Weekly E-commerce Industry Highlights — October 17, 2022
Welcome to our latest roundup of significant developments shaping the e-commerce landscape. As the industry continues to evolve rapidly, staying informed is crucial for businesses and professionals alike. Here’s a curated overview of the most impactful news from the week of October 17, 2022.
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Buy Now, Pay Later Gains Momentum During Holidays
A recent survey by Bluedot reveals that 40% of U.S. consumers plan to utilize Buy Now, Pay Later (BNPL) options for holiday gift purchases. While supply chain disruptions previously hinted at delayed celebrations, this year’s holiday season appears on schedule. However, due to record inflation rates, many shoppers anticipate financing their festivities through multiple installments rather than traditional lump-sum payments. -
TikTok Expands into Cross-Border E-Commerce Logistics
LinkedIn job postings indicate that TikTok is venturing into establishing an international e-commerce fulfillment system. The initiative aims to incorporate warehousing, customs clearance, and supply chain management capabilities tailored for both domestic U.S. e-commerce and cross-border efforts. Positions such as Business Solutions and Merchant Development Managers highlight TikTok’s strategic focus on supporting sellers with robust logistics infrastructure. -
Shopify Introduces New Sales Tax Management Tool
To streamline tax compliance for U.S. merchants, Shopify has launched a dedicated sales tax tool. Free for merchants with up to $100,000 in annual sales, the service automates collection and remittance processes. Beyond that threshold, a transaction fee of 0.35% per order applies (0.25% for Shopify Plus merchants), simplifying tax handling for growing online stores. -
Gen Z’s Spending Habits on the Rise
A recent survey indicates that Generation Z’s consumer spending increased in 2022. Key insights include a 3% year-over-year rise in self-reported spending among teens, a slight uptick in part-time employment (39%), and growing participation in the secondhand market—with 47% having purchased and 58% having sold used goods. -
Amazon Labor Challenges Escalate Ahead of Peak Season
As the holiday shopping wave approaches, Amazon faces a series of walkouts and strikes. Workers advocate for better wages, improved working conditions, and protections against retaliation. Notable events include unionization efforts in Albany, NY, and Moreno Valley, CA, as well as protests at facilities in San Bernardino, Buford, and Illinois. -
Apple to Offer Interest-Bearing Savings for Apple Card Rewards
Apple announced that, in the coming months, iPhone users will be able to transfer their Daily Cash rewards and funds from linked bank accounts into a savings account managed by Goldman Sachs. While specific interest rates remain undisclosed, Apple promises a “competitive” yield. -
Top Employers Recognized for Competitive Compensation
According to Comparably’s 2022 rankings, companies such as Adobe, Google, Meta, and Microsoft received accolades for their employee compensation packages. These rankings reflect employee feedback on salaries, bonuses, stock options, and benefits, highlighting standout workplaces in the tech and e-commerce sectors. -
Walmart Restructures Atlanta Fulfillment Center
In an effort to optimize operations, Walmart is eliminating 1,458 jobs at its Atlanta fulfillment hub. The retailer offers affected employees support through internal job placement assistance, including opportunities within its seasonal workforce for the upcoming holiday period. -
eBay’s Embedded Video Ads Raise Seller Concerns
eBay has introduced a new feature displaying promotional videos from its eBay Vault alongside seller listings. This change impacts seller control over their listing pages, as some are unable to remove the ads, raising questions about seller experience and site customization. -
Decline in Co-Worker Gift Purchases Amid Spending Adjustments
Affirm reports a significant drop in the percentage of Americans buying holiday gifts for colleagues—from 79% last year to just 42% this year. Consumers are shifting their focus toward immediate family and partners, reflecting broader changes in holiday spending priorities. -
Target Enables SNAP Payment Options for Online Grocery Orders
In a recent rollout, Target now allows customers to utilize Supplemental Nutrition Assistance Program (SNAP) benefits for online curbside pickup and delivery orders. This expansion makes nutritious shopping more accessible for SNAP recipients shopping through Target’s digital channels. -
Leadership Changes at Amazon Amid Ongoing Challenges
Amazon’s hardware division sees the departure of Gregg Zehr, President of Hardware R&D, and Tom Taylor, Senior VP of Alexa. Both leaders have been with the company for over a decade, marking a significant leadership shift during a period of broader industry headwinds. -
Squarespace Hires Amazon Veteran as CFO
Nathan Gooden, formerly CFO of Amazon’s Alexa and Echo divisions, joins Squarespace to fill the CFO role. This strategic move aligns Squarespace’s leadership with significant experience in consumer technology and cloud services. -
Amazon Discontinues Amazon Explore
The virtual travel experience platform, launched during the pandemic, is being shut down. The move suggests a shift back to real-world travel experiences as the demand for virtual tours diminishes. -
Data Breach Settlement for Fast-Fashion Brand Shein
Zoetop, the parent company of Shein and Romwe, has agreed to pay $1.9 million following a cyberattack that compromised data of 46 million customers in 2018. Despite the breach, Shein remains a privately valued company, with estimates exceeding $100 billion. -
Google to Enable Cryptocurrency Payments for Cloud Services
Starting early next year, select customers will be able to pay for Google Cloud services using cryptocurrencies via Coinbase Prime. This marks a notable step toward mainstream acceptance of digital assets in enterprise SaaS transactions. -
OpenSea Joins Avalanche Blockchain Ecosystem
NFT marketplace OpenSea announced native support for the Avalanche blockchain. Existing Avalanche-based NFTs will be featured on the platform, expanding its blockchain integrations and offering more options for creators and collectors. -
Shopify Expands ERP Partner Program in Europe
Building on its ERP integration initiative launched last year, Shopify is now opening the program to European partners. Developers can create dedicated apps that connect ERP systems directly to Shopify, facilitating seamless backend operations for merchants. -
UK E-Commerce Return Policies Tighten in Holiday Prep
In anticipation of increased holiday returns, 25% of UK retail brands—including Zara and Boohoo—are now requiring customers to pay for returns, up 14% from the previous year. This shift reflects efforts to curb costly returns and logistical burdens. -
Marvel Launches Licensed Product Catalog on Shopify
Marvel has introduced a lifestyle app allowing Shopify merchants to sell officially licensed Marvel products. This initiative positions Marvel as the first major entertainment brand to curate a drop ship product catalog through Shopify. -
Growing Concern Over E-Commerce Fraud
Global e-commerce fraud losses are projected to surpass $41 billion by the end of 2022, with North America accounting for over 42% of these incidents. This underscores the increasing importance of robust fraud prevention measures. -
Adobe Forecasts Early Holiday Shopping Growth
Adobe predicts a 2.5% increase in online sales this holiday season. Early shopping prompted by Amazon’s Prime Early Access Sale has shifted consumer behavior, starting the holiday shopping window sooner than usual. -
E-Commerce Expansion in India Accelerates
The Indian online shopping market is expected to grow from 190 million users in 2021 to 450 million by 2027, with the sector valued at over $150 billion. India is on track to surpass the U.S. as the world’s second-largest e-commerce market within the next two years. -
Shopify to Cease Sending Order SMS Notifications in 2023
Starting next year, Shopify will stop sending automated SMS order updates on behalf of merchants. Merchants wishing to continue providing SMS notifications will need to integrate with third-party communication apps from the Shopify App Store. -
Deliveroo Introduces BNPL for Food Delivery
The UK-based food delivery platform now offers Pay Later options via Klarna, allowing customers to split payments into three installments over 60 days, enhancing affordability and flexibility. -
Funding and M&A Activity Highlights
This week also features 16 notable seed funding rounds, IPOs, and acquisitions, including Rye’s $14 million financing led by Andreessen Horowitz’s crypto arm, A16z Crypto.
We hope this overview provides valuable insights into the evolving e-commerce ecosystem. Stay tuned for next week’s updates, and continue to monitor these trends as they shape the future of online retail and digital commerce.
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