The Webretailer News Digest July 8, 2022
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TikTok Shop nixes the US and European expansion
A few weeks back, we reported on things not going so well for TikTok’s live eCommerce platform in the UK — TikTok Shop. And this week, the company has apparently abandoned its expansion plans for the platform within continental Europe and the US. This news is according to a Financial Times article cited by multiple outlets.
ByteDance altered course after TikTok Shop failed to hit its target numbers. In addition, many influencers exited the project recently, citing low pay, long hours, and low-quality products.
If you’re not familiar, the platform acts like The Home Shopping Network (HSN) or QVC, but through TikTok. On the screen, users can tap an orange basket to purchase a featured product.
But it seems there aren’t enough users in the UK willing to make a purchase through the platform. The Financial Times stated they spoke with multiple employees who confirmed this information.
Other platforms like Instagram and YouTube are also developing this marketing style in Europe and taking commissions on sales. And the format has had success in Asian markets which seem to be more receptive.
In fact, ByteDance’s TikTok sister app in China, Douyin, tripled its sales over the past year by featuring live streaming sales content. Because of growing numbers like this in Asian markets, many in the social media industry believe it’s the future of shopping.
Time will only tell if that’s true. But for now, it seems the West just isn’t ready for social media live-stream shopping on a large scale.
eBay and FedEx partner to help Asian eCommerce sellers expand their business overseas
FedEx and eBay announced a partnership this week aimed at helping sellers in the APAC (Asia Pacific) region. The deal will provide better shipping capabilities and pass on competitive rates to sellers, so they can expand their market reach overseas.
Fortunately, If you’re a seller in this region, you won’t have to wait. The new features are available now when you sign up for a FedEx account. This gives you access to the following features with more to come soon:
- FedEx direct contact – Contact FedEx regarding billing information and pickup questions
- Enhanced Shipping – Includes multiple features like Electronic Trade Documents and FedEx Home Delivery, flexible returns options, FedEx Hold-at-Location
- Competitive Rates – Discounted rates on FedEx ExpressⓇ
Vidmay Naini, eBay International Cross Border Trade Regional General Manager for India and Southeast Asia, stated “Shipping is a critical component of the cross border e-commerce ecosystem. Teaming up with FedEx, one of the world’s most well-respected e-commerce transportation and logistics carriers, gives our sellers access to a unique set of capabilities and rates, which ultimately enables them to provide their global customers with retail-standard buyer experience.”
Hong Kong, Taiwan, Singapore, Indonesia, Philippines, and Malaysia will kick off the first phase of the deal. But we can expect more regions to roll out through the end of the year.
BigCommerce expands to Peru and further into Europe
Whether you’re a B2B or B2C seller, BigCommerce is coming to your country soon. This week, the SaaS eCommerce platform announced its expansion into Sweden, Norway, Denmark, Austria, and Peru.
The expansion gives merchants in these countries access to BigCommerce’s agency partner ecosystem and localized tech. This will allow them to both scales their business and create a seamless shopping experience no matter where their customers hail from.
The company stated in its press release that industry insights point towards global eCommerce retail sales reaching $7.39 trillion in three years. And as the company expanded to Germany, Spain, and Mexico back in January, it’s clear it’ll continue its growth track soon.
Lululemon launches eCommerce platform in Spain
BigCommerce isn’t the only company expanding its eCommerce presence into Europe. Athletic apparel retailer Lululemon is entering the Spanish market with a dedicated eCommerce platform and two brick-and-mortar stores.
Lululemon.es will launch by the end of July, and the two stores will open in September. The launch is part of its “Power of Three x 2” growth plan that has a goal of quadrupling the company’s international revenue from 2021 to 2026.
Currently, Lululemon has three local language sites and 40 stores within eight countries in Europe. But they’ll ship to many European countries through their EU site.
World’s first ‘community-owned’ eCommerce platform launches
British tech firm WeShop launched a platform this week they’ve branded as the world’s first community-owned social eCommerce platform. Under the platform, users will be able to gain shares in the company with each purchase.
They’re putting up to 90% of the company to customers and have plans to list the company on the Nasdaq index within a year. The setup is relatively simple. When users make a purchase, they’ll earn 20% of the purchase price as an investment share.
Customers can also earn 10% in shares based on the value of recommended items. And they can earn 1% in shares from every purchase by someone they brought onto the platform.
Klarna could value at $6 billion
According to Bloomberg, buy-now-pay-later (BNPL) company Klarna could see its value drop from $45.6 billion a year ago down to $6 billion this month. The company is working on a new funding round. And according to Bloomberg’s sources, Klarna’s value could be down even further than the $15 billion reported in June.
In this situation, they could grant new equity options to its employees with a lower value. But overall, the talks about their valuation seem to be unsettled. Regardless, no one within the company wants to comment publicly about what’s going on.
If you use Klarna in your eCommerce store, monitor how this develops.
Amazon sellers must dump Mylar Stash Bags
According to a recent Amazon seller announcement, “All Mylar bags that are not clear or single-colored must be removed from the Amazon store by August 5, 2022”
If you’re not familiar, Mylar foil bags are made by a joint venture between DuPont and Teijin. They’re a polyester film used in packaging for both food and non-food items.
However, they’ve also been used to mask the smell of some drugs. And it’s probably why Amazon cited its drugs & drug paraphernalia compliance page in the announcement. US Customs has made demands like this in the past.
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 14: INFLUENCER MARKETING 201 Measuring Performance Throughout the Funnel. 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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