??Remarkable growth of TEMU in France?? Plus: Marketplaces Sales Surge in 2023??

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??This week maze:

1. The Big Story ???

The remarkable growth of TEMU in France??

2. Data ???

Marketplaces Sales Surge in 2023??

3. News ??

?? Amazon, Amazon, Amazon, Shopee, TikTok, eBay, Allegro, eBay

?? EU, Shein, About, Mango, Shein, Senser, Vinted, Farfetch

?? Delivery, Walmart, Rewe, Instacart, DoorDash, Ocado, Instacart

??Etsy, Oracle, FTC, eBay, Spicerack, HyperFinity, dunnhumby, TikTok

4. Deals ???

Carvago, Shalion, Helium, allO, Trustap

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1. The Big Story ??

Foxintelligence published an interesting read on Temu's surging popularity in France.

?? Rapid Growth

- TEMU launched in April 2023.

- Surpassed Shein in market share within four months.

- Attracted French consumers with low prices and diverse products.

- Aggressive marketing and promotions boosted visibility.

?? Market Competition

- TEMU has a 11.9% penetration rate, close to Shein's 12.8%.

- TEMU customers spend $122/year, higher than Shein's $94.

- Average of 3.3 purchases per year per customer, similar to Shein.

- Rapid adoption shows effective competition strategies.

?? Customer Demographics

- Balanced gender representation: TEMU attracts both men and women.

- Strong presence of Generation X and B (index of 145).

- Shein attracts mostly young females (index of 160 for women).

- AliExpress has more male customers (index of 115 for men).

??? Shopping Behavior

- TEMU customers spend $2,500 annually, above the market average of $1,800.

- Frequent shoppers with 45.8 purchases/year.

- Prefer cheaper items, average price per item $14.

- TEMU customers often shop at other low-cost retailers.

- Shein customers prefer fashion and beauty stores.

2. Data ???

Mirakl in 2024 Marketplace and Dropship Index analyzed 118 global retail marketplaces and dropship platforms. These retailers represent more than $6 billion sales, more than 66K third-party sellers, and nearly 200M unique products.

??Marketplace Growth

- Marketplace merchandise sales grew by 46% on average in 2023.

- This growth rate is six times higher than the overall ecommerce growth rate.

- 70% of customers prefer to shop with specialized retailers, those in electronics and sporting goods grew by 63% and 74% respectively

?? Commission Rates

- The average marketplace commission rate in 2023 was 14.7%, up from 14.1% in 2022.

- Highest commission in jewelry (20-25%) and apparel (15-25%).

- Consumer electronics have the lowest commissions, between 6-10%.

4.?News ??

?? Mass merchant

????? Amazon's AI chatbot Rufus now available for all U.S. customers in the Amazon mobile app. Rufus helps with finding products, making comparisons, and providing recommendations. Initially in beta, Rufus has answered millions of questions. Amazon will continue to improve it.

????? Amazon sets decarbonization plans for suppliers. Amazon announced climate-related expectations for key suppliers. They must provide decarbonization plans and meet net zero targets by 2040. Scope 3 emissions are 75% of Amazon’s footprint. They reduced carbon emissions by 3% in 2023. Amazon will prioritize suppliers with net zero plans.

????? Amazon's new ad tool boosts non-seller lead gen. Amazon has launched a new lead generation ad feature for businesses not selling on its platform. This tool helps capture customer interest directly from ads on Amazon, Twitch, IMDb, and other sites. It allows businesses to use Amazon's extensive network and data to generate leads.

????? Shopee extends order cancelation window. Shopee, the leading e-commerce platform in Vietnam, is testing a policy allowing order cancelations even when goods are en route to warehouses. This move, which is currently in trial in HCMC and Hanoi, is aimed at improving user experience but has drawn mixed reactions from sellers.

????? TikTok launches ￡1Million Club for merchants. TikTok Shop launched the ￡1Million Club to help merchants hit ￡1M in revenue. Benefits include 0% commission, free storage, and dedicated promotion support. Made By Mitchell became the first UK brand to hit $1M in a day on TikTok Shop.

????? eBay introduces new advertising dashboard. eBay has revamped its advertising platform, introducing a new dashboard and multiple features to help sellers optimize their ad campaigns. The updated interface includes trend-based campaigns, personalized recommendations, and advanced AI technology for enhanced ad performance.

????? Allegro debuts 140 One Box lockers in Czechia. Allegro has launched 140 One Box parcel lockers in Czechia. This expansion integrates the existing WE|DO services and rebrands them under One by Allegro, aiming to unify delivery services across Czechia, Poland, and Slovakia. The new lockers increase the total pickup locations to over 3,840.

????? eBay to accept Venmo for payments. eBay announced it will accept Venmo after dropping American Express. Venmo, popular with Gen Z and millennials, has 90M users. The decision follows eBay's split from PayPal in 2021, simplifying transactions for users.

?? Fashion & Beauty

????? EU to impose tariffs on Chinese e-commerce. They will remove the current €150 duty-free threshold. In 2023, 2B packages below this value entered the EU. Reform aims to address cheap imports.

????? Shein invests $270M in Circularity Fund. Shein is investing $270M in the EU and UK over five years. $216M will go to the Circularity Fund for textile recycling startups. The rest will support local businesses and the Shein X program for independent designers.

????? About You's Q1 2024/25 profit triples. About You's Q1 2024/25 saw adjusted EBITDA triple to $15M from $4.2M. Sales grew by 2.2% to $518.3M, significantly improving the margin to 2.9% from 0.8%. Co-CEO Tarek Müller attributes success to efficiency gains and cost control on their 10th anniversary.

????? Mango launches AI-generated fashion campaign. Mango's new campaign for its limited-edition teen line is AI-generated. The initiative is part of its 2026 strategic plan, focusing on technological development. Mango's CTO, Jordi Alex, highlights the innovation and creative amplification through AI.

????? Shein partners with Reliance Retail to enter India. Shein is set to return to India through a deal with Reliance Retail. The partnership includes selling Shein products via Reliance’s stores and app. This marks Shein’s return after a four-year ban and involves a profit-sharing model.

????? Senser launches luxury platform in the U.S.. Global luxury platform Senser debuts in the U.S. with 30%-70% off on brands like Chanel, Louis Vuitton, and Prada. Partnering with over 2,500 brand counters, Senser offers more than 500,000 items directly from European boutiques.

????? Vinted Fined $2.6M for Data Breach. Vinted, a popular clothing resale platform, has been fined $2.6M by Lithuanian data protection authorities for GDPR violations. The fine follows complaints from users in multiple countries, including Poland, about data access and privacy issues.

????? Farfetch faces new fraud allegations in court. Farfetch investors have filed a new complaint, alleging the company misled them about financial health. They claim poor integration of acquisitions led to losses. The complaint, filed on June 21, seeks damages for these alleged violations.

?? Food & Grocery

????? Delivery Hero faces €400M antitrust fine. Delivery Hero warns of a potential €400M antitrust fine due to alleged market-sharing agreements and no-poach deals. The issue follows EU raids on their offices and a significant increase in provisions set aside for the fine.

????? Walmart expands high-tech grocery distribution. Walmart is adding five new automated distribution centers and upgrading four others. Each new center adds over 500,000 square feet of automation, doubling storage and processing capacity. Retrofitting efforts continue with another center in Florida.

????? Rewe opens Europe's largest autonomous store. Rewe has launched Europe’s largest autonomous supermarket in Hamburg. The store spans 1,200 sqm and features 20,000 items. Customers can use four different payment methods, including a new computer-vision system that doesn't require scanning.

????? Instacart eyes high-margin revenue growth via Uber Eats. Instacart's partnership with Uber Eats will allow Instacart users to order from Uber Eats' local restaurant partners. This partnership, unveiled in May, offers high-margin revenue for Instacart and exposure to a larger customer base for Uber Eats.

????? DoorDash Cracks Down on Driver Violations. DoorDash has announced new measures to curb account sharing and traffic violations among drivers. These steps aim to address concerns from city officials about safety issues involving scooters and motorcycles. The changes will start in Boston and expand to other U.S. cities.

????? Ocado plans a third robotic warehouse with Aeon. Ocado is building a third robotic warehouse with Aeon in Japan. The new site in Kuki-Miyashiro will open in 2027. This follows a recent setback with Canadian partner Sobeys. The expansion includes advanced Ocado technologies.

????? Instacart expands AI smart carts to more stores. Instacart is expanding its AI-powered Caper Carts to more stores. The carts, which calculate item totals and provide discounts, are expected to be in thousands of stores by the end of 2024. While some shoppers are skeptical, the company sees it as a key driver of growth.

??General

????? Etsy revamps product categories to rival Amazon. Etsy is changing its product categories from 'handmade' and 'vintage' to four new labels: 'made by,' 'designed by,' 'handpicked by,' and 'sourced by.' This shift aims to provide more details to shoppers and better compete with Amazon and Temu.

????? Oracle and Shopify Enhance Customer Personalization. Oracle's new partnership with Shopify integrates Oracle's Unity Customer Data Platform with Shopify's commerce platform, delivering personalized shopping experiences. CasaPerks launches CasaCash for rental loyalty. Sendbird integrates AI chatbots with Shopify.

????? FTC finds dark patterns in 76% of subscription apps. The FTC found that 76% of subscription apps and websites use dark patterns. These manipulative designs, like auto-renewal and hidden cancellation processes, deceive users into subscriptions. The study included 642 services globally.

????? eBay launches Business Cash Advance program. eBay’s new Business Cash Advance program offers U.S. sellers up to $1M in working capital within 24 hours. The program, launched with Liberis, features a quick online application and flexible payment schedules.

????? Spicerack provides refuge to Etsy sellers. Spicerack opens to sellers worldwide, providing refuge for those affected by Etsy's adult toy ban. The marketplace sees a significant traffic increase, from 5.6K visits in April to 13.6K in June. Expansion plans include Canada and Europe.

????? HyperFinity launches new AI pricing product. HyperFinity introduces an AI-driven pricing product that improves profit margins by over 5%. The tool provides retailers with vital insights for pricing decisions, replacing cumbersome spreadsheets and offering advanced analytics. Retailers like cardfactory benefit from these insights.

????? dunnhumby unveils AI-powered assortment tool. dunnhumby launches AI-powered assortment tool on 1 July 2024. The tool helps retailers create localised product ranges, optimise shelf layouts, and streamline the ranging process. Tesco is already using this tool to improve customer experiences.

????? TikTok ad spend grows slowly amid ban talk. TikTok ad spend growth slowed from 19% in March to 6% in May 2024. Total ad spend from January to May 2024 reached $1.5B, up 11% from 2023. Weekly users aged 18-24 dropped from 35% in 2022 to 25% in 2024. Engagement remains strong.

5. Deals??

????? Carvago to Become Largest DACH Used Car Dealer. Carvago, through its acquisition of InstaMotion, is set to become the largest online used car dealer in the DACH region. The deal boosts EAG Group's portfolio, with InstaMotion achieving €80M sales in 2023. InstaMotion will remain a distinct brand under the leadership of Nikolas Deskovic.

????? Shalion secures $5.5M for eCommerce expansion. Funding for Shalion, a Madrid-based eCommerce intelligence firm, will enhance its big data platform's reach across Europe, the UK, and the US. CEO Germán Loewe aims to help brands and CPGs excel in digital retail.

????? Helium secures $550k pre-seed funding led by Merak, with participation from Alok Mittal. The funding will help Helium, an AI platform for eCommerce websites, enhance product and visitor intelligence, aiming for higher conversions.

????? allO secures $5M to expand in Europe in Seed funding led by 20VC. The company aims to expand its services across Germany and Europe, leveraging partnerships with major companies and focusing on ethnic restaurants. allO’s growth reflects a 10x increase in annual recurring revenue and a 4x rise in average revenue per user in the past year.

????? Trustap raises $5.5M for trusted transactions. Trustap raises $5.5M to expand its trusted transaction services for marketplaces. The funding was led by TX Ventures, with co-investors including SeedX and Partners Resolute. This will help Trustap enhance its product features and global reach.

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 ?abka and Entrepreneur that co-launched 3 startups