🌀 Social Commerce Shapes Shopping in 2024 🛍️

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🌀This week’s maze:

1. The Big Story 🧠 
Social Commerce Shapes Shopping in 2024 🛍️

2. Data 📊 
Q3’24 Salesforce Ecommerce Insights🔥 
US Ecommerce Ad Trends💡

3. News 📖 
🛒 🇺🇸 eBay revamps UX to target Gen Z shoppers
🛒 🇺🇸 Amazon boosts Anthropic with $4B injection
👗 🇬🇧 SHEIN plans IPO on London Stock Exchange
👗 🇬🇧 Deliveroo launches 20-min luxury dress rentals
🍔 🇮🇳 Swish raises $2M to speed food delivery
🍔 🇺🇸 DoorDash syncs grocery lists for easy shopping
🗞🇦🇹 shöpping.at launches in Germany with perks
🗞🇺🇸 Perplexity adds e-commerce to Pro subscriptions
🦄🇦🇪 Popcorn AI raises $500K to redefine e-commerce
🦄🇸🇬 Locad secures $9M to expand in Middle East

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

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Bazaarvoice’s survey of 8,000+ shoppers posted on Linkedin by among others Archie Breakspear and Zarina L Stanford reveals that social media, user-generated content (UGC), and omnichannel strategies dominate retail trends in 2024. Short videos attract Gen Z, while seniors favor physical stores. Social buyers have doubled since 2021.

Baarvoice surveyed 8,000 global shoppers in its Shopper Experience Index.

34% of seniors (55+) shop in physical stores first, while 18% of Gen Z starts on social media.

Marketplaces attract 29% of all shoppers, bridging age and preferences.

UGC plays a critical role in purchase decisions across generations.

In 2023, 53% of shoppers discovered products via social media, with 39% continuing in 2024.

Purchases through social platforms doubled to 31% in 2024.

Advocacy rose to 42%, powered by creator-driven UGC and brand partnerships.

Short videos dominate Gen Z’s attention, driving awareness and engagement.

Shoppers making 3+ purchases/month rose from 10% in 2021 to >20% in 2024.

Occasional buyers (1-2 purchases/month) lead at 59%, with Gen Z spearheading trends.

Personalized offers and loyalty programs are key drivers of frequent purchases.

Limited-time deals see higher conversion rates across product categories.

62% of shoppers prefer video content, with TikTok-style short videos at 34%.

Gen Z seeks visually rich experiences, while older groups still prefer text-based posts.

Livestream shopping accounts for only 5% of activity, with low adoption rates.

Visual content significantly outperforms static or text-based media in engagement.

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Salesforce's Q3 sales index report reveals top insights from this quarter's across the globe. The Shopping Index analyses the activity and online shopping statistics of more than 1.5 billion unique global shoppers from more than 67 countries. This battery of benchmarks covers both the recent history and current state of digital commerce. You can play with data by yourself on the Salesforce webpage.

Germany's online sales surged 17% YoY in Q3'23, stabilizing at 5% growth in Q3'24.

This rebound comes after a challenging 2022, indicating improved consumer confidence.

Health & Beauty sales climbed 10% YoY, leading the recovery among categories.

Electronics struggled, showing a 7% YoY decline during the same period.

Mobile orders rose 5% YoY in Q3'24, with mobile traffic growing by 9%.

Desktop orders fell by 6% YoY, with a slight 1% decline in traffic.

Overall, global online sales grew by 1% YoY, driven mainly by mobile gains.

Mobile now accounts for over half of all e-commerce traffic.

The UK led with a 2.6% conversion rate, while Japan lagged at 0.8%.

Toys, Apparel, and Footwear categories each grew 2.2% YoY, showing steady demand.

Furniture conversion rates stayed low at 0.7%, underscoring challenges in larger-item sales.

Salesforce analyzed data from over 1.5B shoppers in 67+ countries for these insights.

Adweek article by Lauren Johnson and Paul Hiebert based on MediaRadar's analysis reveals Amazon cut U.S. ad spend by 20% YoY, now $2.7B, while Walmart boosted its spend to $1.3B. Temu grew 13% YoY, overtaking Target. Amazon focuses 89% of spend on digital; Temu leads in paid social.

MediaRadar reports Amazon cut U.S. ad spend by 20% YoY in 2023, reducing it to $2.7B.

Walmart increased its spending by 12%, reaching $1.3B, aiming to close the gap.

Fast-growing Temu grew its ad spending by 13%, overtaking Target in the same period.

Meanwhile, Shein halved its advertising budget YoY, focusing on other priorities.

Temu allocated 19% of its ad spend to paid social, outpacing all competitors.

Amazon dedicated 89% of its budget to digital ads, the highest among peers.

Walmart and Target diversified more, maintaining TV and "Other" spending.

🇺🇸 eBay revamps UX to target Gen Z shoppers. eBay's 30-year-old platform gets a new look to attract Gen Z and millennials. Dubbed "eBay Evo," this user-friendly design adds warmth and clarity. Updates cover nearly half of its core interface, boosting engagement metrics.

🇺🇸 Amazon boosts Anthropic with $4B injection, doubling its stake to $8B. AWS remains Anthropic's cloud provider. Anthropic is also collaborating with AWS on Trainium chips. Alphabet pledged $2B, showing major AI investment trends.

🇺🇸 Amazon enters telehealth for ED and hair loss through its One Medical and Amazon Pharmacy services. With pricing starting at $10/month for anti-aging skincare and $19/month for ED, it competes with Hims & Hers.

🇨🇳 Alibaba profits soar 58%, plans $5B bond raise. Alibaba’s Q3 profits rose 58% to $6B on strong cloud and e-commerce growth. The company also plans a $5B dual-currency bond deal to fund further investments in AI and international expansion. CEO Wu calls AI a “once-in-20-years opportunity.”

🇨🇳 Alibaba debuts AI tool to boost SMB sourcing. Alibaba unveils Accio, an AI search tool, to help SMBs in Europe and the Americas find supplies. Early tests show 40% more purchase intent vs. standard search. The web-based tool leverages AI for product insights, supporting five major languages.

🇺🇸 Walmart reports 27% e-commerce sales growth. Walmart’s Q3 revenue hit $169.6B, a 5.5% rise, with e-commerce sales soaring 27%. U.S. net sales climbed 5%, with 42% marketplace growth. Expedited delivery saw over 30% adoption. Analysts credit store upgrades and a growing ad business for success.

🇻🇳 Temu sets $35-40 checkout requirement in Vietnam. Shoppers say the rule makes the platform less attractive. Temu’s move comes as Vietnam debates e-commerce tax rules. The firm claims this helps offer cheaper items but faces regulatory challenges.

🇨🇳 PDD stock falls 10% on weak Q3 earnings. PDD's Q3 revenue of $13.7B missed forecasts, leading to a 10% stock drop. Revenue growth slowed to 44%, with intensified competition from Amazon and Alibaba. U.S. trade policies and China's weak economy add further pressure.

🇬🇧 TikTok projects record Christmas shopping spree. TikTok predicts a 58% increase in retail ad revenue for Q4 2024 in the UK, with LIVE shopping sessions doubling. Key categories include beauty, appliances, perfumes, and pre-loved luxury items, making this the biggest festive season on the platform.

🇬🇧 SHEIN plans IPO on London Stock Exchange in early 2025 via the London Stock Exchange. Founder Chris Xu and chair Donald Tang are courting UK and US investors. Delayed by US regulatory issues, the fast fashion giant pivots to London for its IPO plans.

🇬🇧 Deliveroo launches 20-min luxury dress rentals. Partnering with Hurr, it features 50+ designer options like Self-Portrait and Nadine Merabi. This innovative partnership sets a new standard for sustainable fashion accessibility.

🇰🇷 Shein, Temu face toxic kids' clothing scandal. Tests on kids’ winter clothes from Shein, Temu, and AliExpress revealed toxic chemicals up to 622x above legal limits. The Seoul government flagged 7 out of 26 items, including jackets and jumpsuits, as unsafe.

🇩🇪 Mytheresa's Q1 sales grow 7.6% to $217M. Mytheresa's Q1 FY25 net sales rose 7.6% to $217M, with a gross profit margin of 43.9%. CEO Michael Kliger credits momentum since FY24 Q3. New brand Mei Lin Shi and WeChat program target China. Full-year growth is forecasted at 7%-13%.

🇬🇧 Ted Baker's e-commerce site is relaunching. Ted Baker's e-commerce is back in the UK via United Legwear & Apparel (ULAC). After its previous partner collapsed, Authentic Brands revamped operations. UK stores are closing, but online shopping offers free shipping over £150.

🇬🇧 Asos CEO's pay rises 43% amid $481M loss. Sales fell 18% to $3.7B. Despite this, Asos highlights progress in profitability and inventory management.

🇫🇷 Eurazeo backs Vestiaire Collective's growth. The company aims to expand in Europe, the U.S., and Asia. In 2017, Eurazeo invested €32.5M. The 2024 investment boosts Vestiaire's profitability plans.

🇮🇳 Swish raises $2M to speed food delivery. Their 10-minute delivery model, via 'delight centres,' aims to meet rising demand. India's quick commerce market could reach $40B by 2030. Swish plans 150 centres by March 2025.

🇺🇸 DoorDash syncs grocery lists for easy shopping. DoorDash now lets iOS users sync grocery lists from Apple's Reminders app. It suggests items for quick cart building, with Android support coming soon. This feature enhances convenience and competition with Grubhub and Instacart.

🇺🇸 Instacart expands with $0 holiday deliveries. Instacart's new "Express Lane" offers $0 delivery on $10 orders for members. This perk is designed for last-minute holiday needs, like groceries and gifts. CEO Fidji Simo emphasizes retailer integration as key to growth.

🇫🇷 Yuka now empowers users to challenge brands. Yuka, with 60M users, now lets people email brands directly about unhealthy ingredients. This feature debuted in France and the U.S., with plans for global expansion. Brands like Intermarché already changed 900 recipes due to Yuka’s influence.

🇺🇸 Instacart, DoorDash cut grocery costs for consumers. Instacart, DoorDash, and Shipt ramp up efforts to lower grocery costs for consumers. October's online grocery sales hit $10.5B as affordability becomes key. Instacart launched Super Saver and SNAP tools. DoorDash now offers price comparison tools.

🇮🇳 Zomato projects 30% food delivery growth. Zomato expects 30% yearly growth for 5 years, driven by innovation and a market share of 58%. With a gross order value of $3.8B, the company plans an $8.5B QIP in December.

🇵🇱 Uber adds Glovo-like concierge service. Uber launched "Local Pickup" in Poland, expanding to Warsaw, Kraków, Wrocław, and Trójmiasto. Users can now task drivers with collecting store orders, parcels, or gifts. This service, priced slightly above "Uber Package," rivals Glovo's offering.

🇦🇹 shöpping.at launches in Germany with perks. shöpping.at expands to Germany, offering Austrian products online. Retailers get $6/order bonuses in Nov-Dec 2024. German shoppers enjoy free shipping.

🇺🇸 Perplexity adds e-commerce to Pro subscriptions. Users can search for items, view detailed cards, and order with one click. The tool features unbiased recommendations and free shipping for Pro subscribers.

🇺🇸 Google Lens now simplifies real-world shopping and helps shoppers in stores compare prices, read reviews, and check local inventory using AI. This new feature is backed by Shopping Graph and Gemini models. Available on Google and Chrome apps in the U.S. from November 19, 2024.

🇮🇳 Decathlon partners Myntra to expand reach across India, focusing on Tier 1, 2, & 3 cities and the Northeast. This partnership will boost access to sportswear, footwear, and gear, promoting an active lifestyle.

🇺🇸 PhaseZero launches 5 AI agents for commerce to optimize sales, pricing, inventory, and marketing. These tools enhance ROI and efficiency, integrate with its CxCommerce™ platform, and ensure privacy for users. Launched Nov. 14, 2024.

🇬🇧 InPost expands urban Locker Shops in the UK. InPost is expanding its Locker Shops to more UK urban areas after a successful pilot in Camden. New sites include London’s Liverpool Street and Manchester in 2024, with more to come in 2025.

🇺🇸 CommerceIQ unveils AI teammate for ecommerce. CommerceIQ has launched Nexis, an AI-powered omnichannel teammate for ecommerce. It reduces reporting time by 75%, creates executive reports. Currently in beta, it will expand to the public in Q1 2024.

🇨🇳 TikTok launches global AI ad creation tool. TikTok introduces Symphony Creative Studios globally, allowing advertisers to create AI-powered video ads in minutes. Features include text-to-video, digital avatars, translations, and royalty-free music.

🇦🇪 Popcorn AI raises $500K to redefine e-commerce. Their platform, backed by Spring Studio's fund, boasts AI agents that boost conversion rates by 20%. A $400K real estate deal was closed via AI. The future of shopping is here.

🇸🇬 Locad secures $9M to expand in Middle East. Locad, a logistics startup, raised $9M to expand in Saudi Arabia and UAE by Q4 2024. The funding, part of a pre-series B round, values the firm at $60M. It plans to enhance AI tools for inventory management. Locad serves over 300 customers.

🇮🇳 Zepto raises $350M to fuel IPO plans, keeping its $5B valuation. It plans to go public in 2025. With 7M daily orders, it eyes $2B in annual sales. But rising costs, regulatory hurdles, and threats to mom-and-pop shops shadow its rapid growth.

🇺🇸 Nivoda raises $51M to transform jewelry and grow its diamond marketplace. The funding, adding to a total of $96M, will support expanding into all jewelry. CEO Dave Sutton aims to streamline global supply chains for jewelers.

🇮🇳 Arzooo assets sold in a distressed deal. Arzooo, a startup helping small Indian retailers, has sold its assets in a distressed deal to Moksha Group. Once valued at $310M, it had raised $90M from notable investors.

🇺🇸 Inversion secures $44M for space cargo tech. California's Inversion plans to build reentry capsules for fast global deliveries. Their Arc capsule aims to bring payloads from orbit to Earth efficiently. SpaceX’s Transporter-12 mission will showcase their Ray demonstrator soon.

🇯🇵 Secai Marche secures $1.6M to expand AI and enhance AI-driven demand forecasting and automate deliveries. Founded in 2019, the startup has grown 200% YoY, offering 4K fresh ingredients. New funds will expand fulfillment centers and aid Southeast Asia's farmers.

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