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Dear Readers,

The three questions on my mind this week:

1. Is Nike's demise due to inexperienced sneaker and apparel management (read CEO), availability in-store, or a lack of understanding of their core customer? I think it's all three.
2. Is the customer-to-manufacture (C2M) model that Temu, Shein, and others use an example of supply chain disruption? I am currently researching this. Any comments are welcome.
3. Why do we in e-commerce not talk about YouTube Shopping? I am trying to understand this as I do not have an answer.

Please feel free to reply to this e-mail. As I read and reply to all. Please share this email to help me grow this newsletter.

​Onwards, Hendrik

Marketplaces

Amazon is stuffing generative AI into its shopping experience. - The Verge​

One of the more notable features announced at the Amazon Accelerate event on Thursday will use customers’ preferences, search, browsing, and purchase history to create personalized product recommendations on Amazon’s homepage.

Amazon aggregators provide bargains for distressed shoppers. - Mergers and Acquisitions​

Valuations for these businesses have declined five times adjusted earnings during the pandemic to for businesses with earnings of under $300,000 a year, to around three times earnings today,

Is Amazon forcing retailers into a liability trap due to AI errors? - Online Handler News [in German]

The situation is tricky, as sellers bear full responsibility for the content of their product pages, even if Amazon makes automated changes without consent. What is particularly worrying is that Amazon continues to push ahead with automated processes without giving retailers sufficient control - a practice that, in the worst case, can have existentially threatening consequences.

Rebelstork, an NYC-based baby gear returns recommerce marketplace raised $18M..Metal manufacturer marketplace NowPurchase raises $6M. Traders of Africa unveil new alliance (partners with Alixpress and MTN Momo) to connect businesses to global markets OfferUp's 2024 recommerce report. Why Amazon’s second Prime Day is unlikely to make or break brands’ holiday sales. TikTok Shop falls short in the U.S.

​YouTube and Shopee partner in Southeast Asia e-commerce tie-up. Chinese retailer JD.com establishes Irish companies. Walmart sells Dada Nexus stake, finalizing its divorce with JD.com. Big questions about Checkers Sixty60 delivery drivers.​

Amazon India is caught In the slow lane. 10-minute delivery firms may be in trouble for alleged unfair business practices in India. Swiggy’s core who’s driving the IPO-bound giant toward profitability? Race to win tableside ordering market heats up in Korea. Meituan paid $11.3B to millions of delivery riders in 2023, averaging less than $0.52 per order. Careem Food is launching a ‘Dirhams for Delays’ campaign in Abu Dhabi.

Ozon Global hosts its 2nd annual entrepreneur forum in Istanbul.Ozon vs. Turkish and Chinese giants: Can the Russian marketplace survive in Azerbaijan?JD.com launches the 2024 agricultural specialties festival. Carbon6 launched an automated 1P deduction management solution for Walmart suppliers.
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Prosecutors question WeMakePrice, TMON chiefs over payment failures. Sky.Garden removes 1,500 vendors over counterfeiting claims. Temu and Shein can weather de minimis changes. Others may struggle.

​Twenty percent growth in customs-registered cross-border Chinese e-commerce enterprises. MIT Sloan researchers develop first-of-their-kind algorithms to balance the fairness of item display and user preferences in online marketplaces.

Luxury Commerce insights sponsored by Luxlock​

Fashion’s luxury-tech era reaches the end of its road. - Vogue Business ($)

“For any brand, especially in the luxury sector, re-platforming from Farfetch Platform Solutions isn’t just a simple e-commerce migration. It’s a fundamental shift in how the business operates,” says Negin Yeganegy.

Why investors are losing patience with luxury brands. - Jing Daily​

Investor frustration stood out most: they felt too many management teams blamed market conditions instead of taking responsibility for underperformance.

Founder Cassandra Grey partners with PE to repurchase Violet Grey From Farfetch..

Maison de Mode is the latest luxury e-tailer seeking a lifeline. Temu sales of cheap knockoffs are soaring. The threat to brands like Gucci and Hermès. Online single-owner sale from Christie’s to feature hundreds of designer handbags. Tod's CEO sees the luxury sector improving in seven or eight months. Why do Asian consumers love luxury shopping? How global brands tap India’s $130B wedding market.

​JOOR's top global retailers' list shows an increasing role for luxury indies. Mytheresa introduces new Chinese brand name, WeChat mini program in China push. Amazon, Notino, and Skims lead cross-border e-commerce in fashion, beauty, and luxury in Europe.

Fashion e-commerce

How AI could transform fast fashion for better or worse. - Time​

Until there’s clear evidence that AI is being used to reduce the fashion industry’s environmental footprint genuinely, I remain cautious about how much positive impact this model is having,” Lewis Perkins, the president of the Apparel Impact Institute, says.

Inside the decline of Australia’s fashion wholesale market. Shein and Zara’s push into livestream shopping shows the channel is gaining momentum. Coach enables instant resale via Poshmark. British e-commerce firm THG to spin off technology platform Ingenuity.

KOLs is the winning edge for niche brands in China. Debenhams eyes international expansion. How Substack became the new fashion destination for online shopping. Nykaa incorporates a new subsidiary In Saudi Arabia.​

Jesse Palmer launches elevated sports apparel line “J. Palmer.” Nike taps new CEO amid DTC challenges. How Google’s antitrust trial stands to affect fashion’s advertising strategies.​

Advertising

Publicis Buys Mars United Commerce in Deal Valuing Agency at $600 Million. - The Wall Street Journal ($)

Publicis said it would match its information on shoppers with Mars’s own consumer data to give marketers more insights into buying behavior and how they can influence it. According to someone familiar with the matter, the deal values Mars at around $600 million.

At Google's antitrust trial, documents say one thing. The tech giant’s witnesses say different. DOJ vs. Google: Can the digital media industry learn from the last 15 years? How could breaking up Google lower your online shopping bill? In US v. Google, YouTube’s CEO defends Google's way of doing things. Google offered to sell part of the ad tech business, but not enough for EU publishers.

Perplexity in talks with top brands on ads model as it challenges Google.Niche marketplaces Thrive Market and Faire join the retail media frenzy.

​It'sRapid Partners with Instacart Ads To streamline display and video creative services for brands. Asos exec: TikTok Shop drives sales growth and could cut out online retailers. The South African company turning delivery bikes into digital billboards. Amazon releases a video generator — but only for ads.

Logistics is sponsored by Third Person - a new way for brands to discover 3PLs

Nike is not alone: customs disputes on the rise in the retail sector. - Retail Detail Europe​

The Belgian tax and customs authorities claim 1.5 billion euros from Nike in a dispute over import duties. Such disputes about interpreting customs legislation are becoming increasingly common in the European Union.

Three ways managed supply chains are changing online marketplace sales. - Chain Store Age​

Since the only retailers that can realistically offer a hosted end-to-end marketplace supply chain service are large retailers, it becomes another way for dominant players to gain even more market share at the expense of smaller rivals. As is so often the case, the "haves" are finding ways to have more by providing more.

Two Boxes secures $5.3M. Pickommerce, an Israel-based warehouse automation provider, raised $3.4M. Exelot: Helping e-commerce shops grow sales in international markets. Kiwibot acquires Nickelytics, an ad startup, to turn its delivery robots into mobile billboards. Asendia signs a strategic partnership with Hubbed. DHL eCommerce and Poste Italiane launch Locker Italia.. CEVA Logistics strengthens its presence in Turkey by acquiring Horoz Bolloré Logistics. Etihad and SF Airlines partner to boost UAE-China trade. J&T Express achieves strong growth in 9.9 Mega Sales through refined operations.

Amazon is shipping 70% more off-Amazon orders. Amazon small oversize FBA fee reductions in Europe. Amazon to offer free Prime benefits to U.S. hourly warehouse workers starting in 2025.

Kuehne+Nagel has opened its largest-ever logistics hub in Northern Italy. Aramex and Smartt AI partner. BBTruck’s 5PL solution for a smarter, greener global supply chain.The role of cartonization in reducing e-commerce shipping costs [podcast]

​FedEx cuts its full-year outlook after posting lower profit and revenue. Maersk denies regular clients are being pushed out by e-commerce.

Consumer

Mars will spend $1 billion on tech-focused hiring, AI, and other digital initiatives to bolster its pet food division. - Fortune ($)

The company says that 70% of the financial commitment will go to hiring, upskilling, and bringing in third-party vendors, including consultants, to make its dog and cat food unit more digitally oriented. The remaining 30% of the funds are earmarked for spending on generative AI, data management, e-commerce, and other emerging technologies.

After a bold pivot, Anker again finds its anchor in charging products. - KrASIA​

As a leading seller, Anker will continue to take advantage of the rise of new platforms. Despite its long-term reliance on Amazon, the company is acutely aware of the risks of overdependence and is eager to seize new opportunities.

Butternut Box announces £280M. Mindtrip, an artificial intelligence-powered travel platform, has announced $12M in funding. Datassential, a NYC-based food and beverage intelligence platform provider, received an undisclosed investment. Dutch distributor and vinyl producer Artone acquires D2C retailer Townsend Music.

Thirty fastest-growing Dutch cross-border sellers. Walmart will now let you ‘Shop with Friends’ from home. RedMart’s five vending machines at Raffles Place MRT have products at prices similar to those of online vending.

Gartner: 32% of holiday shoppers will start before November. Pennsylvania legalizes RTD sales at grocery stores. 73% of Belgian consumers never return orders. Same burger, two prices: Fast food delivery pricing schemes meet anger from consumers in Korea.

UAE-based Automotive SaaS company Seez has secured $4.2M. NHL launches Fanatics retail jerseys, four new styles for fans. Midea provides light at the end of the Hong Kong IPO tunnel.

Payments

The story of Simpler - a Bolt competitor. Farfetch and Volt partner to provide instant payments at checkout for shoppers.

Affirm CEO stakes out differences with Klarna. Wasoko and MaxAB turn to fintech to boost profits following its merger. SA retailer Pick n Pay is doing R1 million/month ($57k) in crypto transactions.

Walmart and the Fiserv team will offer real-time payments. MercadoLibre secures $250M financing from JPMorgan to expand FinTech's credit profile in Mexico. Malaysia and Cambodia lead QR payment expansion in ASEAN. Pyvio and Kora team up to deliver B2B cross-border payments in Africa.

Botim transforms remittances with MENA’s first-ever 'Send Now, Pay Later' service. PayRetailers expands into the African market, covering 12 countries.

Stats and Other Interesting News

Bain sees e-commerce driving 90% of holiday growth .

Amazon's secret weapon in chip design Is Amazon. Alibaba Cloud claims modular data center can halve build times. A new AI-powered robot specializes In picking citrus fruit. The impact of the retirement of continuous scroll.

The content here is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. It does NOT constitute an offer or solicitation to purchase any investment or a recommendation to buy or sell a security. The content is not directed to any investor or potential investor and may not be used to evaluate or make any investment.

This was edition number 310, sent on 23 September 2024.