TikTok’s New In-App Feature, eBay Rise of Postal Rates and More News
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It’s the last Friday of the month, everyone. And you know exactly what that means — it’s time for another weekly News Digest. Last week we had some pretty intense news, and it looks like this week it’s going to be pretty hot as well. Make sure to check out what Amazon, eBay and other brands have been getting up to. Grab a cup of coffee and let’s dive in!
Today’s news is 1490 words and takes 6 minutes to read.
TikTok’s New In-App Feature
TikTok, the widely recognized social media app, is venturing into the e-commerce sector, challenging giants like Amazon and Shein. The app’s new feature, Trendy Beat, is a shopping hub showcasing trending products for sale, handled by a subsidiary organization.
Initially rolled out in the UK, the feature will highlight popular items from trending videos. Although there are no immediate plans for US trials, TikTok’s recent American trademark applications hint at a future expansion. The assortment of goods on offer will range from wardrobe items to bath products and more.
Under the name Project S, TikTok aims to capitalize on the platform’s trending products. This will enable the parent company ByteDance to create similar offerings. This innovative strategy allows TikTok to enhance industry competition. It offers brands a direct sales channel through the platform.
It’s a clear shift in the marketplace, possibly leading TikTok to operate in a similar fashion to Amazon Basics or Shein.
What does it mean for eCommerce sellers?
As TikTok plans to capitalize on the popularity of items featured in trending videos, sellers will need to adapt to this dynamic marketing environment. Brands that can leverage the platform’s trend-driven nature could enjoy heightened visibility and sales.
Additionally, as TikTok might offer its products akin to Amazon Basics, it presents another platform for sellers to collaborate with. However, it also means heightened competition for consumer attention on this rapidly expanding platform.
Big Retailer News
eBay Rise of Postal Rates Reminders
If you’re an eBay seller, prepare for imminent changes. The United States Postal Service (USPS) rate adjustments are set to take effect within the next two weeks. This development could significantly impact your eCommerce operations. However, rest assured that eBay remains committed to partnering closely with USPS. They want to ensure the delivery of the most cost-effective shipping rates via eBay Labels.
While USPS has announced broad-strokes rate increases, it’s important to note that the specific alterations will be dependent on the package’s weight and the shipping zone.
To break it down: Media Mail will see an average increase of about 7.5%. Parcel Select Ground packages, specifically those up to 20 lbs, will experience varying rate changes based on their weight and the specific zone. However, Priority Mail, Priority Mail Express, and First-Class Package rates will remain consistent.
As for eBay’s standard envelope service, the new rates will alter as follows: a 1 oz. envelope will increase from $0.60 to $0.63; a 2 oz. envelope from $0.84 to $0.87; and a 3 oz. envelope from $1.08 to $1.11.
Remember, eBay’s standard envelope is a cost-effective shipping label with integrated, albeit limited, tracking and shipping protection. This is particularly beneficial for sellers specializing in stamps, coins, and trading cards. For further details and restrictions, please refer to the eBay website.
Recommendation
Check our eBay fee calculator to estimate your selling prices.
Amazon’s Local Business Delivery
Amazon plans to collaborate with thousands of small US businesses. From corner shops to florists, Amazon wants to hurry its package delivery service by year’s end. This strategic move will be Amazon’s latest try to augment its “last mile” network.
The initiative, called Amazon Hub Delivery, will target at least 20 densely populated cities across the US. Those include Boston, New York, Los Angeles, and Seattle. The company seeks to collaborate with a diverse range of businesses, like florists, coffee shops, and clothing stores. Amazon emphasizes that prior delivery experience isn’t a prerequisite for a successful partnership.
What can we expect?
- The operational process involves delivering an average of 30 packages daily over seven days a week. This excludes major holidays.
- Amazon’s Delivery Service Partner network drivers will drop off packages at local businesses. The businesses must maintain a secure storage area.
- While Amazon hasn’t disclosed the per-package payment, estimates suggest the rate would be around $2.50 a package.
Beryl Tomay, vice president of Amazon Last Mile Delivery and Technology, communicated that this program aims to,
“create opportunities for delivery partners interested in growing a business…and supplementing their income.”
With the Hub program, Amazon aspires to help businesses explore new revenue streams. The success of this would depend on geographical factors and the number of participating businesses.
What does it mean for eCommerce sellers?
For eCommerce sellers, Amazon’s plan to use local businesses for their “last mile” delivery network can present several potential implications and opportunities:
- With more local businesses involved in the delivery process, sellers may benefit from increased delivery speed and efficiency. This will lead to improved customer satisfaction.
- If local businesses act as delivery points, this could bring potential customers into their premises. It could thereby increase visibility and opportunities for sales or promoting services.
- This could expand the delivery network. It could possibly enable more efficient and reliable deliveries. Harder-to-reach or densely populated urban areas would benefit. For eCommerce sellers, this could mean improved customer service and increased sales.
- For sellers who also have physical stores, this could open up new business opportunities as they could become part of Amazon’s delivery network.
- This move could encourage eCommerce sellers to think more creatively about their own business models. They could potentially incorporate similar strategies to maximize efficiency and improve customer experience.
Check out our article on Amazon’s 2022-2023 Statistics.
Also in the News
- Another Amazon lawsuit. Global Cosmetics News.
- M&S, Next and Amazon becoming the employers of choice for working parents. Retail Gazette.
International Retailer News
BNPL and Brand Loyalty
An independent survey by Vodeno/Aion Bank reveals that embedded banking solutions, such as Buy Now, Pay Later (BNPL), are becoming pivotal in ensuring customer loyalty among European consumers.
Amidst the cost-of-living crisis, 37% of consumers are more likely to opt for brands offering flexible payment alternatives like BNPL. The survey further suggests that these embedded finance tools increase customer engagement. 36% of people are revisiting the brand’s app or website three to five times monthly. This is particularly prevalent among younger consumers (25-34 age group). 50% are more likely to stay loyal to brands offering financial benefits.
Interestingly, loyalty programs incorporating BNPL have a higher chance of success. In this evolving financial landscape, e-commerce businesses must adapt. They have to offer more flexible payment options to attract and keep customers.
What does this mean for eCommerce sellers?
These findings underscore the increasing importance of offering flexible payment options like BNPL as part of their business model. It signifies a shift in consumer preferences driven by factors such as the cost-of-living crisis and a desire for financial flexibility.
As customers look for more accessible and flexible ways to pay, integrating such payment methods could be a key factor in attracting and retaining customers. Check out other ways to boost your eCommerce business in this article.
Conversations with OnBuy CEO
Cas Paton, the CEO and founder of OnBuy, the self-proclaimed “Europe’s fastest growing ecommerce business,” sits down to discuss his unique approach to online retail. Central to OnBuy’s ethos is the steadfast commitment to supporting retailers. Unlike many of its competitors, OnBuy does not retail any stock of its own.
“Every pound that goes through OnBuy is a pound turnover for one of our retailers,” Paton proudly states.
This retailer-focused approach, while admirable, made the platform challenging to grow initially. Paton went on to describe the “marketplace conundrum”. It’s the difficulty of attracting customers without stock and attracting stock without customers.
While many marketplaces attempt to bypass this issue by selling their own products, OnBuy made a commitment to resist this temptation. This decision has paid off, with OnBuy now heralded as the fastest growing ecommerce company in Europe.
Paton outlines how OnBuy’s business model differentiates itself in discussing competitors like Amazon and eBay. More akin to Amazon in structure, OnBuy is nevertheless distinct in its refusal to supply any products directly. Instead, OnBuy focuses on giving customers a vast range of choices and working with any supplier. They want to provide an environment where businesses don’t view their platform as a potential competitor.
Looking ahead, Paton is optimistic about OnBuy’s future growth. Outperforming its growth targets, OnBuy is transitioning from a start-up to a scale-up business. The focus remains on enhancing the platform for retailers and streamlining operations to improve customer experience.
The company wants to prove that it can continue to deliver what retailers want in a post-Covid world. They want to ensure a beneficial shopping experience for both retailers and customers alike.
Also in the News
- New retails stores popping up all over Europe. Insider Trends.
- Shoppee Sellers Summit. Minime Insights.
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
July 6: The 15 Minute Breakdown. 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.
In that so many local are involved. That was so amazing.