...Wednesday, Thursday, FRI-YAAAAY! ✨

In another week of e-commerce news, we've got the latest and juiciest stories from the industry. Here are some of this week's top stories:

• TikTok has abandoned plans to launch a live e-commerce ‘Shop' project in the US.
• Almost half (48%) of consumers claim that videos boost their confidence in internet purchases.
• Online sales of garments and accessories are outpacing overall e-commerce
• Amazon cancels and delays a slew of warehouse plans as e-commerce demand wanes.

Top Retail and E-commerce Stories

A Flop?: Tiktok Drops 'Shop' Plans

What went wrong? Here's what happened. According to the Financial Times, TikTok has abandoned plans to launch its live e-commerce "TikTok Shop" initiative in the United States and in additional parts of Europe. In the United Kingdom, for example, TikTok debuted TikTok Shop last year, allowing businesses and influencers to sell goods via QVC-style live streams. The company has struggled to gain market traction and has faced internal difficulties.

It was reported earlier this month that the firm had intended to launch TikTok Shop in Germany, France, Italy, and Spain in the first half of this year, before bringing it to the United States later this year.

The plans for an expansion have been shelved after prominent figures backed out of the project in the United Kingdom, and the business failed to gain traction with consumers. Awareness and adoption of TikTok in the United Kingdom is still low, with many TikTok Shop live broadcasts failing due to efforts by marketers and influencers to sell via the app.

The Power of Video: Videos Boost Confidence in Online Purchase Decisions

Seal the deal with videos. A recent study conducted by Brightcove reveals that almost half of consumers (48%) feel more confident in their purchase decisions when they watch a video about the product prior to buying it. According to the survey, slightly more than half of respondents (51%) said video material produced by other consumers is the most reliable form of video.

Meanwhile, 7 in 10 respondents said that having access to video in an online transaction helps them understand the item or have a better overall buying experience. The following are the product categories that received the most mentions as being enhanced by online video availability: consumer electronics (81%), toys and games (80%), and DIY (tools/materials) (78%). The product category mentioned by the lowest proportion of respondents, on the other hand, was grocery (food/beverage) with 38%.

Findings also show that videos must be responsive and load rapidly on any device in order to keep the attention of the viewer. Meanwhile, 91% of respondents feel more confident purchasing on a company's website or marketplace than social media, and roughly half (46%) will wait no longer than two seconds for a video to load on a company's website, and 64% will wait no longer than 4 seconds.

Dressing for Success: North America Leads the Way in E-commerce Fashion Sales

Yes, e-commerce growth is slowing amid inflation and heightened pandemic worries. However, according to data from eMarketer, U.S. retail e-commerce sales are expected to surpass $1 trillion in 2022 for the first time in history.

While all of this may seem discouraging, there's one industry in particular that is leading the change. According to e-commerce platform. BigCommerce's, initial e-commerce industry trend report (NASDAQ: BIGC), the fashion and apparel business has been a North American e-commerce powerhouse so far in 2022.

Here are the trends in fashion and apparel in the e-commerce space:

• When it comes to the most significant impact on their overall business in 2021, 48% of respondents believe social media or social commerce plays a role.
• 25% of survey respondents indicated that offering flexibility in payments had the most significant impact on their businesses. 
• 44% of respondents said improving their clients' experience was most important to them, followed by enhancing customer service and delivery through omnichannel presence.

The Amazon Corner

Amazon Pulls the Plug: Amazon Cancels and Delays a Slew of Warehouse Plans as E-commerce Demand Wanes

Amazon pulls the plug on dozens of planned facilities as sales slump. Amazon has halted or postponed construction on at least 13 warehouses in its logistics network throughout the year, according to local news reports.

Amazon has called off or delayed numerous warehouses across the United States as the e-commerce behemoth rethinks its real estate strategy in the face of slowing sales. According to reports, the company has cut back on plans in Texas, Florida, Louisiana, Tennessee, and California. Following the firm's admission that it built its warehouse footprint too large in April, a number of changes were made.

Following a poor Q1 earnings report, Amazon has delayed some warehouse openings in order to decrease 2022 operational expenditures, according to Marc Wulfraat, president and founder of MWPVL International. Until at least next year, when it will need additional network capacity, the change will allow Amazon to avoid paying more labor costs.

A LITTLE MORE

• Inventory in 2022: Normal is still nowhere in sight
• Buy Now, Pay Later Is Simple. Getting a Refund Is More Difficult.
• Amazon and Grubhub have teamed up to provide food delivery in the United States through Just Eat.

FUN FACT

According to a study, approximately 50% of respondents would buy products from a website's chatbot utilizing conversational marketing.

QUICK TIP

Try this. Add a live chat. Live chat allows consumers to ask questions and voice concerns before making purchases. It's also an opportunity for your agents to provide product information and knowledge base articles to assist your customers in making better informed decisions.

TWEET TWEET

“Quality is the best business plan.” – John Lasseter