E-commerce News
Buckle up for a 5-minute ride through the e-commerce landscape! 🎢 Your bi-weekly news are here:
👀 Amazon's Planned Discount Section Raises Concerns for Existing Sellers
Amazon is reportedly launching a new storefront featuring deeply discounted goods shipped directly from China, similar to competitors Temu and Shein. This move has sparked concern among existing Amazon sellers who are already grappling with increased fees introduced earlier this year. They fear the new platform will undercut their sales and make it difficult to compete on price.
While platforms like Temu and Shein have struggled to gain consumer trust, Amazon's established reputation could drive shoppers to its new bargain section. This shift towards ultra-cheap goods from China, coupled with rising fees, has some sellers worried about the future viability of their businesses on Amazon.
🇩🇪 German E-commerce Experiences First Growth in Two Years
The German e-commerce market is showing signs of recovery, with online sales increasing by 0.2% in the second quarter of 2024 compared to last year. This marks the first market growth in two years, following a challenging period for the industry. 2023 German e-commerce experienced its first double-digit decline, with total online revenue dropping by 11.8%. The recent growth, largely driven by a surge in digital services, particularly travel bookings and ticket sales, which increased by 4.2% in the second quarter, is a promising sign. Furthermore, 12 out of 19 product categories surveyed showed positive growth, with food orders leading the way with a 6.2% increase. Despite this positive trend, online revenue for the first half of 2024 remains 1.2% lower than the previous year.
💄 Lipstick Effect Drives Beauty Sales Amid Economic Uncertainty
Despite signs of slowing economic growth and a focus on value-based spending, the beauty industry is experiencing a surge fueled by the 'lipstick effect.' This theory, coined by Estée Lauder's chairman emeritus, suggests consumers turn to small indulgences like cosmetics during economic uncertainty. Orveon, the parent company of brands like Laura Mercier and bareMinerals, is seeing significant growth in 2024, particularly in digital sales.
This trend is attributed to a combination of the lipstick effect and the growing influence of social media platforms like TikTok and YouTube on purchasing decisions. While consumers are becoming more price-conscious, the desire for affordable luxury and self-care, a sentiment shared by many, remains strong.
🤝 Etsy Emphasizes "Human Commerce" with New Seller Standards
Etsy is introducing new "Creativity Standards" to reinforce its commitment to selling unique, handcrafted goods. These standards, outlined by CEO Josh Silverman, aim to clarify what types of products are permitted on the platform. While Etsy isn't banning any previously allowed items, all listings must now fall under one of four categories:
• Made by the seller
• Designed by the seller
• Sourced by the seller
• Handpicked by the seller
Listings will feature labels reflecting these categories, further emphasizing the human element behind each product. This move comes as Etsy faces increased competition from global marketplaces like Temu and Shein, known for mass-produced goods.
📊 Stability Reigns Among Top Retailers Despite Shifting Economic Landscape
The National Retail Federation's (NRF) latest Top 100 Retailers report reveals that the pandemic-era spending frenzy is cooling off, leading to stability at the top of the retail food chain. While minor shifts occurred within the top 20, giants like Walmart and Amazon remain firmly entrenched, thanks to their massive size and resources.
Interestingly, discount grocer Aldi and its subsidiary Trader Joe's experienced the second-largest sales growth in 2023, highlighting a trend toward value-seeking among consumers. As the retail landscape evolves, it will be interesting to see how these power players adapt to changing consumer behaviors and economic conditions.
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👗 About You Adopts Direct-to-Consumer Model to Combat Competition
Facing fierce competition from global players like Shein and Temu, the German fashion platform About You is changing its strategy. The company plans to start shipping products directly from factories to consumers, eliminating a step in the logistics process.
By streamlining its supply chain, About You aims to reduce prices and retain customers drawn to the ultra-low prices offered by its competitors. This move comes as About You, despite achieving its first profit in the last fiscal year, feels the pressure from international rivals rapidly gaining ground in the German market.
🇳🇱 The Netherlands Leads the World in Online Shoppers
The Netherlands boasts the highest rate of internet users who shop online globally, with an impressive 84% e-commerce penetration rate. This means that more than four out of five people in the Netherlands who use the internet also shop online. Other European countries, including the UK, Sweden, and Denmark, followed closely behind.
While China ranks fifth on the list, it's important to note that this reflects the proportion of internet users who shop online, not the total population. The report highlights opportunities for e-commerce growth in Southern Europe, where online shopping penetration remains relatively low. For instance, only 39% of internet users in Italy currently shop online.
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