At a glance, the state of eCommerce may seem like it is stable. However, when you go beyond the surface, there’s lots of complexities including economic pressures, changing consumer behaviors, and strategic shifts.
At NetElixir’s recent State of eCommerce executive panel, NetElixir CEO Udayan Bose was joined by Michael Rothbard (CEO of Newton Baby) and Achin Kansal (VP Global DTC & Digital Marketing at Baby Brezza) to unpack what’s really happening in the industry. Here are the key takeaways every retail leader should know.
H1 2025: Performance Snapshot from Udayan Bose
The year began on a positive note, with strong early growth,but as tariff and geopolitical uncertainty intensified, executive sentiment grew more cautious.
Retail Performance Trends (YTD):
- Q1 2025:
- Overall Retail Sales: +5%
- Non-Store Sales: +5.6%
- eCommerce: +6.1%
- April–May Softening:
- Overall Retail: +3.4%
- eCommerce: +5.5%
- NetElixir Dataset (Jan–June):
- eCommerce growth: +4.7% YoY
Regional Highlights:
- Strongest growth: Midwest & South
- Softness: Western U.S.
Steady: Northeast
Business Size Impact:
Small businesses were hit hardest in Q2 as the tariff concerns mounted. They saw a 2.5% decline in growth.
Larger enterprises on the other hand saw mixed performance. Those with strong brand equity continued to grow, but decision-making slowed across the board.
Key Highlights from our Executive Panel
After his H1 recap, Udayan welcomed Achin and Michael for a candid conversation on what is next for eCommerce businesses. Here’s a look at some of the highlights.
1. Tariffs Are the Biggest Disruptor
Michael Rothbard shared that Newton Baby, despite having 50% of production in the U.S., faced significant challenges due to component sourcing in Asia. Their biggest challenge remains unpredictability surrounding the tariffs.
“What’s the right move today might be wrong tomorrow.”
Achin Kansal echoed the sentiment, pointing out uncertainty as their biggest obstacle. Strategic decisions around pricing, product continuation, and manufacturing location became increasingly complex.
The overall lesson learned: Long-term resilience depends on adaptable supply chains and smarter risk management.
2. How H2 Growth Strategies are Shifting
Michael mentioned revisiting past strategies that overly prioritized ROAS and margin. Heading into H2, Newton Baby is planning to increase ad spend to drive incremental growth and market share.
Achin Kansal outlined the top 3 questions Baby Brezza is asking to shape their strategy.
- What is the value we are delivering?
- How are we driving that value?
- Are we delivering the best experience for our customers?
His team is letting campaigns scale dynamically toward target ROAS, instead of restricting spend to rigid monthly caps.
3. How AI is Shaping Strategy
Achin Kansal described AI’s biggest impact so far as:
- 30% of support queries now resolved automatically via Salesforce Agentforce
- Hyper-personalized content for email, SMS, and website
- Evolving search behavior is demanding more conversational and human-like content
Michael Rothbard sees AI excelling in creative efficiency, from generating scalable ad assets to replacing costly photo shoots. Still, he remains skeptical of platforms like Google Performance Max, which often capture bottom-funnel traffic his team would’ve reached anyway.
4. Team Alignment in a Fast-Moving Environment
For Rothbard, hybrid work demands intentional communication:
- Regular touchbases
- Video chats
- Clear project tracking
For Kansal, simplicity is key. His team operates on short-term, 3-month planning cycles to stay agile and focused despite external volatility.
5. What’s Next? Strategic Priorities for H2
Michael Rothbard on what’s next for Newton Baby:
- Act over perfection.
- Decision-making is now based on “what’s known,” rather than waiting for total clarity.
- Supply chain stability remains the #1 priority.
Achin Kansal on what’s next for Baby Brezza:
- Testing new channels based on shifting consumer behavior including:
- Podcasts
- Connected TV (CTV)
- TikTok Shop and Live Commerce
- Focusing on measured experimentation for incremental growth.
New Muscles for H2
Both leaders shared what “new muscle” their organizations are building:
- Rothbard: A more resilient, diversified, and future-ready supply chain with boots on the ground in Asia.
- Kansal: Stronger brand presence and a proactive approach to social commerce.
Cautious Optimism for the Future
Despite the challenges, there’s a sense of cautious optimism heading into Q3 and Q4. With advertising spend holding steady and online demand stable, the next few months will be a critical test of resilience for the retail industry.
Watch the Full Executive Panel
Get all of the insights from Udayan Bose, Michael Rothbard, and Achin Kansal available now on-demand.
