Is BNPL no longer working? Online fashion is expanding, Amazon is now working with locals............................................................................................
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This has been a long week, but before we all race off into the weekend, let's take a look at some of the top stories. πͺ
Players who buy now, pay later are losing money as expenses rise
By 2028, the e-commerce apparel market size is expected to exceed $941.0 Billion
Snapchat goes all in with AR Shopping
Amazon's surprising new delivery partners: Small rural businesses
Top Retail and E-commerce Stories
BNPL Players Beware: BNPL Costs Surge as Losses Grow
Get what you want now, worry about the bill later. In just over 20 years, theBNPLhas gone from a shopping gimmick to a multibillion-dollar industry on three separate continents. Its rapid expansion hasn't been cheap. Because none of the major pure-play BNPL rivals, such as Klarna, Affirm, Afterpay, and Zip are profitable.
On the other hand, their merchant clients are starting to ask if they are paying hefty costs to BNPL fintech firms for sales that would have happened anyway.
Don't Be Left Behind: E-commerce Apparel is Booming
The future of fashion is online. According to a recent report from Grand View Research, Inc, by 2028, the global e-commerce apparel market is projected to reach $941 billion, with a growth rate of 7.9% over the next decade.
The e-commerce sector has played an important role in increasing worldwide market size. Luxury brands, which were formerly reserved for big spenders, have spread via e-commerce to encompass everyone. The flexible payment options, accessibility, and easy return policies are all propelling the market forward and are expected to do so over the next several years.
Snap to It: Brands Expanding Reach with AR
Try on clothes without having to try on clothes. Say What? Since January of 2021 more than 250 million Snapchatters have used AR shopping lenses. At their recent summit, Snapchat announced how brands such as Puma and Zenni Optical have incorporated Snap AR Shopping.
Through Snap AR, shoppers can experience brands and products before buying them. For Zenni Optical, app users have tried on the brand's AR lenses more than 60 million times, and lenses that offered "true size" technology drove a 42% higher return on ad spend than lenses without the feature.
The Amazon Corner
#SupportLocal: Amazon Partners with Rural Mom-and-Pop Shops
Local businesses join forces with Amazon.Amazonhas been soliciting small businesses in rural America to participate in an experimental delivery program. The firm is compensating participating little companies a per-package commission to deliver Amazon purchases to their neighbors' houses in states like Nebraska, Mississippi, and Alabama.
Amazon is looking for small business owners in a number of sectors from florists to restaurants to information businesses, and none of them need prior delivery expertise β just a promise to deliver Amazon packages seven days a week, around 360 days per year, and a physical location where packages might be picked up each morning.
The newKlarnavirtual-shopping function will link consumers with salespeople.
FUN FACT
Consumers are increasingly vocal about their negative experiences with products and businesses. According to studies, 55% of online shoppers tell friends and family when they are dissatisfied with a product or company.
QUICK TIP
Try this. Offer voice commerce shopping. Voice assistants boost customer interaction, make online shopping easier, and collect consumer data.
TWEET TWEET
βDonβt sit down and wait for the opportunities to come. Get up and make them.β - Madam C.J. Walker
On this 32nd episode of The E-Comm Show, our host and BlueTuskr CEO Andrew Maff is with Dan Edmund of BossProfits, an e-commerce training and mentorship business teaching people the most effective and scalable strategies on how to build e-commerce brands from start to finish.
In this episode with Dan, learn how to find winning products, build your Shopify site, and discover the tools and strategies that will scale your small business into a seven-figure brand.