🌀 State of 3rd Party Commerce 🌐

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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 🧠 
State of 3rd Party Commerce 🌐 

2. Data 📊 
eCommerce growth in Sep '24📈 
FI, SE & PL lead in second-hand fashion ♻️

3. News 📖 
🛒 🇨🇳 Alibaba seeks to acquire AC Milan
🛒 🇺🇸 Amazon unveils $20 sofa to rival Temu, Shein
👗 🇱🇹 Vinted secures €340M investment at €5B valuation
👗 🇩🇪 Shein launches second-hand platform in Germany
🍔 🇮🇳 Zomato plans $1B raise ahead of Swiggy's IPO
🍔 🇳🇱 Prosus projects $400M e-commerce profit in 2025
🗞🇩🇪 DPD & GLS launch shared locker network in Germany
🗞🇺🇸 Apple launches new business branding tools
🦄🇺🇸 Stripe buys Bridge Network for $1.1B

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

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Commissioned by Rithum, "The State of 3P Commerce" report by Wakefield Research surveyed 550 retailer and brand executives in the US, UK, and Germany to understand growth opportunities in 3P e-commerce.

🚀 3P Model Powers Growth for Brands

3P commerce helps brands reach more consumers through retailers/marketplaces.

Retailers benefit from reduced inventory risks by acting as facilitators.

99% of global executives say tighter margins drive 3P strategy changes.

🌍 Regional Plans for 3P Expansion

61% of US executives plan to expand 3P use in the next 12 months.

20% of UK executives expect a strong increase, 11% in Germany.

Only 3% of global leaders plan to reduce their multichannel strategies.

💰 3P Channels Drive Revenue

Only 20% of global executives say up to a quarter of revenue comes from 3P sales.

29% see more than 50% of their revenue from 3P channels.

95% highlight 3P's role in achieving profitable growth.

🔄 3P Commerce Supports Stability

62% of UK leaders view 3P as key during market shifts.

48% of US and 36% of German leaders agree.

3P is seen as a flexible model during economic changes.

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Ecommert’s post based on ECDB data, highlights global eCommerce growth of 6.8% and analyzes trends in the U.S., China, the UK, and Germany.

📉 U.S. Market Decline

The U.S. saw a 7.2% decline in eCommerce sales in September 2024.

Amazon's North American sales grew by 9% despite the market dip.

📈 China’s Record Growth

China’s eCommerce market surged by 26% in September 2024.

Market is set to reach US$2.02 trillion by the end of 2024.

🇬🇧 UK’s Resilient Growth

The UK posted a 9% growth in eCommerce for September 2024.

Expected eCommerce revenues are US$152.55 billion by year-end.

🇩🇪 Germany’s eCommerce Struggles

Germany’s eCommerce market saw a 6.7% decline in September 2024.

Revenues projected to reach US$111 billion by the end of 2024.

Data comes from Statista’s Consumer Insights survey, analyzing global trends in second-hand clothing purchases across various countries to understand preferences in sustainable fashion.

📊 Global Trends in Second-Hand Fashion

Finland and Poland lead, with 33% buying second-hand clothes.

This is 10% higher than the global average of 23%.

Only 10% in China, Japan, and South Korea buy pre-owned.

South Africa, Brazil, and Italy see rates around 15-16%.

Cultural attitudes seem to matter more than economic factors.

🇨🇳 Alibaba seeks to acquire AC Milan. Alibaba, led by Jack Ma, is reportedly in talks to buy AC Milan from Silvio Berlusconi. Despite the speculation, Alibaba and Fininvest remain silent.

🇺🇸 Amazon unveils $20 sofa to rival Temu, Shein. The store will sell items like $20 sofas and $8 jewelry. Products ship from China, taking 9-11 days. Fulfillment fees for sellers are lower than Amazon’s main platform.

🇺🇸 Amazon tests seller ratings on search results. Amazon is testing a new feature that highlights seller ratings in product search results. This aims to help shoppers make informed decisions by seeing seller credibility directly. With 60% of units sold by third-party sellers, the change could reshape shopping habits.

🇺🇸 Amazon offers gas discounts to Prime members. Amazon now offers Prime members a 10 cents/gallon discount at 7,000 BP, Amoco, and AM/PM stations. Members must enroll in Earnify for access. This comes four years after Walmart+ introduced similar gas perks. EV charging savings will follow in 2025.

🇨🇳 Alibaba forecasts strong Singles' Day sales surge. Alibaba predicts double-digit sales growth for Singles' Day in Hong Kong, supported by a $142M promotion offering free shipping on Taobao orders. The three-month initiative launched on October 1, targeting key categories like electronics and fashion.

🇺🇸 Amazon ends plastic pillows in shipments. As of October 2024, all North American shipments now use 100% recycled paper fillers. The change aligns with a broader shift to reduce plastic by 17% in 2022 and 9% in 2023.

🇩🇪 Bauhaus to launch German marketplace in 2025, focusing on the DIY market in Germany. Sellers must be German-registered, managing their own shipping. The platform, powered by Mirakl, will initially be separate from physical stores.

🇨🇳 Alibaba settles $433.5M US lawsuit. The suit accused it of monopolistic practices. Filed in 2020, the case focused on misleading statements that allegedly impacted investors. A federal judge must approve the settlement.

🇱🇹 Vinted secures €340M investment at €5B valuation. Led by TPG, other investors include Hedosophia, Invus, and more. Founded in 2008, Vinted expanded into electronics and aims for global growth.

🇩🇪 Shein launches second-hand platform in Germany. Shein launched 'Shein Exchange' in Germany, following its earlier launches in France and UK. The platform allows consumers to buy and sell used Shein items.

🇲🇽 Shein launches first credit card with Stori. Shein debuts its first credit card in partnership with Stori. Backed by Mastercard, it targets Mexico's market, offering 250 welcome points and double points on Shein purchases.

🇺🇸 Ex-Abercrombie CEO accused of sex trafficking. Mike Jeffries, ex-CEO of Abercrombie & Fitch, and partner Matthew Smith face charges of sex-trafficking. They allegedly coerced men into sexual acts using wealth and influence.

🇺🇸 Poshmark Reverses Fee Change After Seller Backlash. The new fee plan had a 5.99% fee for both buyers and sellers, but sellers saw a decline in purchases. Original fees return on October 24, with rebates offered.

🇩🇪 ABOUT YOU & Netflix launch fashion collab. ABOUT YOU and Netflix launch the "NETFLIX COLLECTION" on Oct 28, 2024, exclusively on ABOUT YOU. Inspired by popular Netflix series, the first drop offers two limited pieces priced between $42-$73. A larger collection is planned for December.

🇺🇸 Walmart to deliver prescriptions in 30 minutes. Walmart will offer prescription delivery in the U.S. by early 2025. Available in 49 states, the service promises delivery in 30 minutes, reaching over 86% of households. Walmart+ members get it for free; others pay $9.95 per order.

🇵🇱 Polish universities end Shein cooperation after protests. Several Polish universities, including those in Krakow and Poznan, cut ties with Shein following student protests over ethical concerns. Shein’s plan to open showrooms in 5 cities, part of a promotional tour, faces strong backlash.

🇮🇳 Zomato plans $1B raise ahead of Swiggy's IPO. This move may help Zomato reduce foreign ownership below 50%, making Blinkit more flexible with its inventory model. Swiggy’s IPO is expected next month.

🇳🇱 Prosus projects $400M e-commerce profit in 2025, up from $38M in 2024. CEO Bloisi eyes more Indian IPOs after Swiggy’s $1.25B filing. In April-Sept, adjusted EBIT tripled compared to all of 2024.

🇮🇳 AICPDF calls for probe into Swiggy, Blinkit, Zepto for predatory pricing. Traditional retailers fear that these quick commerce giants are offering discounts that threaten their survival. The sector is set to exceed $6B in annual sales.

🇩🇪 Lieferando starts pharmacy delivery in 18 cities. Partnering with GetCURE, it offers over 500 over-the-counter medicines and cosmetics. The service follows successful partnerships in the UK, Spain, and the USA.

🇹🇼 Uber Eats faces merger delays with Foodpanda. Uber Eats' $950M acquisition of Foodpanda in Taiwan faces delays as the FTC waits for application materials. Consumer groups and unions raise concerns over potential monopolies and impacts on worker rights.

🇺🇸 Grubhub gains access to restricted buildings with Amazon Key integration. Nearly 1M deliveries completed with the system, reducing team calls by 50% and order cancellations by 22%. Integration started in 2022, scaling nationwide by 2024.

🇨🇦 Empire expands ecommerce with Instacart, Uber. 250 stores will be available on the apps in Ontario. Expansion plans include adding more locations across Canada, boosting Empire’s online reach.

🇩🇪 DPD & GLS launch shared locker network in Germany. DPD and GLS partner to expand their delivery services with a new network of parcel shops and lockers across Germany. With 8,000 drop-off points each, the companies plan to reach 20,000 out-of-home locations by 2027. They will launch 1,000 shared lockers by 2025.

🇺🇸 Apple launches new business branding tools. Apple’s Business Connect now lets all businesses, even without physical locations, manage their brand across Apple apps like Maps, Wallet, and Mail. Over 1B users can access accurate business info, driving brand visibility and trust.

🇺🇸 Facebook Tests Local Tab & AI Enhancements. Messenger Communities aim to help small groups interact. AI tools like Comment Summaries enhance user experience. Tests roll out in 10 U.S. cities.

🇮🇳 YouTube launches affiliate program with Flipkart. Creators with 10K+ subscribers can earn through referrals by tagging products in their videos. India, YouTube’s largest market with over 400M users, offers massive growth potential.

🇬🇧 UK to Ban Vapes, Focus Shifts to E-Waste. The UK will ban disposable vapes on June 1, 2025, a win for Trojan Electronics' campaign. With vaping risks addressed, focus now turns to e-waste from small devices, stronger repair laws, battery recycling, and VAT-free electronics repairs.

🇩🇪 MediaMarktSaturn integrates GenAI voicebot. MediaMarktSaturn introduces a GenAI voicebot to its customer hotline. Launched in Germany in September, it's now being tested in Austria and the Netherlands, with a planned rollout in Spain by early 2025.

🇺🇸 Wayfair launches new subscription rewards program at $29/year. Customers get 5% back on purchases, free shipping, and special sales access. With perks like priority support, the program aims to drive customer satisfaction and loyalty.

🇺🇸 Salesforce adds ecommerce to Starter, Pro Suites, targeting small and growing businesses. Available in the U.S. starting October 22, 2024, these suites combine marketing, sales, service, and now commerce in one package.

🇺🇸 Stripe buys Bridge Network for $1.1B. This deal, announced in October 2024, marks a 200% valuation boost for Bridge since August, rewarding investors like Index Ventures and Haun Ventures. Stripe, known for its payment solutions, aims to strengthen its position in the stablecoin payments space through this deal.

🇺🇸 Squarespace acquired in $7.2B Permira deal. Initially set at $6.9B, Permira upped its offer to $7.2B, equating to $44.50 per share. CEO Anthony Casalena retains a significant equity share and leadership role.

🇵🇹 Sensei secures $16M for European expansion of its contactless store platform. Led by BlueCrow Capital, this Series A round aims to support 1,000 autonomous points of sale by 2026 across Europe, with a focus on central and northern regions.

🇬🇧 Fleek drives growth in second-hand fashion trade, streamlines sourcing for second-hand fashion. It connects 10,000+ sellers to wholesale suppliers, enabling the trade of 2.5M pieces. The market is expected to hit $350B by 2028.

🇺🇸 Bausch + Lomb unveils Opal eye care platform, a digital marketplace for contact lenses, aiming to simplify ordering and improve patient experience. The platform allows 24/7 ordering, integrates loyalty rewards, and offers free shipping for practices and patients.

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