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June eCom Wrap-Up - Everything You Need To Know
Amazon's Direct-from-China Marketplace, New eCom Rules & More
Daniil Andreev
July 04, 2024
Hey 👋
June’s been packed with eCom news, from this summer’s Spotify Editions & Amazon launching a direct-from-China marketplace to Temu & Shein crushing US competitors without them even realizing it — we’ve wrapped every event & detail for you.
Let’s get into the highlights of June:
Amazon Launches a direct-from-China Marketplace 📦
The Summer of Deal Days: Amazon, Target, Walmart, Best Buy & even TikTok 🏷️
Shopify Editions ‘24 Summer 🤩
New eCom Rules in China, India & California ⁉️
Facebook Ads Cost 30% More On iOS + Shopify says bye-bye to Amazon Pay in Europe 🤯
Google likes your eCom store more than affiliate content 🤫
Target teams up with Shopify to expand its marketplace 💹
Temu & Shein are making a killing — and nobody even noticed 🤑
China’s 618 Shopping Festival Results 🎊
1. Amazon Launched a Direct-from-China Marketplace 📦
Amazon is launching a new marketplace to compete with Temu, Shein, and AliExpress, focusing on low-priced items shipped directly from China.
This new section within the Amazon app and website will feature unbranded fashion, home goods, and daily necessities priced under $20 and weighing less than one pound.
Above you can see the difference between the traditional Amazon FBA & the direct-from-China model — and instead of the average 20-30 day shipping times from China to your doorstep, products from Amazon that come from China would only take 9-11 days to arrive.
I guess now we can call it ”Prime Time — from Beijing!” 🛫
2. The Summer of Deal Days ⛱️
The summer is heating up with awesome deals, and it all kicks off with Amazon Prime Day, set for July 11-12. Amazon Prime Day promises two days of massive discounts across every category there is, but Amazon isn't alone.
Other retailers are ready to compete with their own summer sales:
🔆 Walmart Deals — Running from July 10-13, Walmart Deals is on. They're offering deep discounts on a wide range of products, including electronics, home appliances, and toys. With their large inventory and aggressive pricing, Walmart aims to give Amazon a run for its money.
🎯 Target Circle Week — Target is joining the summer sale fray with "Target Circle Week" from July 9-15. Target Circle members can enjoy exclusive deals and discounts on thousands of items.
🏷️ Best Buy's Black Friday in July — "Black Friday in July" offers big savings on tech gadgets, appliances, and more from July 10-12. Three retailers, all coming for each other’s throats so far..
♪ Even TikTok is Competing with "Deals For You Days" — Starting July 9th, TikTok will be competing with the retailers above & offering massive discounts on fashion and beauty products, decor, summer bestsellers, and more with its own “Deals For You Days” event.
And it won’t just be about great deals, TikTok’s event will feature content challenges and LIVE shopping events where brands and merchants can engage with their followers in real time.
Yup, looks like this summer will be a free-for-all between every retailer possible — whose side are you on? 👀
Stay tuned for more exciting updates from Ecommerce & Unicorns! Subscribe now:
3. Shopify Editions Summer ‘24 🎇
Shopify has unveiled its Summer 2024 Editions, packed with over 170 new updates & unifications — the major changes include:
1️⃣ Markets — Simplified cross-border selling with the new “Local Market” feature, making it easier to manage currencies, duties, and taxes in one place.
2️⃣ Analytics — New dashboards to monitor key performance metrics, track sales, and gain insights, all at a glance (you can even create custom reports!)
3️⃣ Shopify Magic (AI) — an AI assistant dubbed “Sidekick” that can generate product descriptions, help you manage your stores, and even do some segmented email marketing for you?!
4️⃣ Managed Markets — Shopify simplified the Catalog Restrictions UX & added several quality-of-life features for both buyers & sellers like duties and import taxes being included near product prices.
If you want to get the gist of these new additions & unifications, check out our post on Shopify Editions Summer ‘24, some of them are game-changers you cannot miss!
4. New eCom Rules in China, India & California 🌐
🇨🇳 China has proposed new rules to build overseas warehouses and boost cross-border online shopping. This will help companies like Shein, Temu, and AliExpress offer faster shipping to compete with Amazon and Walmart.
The rules also aim to manage data better and review shipping costs through the Universal Postal Union.
🇮🇳 India has introduced the Digital Competition Bill to stop big tech companies like Google, Meta, and Amazon from dominating the market. The bill will label some companies as Systematically Significant Digital Enterprises (SSDE) based on their market power and earnings.
Violators could face fines of up to 10% of their global earnings, and the main goal of the bill is to encourage fair competition & avoid market monopoly.
🇺🇸 California lawmakers are hurrying to pass a bill that would make online marketplaces like eBay, Meta, and Nextdoor collect bank account and tax ID numbers from top sellers. This law is meant to stop retail theft and the selling of stolen goods. It will impact sellers who make at least $5,000 profit and have 200 sales a year.
While some believe this will reduce theft, others worry it might harm online businesses and drive sellers away from the state. New rule every day — time to adapt again. 😅
5. Meta Ads Get Pricey for iOS & Shopify Says Goodbye to Amazon Pay in Europe ⁉️
Apple is extending its 30% fee on Facebook and Instagram ad purchases made through iOS devices worldwide. Previously, U.S. users had to use Apple Pay when boosting posts, allowing Apple to take a 30% cut of the ad transaction. Meta responded by adding an “Apple service fee” and guiding users to boost content directly from their websites.
In July 2024, this requirement will go global, making advertisers shoulder the extra cost if they use Apple devices.
Shopify is saying adios to Amazon Pay in Europe starting August 6th. Users weren’t given a reason, and Amazon responded with a heads-up to merchants about potential extra reserves for handling refunds and claims.
We definitely asked for more eCom complexity, didn’t we? 😭
6. Google Likes Your eCom Store More Than Affiliate Content 🤝
A study by digital marketing agency Amsive found that Google shifted its SEO focus to eCom websites & sites that feature UGC while reducing the visibility of product reviews & affiliate marketing sites.
The study showed a couple of examples where Google really favored eCom websites, like queries for bird feeders, laptops & towel warmers all showing eCom sites for the top 10 results in Google search.
Along with this, UGC platforms like Reddit, Quora & YouTube also appear in top searches more frequently now. Some speculate this has to do with Google’s $60M deal with Reddit earlier this year to license their content for AI training, which seems pretty plausible.
This just means more eyes on your eCom site, pretty neat! 😄
7. Target x Shopify 🎯
Target has partnered with Shopify to introduce new, trendy brands to its third-party marketplace — merchants can now apply to join Target Plus via the Shopify Marketplace Connect app, with selected products featured both online and in Target stores nationwide.
Although Target Plus has only 1,200 sellers, compared to Amazon's 2 million and Walmart's 135,000, its invite-only model has literally doubled its sellers and product count over the past year.
"Our partnership with Shopify extends the breadth of thoughtfully designed and affordable items available to discover and enjoy as part of Target's distinctive mix of brands shoppers love", said Cara Sylvester, executive vice president & chief guest experience officer of Target.
This approach contrasts with the more open strategies of its competitors, likely aiming to maintain consumer trust — we’ll just have to wait & see how this works out for both Target & Shopify 🤔
8. Temu & Shein are killing it — and nobody even noticed? 💰️
New data shows Temu is rapidly surpassing eBay in attracting repeat U.S. customers, with 34% of shoppers visiting it monthly compared to eBay’s 29%.
A survey of 4,000 people revealed that 63% have shopped at Chinese marketplaces like Temu and Shein in the past year. Temu draws shoppers with great prices, ease of use, and special deals, although only 6.4% trust it over Amazon. A surprising 17% believe Temu could eventually surpass Amazon.
U.S. retail leaders aren’t overly concerned. TJ Maxx CEO Ernie Herrman and Etsy CEO Josh Silverman downplay the competition, focusing on their unique customer bases.
But this complacency might be dangerous as platforms like TikTok innovate rapidly — you can see this in TikTok’s $1,000,000 livestream events 😲
9. China’s 618 Shopping Festival Results 📈
China’s 14th annual 618 Shopping Festival, originally started by JD.com, saw intense competition this year with major firms like Alibaba offering massive discounts. According to Sherri He from Kearney China, this year’s event was the “most cutthroat” yet due to performance pressures and a consumption downgrade.
Retail data provider Syntun reported a 7% decline in sales to 742.8B yuan ($102.3B), the first decrease since 2016. Conversely, Analysys reported a 13.6% sales increase, highlighting platform growth: Douyin (26.2%), Pinduoduo (17.7%), Kuaishou (16.1%), and Alibaba (12%). JD.com saw a moderate growth of 5.7%.
JD.com and Taobao/Tmall claimed record numbers but didn’t disclose specific sales figures. Some brands, like Zuoliang, reported selling at a loss. 😞
Bonus News
OREO Calls wins Gold in the Creative Commerce category at Cannes Lions.
Samsung Throwback Deals also wins Gold in the same category at Cannes Lions!
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