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Dear Readers,

Over the last two weeks, the e-commerce news has been slow, almost the calm before the storm. I did not write a newsletter last week as it was my Dad's 82nd birthday, and I felt I needed to be more creative to write. In the future, the week of September 27 will not have a newsletter.

The three questions on my mind:

1. Why are developing economies such as Brazil, India, South Africa, and now Indonesia that have taxed or blocked Temu? Whereas Europe and the US have had conversations about regulation changes?
2. Why are Alibaba and JD.com deepening their integration? I never would have believed that JD Logistics would be found inside Alibaba's ecosystem.
3. Why do we not talk about YouTube Shopping?

As always, thanks for your trust and support. Feel free to respond to the e-mail as I read and respond to all emails for readers.

​Onwards, Hendrik

Marketplaces

​Amazon’s Double Flywheel - Kevin LaBuz​

Amazon’s redesigned fulfillment network has unlocked a lollapalooza effect, where lower costs and faster delivery fuel greater selection and customer loyalty. As costs drop, Amazon can economically offer more lower-priced items, expanding its selection and becoming relevant on more purchase occasions. Faster delivery drives purchase frequency, basket size, customer satisfaction, and, ultimately, LTV.

Amazon and Temu’s New Battleground: Winning Over Sellers. - WSJ ($)

Some sellers of products that have sold well on Temu are skeptical about Amazon’s ability to compete on low-cost items. Richard Cai, founder of the vacuum brand Puppyoo, which has sold on both sites, believes Amazon relies too much on fees. “If you want to be as cheap as Temu and expect Amazon to lower its commissions, how is that even possible?” he said.

BlackRock will become top SellerX shareholder after debt deal. Spreetail acquires Echo, a customer insights platform. EssilorLuxottica partners with Pattern for Amazon expansion in Australia

Amazon announces Business Prime rewards and discounted Business Prime membership Fanatics Live acquires the assets of European live-commerce platform Voggt. Amazon risks a lawsuit from UK sellers over frozen funds.

HungryPanda, an Asian-food delivery app, raises $55M. Used car parts marketplace, Ooko secures €20M Series B. eBay sees strong demand for luxury goods and auto parts in UAE. eBay removes UK seller fees to counter new wave of marketplace startups. Bausch + Lomb launches its Opal marketplace. Henry Schein expands into dental supply marketplace. eBay to charge buyer fees in 2025.

​Shopee and Tokopedia hikes e-commerce fees to chase profitability. Shopee interim head of brand protection reveals top three priorities.

Alibaba's Taobao introduces Tencent's WeChat Pay, set to add JD Logistics. Pinduoduo kicks off Singles’ Day campaign with merchant perksAmazon challenges Mercado Libre in Argentina with low-cost international shipping.

The lion’s share of Swiggy’s IPO proceeds to bulk up Instamart dark store count. Tiger Global is looking for a stake In Zepto. Balancing costs and quality: The E-commerce behind bicycle rentals for delivery workers. Thailand's Robinhood food delivery app lives on after its sale to consortium. IPO-bound food delivery app Swiggy launches XL EV fleet for bulk orders. Quick commerce sales In India surge by 280% over two years: Report. Talabat to be valued at more than parent Delivery Hero in IPO: IFR.

Former Amazon seller Appario Retail sues CCI over antitrust probe. Online sellers on Walmart's Flipkart sue India watchdog over antitrust probe. Timeline of CCI's antitrust probe into Amazon and Flipkart.

‘I feel that there’s no effect’: Qoo10 vendors who are awaiting payment calls for more action after the MAS move. MAS directs Qoo10 to suspend the provision of covered payment services in Singapore. Prosecutors are investigating the nature of e-commerce platforms' payments to parent Qoo10. Arrest warrant sought for Qoo10 CEO over massive payment delays. Indonesia seeks to ban Temu. Temu’s GMV in the US Region Exceeds 20%, Expanding Business in Latin America and Southeast Asia.

Luxury Commerce insights sponsored by Luxlock​

Watches of Switzerland buys luxe watch enthusiasts' "gateway" Hodinkee - Fashion Network​

Watches of Switzerland Group (WoSG) has acquired Hodinkee, the New York-based global digital editorial content provider for luxury watch fans. Terms weren’t divulged.

eBay UK unveils a luxury consignment service. LVMH buys a key stake in Moncler and gains a seat on the board. A report says Mytheresa may buy Richemont's Yooz Net-A-Porter. What’s next for luxury e-commerce? LVMH sells Off-White to Bluestar Alliance. Coupang launches luxury beauty shopping platform R.LUX.​

Fashion e-commerce

Hair care ‘skinification’ brand Seen raises $9M. Shootify raises €300k for AI product photography. Foot Locker partners with Nykaa for India debut, From $152M in investments to a $2.5M sale: Lusix’s lab-diamond dream comes to a bitter end,

​TikTok Shop, specialist retail and Amazon’s ascent: Navigating the new beauty landscape. Beauty brands draw the line between dupes and fakes on Amazon

Could TikTok Shop be the death of ASOS? Béis is launching a resale program. H&M expands its digital presence in China with launch on Pinduoduo and Douyin. Will return fees stop you clothes shopping online? Microtrends are killing personal style and making shopping a nightmare.

New Barclays data reveals growing demand for buying beauty, skincare, and fragrances on social media. Zalando brings its AI-powered assistant to all markets and adds four new cities to its Trend Spotter. Shein faces greenwashing investigation in Italy. Superdry boss: ‘Shein should pay tax in a fair way or there will be UK bankruptcies’ Shein’s Founder Heads to U.S. to Meet Investors Ahead of London IPO.

Advertising

In-store digiLooma, an in-store digital media platform, raises $10M. Retail media platform Zitcha will expand US operations with $15M funding.

ShopFully and MEDIA Central have merged with Flipp to create the largest international player in 'drive-to-store' marketing. Gopuff launches new advertising capabilities to enhance campaign efficacy across the consumer purchase journey.

China fined influencer agency Three Sheep US$9.8M for ‘made in Hong Kong’ mooncakes. Google’s grip on search slips as TikTok and AI startup mount challenge. Consumers want commerce video ads to include product costs and demos. Google Is stuffing annoying ads Into Its terrible AI search feature.

,Kellogg’s boosts sales by 187% with a BVOD campaign powered by retail data. Four trends in paid search advertising. Tesco and The Trade Desk expand partnership to offer maximum ad campaign control and optimization. Pinterest rolls out genAI tools for product imagery to advertisers.

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

Dexory, who develops autonomous robots and AI for warehouses, raises $80M in Series B. Pallet, which is announcing an $18M Series A. Staci, a specialist fulfillment provider, acquired by bpostgroup in a deal valued at £1.3B.

Rainmakers acquires Shipsi. Deutsche Bahn approves the sale of DB Schenker to DSV. DHL Express announces a price increase. Bottlenecks begin to form in Asia as air peak season approaches. Walmart and Sam’s Club are preparing to merge supply chains. Maersk gains build on a nearly $1B effort to expand its e-commerce logistics arm. Prologis' U.S. logistics fund: 20 years of high-performing logistics assets.

​Loop’s pre-purchase returns solution to help merchants helps merchants save return costs. Amazon, Shiprocket and DHL apply for Indian government’s e-commerce export hub pilot. Slow Logistics: The eco-friendly supply chain of tomorrow?

Consumer

PepsiCo agrees to acquire Mexican snack maker Siete Foods for $1.2B. Vizit, a Visual AI software, raised $25M in Series B funding.

Indian-fresh food brand Pluckk buys D2C nutrition brand Upnourish for $1.4M. Kuwait’s Bazzar Gate secures $1M investment.

AO agrees to a deal to buy musicMagpie. Retail supply chain AI startup Ameba raises $7M in Seed funding. Lotte Mart will launch an app dedicated to fresh food and compete with Coupang, Curly, and Oasis. Walmart’s e-grocery sales powered by affluent households. Pernod Ricard touts Asia as the “biggest growth driver” for direct-to-consumer business. Pennsylvania convenience stores can offer alcohol delivery through Vroom.

​Fintech company IQVentures Holdings has completed its acquisition of Aaron's, which offers lease-to-own and purchase solutions for appliances, electronics, furniture, and other home goods for $10.10 per share in cash, in a deal valued at approximately $504M. Erika Badan built Barstool Sports. Can she rebuild Food52? Sumitomo Corporation Invests in Social Interior. Alibaba-owned hypermarket chain Sun Art said to draw PE interest​

Payments

​eBay provides cash advances to sellers. Payfare share price craters after DoorDash contract blow. Amazon and Mastercard team for digital payment in Africa and the Middle East. Valu announced a new partnership with ShipBlu and PayTabs Egypt to streamline secure online payments for e-commerce purchases delivered within Egypt. Flipkart sees multi-fold jump in customer purchases using credit instruments. Singapore's Sea accelerates digital bank push in Thai license bid.

​Klarna partners with Adyen to bring buy now, pay later into physical stores. ‘dLocal & ShopeePay to expand payment solutions in Asia. Profound’ changes coming to South Africa’s payments industry. LaFinteca’s Impact on Latin America’s e-commerce landscape. Mercado Pago launches digital wallet in Colombia.

Stats and Other Interesting News

Qatar: e-commerce transactions surge by 6.5% to $934M in August. Research finds over half of Ethiopian e-commerce platforms earn less than $10k annually. Brazil: 2024 analysis of payments and e-commerce trends. Moment strengthens its in-flight e-commerce offer with the acquisition of Airfree.​

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 311, sent on 7 October 2024.