Your Weekend's Calling! 📱

Before heading out for a weekend of R&R, here's a wrap-up of the juiciest news in retail and e-commerce this week. ✨

• Klarna showcases its first virtual shopping tool
• Gap opens a presence in Roblox to promote teen inclusion and self-expression
• US apparel resale shops are expected to double in the next five years
• Companies are paying more to sell on Amazon as it expands storage capacity at an unprecedented rate

Top Retail and E-commerce Stories

New Player Alert: Klarna Releases New Virtual Shopping Tool

Shopping just got even more fun! The online installment payment service Klarna debuted its new virtual shopping function earlier this year after releasing a debit card in April. By utilizing the Klarna Store App, retailers can connect their staff with virtual customers via video call or live chat in order to offer product guidance and build stronger relationships. 

The service is presently accessible in 18 nations, including the United States, Canada, the United Kingdom, Germany, and Sweden. This year, Klarna plans to expand its availability.

NOW OPEN FOR BUSINESS: Gap Opens Its First Roblox Shop

Gap has arrived. Gap is the latest retailer to open a shop in Roblox, an online gaming platform with 32 million active users. The move comes as Gap looks to connect with teens and tweens in new ways and promote inclusion and self-expression among its customers.

Gap is opening a virtual, purchase-free experience on Club Roblox, a role-playing, user-generated world built on the Roblox gaming platform. In collaboration with SuperAwesome, Club Roblox Boutique mimics a Gap Teen shop and includes a fashion presentation game called Style Stage. Additionally, Club Roblox Boutique aims to provide teens with a means to express their individuality in the metaverse, which aligns it with young consumers' interests in the growing area.

With this addition, Gap becomes the latest company to enter the metaverse, a new term that refers to the merging of real and online environments and is becoming an increasingly important space for marketers of all types.

Resale is Taking Over: US Resale is Expected to Double in the Next 5 Years

Apparel resale shops are doubling, are you prepared? According to a new study from thredUP, the number of resale businesses in the United States is expected to increase by more than half over the next five years. The rise of resale shops is being driven by a combination of factors, including increased awareness of the benefits of secondhand shopping, a desire for sustainability, and the popularity of Gen Z shoppers.

According to the report, 36% of the 500 respondents surveyed said they have visited a resale store in the last year, and this market is projected to reach $82 billion by 2026. Global resale is already a reality, but North America retains dominance. By 2026, the worldwide secondhand clothing market is expected to expand by 127% and reach an astounding $218 billion.

The Amazon Corner

Warehouse Overstock: The Reason Why You're Paying More on Amazon

Warehouses are bursting at the seams, forcing sellers to pay more. Amazon is overstocked, leading to higher storage fees for sellers. Third-party FBA clients received a letter when Amazon revealed it had built or acquired $2 billion in too much warehouse capacity. It was decided that the price increase was "to partially offset future permanent operational expenses" in the United States, where the increase took effect somewhat earlier.

The FBA service enables third-party vendors to store their items in Amazon fulfillment centers, delegate packing, shipping, and customer care to the e-commerce behemoth, and take advantage of Amazon's Prime delivery service performance.

 Amazon overcommitted to warehouse space during the pandemic, thinking that its online shopping platform would continue to grow strongly. Now it's paying for empty shelves. In 2019, shipping and fulfillment expenses accounted for 28% of Amazon's overall costs. They're now at 35%.

A LITTLE MORE

• In April, consumer spending increased 0.9 percent, driven by demand and price increases.
• Zara is planning to spend $10 billion on online shopping.
• Afterpay Integration expands to in-person points of sales for shops on Squaresquare
  

FUN FACT

60% of consumers say they’ve made a purchase as the result of an email marketing message they received. 

QUICK TIP

Try this. Email campaigns are a great way to keep your customers and prospects updated on your latest product offerings, company news, or industry trends. But if you're not segmenting your email list by consumer demographics, you're missing out on a potential 760% boost in revenue.

TWEET TWEET

“Wonder what your customer really wants? Ask. Don’t tell.” — Lisa Stone

OLDIE BUT A GOODIE

We love Pinterest for its aesthetic posts, but back in 2010, well...maybe not so much! But hey, the glow up is real!✨🙌