Amazon + Crossborder = true, ASOS in feud with their customers, exciting webinar alert, and more ???

?? Hello everyone,

How are you? Two weeks went by so fast! We've got some exciting updates in the world of eCommerce and logistics that I wanted to share with you. Let's dive right in. ??

1?? Amazon launches export central for European sellers

Amazon has just unveiled a new exporting tool called Export Central, aiming to help sellers reach more customers across Europe, even in countries where Amazon doesn't have a localized store. This means sellers won't have to duplicate their listings or register new accounts to expand their reach. Sellers from six Amazon stores—the UK, France, Germany, Italy, Spain, and the Netherlands—can now connect with customers in 39 European countries, including Austria, Portugal, and Greece.

Interestingly, sellers on the Dutch Amazon store can only export to Belgium at the moment, and Amazon hasn't explained this limitation. ?? Typically, selling across borders on Amazon requires setting up new accounts on each localized website, but Export Central simplifies this process. Sellers can now manage shipping settings from multiple stores with just a few clicks through their Seller Account.

According to Xavier Flamand, Amazon's VP of Seller Services in Europe, this program eliminates many traditional barriers to international expansion, allowing entrepreneurs to focus on creating and selling amazing products.

It's great to see Amazon making strides to support small and medium-sized businesses in expanding their international presence. Simplifying cross-border selling could open up significant opportunities for sellers looking to grow their customer base without the usual hassle. ??

2?? Asos introduces return fee for frequent returners

In other news, online fashion retailer ASOS.com is introducing a return fee in the UK, but only for customers who have a high return rate. This change has sparked some backlash on social media, with customers expressing their frustration. Asos reported an 18% decrease in turnover during the first half of its fiscal year, facing challenges from shoppers returning to physical stores and competition from brands like Shein and Temu.

The company emailed selected customers identified as frequent returners, informing them of the new policy. Starting October 8th, if these customers keep less than ￡40 worth of goods from an order, a fee of ￡3.95 will be deducted from their refund. If they keep items worth ￡40 or more, returns remain free. Loyalty members will also be affected but will receive free returns as long as they keep at least ￡15 worth of products.

Asos stated that this change is necessary to continue offering free returns to all customers. However, many are upset, pointing out that inconsistent sizing on the platform often leads to higher return rates.

Balancing return policies with business sustainability is tricky. While Asos aims to reduce costs associated with high return rates, addressing issues like inconsistent sizing might be a more effective way to improve customer satisfaction and reduce returns organically. ??

3?? Google Shopping enhances virtual try-on feature with dresses

Google Shopping is stepping up its game by adding dresses to its generative AI-enabled virtual try-on feature, just in time for New York Fashion Week. In partnership with fashion label Simkhai, select dresses will be available for virtual try-on and pre-order following their September 7th runway show.

Dresses are among the most-searched apparel categories on the platform. This expansion follows last year's introduction of virtual try-ons for tops. Google's AI model showcases clothing on a diverse range of real models, sizes XXS to XXXL, allowing users to choose a model that best represents their body type. From there, shoppers can click through to the retailer's site to make a purchase.

Brands like Anthropologie , Everlane , and H&M were part of the initial launch, and now hundreds more have joined in. Google reports that virtual try-on images receive 60% more high-quality views, and shoppers are more likely to visit a brand's site after using the feature.

Integrating AI and virtual try-on technology is a fantastic way to enhance the online shopping experience. It not only helps customers feel more confident in their purchases but also benefits retailers by increasing engagement and potential sales. ??

4?? Djerf Avenue aces profit decline in Sweden

Swedish fashion brand Djerf Avenue , known for its rapid growth, has reported a significant drop in profits in its domestic market. Revenue fell by 27% to SEK 268.3 million, and operating profit plummeted by 85% from SEK 124 million to SEK 17.3 million.

The company attributes part of this decline to being out of stock on popular new products like dressing gowns and pajamas, which exceeded expectations but led to reduced daily sales due to stock shortages. They've since focused on maintaining good inventory levels to meet demand moving forward.

Over the past year, Djerf Avenue has invested heavily in various initiatives, including hosting their fashion show in New York, launching a community platform called Angels Avenue, and opening pop-up stores in Sweden and the USA. They've also expanded their workforce and upgraded IT systems to handle future growth, which has increased operational costs.

Rapid expansion often comes with growing pains. While Djerf Avenue's investments demonstrate ambition and a commitment to growth, maintaining profitability requires carefully balancing costs and ensuring that inventory meets customer demand. Maybe they should schedule a call with Prime Penguin? ????

?? Lastly, i want to tell you about something exciting that is coming up for all eCom and logistics people in our network. Max at Prime Penguin will be joining Peak Prep Unpacked, a full day webinar about peak season together with ShipBob , AfterShip , Anvyl , PostPilot , Gorgias and many others!

We’ll discuss the common challenges businesses face and share simple strategies to manage higher order volumes. Plus, we’ll introduce our automated order orchestration solution, which helps streamline operations and keep everything running smoothly during the busiest times. It’s going to be a helpful and relaxed session, and we’d love for you to join us!

?? Save your spot here: https://hubs.la/Q02LBkSB0

That's all for this week! It's fascinating to see how technology and strategic decisions are shaping the retail landscape. Stay tuned for more updates, and as always, feel free to reach out if you have any thoughts or questions! ??

Kindest regards,

Jenny ??