🌀 Can Online Grocery Sales Reach 50% Penetration?✨

In partnership with

Welcome to MarketMaze, the #1 newsletter for staying on top of the latest in Marketplace and E-commerce. Get all the insights you need in just five minutes a week!

🌀This week’s maze:

1. The Big Story 🧠 
Can Online Grocery Sales
Reach 50% Penetration?✨

2. Data 📊 
Second-Hand market overview in Switzerland♻️
Top20 Cities for Amazon.com Sellers🏙
Grocery Retail Media Report🧃

3. News 📖 
🛒 🇺🇸 Amazon expands Rufus AI to new global markets
🛒 🇨🇳 Shein & Temu growth rates forecast to plummet
👗 🇨🇳 Shein sees 70% profit drop amid Temu rivalry
👗 🇬🇧 Next enters premium fashion with Seasons launch
🍔 🇮🇳 Swiggy seeks $11.3B valuation at IPO, half of Zomato
🍔 🇬🇧 Just Eat expands in-car ordering across Europe
🗞🇨🇳 Alibaba.com launches Trade Assurance in Europe
🗞🌍 Google Expands AI Overviews to 100+ Nations
🦄🇺🇸 Coframe raises $9M for AI-driven website optimization

+ over 25 other news from the last week you need to know 🎁

🙋‍♂ Was this forwarded to you? 👉 Sign up to the newsletter
💌 Did you like this issue? 👉 Sharing this link is caring!

Seeking impartial news? Meet 1440.

Every day, 3.5 million readers turn to 1440 for their factual news. We sift through 100+ sources to bring you a complete summary of politics, global events, business, and culture, all in a brief 5-minute email. Enjoy an impartial news experience.

Join for free today!

BCG’s report, based on Forrester’s U.S. Online Retail Forecast and presented by Gregor Murray, highlights a rapid shift to online shopping in most categories, with grocery still trailing behind. Marketplaces like Amazon and Walmart show impressive growth as digital demand accelerates.

📊 Categories & Grocery Lag

Younger shoppers boost online sales for video games, electronics, and clothing.

Significant acceleration in grocery digital commerce penetration and volume sold online is expected within the next decade,

Will e-grocery reach 50% of sales within the next 10 years? Unlikely.

Will share if sales in some grocery categories reach 50%? Possibly.

🛒 Marketplace Momentum

Amazon marketplace sales make up 60% of its total volume, with a 13% revenue rise in Q2 2024.

Walmart marketplace sales grew 30%+ in the last four quarters, adding 20% more sellers.

UK retailer B&Q saw 40% of online sales from its marketplace in 2024.

Carpathia, with OC&C Strategy Consultants, has released insights into Switzerland’s second-hand market, highlighting growth, sustainability, and leading platforms.

🌍 Swiss Market Size & Predictions

Global second-hand market projected to grow from $180B in 2021 to $330B by 2027.

Switzerland’s market hit CHF 1.5B ($1.6B) in 2022, excluding vehicles.

Demand driven by sustainability goals and rising living costs.

Swiss second-hand growth supports the circular economy and product longevity.

💼 Key Market Players & Revenue

Ricardo leads with CHF 800M ($864M) in sales for 2023.

eBay follows with CHF 180M ($194M) due to international reach.

Digitec Galaxus' P2P model saw a 90% jump in resale offers.

Transa launched a second-hand platform for outdoor goods in 2023.

Unlock BFCM Success: Join Our Expert-Led Holiday Prep Webinar

Join us for the last holiday preparations with our expert-led webinar!

Join top merchants Like Nick Shackelford (BREZ), Chris Lang (Fresh Chile) and industry leaders as they share their tried-and-true strategies for Black Friday and Cyber Monday success.

Learn how to optimize your operations, maximize sales, and navigate the BFCM frenzy with ease.

This exclusive event offers invaluable insights to help your business thrive during the most crucial shopping days of the year.

Reserve your spot today!

Secure Your Webinar Spot

SmartScout published its latest report on Amazon seller demographics, revealing a major shift in e-commerce dynamics toward Chinese cities dominating the market.

SmartScout ranks Shenzhen #1, with 102K Amazon sellers.

11 of the top 20 seller cities are now in China.

Shenzhen's manufacturing power fuels direct-to-consumer growth.

U.S. cities like NYC and L.A. now trail Chinese hubs.

China’s integrated logistics offer faster, cheaper global shipping.

The recent "State of Digital Grocery" report from Grocery Doppio reveals insights on retail media networks in U.S. grocery, highlighting an $8.5B growth opportunity as retail media integration becomes a critical focus for grocers and brands.

U.S. grocery retail media is valued at $8.5B, set to double in 18 months.

73% of grocers now see retail media as a C-level priority.

88% rank media monetization as a top growth driver.

93% of CPG brands seek digital-store integration for ad strategy.

Shopper engagement with in-store media has jumped 38% in a year.

🇺🇸 Amazon expands Rufus AI to new global markets (Canada, France, Germany, Italy, and Spain). Launched in the U.S. earlier this year, Rufus leverages Amazon’s data on customer reviews and product information to offer targeted recommendations.

🇨🇳 Shein & Temu growth rates forecast to plummet in 2025, as predicted by a Forrester report. Cited issues include quality concerns, nationalism, and rising customer acquisition costs.

🇬🇧 Amazon mandates UK return options for sellers. From Nov 11, 2024, Amazon sellers with UK customers must either provide a domestic return address or a prepaid return label. If neither is available, Amazon will refund customers automatically without requiring item returns. Sellers from France, Germany, Italy, and Spain must adapt quickly to avoid losing both sales and inventory.

🇪🇺 Temu faces EU probe over DSA compliance issues. The EU has launched a formal DSA probe into Temu’s marketplace, citing concerns over illegal products, addictive design features, and transparency issues. A possible 6% global revenue fine looms for parent company Pinduoduo if violations are found.

🇺🇸 AliExpress offers 0% commission to attract US sellers. The move offers local sellers access to a global audience. AliExpress also provides tools to simplify setup and optimize sales, aiming to boost U.S. participation in a competitive eCommerce landscape with rivals Temu, Amazon, and Walmart vying for market share.

🇩🇪 Otto opens high-tech logistics hub in Poland. The center can manage 110M orders annually and will create 1,900 jobs. The $300M investment highlights Otto’s European commitment, positioning Poland as a key logistics point.

🇮🇳 Meesho claims India’s first e-commerce cash flow. For the fiscal year ending March 2024, Meesho reported a cash flow of ₹232 crores ($27.6M) and grew revenues by 33% to $905.6M. It also reduced adjusted losses by 97%, showing its competitive edge.

🇨🇳 Shein sees 70% profit drop amid Temu rivalry for the first half of 2024, with earnings falling below $400M on $18B revenue. Rising competition from Temu has challenged Shein's market share, dampening growth. Revenue growth slowed to 23%, down from 40% in 2023.

🇬🇧 Next enters premium fashion with Seasons launch, a new e-commerce platform offering premium brands like Marc Jacobs and A.P.C. to capitalize on the demand for luxury in the UK. Following recent acquisitions and industry changes, Seasons will focus on high-quality service and curated selections aimed at discerning customers.

🇬🇧 Unilever’s AI beauty tools increase 43% sales lift, creating immersive experiences for users while boosting sales. In the U.S., Dove’s AI-powered Scalp and Hair Therapist, launched in March, gives scalp-care advice with scientifically-backed responses. BeautyHub Pro, available in Asia, has attracted 3M+ users with selfie-based recommendations.

🇬🇧 Harrods debuts luxury e-commerce with Scayle tech, aiming to provide seamless luxury shopping across the globe. With custom landing pages, product management tools, and integrated ERP, Harrods targets the US and Middle East. Upcoming upgrades include a mobile app and a multi-channel, global rollout.

🇯🇵 GU (brand owned by Uniqlo) debuts Click-and-Mortar model in U.S.. GU’s new flagship store in New York blends digital and physical retail, using its app to let customers scan items, check inventory, and get personalized sizing through the “MySize CAMERA.”

🇺🇸 Estée Lauder debuts on Amazon Premium Beauty, allowing customers to shop its skincare and makeup products with added features like an exclusive Shade Finder for "Double Wear" foundation. The launch includes a sports-themed campaign, “Game Day, Your Way,” promoting the products to female sports fans via Prime Video.

🇩🇪 Deichmann acquires Esprit rights in Europe and US. This move will return Esprit to retail through shoe stores like VanHaren, while clothing rights go to Theia Brands. Esprit’s owners sought buyers after bankruptcy issues in April, but no acquisition price was disclosed.

🇸🇬 Lazada partners with Taobao for new fashion channel in Singapore and Malaysia. With over 6M items available and discounts of up to 70% every Saturday, Lazada aims to offer affordable style. Promotions like “Buy 3, Get 20% Off,” free returns, and fast air shipping in as little as 5 days enhance the shopping experience.

🇮🇳 Swiggy seeks $11.3B valuation at IPO, half of Zomato. Swiggy's IPO next month seeks $1.34B, with $535M from new shares. Yet, it now ranks behind Blinkit and Zepto in quick commerce. Swiggy’s valuation growth has slowed since its $10.7B private market peak in 2022, but it will try to rebound with its public offering.

🇬🇧 Just Eat expands in-car ordering across Europe to Ireland, Spain, Italy, Germany, and Austria. Initially launched in the UK, the app is accessible via the Mercedes-Benz In-Car App Store. More car brands will soon have access. Just Eat has added new features, like Group Ordering, and tools like Menu AI, for a smoother customer and partner experience.

🇩🇪 Lidl’s U.S. Rebrand Focuses on Fresh and Local. Known as “The Super-est Market,” Lidl aims to retain its European roots while catering to American tastes. The brand, with 170 stores, recently opened in the Bronx, and is honing its approach for Atlanta, NYC, and D.C. Lidl's plan involves compact, 25,000-square-foot stores with 4,000 SKUs.

🇩🇪 HelloFresh Shifts Focus to Ready-to-Eat Meals. HelloFresh sold fewer meal kits last quarter, yet saw sales rise 1.4% to $1.9B, driven by a 40% increase in ready-to-eat meals. CEO Dominik Richter highlighted this category as the primary growth driver, with the company refining marketing for higher profitability.

🇺🇸 Amazon loses grocery lead Tony Hoggett. Tony Hoggett, Amazon’s SVP of grocery stores, is leaving after nearly three years. His departure marks a pivotal moment as Amazon Fresh rapidly expands, surpassing 50 stores and adopting new designs.

🇬🇧 Deliveroo targets huge growth in UK delivery market. At its Food Forward event, Deliveroo unveiled its strategy with three key pillars: building trust, expanding delivery occasions, and empowering partners. According to Kantar data, only 2% of the UK's 50B annual food occasions are takeaways, showing vast room for growth.

🇺🇸 A 7-Eleven to Open 600 New Stores by 2027 in North America by 2027. This new format offers a broader food and beverage range and aims to strengthen the brand amid declining fuel profits and cigarette sales. The company also plans to close 444 underperforming locations to focus on profitable stores.

🇨🇳 Alibaba.com launches Trade Assurance in Europe. Covering Germany, France, Italy, and Spain, this free service includes secure payments, real-time order tracking, and market insights.

🌍 Google Expands AI Overviews to 100+ Nations. Ad placements in AI Overviews, available in the U.S. on mobile, aim to provide relevant results.

🇩🇪 Ceconomy profits surge with smaller store focus. Ceconomy, parent of MediaMarkt and Saturn, saw a 4.1% rise in sales to €22.4B ($23.7B) in FY ending Sept 30. After 4 years of steady growth, profitability is up for the 7th quarter, expected to hit $305M. CEO Wildberger cites success from smaller Xpress shops, closing unprofitable locations, and expanding online.

🇺🇸 Optiwise.ai secures $2.4M to grow AI for Walmart. Olivia is an AI assistant designed to enhance listings and ads for Walmart Marketplace sellers. Olivia analyzes product listings, offers tailored keyword and pricing suggestions, and even adapts content from Amazon for Walmart.

🇬🇧 Yodel partners with InPost for parcel deliveries. The collaboration supports a rising demand in Out of Home parcel services, with C2C deliveries up 200% over two years. Tracking is provided via InPost's app, adding convenience.

🇺🇸 Klarna expands to Apple Pay in US & UK checkouts. Klarna’s “Pay in 4” plan gives customers four installments, interest-free. With iOS 18, shoppers can select Klarna as a payment option online and in-app on Apple devices. Klarna plans to expand to Canada in the coming months.

🇳🇱 CIRRO integrates with nShift for global shipping. This integration will automate processes for merchants, enhance tracking, and streamline returns, improving delivery experience for customers. CIRRO’s 30+ country presence and nShift’s 1000+ carrier network aim to give merchants a competitive edge and better customer satisfaction.

🇺🇸 Coframe raises $9M for AI-driven website optimization. The startup’s AI platform optimizes websites, adjusting UX based on user behavior and boosting sales. In testing, Coframe achieved a 42% increase in click-through rates, with one segment seeing a 352% lift.

🇺🇸 MealMe shifts to B2B, raises $8M for API expansion, bringing its total to $16M. Founded as a consumer app in 2019, MealMe has transitioned into a B2B API provider, powering food and retail ordering within apps. The API connects over 1M stores and restaurants across the U.S. and Canada.

🇬🇧 Simplisales empowers B2B wholesalers with AI tech. Through an AI-powered platform, it eliminates manual order-taking with ERP-integrated apps and websites. Since launching, the company has attracted clients with annual sales up to €100M, achieving €20M GMV to date.

That’s all. See you next week in the 🌀Maze!