Temu Taking Over the US Marketplace, Nvidia Valued at Over 1 Trillion USD and More News
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It looks like June is finally here, and we’re living for it. The hot weather, the barbecue season and everything in between is making us smile more than ever. As we near the end of the working week, it’s time for another batch of fresh eCommerce news. But don’t forget to see what retail giants got up to last week — it was intense!
Today’s news is 1832 words and takes 7 ½ minutes to read.
Temu Taking Over the US Marketplace
By now, you must know that Temu is rapidly establishing itself as the internet’s local dollar store. The company is captivating shoppers with its irresistible deals. Chinese-owned but US-headquartered, Temu operates as a marketplace where primarily Chinese sellers cater to customers in the US, Canada, Europe, and Australia.
Since its launch in September, this e-commerce platform, available as both an app and a website, has been making a strong impact in the US. With extravagant marketing campaigns, reportedly costing a staggering $14 million, Temu aims to persuade shoppers that they can “shop like a billionaire” even on a tight budget.
And it’s proving to be a success! Temu’s app has surged ahead of giants like Amazon, TikTok, and Instagram, claiming the top spot on both Apple and Google Play download charts. Its ultra-low prices have made it a magnet for social media “haul” videos, with consumers branding it the “new dollar store equivalent” in the United States.
The allure lies in Temu’s extensive selection of products that heavily emphasize deals and discounts. Shoppers are in love with banners showcasing “lightning deals”. Especially when every item boasts a percentage discount, often reaching a whopping 80% off.
More than that, consumers can explore items for under $1, uncovering a range of clothing, homeware, electronics, and pet supplies.
On Twitter, users have described Temu as a fusion of Amazon and Dollar Tree. Yet, while Temu’s aspirations extend beyond conquering the US dollar store segment, experts believe its ultimate goal is to become a major player in China’s online shopping sphere. The goal is to challenge the dominance of Amazon.
Nevertheless, its current positioning allows it to cater to a previously underserved customer base. As Temu continues to reshape the discount market, shoppers are flocking to its platform. Who wouldn’t want to shop like a billionaire without spending millions of bucks?
What does this mean for eCommerce sellers?
For e-commerce sellers, Temu’s rise as the internet’s local dollar store brings both opportunities and challenges. They can tap into the growing demand for affordable products and enticing deals. Most of all, they can reach a wider customer base.
However, they may face intensified competition and the need to differentiate their offerings. eCommerce sellers will have to emphasize their brand identity and customer service.
In this ever-challenging market, businesses should look into ways that will reduce costs and streamline their operations.
We recommend checking out our series of shipping top tips, which explain how to organize and upscale eCommerce businesses.
Big Retailer News
Nvidia Valued at Over 1 Trillion USD
Nvidia has just achieved a remarkable feat, joining the elite league of companies valued at over $1 trillion. This exclusive club includes tech giants like Apple, Microsoft, Alphabet, and Amazon, as well as Saudi Aramco.
Nvidia’s entry into this prestigious group is a significant milestone. Having surpassed the mark, Nvidia finds itself in the same league as Amazon. While there is a possibility that Nvidia’s value may dip below Amazon’s, it doesn’t seem like that’s going to happen anytime soon.
This achievement is a testament to the company’s remarkable growth. Driven by the advancements in AI technology, it’s catapulting the company to the forefront of this emerging field.
However, there are concerns…
It seems that the new milestone leaves gamers in an unusual position. Nvidia has long held a dominant position in gaming graphics cards. According to the recent Steam hardware survey, a whopping 76% of gamers currently utilize Nvidia GPUs.
So despite this remarkable growth, gamers have been raising concerns about Nvidia’s new pricing strategy for gaming GPUs. The arrival of graphics cards, like the RTX 4080, has generated discontent among the gaming community. It’s no wonder, as the price tag is $500 higher than its predecessor. With such price concerns, will the company uphold its position among the tech giants?
AI creating business growth is certainly on top of this year’s trending topics. But do you know what other eCommerce predictions there are for the upcoming years? Check them out here.
Sellers Armed With Powerful Bots
Attention, marketplace sellers! Brace yourselves for a new concern on the horizon. Sellers armed with powerful “bots” are capable of automating various aspects of the selling process — from store creation to product design. ZD Net Senior Contributing Editor David Gewirtz put this concept to the test by personally launching an Etsy shop from scratch.
In his recent column, titled “How I used ChatGPT and AI art tools to launch my Etsy business fast,” Gewirtz shares the details of his experiment.
Within a span of less than a week, he utilized generative AI tools to craft products using Etsy’s print-on-demand services. He was able to generate unique descriptions, and even create the store’s banner, slogan, and description. He went a step further by employing AI to construct fictional “proprietors” for his Etsy shop.
“I managed to create an Etsy store that looks distinctive, complete with a strong identity and a multitude of exclusive text and art—almost none of which I created myself,” Gewirtz enthusiastically wrote.
Curious to see how his Etsy shop performed, Gewirtz discovered that gaining actual sales on Etsy proved to be a challenging task.
What does that mean for eCommerce sellers?
With the rise of marketplace bots for enforcement, sellers now find themselves facing the unsettling prospect of bots becoming their competitors. Could this result in sellers embracing generative AI tools to stay in the game?
Gewirtz’s enlightening column is a must-read for anyone seeking to comprehend the potential impact of generative AI on sellers and marketplaces. The landscape is undoubtedly evolving. Understanding these transformative technologies will be key to staying ahead of the game.
Also in the News
- 14 ways to freelance during a recession. Bank Rate.
- Amazon pulls plug on various Alexa voices. Variety.
International Retailer News
Global Economy Going Downhill
Watch out for your wallets, because the global economy is headed for a significant downturn in 2023. According to the latest quarterly economic estimates from Euromonitor, global real GDP growth should slow down to 2.5%. Although improving slightly, inflation might still hover around 6.9%, surpassing historical trends.
Inflation rates skyrocketed in numerous Western countries last year. Major European economies experiened particularly sharp spikes. Poland, for instance, witnessed a staggering 14% inflation rate in 2022, projected to reach 12% this year. Similarly, the UK, Spain, and Italy all faced high single-digit inflation.
Across many European economies, retail sales might decline yet again in 2023. This is primarily due to:
- persistently high inflation,
- stagnant economic growth,
- rising interest rates,
- and lingering risks stemming from the ongoing conflict in Ukraine.
These factors increase the cost of living and instill concerns of a global recession among consumers. In turn, it influences their shopping behavior.
What changes are we seeing now?
Historically, consumers have often resorted to trading down as a strategy to navigate through a volatile economy. For example, shoppers are trading fresh fruit and vegetables for frozen ones to save money.
This trend is particularly noticeable in weaker economies such as Spain, Portugal, and Poland within Europe. Sales of fresh fruit and vegetables have experienced a noticeable decline across all sales channels. At the same time, shelf-stable and frozen produce have seen an upswing over the past year.
Zooming in on Spain, e-commerce research from Euromonitor reveals a significant drop in online purchases of fresh fruits and vegetables. Processed alternatives are failing to offset this decline.
The online channel does not behave in the same manner as its physical counterpart. This is partly due to the relatively low online sales of staple foods in Spain, which stands at a mere 4%. Additionally, online shopping may come with additional delivery fees, which keeps customers away.
As the economic landscape becomes increasingly uncertain, consumers are adapting their shopping habits to weather the storm. The global economy’s downturn and the persistently high inflation rates are reshaping retail sales dynamics. They are leaving consumers to explore alternative options and make more cost-effective choices.
LLMs and ChatGPT to Take Our Jobs
Hold on to your job titles! A recent study has revealed that large language models (LLMs) like GPT-4 can perform data analysis tasks at a fraction of the cost of hiring human analysts, while delivering comparable results. This study sheds light on the potential threat to job security. It looks like AI is gaining traction across industries.
According to various researchers, the cost of using GPT-4 is a mere 0.45% of hiring a senior data analyst with an annual market rate of around $90,000.
It’s even just 0.71% of the cost of employing a junior-level analyst. These findings shared on the preprint server arXiv highlight the cost-effectiveness of LLMs compared to human analysts.
In the study, the researchers provided questions and data, automating the entire data analytics process using GPT-4. The model extracted and analyzed the data, producing valuable insights and graphs.
The results of the analysis were then compared with those of professional human data analysts in terms of performance, time, and costs. The experiments demonstrated that GPT-4 not only offers significant cost savings, but also completes tasks much faster than human analysts.
Will Chat GPT Take Jobs?
It’s worth noting that the study noted a need for further research before fully replacing human analysts with GPT-4. Nevertheless, GPT-4 showcased impressive performance, even surpassing entry-level analysts in certain metrics. The model demonstrated correctness and fluency in generating charts and insights. And it’s comparable to that of senior-level analysts.
In some cases, GPT-4 outperformed human analysts in terms of the accuracy of figures and analysis. Additionally, the insights generated by GPT-4 tended to be more intricate and complex. The model also scored full marks for its alignment and fluency in generating grammatically correct analysis.
While GPT-4’s capabilities in data analysis present exciting possibilities, it is essential to consider the broader implications. It’s important to explore how AI can work alongside human analysts to enhance efficiency and decision-making. The emergence of LLMs like GPT-4 signals a transformative shift in the data analytics landscape.
So will Chat GPT take the jobs, or simply enhance them? Hmm… we’ll let you decide that in the comments below.
Also in the News
- How to adapt your marketing strategy. Marketing to China.
- Alibaba’s collaborations — cloud computing and tech. Technode.
Webinars
For everyone
Various dates: Amazon advertising’s global webinar program continues with 20+ webinars scheduled, covering Prime Day Preparation, Sponsored Products, Sponsored Brands, reporting, optimization, and other tips. Amazon.
For US sellers
June 7: The Lifecycle Marketing Summit. Tinuiti.
For UK sellers
Various dates: Amazon advertising’s global webinar program continues with 20+ webinars scheduled, covering Prime Day Preparation, Sponsored Products, Sponsored Brands, reporting, optimization, and other tips. Amazon.
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