🌀 US Interest in Pure-Play eCommerce Crashes💥

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According to the “2024 Global Digital Shopping Index: U.S. Edition” by PYMNTS Intelligence, the survey of 2,400 U.S. consumers aimed to understand shifts in shopping behaviors from 2020 to 2023. PYMNTS reveals a significant drop in eCommerce interest.

📉 Decline in eCommerce Interest

• In 2020, 36% of U.S. consumers preferred pure-play eCommerce.

• By late 2023, this number fell to 26%, a 28% decline!.

• This shift isn't just post-lockdown fatigue; it continued from 2022. More shoppers are returning to stores.

• By late 2023, 44% of consumers shopped in physical stores without digital help, up from 40% in 2022.

👩‍💼 Demographics of Remote Shoppers

• Millennials and Bridge Millennials lead remote shopping, with 30% preferring it, compared to only 22% of Gen Z.

• Females also shop remotely more than males (29% vs. 22%).

• High-income households and those with children under 18 show a higher tendency towards remote shopping.

🔍 Shoppers' Expectations

• Shoppers expect features like preferred payment methods, refunds for fraudulent charges, and digital coupons.

• They feel retailers lack price matching, effective loyalty programs, and adequate fraud protection.

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Digital Commerce 360, a leading research firm, published its latest data on the performance of the top 100 online marketplaces, showcasing explosive growth and global dominance by a select few giants.

🚀 Significant Marketplace GMV

• The top 100 marketplaces are set to hit $3.832 trillion in GMV by 2024.

• This represents a doubling in size over just six years, with a 10% growth projected for 2024 alone.

• 2023 GMV reached $3.485 trillion, growing by 8.2% from 2022's $3.220 trillion.

📈 Slowdown of GMV growth, 3P tops

• TOP100 Marketplace growth has slowed down (from 22% yoy growth in 2018-2021, to 7% annually in 2021-2024e).

• Nearly 77% of 2023’s GMV came from third-party (3P) sales, highlighting a shift in online retail.

🇨🇳 China’s Ecommerce Dominance

• Chinese marketplaces account for 62% of total 3P sales among the top 100 globally.

• Taobao (No. 1) leads with $723.8B in 3P sales, followed by Tmall (No. 2) with $682.7B.

• JD.com (No. 4) also plays a significant role with $249.9B in 3P sales.

• Alibaba Group owns the top two marketplaces, cementing China's leading position.

🌍 Global Players Competing

• Amazon (No. 3) dominates the U.S. market with $435.7B in 3P sales, the largest outside China.

• Shopee (No. 5) is Southeast Asia’s top player, contributing $77.2B in 3P sales.

▶🇬🇧 Amazon faces UK antitrust probe over Anthropic. The UK Competition and Markets Authority (CMA) is investigating Amazon's $4B investment in Anthropic, an AI startup. The probe comes after similar inquiries into Google and Microsoft, signaling rising concerns over Big Tech's market influence in AI.

▶🇮🇳 Amazon faces fierce competition in India. Amazon's decision to ignore quick-commerce in India has backfired, allowing local players like Blinkit, Zepto, and Swiggy's Instamart to capture a quarter of Amazon India's sales. As e-commerce shifts, Amazon is losing its urban customer base.

▶🇵🇱 Amazon cuts FBA fees by 50% in Poland starting August 12th, 2024. The move, with no expiry, aims to attract more sellers to its platform. The investment includes 11 fulfillment centers since the 2021 launch.

▶🇺🇸 Amazon launches Shoppable Ads on TikTok. Amazon's new partnership with TikTok introduces shoppable ads within the TikTok app. Users can now link their Amazon and TikTok accounts to buy products directly from Amazon without leaving the TikTok platform, streamlining the shopping experience.

▶🇬🇧 Amazon expands Norwich hub with electric bikes. Amazon has launched its first micromobility hub in Norwich, adding to over 40 similar hubs across Europe. The Norwich hub is part of a £300M investment to electrify deliveries, using electric cargo bikes to cut emissions and deliver thousands of packages weekly.

▶🇹🇭 Thailand tightens scrutiny on Temu amid local concerns to protect local merchants from low-cost imports. Temu launched in Thailand in July, and its rapid growth worries the government, which is enforcing stricter laws.

▶🇺🇸 eBay Advertising revenue up 12% in Q2 2024. eBay's Q2 2024 saw a 12% growth in first-party ad revenue, driven by 1 billion promoted listings. eBay revamped its ad platform, simplifying ad creation and offering new tools like Promoted Offsite, helping sellers tap into broader audiences.

▶🇯🇵 Mercari Opens LA Store, Connects U.S. with Japan. Mercari opens its first U.S. store in LA and links U.S. shoppers to Japan's marketplace. The store offers unique items from Japan, and now, U.S. customers can buy directly from millions of sellers in Japan with ease.

▶🇨🇳 Shein withdraws toxic clothes from sale. Shein, the Chinese fast-fashion giant, withdrew 8 out of 21 tested garments after an Öko-Test study found dangerous levels of chemicals. Harmful substances like antimony and lead were detected in these products, posing serious health risks.

▶🇩🇪 Zalando to open tech site in China; no market plans. Zalando announced it will open a new tech hub in Shenzhen, China, focusing on social commerce expertise. Despite this move, the German fashion giant has no current plans to launch its e-commerce platform in China, focusing on growth opportunities in Europe.

▶🇰🇷 Farfetch's $108M loss hits Coupang's Q2 results. Coupang's Q2 2024 results show a $105M net loss, a sharp decline from last year's $145M profit. This downturn was caused by Farfetch's $108M loss and a $121M fine for illegal search manipulation, hitting Coupang hard.

▶🇬🇧 Vinted forced to roll back shipping options. Vinted's attempt to streamline shipping by limiting seller choices backfired. UK sellers, many lacking printers and nearby drop-off points, forced the platform to restore the option to deselect shipping methods.

▶🇬🇧 ASOS expands AI with Microsoft in 3-year deal. The retailer will use tools like Power Automate and Microsoft Copilot to automate tasks and boost efficiency. This deal strengthens their AI Stylist feature, offering personalized shopping experiences.

▶🇬🇧 Depop & Selfridges use AI to refine resale prices. Depop and Selfridges are leveraging AI analytics from Truss to enhance their second-hand fashion offerings. The project, supported by the UK government, aims to automate pricing, optimize product recommendations, and lower carbon emissions. With fast fashion cycles shortening, AI insights have become essential for retailers.

▶🇺🇸 Poshmark sees 12% rise in secondhand bridal searches. Brides and wedding guests are opting for secondhand options to cut costs. Poshmark allows them to buy designer dresses at a fraction of the cost, with some saving over 50% off retail prices. The trend is also helping brides recoup value from their dresses, with sellers like Victoria listing items like a Carolina Herrera mini dress and Jimmy Choo pumps.

▶🇬🇧 La Redoute names Richard Burke as new UK CEO. Burke, who has been with the company since 2012, will focus on maintaining commercial success and planning for long-term growth and profitability.

▶🇬🇧 Deliveroo shares surge 10% after profit report. Deliveroo, backed by Amazon, reported a $1.65M profit for H1 2024, marking its first-ever profit. This marks a significant recovery from a $105.1M loss last year. Consumer demand rose, driving a 10% stock surge to $1.80 per share.

▶🇺🇸 Walmart boosts Q2 online grocery share to 37%. Walmart captured 37% of U.S. online grocery sales in Q2 2024, up from 28.2% in Q2 2021. In contrast, supermarket sales dropped to 27.3%. Walmart's omnichannel strategy and low prices attracted more shoppers, shifting the market dynamics.

▶🇺🇸 Grubhub adds app upgrades to boost delivery speed. Grubhub introduces new app features, including priority delivery for $2.49, personalized recommendations, and live tracking on iOS devices. These updates aim to enhance user experience and increase order frequency.

▶🇺🇸 Grubhub's In-App Wallet Could Increase Check Sizes. Grubhub launches a new in-app digital wallet to show available credits, potentially boosting average order sizes. The move comes as inflation drives more consumers to pick up orders rather than opt for delivery, signaling economic pressures.

▶🇮🇳 Flipkart enters India's 10-minute delivery market. "Flipkart Minutes" is a 10-15 min delivery service in Bengaluru. This move targets Amazon's customers as quick commerce gains traction in India. The market is thriving with players like Blinkit and Swiggy Instamart.

▶🇺🇸 Instacart's Q2 earnings rise 15%, driving expansion. Instacart's Q2 earnings surged by 15%, hitting $823M, driven by increased grocery orders. The company is forecasting up to $8.25B in Q3 sales. CEO Fidji Simo emphasizes strategic long-term investments and rising demand from CPG companies.

▶🇺🇸 GrubMarket acquires Good Eggs in all-stock deal. GrubMarket, a grocery logistics giant worth $3.5B, has acquired Good Eggs in an all-stock deal, valuing the struggling startup slightly above its previous $22M valuation. Keith Brewer from GrubMarket will lead Good Eggs, which had a $365M valuation in 2020.

▶🇺🇸 Google ruled as monopolist by U.S. judge. A U.S. judge declared Google a monopolist, stating it violated antitrust laws by securing exclusive deals to dominate search. This ruling could reshape how users access information and impact Google's business strategies.

▶🇨🇳 China approves 487 deepfake algorithms, including deepfake tools from Baidu, Alibaba, Tencent, and foreign firms like HP. This marks the second-largest batch since regulations began in January 2023.

▶🇺🇸 Stripe boosts global sales with Adaptive Pricing. Stripe launches Adaptive Pricing, enabling merchants in 50+ countries to offer local currency options, boosting cross-border revenue by 17.8%. With 90% of shoppers preferring to check out in their local currency, businesses can increase global sales.

▶🇮🇳 Reliance cuts 42,000 jobs, slows hiring pace. India’s largest conglomerate, Reliance, slashed over 42,000 jobs, reducing its workforce by 11% in the fiscal year ending March 2024. The company hired only 171,000 new employees, down from 263,000 a year earlier, signaling a shift in strategy as its revenue growth slowed.

▶🇳🇬 Jumia aims to raise $100M. Jumia seeks to raise $100M via share sales as its stock drops to $4.90. CEO Dufay aims to expand logistics and invest in technology to grow the 2M customer base and improve liquidity. The e-commerce platform faces currency challenges in key markets.

▶🇹🇷 Turkey raises customs duty and slashes de minimis. Turkey lowers its de minimis from €150 to €30, doubles customs duty to 60% for non-EU goods, and introduces an additional 20% Special Consumption Tax. The new regulations start on August 21, aiming to curb the influence of Temu and protect local businesses.

▶🇺🇸 Etsy profits from illegal Israeli settlements. A new report reveals Etsy profits from at least 44 stores in illegal Israeli settlements. The report highlights stores in Ariel and Maale Adumim, emphasizing Etsy's complicity in alleged war crimes. Etsy could face legal challenges for violating anti-money laundering laws, especially in Ireland. Human rights organizations demand immediate action from Etsy, accusing it of aiding in the apartheid system against Palestinians.

▶🇪🇺 TikTok permanently ends Lite Rewards in EU. TikTok has agreed to permanently stop its Lite Rewards program across the EU, following the European Commission’s concerns about potential risks to minors. This decision aligns with the new Digital Services Act and marks a significant regulatory win.

▶🇬🇧 Yodel secures £85M to boost delivery services. Yodel, a UK delivery firm, secured £85M to fuel growth. The funding will enhance automation, infrastructure, and partnerships like PayPoint. With a 200% rise in customer-to-customer deliveries, Yodel plans to strengthen its market position.

▶🇵🇱 bValue raises $99M to boost CEE investments. bValue, a Polish private equity firm, raised $99M for its third fund, focusing on software, IT services, and e-commerce in CEE. The firm plans to invest $5M to $16M per project by 2027, targeting 8-12 firms.

▶🇪🇬 Cartona secures $8.1M Series A extension. Cartona, Egypt's leading B2B e-commerce platform, has raised an additional $8.1M in a Series A extension. This brings its total Series A funding to $20.1M. The funds will support Cartona's expansion in FMCG, hospitality, and the MENA region.

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

Your guide through the maze

Artur Stańczuk Chief Strategy Officer at Packhelp, the leading European packaging marketplace. Previously worked ~8 yrs at Bain & Co. In the past, Digital Transformation Director at the leading Polish convenience chain Żabka and Entrepreneur that co-launched 3 startups