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April 14, 2023

A hodgepodge of e-commerce news!

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This week, we’ve seen a few major stories that have grabbed the attention of e-commerce companies. From ChatGPT regulations to the fast shipping race, here’s what you need to know about the latest news and trends.

Starting in May 2023, Google will be discontinuing four attribution models (first click, linear decay, time decay, and position-based) on both its Ads and Analytics platforms.
The US government has launched an in-depth study to evaluate possible rules and regulations for artificial intelligence systems such as ChatGPT.
As shoppers become increasingly aware of shipping costs, they are growing more and more patient in waiting for their purchases to arrive. Could the rapid pace of online shopping's speedy delivery begin to wane?
Amazon will now be imposing a cost on customers for UPS returns, so make sure to keep that in mind when making purchases.

Another Google Update: Google Bids Goodbye to These 4 Attribution Models

Photo Credit: Search Engine Journal

Goodbye, Felicia! On May 2023, Google will be phasing out four of its attribution models—first click, linear decay, time decay, and position based—on both Ads and Analytics platforms. The decision was recently made public by Google.

As Google outlines, the data-driven attribution model is by far the most used for conversions when utilizing automated bidding. In fact, the four removed models make up less than 3% of all web conversion efforts on Google put together. Thus, it should come as no surprise that simplification and consolidation are at play here; removing models with lower levels of usage helps to streamline measurement processes.

Side Note: Benefits of Google Analytics 4 for E-Commerce Sellers

All current conversion actions using the outdated models will migrate to the data-driven attribution model, or if you prefer, can be manually adjusted to the 'last click' model.

ChatGPT: AI Regulations Ready to Make History

Photo Credit: REUTERS/Florence Lo/Illustration

AI regulations are coming? The Biden administration said Tuesday it is seeking public comments on potential accountability measures for artificial intelligence (AI) systems as questions loom about its impact on national security and education.

ChatGPT, a remarkable AI program that has made headlines for its capacity to rapidly answer an array of questions, has become the most popular consumer application ever created with over 100 million monthly active users – and it's no surprise U.S. legislators are paying attention! This innovative technology is rewriting history by becoming the fastest-growing app in existence.

Side Note: Ultimate Guide to AI Marketing for E-Commerce Sellers

OpenAI, a California-based company with Microsoft Corp (MSFT.O) backing it, created ChatGPT which has been met with both praise and criticism depending on how accurately the AI system answers questions. To better understand this technology and its implications, NTIA is currently crafting a report that will determine ways to ensure these AI systems not only work as promised but also don't cause any harm while they are in use. This research seeks to help guide the Biden Administration in establishing federal policies related to artificial intelligence risks and opportunities alike.

Learn more about the Biden Administration's interest in AI regulations!

When Patience Pays: Slow Shipping is Making a Comeback

Photo Credit: CHRIS HELGREN/REUTERS/WALL STREET JOURNAL

The age-old saying “patience is a virtue” has never been more applicable than when it comes to online shopping. As shoppers become increasingly aware of shipping costs, they are growing more and more patient in waiting for their purchases to arrive. Could the rapid pace of online shopping's speedy delivery begin to wane?

As customers pull back from the pressure of immediate delivery that has been perpetuated by e-commerce and parcel carriers, applications like Instacart have started providing deliveries in as quickly as 15 minutes--exclusively for food and drug store orders. This pattern among online retailers and couriers to fill orders expeditiously within a day, an hour, or even more instantaneously is losing ground.

Side Note: Free Shipping: When E-Commerce Sellers Should and Shouldn't Offer It

Consumers are now more in favor of delaying purchases and shying away from the expense associated with obtaining ordinary household items within a matter of hours rather than days. According to e-commerce shipping services provider, Shippo (formerly known as Popout Inc.), the preference for same- or next-day delivery amongst shoppers has decreased significantly in comparison with a year earlier. In fact, only 10% of respondents currently prefer it compared to 18% last year.

The Amazon Corner

Amazon's Newest Cost: UPS Returns

Thou shall not return? In an effort to reduce the number of returns, Amazon is taking dramatic steps and has begun charging customers a fee when they return items using UPS stores.

For years, Amazon has revolutionized shopping by making it speedy and surprisingly easy to buy items without the fear of mistakes. And if you weren't satisfied with your purchase? Not a problem - just return it! However, due to numerous customers having buyer's remorse or an inaccurate size selection, returns have become increasingly costly for the company.

Amazon customers will soon be charged an additional fee of $1 for returning items to a UPS store if there are Whole Foods, Amazon Fresh stores, or Kohl's locations closer to their delivery address. It is important to note that these locations are owned by Amazon and through a partnership with Kohl's.

Side Note: How to Use Product Videos to Grow Your Amazon Sales

Amazon has recently implemented a new flagging system on its website that identifies products with an exceptionally high return rate. According to the spokesperson, the badge will be included in the product listing for items that have significantly more returns than similar products in its category.

From Zara to J.Crew and everywhere in between, retailers are now charging up to $7 for online returns - not to mention tightening their return windows!

Learn more about Amazon's latest cost for consumer returns!

RESERVE YOUR SEAT

A Little More

Dispatch is thrilled to announce the launch of its state-of-the-art e-commerce and ad tech platform – revolutionizing how businesses interact with customers online.
In response to the rising cost of inflation, Savings.com has developed a new e-commerce fundraising program called SavingsCARES that benefits brands, consumers, and charities alike.
Amazon and Panera strongly believe that conversational AI provides the easiest avenue for ordering in the future.

QUICK TIP

Try this. Propelling your online sales to the highest level depends on one thing: reducing customer friction. Guarantee that buyers have a seamless journey from browsing products to completing their purchase.

FUN FACT

Millennials are the highest proportion of shoppers on social media- 55% of 18 to 24-year-olds in America have made a purchase using one of these platforms.

LISTEN UP

On this 80th episode of The E-Comm Show, our host, and BlueTuskr CEO Andrew Maff is with Eric Caron of Caribou Coffee, an internationally known and enjoyed coffee brand that has solidified itself not only in 500 locations nationwide and in retailers across all states but also online through their e-commerce channel. Eric is the Sr. Director of Digital Experience at Caribou Coffee and speaks on his knowledge of the customer experience and how to successfully speak to customers the way they want to be spoken to at the right time.

Tune in to this week’s episode to learn more about the customer experience, digital marketing insights, engagement, and more!

Watch the full episode below, or visit TheEcommShow.com for more.