🌀 Marketplace Model
in Europe 🛍

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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 🧠 
Marketplace Model
in Europe 🛍

2. Data 📊 
U.S. TikTok Shop performance after 1Y 📈 

3. News 📖 
🛒 🇺🇸 Amazon launches AI guides for smarter shopping
🛒 🇪🇺 Temu faces EU demands on illegal product safeguards
👗 🇨🇳 Shein clarifies fake outlet stores in Europe
👗 🇫🇷 Yves Rocher launches digital beauty marketplace
🍔 🇩🇪 Lidl relaunches in the US with $15M campaign
🗞🇺🇸 US considers Google breakup amid antitrust case
🦄🇨🇭 Richemont sells Yoox Net-A-Porter for $610M

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

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Foxintelligence and ChannelX have published reports on the state of online marketplaces in Europe. The data aims to showcase marketplace growth, share, and traffic trends across the continent.

📊 Marketplace Growth by Country

Marketplaces account for 30-45% of online sales in the top EU markets.

The strongest growth was observed in Spain, Germany, and the UK, reaching 40-45%.

Netherlands and France show the lowest penetration with 30-32% marketplace share.

Austria and Italy lead the pack with a 45-46% marketplace share.

🚦 Entities vs. Traffic

Marketplaces represent 21% of the Top 1000 companies but command 53% of all traffic.

Pure retailers make up 42% of the Top 1000 but only generate 13% of the traffic.

DTC (direct-to-consumer) businesses hold similar shares in both the number of entities and traffic.

🏆 Marketplace Leaders

General marketplaces drive 77% of all marketplace traffic.

Amazon captures 17% of traffic, while eBay follows closely with 14%.

Smaller players like AliExpress and Allegro contribute only 3-4% to the traffic share.

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Practical Ecommerce published interesting data on TikTok based on Charm.io. Charm is a U.S.-based data platform providing retailers, sales teams, and investors with in-depth analytics on direct-to-consumer brands. Charm’s staff has collaborated with ex-ByteDance employees to collect publicly available U.S. TikTok Shop data across various categories from its launch in September 2023 to September 2024.

📊 Monthly Sales Surge

Sales jumped from $85M in Sep '23 to $602M in Jul '24.

August sales dropped slightly to $543M but stayed strong.

Sales indicate significant early adoption by U.S. consumers.

💄 Beauty & Fashion Leading the Way

Beauty & Personal Care topped categories with $1.05B in sales.

Womenswear followed, earning $621M Health products like “15 Day Cleanse” generated $39.7M alone.

Electronics held strong with $308M in sales, reflecting diverse consumer interest.

📺 Prerecorded Video Drives Sales

Prerecorded video channels saw $2.5B in total sales.

TikTok's shopping mall function earned $1.1B, with livestreams generating $1.0B.

🇺🇸 Amazon launches AI guides for smarter shopping on its mobile app and website, offering customers tailored product recommendations. The guides cover 100+ categories like TVs and headphones, using reviews and price data to help buyers find the best fit for their needs.

🇪🇺 Temu faces EU demands on illegal product safeguards. The EU is increasing scrutiny on Temu, asking for proof of compliance with the Digital Services Act. Temu must show how it prevents illegal products and ensure seller traceability by October 21. If not, it could face steep penalties.

🇺🇸 Walmart to create unique homepage for each shopper. By late 2025, every shopper will see a unique homepage, powered by Walmart’s Wallaby AI and content prediction tools. This plan includes augmented reality and AI search assistants to make the customer journey faster and more immersive, both online and in-store.

🇵🇱 AliExpress opens for Polish sellers, boosting exports. AliExpress now allows Polish sellers to offer products worldwide, simplifying logistics and translations. This opens new markets for small and medium Polish companies. Experts predict it will boost competition and offer consumers more choices.

🇬🇧 eBay bans private e-bike battery sales in the UK starting 31 October 2024. This move follows rising concerns over lithium-ion battery fires, with 155 e-bike fires reported in 2023. Only approved business sellers can list these products. eBay aims to boost consumer safety, following CE audits introduced last year.

🇺🇸 eBay Foundation awards $3M for global entrepreneurship. eBay Foundation awards nearly $3M to 31 global nonprofits, including Defy Ventures, Hatch Enterprise, and Global Sisters.

🇨🇳 Tencent breaks barrier by integrating Taobao sales. WeChat users can now shop on Taobao without leaving the app. This follows Alibaba allowing WeChat Pay on Taobao and Tmall marketplaces. The partnership between Tencent and Alibaba signals a significant shift in China’s digital economy, bridging two of its biggest ecosystems.

🇬🇧 OnBuy partners with Google Cloud for global scale. With Google Cloud’s Virtual Private Cloud and AI tools like Vertex AI, OnBuy will improve its marketplace efficiency, enhance customer experiences, and reduce costs globally.

🇨🇳 Shein clarifies fake outlet stores in Europe. Shein-branded outlets have appeared in several cities in Spain and the Netherlands, but they are unauthorized. Shein warns these stores aren't affiliated with the company. The situation is growing, with Shein confirming it sells products only via its official online platforms.

🇫🇷 Yves Rocher launches digital beauty marketplace. Yves Rocher’s marketplace launched on Sept 23, expanding its e-commerce with 12+ partner brands. With the aim of growing to 50 brands soon, this move could double online sales in the next 3 years.

🇩🇪 Zalando lifts full-year forecast as profits rise. Zalando raised its full-year profit forecast as sales surged 5% in Q3, bringing adjusted EBIT to $95M. Customer base grew to 50M, and gross merchandise volume jumped to $3.5B. The new strategy is paying off.

🇬🇧 ASOS sells Topshop and Topman for $176M. ASOS has sold 75% of Topshop and Topman to Heartland for $176M. ASOS retains 25% and design/distribution rights. The deal may lower ASOS' profits this year but promises long-term growth, including a relaunch soon.

🇨🇳 Shein parcel shock: student finds live scorpion. A student in the UK was shocked to find a live scorpion inside her Shein parcel. With the help of her flatmates, the scorpion was safely captured and taken by animal experts. Shein conducted an investigation, confirming processes were followed.

🇵🇱 Vinted launches electronics verification service. Vinted introduces a new feature allowing buyers to verify electronics like smartphones for just 20 PLN. Items, such as Apple products, can be sent for authentication in Lithuania. If it's a counterfeit, buyers get a refund.

🇫🇷 Vestiaire Collective launches AI search tools. Luxury resale platform Vestiaire Collective has introduced AI-powered search tools to improve shopping experiences. The company also hired Stacia Carr as CTO and added Jim Freeman, formerly of Amazon, to its board. AI tools like image search and price recommendations are set to roll out by the end of 2024.

🇯🇵 Uniqlo profits surge 27% as sales hit $17.5B. Global demand, especially in the US and Europe, drove growth, despite China underperforming. Uniqlo's viral products fueled its success.

🇪🇺 ECJ rules pharmacy can't sell drugs via Amazon. The European Court of Justice (ECJ) has ruled that selling pharmacy-only medicines via Amazon without obtaining explicit customer consent for data processing violates GDPR. Michael Spiegel, owner of Linden Pharmacy, has been selling drugs like Aspirin via Amazon since 2017.

🇩🇪 Lidl relaunches in the US with $15M campaign on Oct. 16, investing $15M in a marketing campaign. The chain, with around 170 stores, aims to boost recognition, which currently stands at just 58%. Lidl’s growth lags behind competitors like Aldi.

🇺🇸 Amazon offers faster grocery delivery in Phoenix. The company is expanding this service and adding micro-fulfillment centers and low-cost grocery items to compete with rivals like Walmart.

🇺🇸 Kroger Boost adds Disney+ to $99 membership. Kroger's Boost members now get a Disney+, Hulu, or ESPN+ subscription. This follows similar moves by Walmart and Amazon to boost subscriptions with entertainment perks.

🇺🇸 Instacart boosts smart carts with gamified features. Instacart is adding interactive games, location-based coupons, and aisle-aware ads to its Caper Carts. These innovations, aimed at enhancing the in-store experience, increase customer engagement while offering new ad opportunities for brands.

🇺🇸 Sam's Club to launch store without checkouts in Grapevine, Texas on Oct. 17, 2024. Shoppers will use the Scan & Go app for purchases, marking a shift in the retailer’s tech-driven strategy. CEO Chris Nicholas highlighted the move to eliminate friction for customers.

🇺🇸 Allbirds partners with Uber Eats for fast deliveries. Allbirds, known for sustainability, will offer shoe deliveries through Uber Eats. Starting near stores in San Francisco, LA, Chicago, and New York, Uber Eats will use bikes and EVs for eco-friendly last-mile delivery.

🇺🇸 DoorDash expands Wegmans deal, adds 4 new grocers. DoorDash has expanded its partnership with Wegmans across six states and added four new local grocers to its marketplace, including Kowalski’s, Mar-Val, Geissler’s, and Milam’s.

🇬🇧Waitrose partners with Just Eat to boost sales. Waitrose has signed a multi-year deal with Just Eat to expand in the on-demand grocery market. Customers will enjoy 30-minute deliveries from 229 stores, while Waitrose's weekly on-demand sales have soared 140% in 2024.

🇺🇸 US considers Google breakup amid antitrust case. The US government is considering dismantling Google after it was found guilty of violating antitrust laws. The Department of Justice may recommend separating its search engine from Android, Chrome, and Play Store.

🇺🇸 Google expands AI-driven search features. Google updates AI-powered tools in Search, making it easier to find information visually, by video, and voice. Lens now handles 20B visual searches monthly.

🇺🇸 TikTok sued by 13 states, accused of harming teens. TikTok is facing lawsuits from 13 U.S. states and Washington, D.C. They accuse it of causing harm to young users, citing mental health impacts and addiction to its app.

🇨🇳 TikTok launches Smart+ AI, boosting conversions to optimize ad performance. The tool simplifies ad management, promising a 53% increase in return on ad spend. However, TikTok's legal issues in the US may impact its adoption.

🇦🇷 Mercado Libre hits record 20M sales in August. Growth in nonessentials like notebooks (up 173%) and TVs (up 59%) led the charge. Loans increased 69%, with SME financing up 62%, driving digital payments higher.

🇩🇪 Otto Group implements Boston Dynamics robots in over 30 locations, focusing on automating logistics. This partnership aims to enhance operational efficiency and ease labor shortages in the e-commerce giant's warehouses.

🇺🇸 Pinterest launches AI-driven ad tools, boosts ROAS. Prada saw a 64% CPA reduction, and Walgreens achieved 55% more clicks. The tools are available globally for advertisers in multiple markets.

🇬🇧 Asda expands into dropship model with Decathlon. Asda teams up with Virtualstock to expand its online product range through a dropship marketplace. Decathlon is the first major brand onboarded, offering sporting equipment. Asda plans to onboard more sellers in the coming weeks.

🇨🇭 Richemont sells Yoox Net-A-Porter for $610M securing a 33% stake in Mytheresa. The transaction is expected to close in 2025. Richemont also provides YNAP a $106M credit for 6 years.

🇺🇸 Dave Clark raises $100M for new supply chain startup. Dave Clark is ex-Amazon CEO. AI-driven supply chain platform, Auger, promises real-time insights and improved efficiency for businesses.

🇬🇧 ClearCourse acquires GOb2b after 40+ acquisitions since 2018, including the recent CSY Retail Systems. GOb2b’s 20+ years of experience aligns with ClearCourse’s strategy.

🇮🇩 Bukalapak shares hit $135M amid Temu acquisition rumors. While Bukalapak denies knowing of any deal, concerns rise about Temu's impact on Indonesian SMEs as the government considers restrictions.

🇺🇸 OroCommerce introduces AI tools for B2B sales. These tools enhance the customer experience by automating catalog navigation and offline purchase orders, improving speed and accuracy.

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