Amazon News: How a TikTok Ban Could Affect Beauty, Amazon's Ad Opportunity Amid the Demise of Cookies, Amazon Losing Customers to Temu, And More
Down By 2.6 Million Users, Amazon Could Keep Losing Customers To Temu
In the retail battle, Temu gains 51.4 million daily active users from 2022 to 2024, while Amazon faces a decline of 2.6 million DAUs, posing a challenge to its dominance in the e-commerce landscape. As Temu attracts lower-income customers with its low prices, Amazon focuses on satisfying its upscale clientele, but questions arise about potential overlap and customer retention between the two platforms.
Amazon Sees Opportunity Amid the Demise of Third-Party Cookies
Amazon's strategic moves to capitalize on the end of third-party cookies in Chrome could position it as an unexpected beneficiary, leveraging its vast trove of data and infrastructure to offer advertisers alternative solutions, such as its proprietary identifier. Meanwhile, the company aims to strengthen its position in the advertising market through its cloud computing services.
Worldwide eCommerce Sales to Break $6 Trillion, Making Up a Fifth of Total Retail Sales
Worldwide retail ecommerce sales are projected to reach $6.334 trillion this year, comprising 20.1% of total retail sales, with varying growth rates across regions, led by China, followed by the US and the UK, prompting businesses to adapt strategies to accommodate this shift.
Refund Fraud Schemes Are Costing Amazon And Other Retailers Billions
Refund fraud groups, organized like businesses, are exploiting lenient refund policies, robbing retailers of billions of dollars. Amazon filed lawsuits against several individuals linked to these fraud rings, highlighting the challenges faced by retailers and law enforcement in combating this growing problem.
The 2024 E-Commerce Beauty Report
Our report takes a deep dive into the latest trends and shifts across key platforms like Amazon and TikTok Shop, consumer search behaviors, and emerging technologies. We've blended category growth indicators and macroeconomic projections to provide a holistic view of the industry. In collaboration with our partners at Base Beauty Creative Agency™ , our team of experts has synthesized data and insights to create a guide for beauty brands looking to thrive in the coming year.
Post from Scott Needham :
The biggest changes I've noticed on Amazon over the past 12 years:
The new inventory placement fee stands out due to its upfront nature and immediate impact on balance sheets. Unlike previous fee increases, this one requires small businesses to make challenging decisions regarding placement fees versus higher inbound freight costs and additional warehouse labor. While Amazon claims these fees incentivize network optimization, most sellers lack the resources to comply, resulting in what feels like a "placement fee tax" passed on to consumers.
To address this, sellers should update profit models and adjust prices accordingly.
Post from Abhishek Digaskar :
Sponsored TV signals are now live in Amazon Marketing Cloud (AMC)! With this launch, all advertisers and partners with an AMC instance will gain access to invaluable Sponsored TV insights, alongside the existing suite of ad signals from Sponsored Products, Sponsored Display, Sponsored Brands, and Amazon DSP. Why is this such a big deal? Well, until now, marketers have relied on a multitude of ad signals to uncover insights across their media investments. With the launch of Sponsored TV in late 2023, we introduced a groundbreaking way for advertisers to leverage Amazon's first-party shopping signals and interactive ad formats, driving measurable results. Now, with Sponsored TV signals integrated into AMC, advertisers can dive even deeper into their Sponsored TV event-level data. This means more comprehensive cross-media custom attribution analyses using various attribution models.
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Post from Liran Hirschkorn :
Amazon took a page from TikTok's book, and brands are seeing increased visibility because of it. Sellers can now run vertical video ads. This is big for 2 reasons:
Post from Todd M. Piechowski, MPA :
TikTok has won the attention game. 97 minutes per day to be exact. In fact, peers near my age are using TikTok just as frequently as Linkedin. The looming question is, can TikTok turn all of this attention into social commerce?
The stated $17.5B investment by ByteDance into growing this commerce reveals a massive effort to facilitate the effort, and it's beginning to be backed by other trends as well:
- Total global GMV in the beauty & health category of $2.49B in 2023. The top leading category on TikTok Shop thus far. -Top brands in the beauty industry driving sales through not hundreds of affiliates, but thousands. With hundreds of thousands of affiliates flocking to the platform due to the lucrative commission rates, consumers are being inundated with exposure to new products and more reasons to buy.
How a TikTok Ban Could Affect Beauty Brands
TikTok's growth and the launch of TikTok Shop in 2023 present new e-commerce opportunities and challenges for beauty brands and investors, raising questions about its role alongside traditional retail channels and the level of investment needed amid regulatory concerns and potential bans. While TikTok offers wider audience reach and growth potential, beauty brands still see the importance of maintaining physical presence, especially through partnerships with major retailers like Sephora or Ulta, alongside a strong digital strategy
With a Ban Looming, TikTok Pushes Forward with New Commerce Features
Despite political pressure and potential bans, TikTok continues to advance its commerce ambitions, introducing updates to its ecommerce solutions aimed at driving product discovery and sales, with reported return on ad spend (ROAS) metrics surpassing other media channels, emphasizing its commitment to becoming a leading commerce destination.
TikTok Is The No. 1 Social-Media App For Gen Z To Shop On
Almost 70% of US consumers have used a social-media platform to buy products, a new survey found. TikTok is the preferred platform for Gen Z to buy, while millennials and boomers still use Facebook. Here are 4 key takeaways from a survey of 1,000 Americans run by creator-management platform Grin.
TikTok is in Trouble in the U.S. and Europe–but American Social Apps Could Be Next
The U.S. House passed a bill targeting TikTok over its ties to its Chinese parent company, reflecting broader international scrutiny on major tech firms like Amazon, Meta, and Apple for content moderation and data privacy issues. With global regulations tightening, consumers can expect significant changes to online content as governments prioritize user protection and transparency over platforms' growth.
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Thriving in e-commerce means adapting and innovating 🌟 Remember, as Warren Buffett suggests, it’s about understanding the playing field - with or without cookies, the game goes on. Dive deeper & let’s evolve together! 💡 #innovation #ecommercegrowth