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🧠 Big Story: 
Temu vs. Shein Pricing Psychology💡

📊 Key Data:
Marketplaces Dominate Product Discovery 🛒

📖Ecommerce ecosystem news
📣🇺🇸 Amazon lets other retailers use its ad tech
📣🇺🇸 Microsoft strengthens retail media with new tools
🛠️🇩🇪 SAP launches AI tools for retail innovation
🛠️🇮🇳 Avataar launches AI tool for product videos
🚚🇺🇸 FedEx bets on healthcare & e-commerce growth
🚚🇺🇸 USPS expands same-day and next-day delivery.

+ over 15 other hot news from the last week you need to know 🔥

In our last issue :
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Temu vs. Shein Pricing Psychology💡

Temu offers average discounts of 60%-75%, far surpassing Shein's 9%-27% in H1 2024. Data from Measurable.ai highlights contrasting discount and pricing strategies worldwide.

🛍️ Temu's Steep Global Discounts

Temu has captured attention with aggressive discounts, averaging 60%-75% off across markets in H1 2024. UK shoppers enjoy the highest reductions at 75%, while Chile sees 60%. Southeast Asia, including Malaysia and the Philippines, averages around 68%. This strategy has turned Temu into a “daily Black Friday” for customers. According to Measurable.ai’s unique e-receipt panel, these substantial discounts are a key driver in Temu’s rapid growth and appeal globally.

💰 Shein’s Smaller, Precise Cuts

Shein offers far lower discounts, mostly under 20%, with exceptions like 27% in the UAE and 23% in Saudi Arabia. US customers see a mere 9%, the lowest among markets. Despite this, Shein users often spend more per order after discounts. For instance, in the US, Shein's average order value exceeds $58, compared to Temu's $40. Measurable.ai notes that Shein’s strategy relies on higher perceived product value rather than steep discounts.

📊 Psychological Pricing Impact

Shein’s strategy emphasizes precise pricing, which research shows can drive sales. Discounts like 6.8% instead of 7% resonate more with customers psychologically. Temu, meanwhile, focuses on extreme reductions that evoke a sense of urgency. In Middle Eastern markets like Kuwait and Qatar, Shein customers spend significantly more, while Temu's lower AOV dominates Southeast Asia. This dynamic highlights the psychological impact of pricing methods.

🎯 Incentives: Temu Leads the Pack

Incentive-driven strategies are central to both platforms. In H1 2024, 85% of Temu’s orders were incentivized, compared to 59% for Shein. Shopee and Lazada also trailed at 35% and 82%, respectively. Measurable.ai suggests that Temu's generous incentives are key to retaining new users. This heavy reliance on promotions sets Temu apart but raises questions about sustainability in long-term competition.

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Marketplaces Dominate Product Discovery 🛒

47% of shoppers now start product discovery on marketplaces, surpassing search engines. 63% prefer marketplaces for convenience and variety, per ChannelEngine's survey.

🛒 Marketplaces now dominate

Online marketplaces are now the go-to starting point for 47% of shoppers when searching for products. This is a major shift, as only 24% of consumers start their search on engines like Google, according to a ChannelEngine survey conducted in October 2024. The survey covered 4,500 shoppers across the US, UK, France, Germany, and the Netherlands. Jorrit Steinz, CEO of ChannelEngine, remarked, “Marketplaces have surpassed brand websites and search engines as the primary destination for product discovery.” This highlights the growing importance of marketplaces like Amazon, eBay, and niche platforms such as Etsy.

🌍 Multichannel is critical

Brands must adopt a multichannel strategy as consumer preferences continue to shift. The survey found that 63% of respondents prefer buying from marketplaces rather than brand websites. This trend is driven by the convenience, variety, and pricing offered by platforms like Temu and Shein for budget shoppers, or Zalando for fashion enthusiasts. Limiting sales to a single channel can result in missed opportunities, as today's consumers are browsing across multiple platforms to find the best deals.

🏠 Home and living lead sales

Marketplaces are seeing the most significant growth in categories like home goods, clothing, and beauty. For instance, 74% of consumers prefer buying home products via marketplaces. Meanwhile, categories like jewelry and appliances still perform well offline. Retailers in the home goods sector who haven’t embraced marketplace platforms are losing ground. These findings underscore the importance of aligning inventory with where shoppers prefer to buy.

🔍 Browsing habits reshape marketing

Consumers are browsing 2-3 marketplaces on average before making a purchase. For clothing, the average rises to 2.9 marketplaces. Only 20% of shoppers stick to a single marketplace, while most explore multiple platforms to compare prices and reviews. This behavior demonstrates the importance of having products listed on more than one marketplace to capture these highly engaged buyers. Shoppers also expect variety, and brands need to optimize their offerings for diverse platforms to stay competitive.

📣Marketing

🇺🇸 Amazon lets other retailers use its ad tech. Amazon’s new service allows U.S. retailers to integrate its advanced ad tools into their websites, helping them monetize better and reaching customers more effectively.

🇺🇸 Microsoft strengthens retail media with new tools. Microsoft launched two retail ad products, Curate for Commerce and Sponsored Promotions by Brands, simplifying campaigns and monetizing first-party data for retailers.

🇺🇸 Microsoft copies Google's search design tricks. Microsoft’s Bing search engine now mimics Google’s design in Edge. The stealth move hides Bing branding, tricking users into believing they’re using Google.

🇦🇺 Marketplacer partners with Zitcha for retail media. Marketplacer and Zitcha unify marketplaces and retail media to transform digital commerce. The integration enhances ad relevance, sales, and customer experience.

🛠️Tools

🇩🇪 SAP launches AI tools for retail innovation. SAP unveiled its AI shopping assistant, ERP cloud solutions, and a loyalty platform tailored for retail at Retail’s Big Show. These innovations aim to simplify operations and enhance customer experiences.

🇮🇳 Avataar launches AI tool for product videos. Avataar has unveiled Velocity, an AI tool creating product videos directly from links, aiming to revolutionize e-commerce marketing with cost-effective, scalable video creation.

🇺🇸 PrettyDamnQuick raises $25M to expand e-commerce tech. PrettyDamnQuick secured $25M in Series A funding to enhance its checkout and shipping platform. The startup processes 30M orders monthly and plans rapid expansion.

🇨🇳 Alibaba's Accio reaches 500,000 SME users. Accio AI, launched by Alibaba in Nov 2024, now has over 500,000 SMEs using it for sourcing. Its natural language search spans 7,600 categories and 200M parameters.

🇺🇸 TalkShopLive launches TSL Shoppettes for social shopping. TSL Shoppettes debut as short-form, shoppable videos for Instagram and Facebook, allowing brands and creators to scale sales and engagement with actionable data insights.

🇺🇸 Automattic slashes WordPress core contributions. Automattic will cut WordPress contributions to match WP Engine’s 45 hours weekly. The move highlights a feud with WP Engine and shifting priorities amid financial pressures.

🇺🇸 WordPress simplifies site syncing with Studio Sync. WordPress introduces Studio Sync, enabling developers to seamlessly synchronize local WordPress sites with WordPress.com-hosted sites. It's a game-changer for fast deployments.

🚚 Logistics

🇺🇸 FedEx bets on healthcare & e-commerce growth. FedEx targets healthcare, e-commerce, and global air freight to recover from weak Q2, leveraging Network 2.0 and cold chain logistics for a competitive edge.

🇺🇸 USPS expands same-day and next-day delivery.. USPS launched new delivery options for volume sellers. It offers same-day and next-day shipping through Ground Advantage and Connect, reaching 87% of Americans.

🇬🇧 DHL bolsters eCommerce with Brandpath buy. DHL Supply Chain acquired a majority stake in Brandpath Group to enhance its eCommerce services. This move combines DHL's global reach with Brandpath's agile logistics solutions.

🇺🇸 Pipe17 raises $15.5M, hires first COO. Seattle’s Pipe17 secures $15.5M Series A funding, bringing its total to $25M. The startup, which optimizes e-commerce logistics, adds Kelly Goetsch as COO to scale growth.

🇺🇸 Poshmark turns missed returns into resale cash. Partnering with Loop, Poshmark lets U.S. shoppers resell non-returnable items with ease. This innovative move supports sustainability and boosts resale revenue.

Various

🇺🇸 Whatnot secures $265M, hits $5B valuation. Livestream shopping app Whatnot raised $265M, boosting its valuation to $4.97B. The funds will expand categories, launch globally, and introduce seller tools to grow businesses.

🇲🇽 Mexico's new tariffs hit Chinese imports hardest. Mexico imposed 17%-19% tariffs on imports via e-commerce on Jan. 1, targeting Chinese goods. Foreign companies now also pay a 16% VAT, boosting domestic competitiveness.

🇺🇸 Getty merges with Shutterstock in $3.7B deal. Getty Images and Shutterstock merge to form a $3.7B entity. Getty's CEO calls the deal transformational, with AI challenges and antitrust scrutiny ahead.

🇮🇪 Dataships raises €6.8M to boost eCommerce growth. Dataships secured €6.8M in Series A funding led by Osage Ventures to turn data compliance into a growth engine for eCommerce. They aim to optimize consent, expand markets, and enhance customer success.

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