Amazon’s Own Brands Lose Ground???? Plus: Cross-Border Shopping Global vs EU ??

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??This week maze:

1. The Big Story ???

Amazon’s Own Brands Lose Ground????

2. Data ???

Cross-Border shopping Global vs EU ??

3. News ??

?? TikTok, Temu, Walmart, Mercari, eBay, Amazon, Flipkart

?? Zalando, Poshmark, Shein, BuyBay, Mytheresa, Reebok, Esprit

?? Uber, Swiggy, Getir, Getir, Just Eat, Costco

??Meta, Deepfakes, BigCommerce, Kudos, Shopware, TikTok, Shopify

4. Deals ???

Maad, Revent, Pepper, Restaurant365

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1. The Big Story ??

Momentum Commerce recently conducted an insightful analysis proving the contraction of private labels on Amazon. After years of brands and legislators expressing concerns around Amazon Private Label brands, an analysis of Q1 sales and badging activity shows that Amazon’s pullback in this area, which began in earnest in 2023, is truly starting to express itself in the marketplace.

The study analyzed badge and revenue data from the top one million Amazon US search terms, comparing Q1 2023 to Q1 2024. Amazon's private label revenue and badge performance were examined, revealing significant trends and opportunities for other brands.

?? Amazon Private Label Market Share Decline

• Private label sales reached over $1B in Q1 2024, but market share decreased from 1.0% to 0.9% YoY.
• Declines in 16 of the top 20 physical goods categories.
• Notable exceptions: Health & Household, Baby Products, Beauty & Personal Care, Sports & Outdoors.

??? Badge Performance Drop

• Fewer Best Seller and Amazon’s Choice/Overall Pick badges.
• Significant reduction in Amazon's Choice badges across numerous categories.
• Clearer path for other brands to attain ‘Overall Pick’ badges.

?? Brand Opportunities

• Reduced threat from Amazon Private Label dominance.
• Amazon’s catalog focused on less differentiated goods like basic apparel and baby essentials.

What are your thoughts on Amazon's shift away from private labels?

2. Data ???

DHL 2023 Global and European report and survey (N=5000!) goes deep on cross-border and reveals exciting trends in global e-commerce.

Let’s dive deep into insights.

?? Cross-Border Shopping Insights

55% of global shoppers buy cross-border.

• MENA leads with 67% shopping abroad.
• APAC countries see 20% of Chinese and 23% of Thai shopping daily.
• UAE tops with 35% buying cross-border daily.

?? Popular Cross-Border Destinations

Top destinations for cross-border shopping are:

• 45% of Europeans shop from China.
• 28% of Europeans buy from the USA.
• Spain: 61% shop abroad, UK: 31%.
• UK favorites: 41% USA, 40% China.

???? European Shopping Preferences

European countries have diverse shopping preferences:

• Germany: 42% shop from China, 31% from USA.
• France: 48% from China, 21% from USA.
• Italy: 40% from China, 31% from USA, 30% from Germany.
• Spain: 56% from China, 21% from USA.

???? European Cross-Border E-commerce

Europeans also shop within the continent:

• UK: 12% from Germany, 7% from France.
• Germany: 19% from the UK, 15% from Italy.
• France: 19% from Germany, 12% each from UK and Italy.
• Italy: 30% from Germany, 25% each from UK and France.

Why do you think MENA leads in cross-border shopping?

4.?News ??

?? Mass merchant

????? TikTok expands e-commerce into Mexico and Europe. TikTok is expanding its e-commerce business to Mexico, France, Germany, Italy, and Spain amid scrutiny in the US and EU. Merchants are invited for a beta run before the official launch this summer. This brings TikTok Shop's presence to 13 markets worldwide.

????? Temu faces EU complaints over DSA breaches. Consumer groups in the EU accuse Temu of breaching the Digital Services Act, risking fines up to 6% of parent company Pinduoduo's $35B revenue. Complaints include failure to meet transparency and safety requirements. BEUC (The European Consumer Organisation) seeks VLOP designation for Temu.

????? Walmart cuts corporate jobs, asks remote return. Walmart is cutting hundreds of corporate jobs and asking remote workers to return to office locations, as per a memo. Affected offices include Dallas, Atlanta, and Toronto, with relocations to Bentonville, Hoboken, and Southern California. The company promises support for impacted associates.

????? Mercari reverses policy after seller backlash. Mercari reversed its new return policy after backlash from sellers. Buyers now have three days to return items only if they are not as described. The policy change, effective May 22, aims to balance buyer flexibility with seller protection.

????? eBay launches easy resell feature for circular fashion. eBay introduces a new "resell on eBay" feature integrated into Certilogo's smart labels, allowing users to list clothing with just a few clicks. Save The Duck is the first brand to pilot this feature starting May. This initiative aims to foster a pre-loved fashion marketplace and reduce landfill waste.

????? Fake Monet and Renoir Found on eBay. Dr. Carina Popovici used AI to find 40 fake paintings on eBay, including a Monet priced at $599K and a Renoir at $165K. She believes this is just the tip of the iceberg. eBay claims to use AI to block counterfeit items but has not responded to her concerns.

????? Amazon invests $1.3B and creates 3,000 jobs . Amazon commits to investing $1.3B in France, creating 3,000 jobs. This move aligns with France's AI growth, supported by AWS's cloud infrastructure expansion in Paris.

????? Flipkart Simplifies Seller Rate Card, Improves Clarity . Flipkart's new rate card, effective May 18, reduces fee components from four to two, enhancing clarity for sellers.

?? Fashion & Beauty

????? Zalando reshuffles board to boost B2C and B2B . Zalando is restructuring its management board to enhance B2C and B2B strategies. David Schneider steps into a new role, with David Schr?der becoming co-CEO. Changes take effect 1 September 2024, aiming to strengthen market position and customer relationships.

????? Poshmark's new tool boosts sellers' sales by 43%. Poshmark launched "Promoted Closet," a tool for sellers to promote all listings at once. Using machine learning, it boosts items based on search terms. Sellers set budgets and are charged per click. Beta testers saw a 43% sales increase. Available now in the U.S.

????? Shein's Factory Conditions Show Little Improvement. Shein's promise to improve conditions remains unfulfilled. Workers still face 75-hour weeks and low wages. Audits reveal persistent issues, raising questions about Shein's commitment to change.

????? BuyBay launches recommerce SaaS for retailers . BuyBay launches You Grade, a SaaS product for retailers to resell returned items in their own distribution centers. This software increases resale profitability and reduces CO2 emissions, extending product life by up to 80% of the original value.

????? Mytheresa reports 17.6% sales jump in Q3. Mytheresa's Q3 sales grew by 17.6%, reaching $251.5M. GMV increased by 14.7% to $271.2M. EBITDA soared by 183.8%, and losses were reduced by 41.7%. The CEO highlighted their strong performance in a challenging market.

????? Reebok launches AI fashion on Instagram. Reebok unveils an AI-driven fashion experience on Instagram called 'Reebok Impact.' Users can create custom digital sneakers by sending a photo via DM. This feature is free for up to four creations, usable in games like Fortnite and Roblox.

????? Esprit Files for Insolvency in Germany. Esprit, present in over 40 countries, files for insolvency in Germany affecting 1,500 jobs. High rent, labor, and energy costs, alongside pandemic after-effe

?? Food & Grocery

????? Uber buys Foodpanda Taiwan for $950M in cash. Uber will acquire Delivery Hero’s Foodpanda Taiwan for $950M in cash. The deal includes a $300M stake in Delivery Hero. The acquisition will strengthen Uber Eats in Taiwan, where it competes closely with Foodpanda. Completion is expected in H1 2025.

????? Swiggy files confidential IPO with SEBI . Swiggy files for a $1.2B IPO with SEBI. The Bengaluru startup, valued at $12.7B, aims to raise ?10,414 crore, awaiting SEBI's approval. The IPO will include new shares worth ?3,750 crore and a stake sale by investors.

????? Getir exits UK, leaves suppliers unpaid . Getir, once valued at $11.8B, exits UK, Germany, Netherlands. Suppliers claim unpaid bills, with one alleging a $190K deficit. Getir to focus on Turkey after international demand drops. 1,500 UK jobs at risk.

????? Getir partners with Türkiye Wealth Fund . Getir partners with Türkiye Wealth Fund, hinting at future collaborations.

????? Just Eat partners with Pop Specs for eyewear delivery . Just Eat has partnered with Pop Specs to deliver prescription eyewear in under 30 minutes across six UK cities. The partnership will expand to 30 stores by year-end, offering 80+ designs. This move follows Just Eat's ventures into health & beauty and toy deliveries.

????? Costco partners with Uber Eats for wider access. Costco and Uber Eats have teamed up to make Costco products available for delivery without a membership. The service is rolling out in cities across the U.S., Canada, Mexico, and Japan, starting with D.C. and Houston.

????? Mobilization exemption canceled for Glovo staff. Ukraine’s Minister of Economy canceled a directive exempting employees of six companies, including Glovo and Favbet, from military mobilization. The directive was questioned for its fairness. The debate highlighted tensions between national security and economic stability.

??General

????? Meta Launches Enhanced Generative AI Features. Meta's enhanced generative AI tools now offer full image and text generation for advertisers. These features help businesses create creative variations and automate ad creation, improving performance. New text overlay and image expansion tools are also included.

????? Deepfakes help mourners talk to the dead. AI companies in China, like Silicon Intelligence, offer digital avatars to help mourners talk to deceased loved ones. This technology has become more affordable, with prices dropping from $2,000 to a few hundred dollars. Ethical and emotional debates continue.

????? Sh?pping expands into Germany, boosting sales. Sh?pping is expanding into Germany in Q4 2024. This move will allow Austrian retailers to reach German customers and attract EU merchants. This expansion aims to meet the increasing demand for Austrian products in Germany.

????? BigCommerce Launches Open Source Buyer Portal. BigCommerce launched an open-source Buyer Portal on May 7, 2024, allowing B2B brands to create tailored buyer experiences. This move aims to reduce development costs and time, offering streamlined services and faster time-to-market. The portal supports localized experiences and automates administrative processes.

????? Kudos secures $10M for AI smart wallet growth. Kudos, an AI-driven smart wallet, raises $10M to enhance credit card optimization for rewards. The company grew from 1,000 beta testers to 200,000 users since 2022. Investors include QED Investors, Patron, and others.

????? Shopware reveals AI, 3D, and B2B features at event. At Shopware's Community Day in Sch?ppingen on May 16, 2024, Co-CEO Sebastian Hamann revealed AI and 3D features. 1,500 attendees saw demos of the Scene Editor, AI Copilot, and Immersive Elements. New B2B tools like Sales Agent were also introduced to enhance sales processes.

????? TikTok Tests 60-Minute Videos for Select Users. TikTok is testing 60-minute videos, available to select users. This follows a trend of increasing video lengths, from 10 minutes to now an hour. TikTok is aiming to offer longer, YouTube-like content while boosting engagement and monetization.

????? Shopify sues Shopline for copying storefront tech. Shopify has sued Shopline, alleging that the latter copied its customizable storefront template technology, Dawn. The lawsuit claims Shopline's Seed template carries clear evidence of copying, including the presence of Shopify’s name in Seed’s code.

5. Deals??

????? Maad secures $3.2M to expand in Senegal. Maad, a B2B e-commerce startup from Senegal, raised $3.2M to grow locally and in Francophone regions. Led by Ventures Platform, with Seedstars, Reflect Ventures, and others. Plans include expanding logistics and introducing BNPL services.

????? Revent raises $900K to expand in KSA. Revent, a UAE-based marketplace for pre-owned electronics, raised $900K in a pre-Seed round led by Techstars. The funds will help build a self-service platform and grow its client base in Saudi Arabia. Revent was founded in 2022 by Baldeep Singh and Dhananjay Choubey.

????? Pepper secures $30M to revolutionize food distribution. Pepper, an e-commerce platform for food distributors, raised $30M in a Series B funding round led by ICONIQ Growth. The company aims to support small distributors with advanced tech, increasing sales by 23% and saving 10 hours per week per sales rep. Pepper's client base has doubled to 200 in a market of 25,000.

????? Restaurant365 raises $175M to boost software. Restaurant365 secures $175M from ICONIQ, KKR, and L Catterton. The company, valued over $1B, plans to expand its food service software. This move supports its mission to help restaurants manage accounting, inventory, and workforce.