Every month, we’re gathering information from ecommerce agencies: their results, thoughts, and predictions, and then sharing these insights in an aggregated and anonymous industry report.

Whether you're an agency owner or just looking for more information, this report can help you get a better understanding of the state of ecommerce agencies.

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Marketing Budgets: Brands Are Spending Again—But Cautiously

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In February, we’re seeing marketing budgets settle into more of a “moderate increase” zone, with fewer agencies going for those extreme highs or lows. Compared to the YTD average, the biggest shift is that peak right around the mid-range—hinting that brands are slowly ramping up spend but not going wild just yet. It’s basically a cautious step up from January’s post-holiday dip, and it’ll be interesting to see if this trend holds as Q1 continues.

“We’re seeing our brands investing and scaling in both Growth and Lifecycle marketing efforts with us at In Social, which - it still being early 2025 - is a really great sign for our industry. Historically, clients have kept their spend and investment at baseline during Q1 after going all in the quarter before for the holidays. This year, however, our ROAS/ROI has not only been steady, but is still climbing, justifying the continued investment. 

Whether it’s broad consumer trends that people are still spending, or that our investments into BFCM positioned our clients well for this scaling, we’re unsure, considering other agencies are reporting only a moderate increase. The TLDR of it is, our clients are spending more in Q1 than we’ve seen in our 10 year agency history, and we’re excited to shepherd that investment into increasing their bottom line.” - 

Jess Grossman, Founder & CEO, In Social

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Ecommerce App Spend: Steady Investments in Tech, No Big Splurges

In February, ecommerce app spend is clustering pretty tightly around a moderate increase—almost like a textbook bell curve. There aren’t many outliers on either the “slash it all” or “spend big” side, which tells us brands are generally sticking with cautious, steady investments. Compared to the YTD trend, the purple peak is a bit sharper, hinting that most agencies are seeing smaller, more consistent boosts rather than wild fluctuations. It’s a smooth-and-steady approach, likely reflecting the post-holiday recalibration we’re seeing across the board.

Ecommerce is full of opportunities right now. Brands are doubling down on better tech, AI, and automation, and agencies that leverage this will come out on top. Klaviyo’s 34% YoY growth from their latest earnings report is proof the industry is thriving.

Bogdan Mihalache, Founder at Email Kong

In an era where every dollar counts, our commitment to understanding client priorities has never been more vital. As we assess the shifting tides of ecommerce spending, we are poised to turn challenges into opportunities, ensuring our partners not only survive but thrive in this competitive landscape.

Ahmed Elghobashy, CEO at Simplix Innovations

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Price Sensitivity – Some Brands Are Tightening Budgets, Others Just Want ROI

This month we have most responses clustering around 6–9, meaning that clients are more budget-conscious than average. This can mean agencies will need to work harder to prove ROI or justify their fees.

However, higher price sensitivity doesn’t automatically spell doom. It just means brands are scrutinizing expenses more carefully. If you can clearly show how your services drive revenue or reduce costs, even highly price-sensitive clients may still see enough value to invest. So, while more clients hovering in the 6–9 range can be a challenge, it’s also an opportunity to stand out by demonstrating strong ROI.

At the start of 2025, efficiency is the keyword. We’re seeing more clients become highly sensitive to development costs and looking to us not just for optimization, but also to streamline their subscription expenses. The focus is clear—maximizing budgets for what truly matters: driving traffic and increasing sales. Every dollar saved on overhead is a dollar that can go toward growth.

Stefan Chiriacescu, CEO at eCommerce Today

"E-commerce brands are getting smarter about where they spend, relying more on agencies for the expertise and efficiency needed to compete. In some areas we notice squeezed budgets, but companies are still looking for specialists who drive real results. The next six months will be critical to how brands spend, but there is plenty of space for those who can adapt. Flexible agencies that prove their value will stay ahead." 

Preslav Nikov, Founder & CEO, craftberry

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In-House vs. Outsourcing – A Clear Divide: Build Internally or Rely on Agencies?

February’s data shows a clear split in what brands might be doing: a chunk looks ready to “DIY” with in-house teams (scores around 0–2), while another solid portion leans toward outsourcing (5–7). Compared to the YTD average, there aren’t many in the middle, so this month appears more polarized. It’s basically a tale of two approaches: some brands want tighter control by hiring in-house, while others see the value in agency expertise to drive bigger results.

"After a few stagnant years, brands seem eager to trade hard in 2025, but with significant uncertainty in the market, doing so in a way that's sustainable is a balancing act. As an agency that specialises in outsourcing ecommerce strategy and management of storefronts we're seeing more and more brands look to strip back their internal teams and focus on bringing in expert support on a fractional basis to help not only get more specialised support but also lean out their P&L"

Ben St. George, Business Development at Heur

As far as I can see brands are hiring agencies, especially in areas that are specialized or new potential markets. I know that we’ve seen a lot of that with Tiktok Shop over at Social commerce club!

Jordan West, CEO at Social Commerce Club

We're starting to see a thaw for Spring where businesses are investing in research and analysis to inform customer insights and build for the year to come

Paolo Vidali, CEO at Hidden Gears

‍We feel that our clients recognise the value of expert guidance in optimising and scaling their stores. Investing in a Shopify agency services ensures they benefit from specialised knowledge, efficient execution, and strategic improvements that drive long-term success.

Olivier Lambret, CEO at Medito Digital

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Agency Revenue Outlook – Agencies Are Betting on Growth in 2025

February’s forecast for agency revenue looks even more bullish than the year-long trend. There’s a strong cluster in the “significant increase” range, with very few agencies anticipating any kind of downturn. Compared to the YTD average, the peak is clearly shifted to the right, suggesting a more upbeat outlook on growth for the next six months. Essentially, many agencies believe 2025 is gearing up to be a high-growth year, and they’re ready to capitalize on that momentum.

“This financial year has just one month to go and we are already seeing improved figures from previous years. Turnover and profits are up. Noticeably for us, we are seeing increased ecommerce work. Other years have seen about 50% of our workload in ecommerce, this year it must be 70-80%.

We are marketing our ecommerce services so an uptick in such work is to be expected, but it is nice to see a lot more organic enquiries and existing clients demanding more from us. This gives us an overall impression of both confidence in this area, and a more general attitude from business that might be focusing on ecommerce, or pivoting somehow."

Steve Turnbull, CEO at Webcetera UK

“Brands are realizing that to truly thrive, they need more than just external support they need a dedicated internal team that understands their vision, culture, and potential. At MOTIF®, we don’t act like an agency, we’re their extended internal team and partner in growth, working side-by-side with them to build the team, strategy, and momentum what they need for lasting success. That’s what Brands need and will be in future brands must have a strong internal team blended with External sources like agencies who won’t act like agencies.” 

Ash Ome, CEO at MOTIF

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Ecommerce Optimism – Confidence in Ecommerce Is Holding Strong

February’s optimism scale has soared to new heights compared to the year-long trend. There’s a big spike around 6–7 and an even larger peak at 8–9, indicating many agencies foresee strong opportunities in the coming months; even with the new Canada/Mexico (EU next?) tariffs coming into play.

Interestingly, the purple line hovers higher than the YTD average for most of the scale, suggesting February’s respondents are feeling extra confident. While a small group remains cautious near the lower end, the overall vibe is upbeat—agencies see 2025 as prime time for ecommerce growth and are gearing up to take full advantage.

The threat of Tariffs means shocks to the supply chain; shocks to the supply chain mean uncertainty, which is bad for business. I suspect we will see the same thing as we did during the pandemic. A few companies will experience massive growth at the expense of others going completely out of business.

Jody Edgar, CEO at Sunbowl

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In summary

Marketing budgets and app spend are gradually increasing, showing cautious but steady growth. Price sensitivity is more varied, with some brands tightening their wallets while others prioritize ROI. The in-house vs. outsourcing debate is more polarized, with fewer brands sitting in the middle.

Despite these shifts, agencies remain optimistic—most expect revenue growth in the next six months, and confidence in ecommerce opportunities is notably high.

See you next month!