This week, we’ve seen a major shift in the way retailers are dealing with rising fees and costs. In response, many are turning to artificial intelligence (AI), and this week, we'll take a look at both.
Amazon will discontinue its Small and Light Program and instead offer new FBA rates at affordable prices for items priced below $10, which was previously $12.
Experts say the use of Google's AI dressing room technology could lessen the number of e-commerce returns and provide retailers with more data to effectively market to consumers.
The Top 1000 retailers saw a $75 billion growth in online sales due to the pandemic.
Merchants in the US will not be charged any fees for using the TikTok marketplace.
The Amazon Corner
Breakthrough Bargains: Amazon FBA Just Got Affordable!
Photo Credit: Justin Sullivan/Staff via Getty Images | Retail Dive
Goodbye small and light, hello FBA! It's no secret that Amazon fees have been on the rise, but this week they announced a new FBA fee structure. Smaller items that were previously priced above $12 are now being offered at lower prices when sold through Amazon’s FBA program.
The program is small and lightweight, and it enables vendors to sell less costly, smaller, and lighter products with a lower fulfillment fee. This was advantageous because the usual Amazon FBA fees would render it unprofitable to sell inexpensive products. To balance this, Amazon offered slower shipping times than standard FBA items.
Starting on August 29th, the new Low-Price FBA will come into effect. Sellers will be charged an average of $0.77 less per item for shipping low-priced products compared to the current FBA rates. However, items priced below $10 will have an increase of around $0.30. The benefit is that these items will now be shipped with regular, faster FBA fulfillment shipping speed.
AI Love It!: Google's AI-Powered Virtual Dressing Room
Dress to impress without the stress! This week, Google announced its patent for an AI-powered virtual dressing room. It works by scanning a user’s body and creating a virtual avatar which they can then use to try on clothing items in the store. According to Chris Raven, CEO of Heur, using virtual try-on tools could reduce returns and potentially save e-commerce retailers money.
Google has developed an AI tool that can suggest products to customers based on their preferences, such as color, style, pattern, and price. It's similar to a store worker recommending options to a customer. Currently, the tool can only recommend women's shirts, but it can suggest products from different brands, unlike physical stores that are limited to in-stock inventory.
Pandemics Pay Off: +$75 Billion in Top 1000 Retailers
Tap into the new gold rush. During the pandemic period of 2020-2022, the Top 1000 retailers based in North America, who lead in e-commerce sales, experienced growth at a compound annual rate of 20.7%, which is higher than the 17.7% growth seen in previous years. While Amazon's market share in Top 1000 was slightly reduced, other retail chains with physical stores and consumer brand manufacturers gained more market share.
During the three-year COVID-19 pandemic, Top 1000 retailers saw an increase of $75 billion in e-commerce revenue due to the shift to online shopping. During the first year of the pandemic, retailers ranked 501-1000 had higher growth in web sales compared to the top 500 retailers.
Free Marketplace Access: Merchants Will Not Have to Pay Any Fees to Use TikTok Marketplace in the U.S.
Get the best bang for zero bucks! TikTok has declared that merchants based in the US will now be able to access the platform's marketplace without having to pay any fees, which is good news for small businesses. This will enable them to broaden their customer base and boost their sales without any advertising or other service costs. This modification can prove to be helpful for small businesses that are encountering difficulties due to the ongoing pandemic.
TikTok is offering Chinese manufacturers and exporters a free fast-track to its online marketplace. They are promoting themselves as a cost-free marketplace through seminars and meetings, taking inspiration from the marketing strategy of Temu, a bargains app that successfully established itself in America. This move is part of ByteDance Ltd.'s efforts to expand its business. The company is offering free listings, shipping, zero commissions, and even warehousing to all customers. This strategy is expected to shake up a market that is currently dominated by Chinese-owned rivals Temu and Shein and possibly even undercut Amazon.com Inc.
Try this.Build a pre-launch email list by offering exclusive discounts or promotions. This will help to create buzz and excitement around your business before it launches.
FUN FACT
The fashion industry has made $871.2 billion in sales, making it the top-grossing e-commerce sector.
LISTEN UP
Finding converting marketing strategies specific to your business can be challenging, but even more so if you have multiple brands that are all so different from one another. Warren Lee, CMO & Strategist for Sunga Life & Boomn, has spent much of his career developing converting marketing strategies for companies that range from beauty to swimwear to food successfully.
On this 92nd episode of The E-Comm Show, Warren shares his entrepreneurial experience with these brands, marketing initiatives that have succeeded, and the current status of these companies. Tune in as Andrew and Warren discuss marketing highlights, challenges, and tips for tailoring a marketing strategy specific to your company and niche.
Did someone really cool forward this email to you? Sign up here.
WAIT! If you didn't love this week's Click and Conversion, we're sorry! :( We hope that you'll give us another chance and see what next week brings. But, if you feel you must unsubscribe, you can manage your preferences below to make sure you still get all our other great content!
BlueTuskr, 844 East Street Road, #330, Westtown, Pennsylvania 19395, United States, (610) 753-5722
-3.gif?upscale=true&width=300&upscale=true&name=giphy%20(1)-3.gif)
