example (130 words)
An online home goods store in Ottawa faced declining sales in late 2024. Instead of slashing prices across the board, they introduced smart discounting and bundles.
• Lapsed customers received 20% win-back offers.
• High-intent shoppers were nudged toward bundled kitchen starter kits.
• Loyal customers were given early access perks and small loyalty bonuses.
• They launched weekly TikTok Lives where staff demonstrated products in real homes.
The results: Retention increased 25%, average order value rose by 18%, and sales stabilized even though their ad budget was cut in half.
They didn’t outspend competitors—they outsmarted them with targeted offers and retention tactics.