Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing. 

Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

🧑‍💻 Shopify’s doubling down on AI and Unified Ecom Tools

Shopify had an amazing Q3:

MV was up 24% Year over Year in Q3, revenue accelerated to 26%, gross profit grew 24% Year over Year, and their Free Cash Flow Margin expanded to 19%.

📈 But their latest earnings call revealed one thing: they’re doubling down on making it easier for merchants to connect with customers, anywhere customers want to shop.

Shopify President Harley Finkelstein broke down how they’re doing it:

👉 By linking their platform to the digital spaces where consumers hang out, like YouTube, TikTok, Roblox, and Instagram. The goal? A seamless shopping experience that connects every key touchpoint across the web.

💡 And AI is at the center of it all. From Shopify Sidekick, an AI assistant that makes store management easier, to new tools like Shopify Flow, Finance, and Shop App, they’re aiming to create a platform that helps merchants build authentic connections with their audiences, without the usual hassle.

And it’s paying off — with a 26% revenue increase this quarter and big brands from diverse industries joining the platform.

As larger companies shift to platforms that can do it all, Shopify’s unified commerce system is looking more and more like the future.

Check out Shopify Presiden Harley Finkelstein’s post on their strong Q3 performance👇

Harley Finkelstein on LinkedIn: Just jumped off the Shopify Q3 Earnings call. If you missed it, I'll… | 96 comments

Just jumped off the Shopify Q3 Earnings call. If you missed it, I'll summarize: Q3 was an incredible quarter for Shopify. Here are the highlights of Q3 2024… | 96 comments on LinkedIn

www.linkedin.com/posts/harleyf_just-jumped-off-the-shopify-q3-earnings-call-ugcPost-7262109504060764160-3CwK/?utm_source=share&utm_medium=member_desktop

🤔 Gen Z's love for fast fashion: The paradox of sustainable values vs. buying behavior

According to Fashion United, unauthorized pop-up shops claiming to be Shein outlets, pop-up shops that pretend to be by the Chinese internet giant but are simply riding on the brand's popularity, have been cropping up in Dutch cities, drawing crowds with ultra-cheap prices.

These pop-ups are a clear reflection of Shein’s ongoing popularity despite its controversies over environmental and human rights practices.

This situation highlights a big paradox: consumers—especially Gen Z—talk about wanting sustainable fashion but continue to buy from fast-fashion giants like Shein and Temu.

Why? 

It often comes down to affordability, convenience, and the pressure to keep up with constantly changing trends on platforms like TikTok and Instagram.

Despite Gen Z's eco-conscious values, research shows a gap between what they say and what they do. For example, a ThredUp study found that 72% of college students bought fast fashion last year, with many purchasing items for one-time events or scrolling fast fashion sites daily.

Is Gen Z to blame?

It’s complicated. The industry’s focus on trends and “newness” constantly drives demand for cheap, disposable fashion, making sustainable options feel out of reach for young consumers. And as Dutch fashion expert Ellen Haeser notes, there’s a long way to go—even among fashion students, only a small fraction were willing to cut their wardrobes in favor of quality pieces.

But there’s hope: studies show that when young consumers learn about the environmental costs of brands like Shein, their buying intentions change. With greater transparency and accessible information, the fashion industry can help shift buying habits toward sustainability.

What do you think?

🌍 US & Europe politics shaking up trade: What’s Next?

With Trump back in office and Germany's coalition government on shaky ground, international trade could be in for a rough ride.

Bahadir Efeoglu, Co-founder and CEO of Fabrikatör Inventory Management, has shared a list of what brands should expect—and how they can adapt to the changes ahead. 👇👇

With Trump back in office and the German coalition government collapsing, international trade might be heading into choppy waters. Let’s unpack what these developments could mean for eCommerce and DTC brands worldwide.

www.linkedin.com/pulse/big-changes-ahead-ecommerce-trumps-win-german-collapse-efeoglu-otkfc/?trackingId=tUAdAvAhHS%2BT1rA248cFqA%3D%3D

TL;DR:

Trump’s proposed tariffs could push DTC brands to rethink supply chains, with potential moves toward local manufacturing and sourcing beyond China. EU-US trade tensions might also force European brands to focus more on local markets. Rising import costs could mean higher prices for consumers, making sourcing diversification and cost-cutting essential for brands navigating these changes.

And just as expected, brands started making strategic changes.

Steve Madden’s CEO, Edward Rosenfeld, announced plans to cut the brand's reliance on Chinese imports by as much as 45% if Trump’s re-election leads to new tariffs on Chinese goods.

On a recent earnings call, Rosenfeld explained that the company is bracing for possible tariff increases of up to 100%, setting a plan in motion to source from alternative locations like Vietnam, Mexico, and Brazil. This shift aims to protect nearly half of Steve Madden’s imports currently at risk of tariff hikes, with the goal to significantly reduce exposure to Chinese tariffs within the next year.

We’re witnessing a radical change in how business is run as we know it over the last 40 years.

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🤑 61% of Americans shop online every week

DHL eCommerce recently published a report on their 2024 data for the US market ahead of the peak season—and there are some interesting insights.

According to DHL, To capture holiday shoppers and position for long-term growth, merchants should focus on these seven insights:

1️⃣ Frequent Shoppers: With 61% of Americans shopping online weekly—primarily for clothing, electronics, and health products—the demand is there for fresh deals and product options.

2️⃣ Delivery Variety: Delivery options are make-or-break, with 94% saying they impact their choice of retailer. Home delivery, parcel lockers, and more flexible choices can boost conversions.

3️⃣ Subscription Services: Nearly half of U.S. shoppers subscribe to online services, especially pet-related subscriptions. This trend suggests that a well-designed subscription model could drive repeat sales.

4️⃣ Social Media Influence: Social media inspires 61% of shoppers, with 26% buying directly on platforms. Building a presence here isn’t optional; it’s essential for visibility.

5️⃣ Marketplace Presence: Almost all U.S. shoppers buy from marketplaces like Amazon, Walmart, and eBay, so maintaining a strong presence on these platforms is key to reaching the widest audience.

6️⃣ Cross-Border Confidence: 37% shop internationally, with top countries including China, the U.K., and France. Simplified returns build trust for cross-border buyers.

7️⃣ Sustainability Focus: While 58% care about sustainability, they don’t want extra costs. Offering eco-friendly options without added fees can attract these shoppers.

What is your take on these insights?

Americans

⏰ When to post on social media?

It’s an age-old question: When is the best time to post on social media?

Recently I came across Hootsuite’s data study with Critical Truth, where they analyzed over 1 million social posts across industries and platforms to uncover the best times to post by platform. The study focused on identifying peak engagement times based on factors like audience activity, platform usage patterns, and engagement metrics. Data was localized across 118 countries, ensuring that results were accurate for each time zone.

I thought it might be useful. Here’s what they found:

Overall Best Time for 2024: Wednesdays at 8:00 AM.

Platform-Specific Best Times: 

• Facebook: Saturdays at 7 AM

• Instagram: Wednesdays, 5-7 AM

• Twitter (X): Mondays & Tuesdays, 10 AM-1 PM

• LinkedIn: Weekdays, 7 AM-8 PM

• TikTok: Thursdays at 3 PM

• Threads: Tuesdays at 8 AM

• Pinterest: Fridays at 12 PM

Takeaway: While knowing peak times is helpful, don’t overlook time zones, audience behavior, and industry norms to find the best posting strategy for your brand.

Keep up with the social media hustle!

🤓 88% of Southeast Asians use AI for purchasing

A recent study by Lazada reveals that 88% of Southeast Asian online shoppers rely on AI-generated recommendations when making purchase decisions.

Just WOW—88% percent!

Conducted with Kantar, the survey collected responses from 6,038 shoppers across six countries, including the Philippines.

It highlights a strong trust in AI for personalized product suggestions, with 92% of respondents favoring AI-powered recommendations and 90% valuing AI-generated product summaries.

The report emphasizes consumer motivation, showing that:

• 52% of shoppers appreciate AI for its convenience and

• 51% value in-depth, relevant product reviews

Popular AI features like chatbots (63%), visual searches (52%), and translation tools (53%) are recognized, though adoption still lags slightly, with usage under 50% for each.

Interestingly, 83% of respondents are willing to pay more for AI-enhanced shopping experiences, indicating a shift in consumer preferences toward more personalized, interactive, and enjoyable online shopping.

🤔 I wonder how the numbers are in Europe and Northern America. Any ideas?

Prepare for BFCM Success: Join Our Expert-Led Webinar

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💰 Shopify just introduced Shopify Finance

Shopify has introduced Shopify Finance, a new financial hub designed to streamline funding and payment options for eCommerce merchants.

According to an announcement posted on the company website, the idea is to replace lengthy bank processes with faster, more flexible financial solutions. Now, merchants can manage Shopify Balance, Credit, Capital, Bill Pay, and Tax directly from the Shopify admin, giving them easier access to funds and simpler tax management—just ahead of the Black Friday and Cyber Monday rush.

With Black Friday holding strong and Cyber Monday losing steam, this setup could help smaller merchants compete by providing quick capital access and flexible repayment terms.

Bain & Company’s analysis shows a 5% growth forecast for this shopping season, with a critical focus on personalization. As Bain partner Aaron Cheris points out, consumers are looking beyond “big sale days” and responding better to targeted, data-driven marketing that’s consistent throughout the season.

👀 How the new Finance page looks like

🧑‍💻 Google Shopping’s AI changes

Using its Gemini AI model and over 45 billion listings from its Shopping Graph, Google is now crafting a homepage that recommends products, videos, and even price comparisons based on what users have browsed or watched across YouTube and Google.

One standout feature is the AI-generated product briefs that simplify search.

Instead of generic listings, search for “men’s winter jacket for Seattle,” and you’ll get recommendations for that climate—so I guess no more scrolling through endless options that don’t fit your needs.

They’re also rolling out virtual try-ons and AR tools, so shoppers can get a closer look before they buy.

Trying on clothes with AI

While these features sound promising, the real success will come down to how well Google balances personalization with privacy and how effectively it curates this “shopping feed” to avoid the clutter that often bogs down recommendation algorithms.

How the new Google Shopping page looks like

💰 EBay is investing $1.2 million through its Circular Fashion Fund by 2025

eBay is expanding its Circular Fashion Fund (CFF), investing $1.2 million in startups worldwide through 2025 to drive circular fashion innovation.

Launched in 2022, CFF has already supported startups in the UK with funding, mentorship, and networking opportunities from industry leaders.

Now, eBay is bringing this initiative to the global stage, aiming to empower sustainable fashion brands that focus on minimizing waste and maximizing local impact. Each year, one standout startup will also receive an additional $300,000 and be named "Circular Fashion Innovator of the Year."

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🤔 Walmart and Amazon Aim to Help Shoppers Beat Spending Stress

Walmart and Amazon are stepping up their game to help with holiday spending anxiety. 🎁

With the cost of living still weighing heavy on shoppers’ minds, both retailers are offering deals earlier than ever to give people a head start on saving.

Walmart just announced their Thanksgiving meal deal—feeding eight people for less than $7 a person. 🍽️ From October 14 through December 25, they’re bringing back their inflation-free holiday meal to ease the pressure on rising food prices.

Meanwhile, Amazon is preparing for the holiday season with their Holiday Beauty Haul starting October 21. 💄 For two weeks, shoppers can grab huge discounts on top beauty brands like Clinique, Maybelline, and Lancôme, helping them get ahead on gift shopping.

Why so early tho?

Shoppers are planning their purchases way in advance to stretch their budgets. Last year, over half of consumers had their holiday shopping mapped out early. With so many living paycheck to paycheck, these early deals are a huge help.

Walmart and Amazon are battling to be the first choice for those early planners. Walmart kicked off its earliest-ever Holiday Deals event, and Amazon’s recent Prime Big Deal Days set records with massive sales worldwide. 🛒

The bottom line? Shoppers need early savings more than ever, and these retailers know that timing is key.

🔍 DTC Equation Has Changed

When entering the DTC space, most think it’s simple—build a website, sell products, grow your social media, and run some ads.

That used to work in the early days when competition was low. But today, the equation has changed.

The Pilothouse team sees three key traits in brands that successfully launch and scale their DTC business in the first year. 📈

1️⃣ A Product that Solves a Problem

It doesn’t need to be groundbreaking, but it should add convenience or solve a problem that other products in the niche don’t. Take Cane Brew Sweet Tea for example. They launched with pre-sweetened iced tea bags, cutting out the extra step of adding sweetener for consumers. Simple, but effective.

Cane Brew Sweet Tea

2️⃣ A DTC-Friendly Website

Your website doesn’t have to be fancy—it just needs to be fast, easy to navigate, and optimized for conversions. Cane Brew, for example, optimized their site, which led to a 6.05% increase in conversion rates. If your site is leaky, you’ll waste money sending ads to it. 💸

3️⃣ Launch Ads and Be Patient

Meta Ads are the most affordable way to acquire new customers, but it takes time to warm up the pixel. For Cane Brew, it took a few months, but by Q2, they saw a +824% sales increase and an average ROAS of 2.16 in the first six months.

The takeaway?

You don’t need a massive social following to succeed. Focus on a problem-solving product, and an optimized website, and give your ad campaigns time to work.

🐾 Your Dog Can Finally Rock Crocs Too!

Crocs is stepping into new territory—pet shoes! 🐾👟

While October is usually all about Halloween and BFCM prep, Crocs is owning the month with their branded celebration, Croctober.

Originally a one-day event, Croctober has become a month-long party where Crocs fans show off their creativity, share fan art, and snag exclusive drops. Last year’s viral hit? The Crocs Classic Cowboy Boot is complete with a metal Jibbitz charm. 🤠

But this year, they’re going even bigger.

Crocs has teamed up with BARK to launch Pet Crocs, fulfilling one of their most requested fan products. Now, pet parents can match their furry friends with matching Classic Lined Clogs in Green Slime and Pink Dragonfruit. 🐕👞

Why does this make sense?

With U.S. pet spending projected to hit $150.6 billion in 2024, Crocs is jumping into a booming market. Matching shoes for pets and owners aren’t just adorable—they also boost average order value (AOV). 💸

The takeaway?

Crocs knows how to keep fans hooked with fun, viral moments and surprise gifts, all while deepening brand loyalty. Croctober is a brilliant way to drive engagement and awareness year after year.

Pet Crocs drops on October 23rd—better grab a pair before they’re gone! 🐾

Ngl this is adorable!

The smarter way for DTC brands to drive repeat revenue

What if you could drive 15% more repeat purchases, without the headache of building customized flows?

Black Crow integrates with your existing email & SMS tool, identifies customers that need a nudge to repurchase and determines the precise timing to trigger a pre-built flow.

Drive traffic to custom branded storefronts personalized to every shopper, showcasing the products they are most likely to buy.

Black Crow is so confident you’ll get results that they’re offering a $100 gift card to Shopify brands with $2M+ in GMV to get a demo.

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🔍 The Top 5 Most Influential Fashion Characters of 2024 and How Can D2Cs Benefit From Them

Fashion inspiration can come from anywhere, but some of the most iconic trends are born on screen. Characters we love not only for their personalities but also for their unforgettable sense of style are shaping how we dress today.

Here’s a quick look at the top five fashion influencers of 2024, according to a study by Public Desire.

1. Harley Quinn (Birds of Prey) 

Harley Quinn, played by Margot Robbie, is the queen of 2024’s fashion scene. With over 7 million Instagram hashtags and 93,100 monthly searches, her bold, rebellious style—free from the male gaze—inspires fans. Her colorful, edgy wardrobe represents her transformation as she breaks free from her toxic relationship with the Joker.

2. Daphne Bridgerton (Bridgerton) 

Daphne leads the Regencycore trend with her timeless, elegant style. Her influence is massive, with 308,000 monthly searches and renewed interest in period fashion blending old-world charm with modern flair.

3. Emily Cooper (Emily in Paris) 

Emily Cooper’s vibrant, designer-filled outfits spark social media buzz, setting fashion trends with items like bucket hats and luxury handbags. Her style continues to inspire high-fashion looks.

4. Cruella de Vil (Cruella) 

Emma Stone’s Cruella portrays a punk-inspired, rebellious style influenced by Vivienne Westwood, making her a bold fashion icon.

5. Penelope Featherington (Bridgerton) 

Penelope's vibrant, jewel-toned gowns in season 3 reflect her newfound confidence, elevating her as a rising star in fashion.

These characters are more than just on-screen favorites—they’re setting real-world trends and showing us new ways to express ourselves through fashion.

But why you should care?

If you’re a small D2C brand, you can leverage the popularity of characters like Harley Quinn and Daphne Bridgerton by:

1. Boosting Social Media: Use trending hashtags tied to these characters for greater visibility.

2. Launching Limited Collections: Offer exclusive, character-inspired drops to build hype.

3. Designing Trend-Inspired Products: Create styles inspired by these characters' bold and unique looks.

Why not?

🗣️ Google Testing Short Videos in 'What People Are Saying' Feature

Google is experimenting with a new feature in its "What people are saying" section, which is used to display forum links in a text format.

Now, Google is testing a version that leads to short videos from platforms like TikTok, which is shifting from forums to video content.

Here is how it looks like

While the older version focused on forum discussions, the new approach highlights video perspectives that offer a more dynamic and visual way for users to engage with search results.

Now, this might be just the perspectives change when it showed more than just forums.

Forum discussion at X.

👀 Interesting: ‘Made in China’ Exhibition Challenges Perceptions and Celebrates Craftsmanship

What comes to mind when you see "Made in China"?

A new exhibition at the Wereldmuseum Rotterdam is turning that idea on its head by showcasing the artistry and innovation behind Chinese craftsmanship.

The exhibit highlights designers like Susan Fang, who are redefining what it means to create in China, showcasing a blend of tradition and modern innovation. Instead of focusing on mass production, it celebrates the intricate, thoughtful process behind each item, from fashion to art.

Visitors will explore not only fashion but also historical Chinese artifacts, tea sets, textiles, and even seal carving, giving a deep dive into centuries of creativity. There’s also a thought-provoking look at the concept of copying—viewed through a Chinese lens, where imitation often pays homage to past masters.

While acknowledging challenges like counterfeits, the exhibition reframes copying as a creative practice, showing how it has influenced global brands and designs. The final section displays modern Chinese fashion that pushes against stereotypes, celebrating the craftsmanship behind today’s designs.

Running from October 11, 2024, to August 31, 2025, ‘Made in China’ is a must-see for anyone interested in the intersection of culture, craft, and contemporary design.

Susan Fang, Assymetrical Flower Cluster Dress, Shanghai, 2023. Credits: Aad Hoogendoorn / Wereldmuseum Rotterdam.

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🥲 The Rise and Fall of Tupperware: Lessons in Innovation and Relevance

Last week, the iconic 78-year-old Tupperware brand shocked the world by filing for Chapter 11 bankruptcy. Known for revolutionizing food storage, the brand admitted that despite being a household name, it couldn’t keep up with the competition.

So, how did this happen? Let’s take a look.

The Start of an Era

Tupperware burst onto the scene in 1946 with its groundbreaking Wonderlier Bowl featuring an airtight seal, a game-changer in the food storage industry.

The brand’s popularity soared in the 1950s with the introduction of the famous Tupperware Home Party. Using a direct sales strategy, women sold Tupperware products through social gatherings, helping the company experience tremendous growth. 📈

The Tupperware Home Party

Where It Went Wrong

Despite being a well-known name, Tupperware struggled to differentiate itself in an increasingly crowded market. Once an innovative feature, the airtight seal became a standard across all food storage brands.

Here are three key reasons why Tupperware failed to maintain its relevance:

1. Lack of Adaptation to Consumer Preferences: Modern consumers began to favor eco-friendly, sustainable alternatives to plastic containers, making Tupperware’s products seem outdated and disconnected from current trends.

2. Slow to Embrace E-commerce: Tupperware’s direct sales model was once a growth driver, but by the 1990s, online shopping had taken over. The company didn’t launch an e-commerce site until 1999 and continued to rely on its traditional sales model, missing a critical shift in consumer behavior.

3. Post-Pandemic Financial Struggles: Tupperware faced mounting debt and declining sales. The surge in raw material costs during the pandemic, especially for plastic resin, worsened their financial situation, leading to their bankruptcy filing.

The Takeaway?

Tupperware's story is a reminder that even the most beloved brands can't rely on past success forever. In today’s fast-paced world, staying still means falling behind. If you don’t evolve with your customers’ needs and keep pushing the boundaries, it’s easy to become irrelevant—even after decades of being on top. Tupperware’s decline shows just how crucial it is to listen, adapt, and keep innovating to stay in the game.

Competition in ecom is relentless

📝 Meta's Holiday Ad Checklist – Get Ready for Q4!

The holidays are just around the corner, and it’s time to start prepping for your most profitable quarter yet! Meta recently shared a fantastic holiday ad checklist, and we’ve broken it down for you so you can make sure your ad account is optimized for success this season.

Here’s what you need to do:

✅ Connect with customers: Build relationships by engaging with your audience through Messenger, Instagram, or WhatsApp. Festive season shoppers appreciate the personal touch! 🧑‍🤝‍🧑

✅ Avoid ad fatigue: Keep things fresh with a variety of creative assets—videos, images, and carousels. A diverse mix will help maintain engagement.

✅ Utilize Meta’s AI tools: Take full advantage of Meta Advantage+ shopping campaigns to streamline your sales funnel and attract new customers.

✅ Create curated gift guides: Help undecided shoppers by offering curated gift suggestions to capture their interest and target specific audience segments. 🎁

✅ A/B test your messaging: Try out different ad copy, visuals, and tones to find what resonates best with your audience and reduce your ad costs.

✅ Identify key moments and holidays: Besides Halloween, Thanksgiving, and Christmas, look out for other key moments you can leverage to boost your campaigns.

✅ Launch early-bird campaigns: With over half of shoppers starting their holiday buying in October, it’s prime time to kick off your campaigns. Don’t wait until it’s too late!

✅ Set up Advantage+ catalog ads: Re-engage website or app visitors by promoting relevant products from your catalog.

✅ Implement the Conversions API: Ensure accurate campaign measurement and enhance your targeting by integrating the Conversions API.

✅ Try lead ads: Collect customer data ahead of the busy season to set yourself up for better retargeting opportunities later.

With these steps, your ad strategy will be optimized to capture the holiday rush. Let’s make this Q4 your best one yet!

Let’s cook!

🤔 Consumers Are Slowing Down – What Does It Mean for the Holidays?

In August, consumer spending grew at its slowest pace this year, rising just 0.2%, down from 0.5% in July.

With job growth under pressure and early summer spending on travel and back-to-school, households seem to be taking a breather as we approach the holiday season.

For DTCs, this slowdown could be concerning, especially with key shopping events like Prime Day and Black Friday around the corner.

However, a higher personal savings rate of 5% suggests consumers may be holding back for holiday splurges.

DTC inventories grew by 0.5% in August, meaning retailers are well-stocked for the season, but it’s still unclear if holiday discounts will drive enough demand to clear those shelves.

Mixed signals from consumer confidence data show both optimism about the economy and concerns over inflation. DTCs will need to be strategic as we head into the holiday shopping rush—balancing caution with opportunity.

The smarter way for DTC brands to drive repeat revenue

What if you could drive 15% more repeat purchases, without the headache of building customized flows?

Black Crow integrates with your existing email & SMS tool, identifies customers that need a nudge to repurchase and determines the precise timing to trigger a pre-built flow.

Drive traffic to custom branded storefronts personalized to every shopper, showcasing the products they are most likely to buy.

Black Crow is so confident you’ll get results that they’re offering a $100 gift card to Shopify brands with $2M+ in GMV to get a demo.

Book a demo

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Is there a better way to align your inventory and marketing efforts?

As the holiday season approaches, it’s crucial to have a strong strategy for inventory, fulfillment, marketing, and cash flow. To help you with inventory planning, experts from Fabrikatör, Portless, Triple Whale, and 40Seas will dive into key strategies to maximize profits and streamline operations in a webinar on September 16th.

Don't miss out on this opportunity to elevate your holiday performance!

Register for the webinar here!

Registration link

🥃 TikTok updates alcohol advertising policy

TikTok has quietly updated its advertising policy to allow alcohol ads in certain countries, under strict conditions. Based on local laws and regulations, these changes permit the promotion of alcoholic beverages like beer, wine, and spirits, provided the audience is primarily of legal drinking age.

For the U.S., this means alcohol ads can only target users aged 21 and over, with at least 73.8% of the audience expected to meet this age requirement, as per census data.

The ads must avoid targeting individuals under the legal drinking age, showcasing excessive drinking, or offering alcohol as a prize or incentive. Additionally, alcohol e-commerce ads, including the sale or delivery of alcohol, are still prohibited.

In the U.S. and Canada, alcohol advertisers must work with TikTok sales representatives to ensure eligibility, and ads must clearly state the product’s alcohol content (ABV). Certain types of alcohol-related content, such as promoting alcohol clubs, branded merchandise, or 0% alcohol beverages, may be permitted if they meet the platform's guidelines.

In countries like the UK, Ireland, and Australia, the promotion of alcoholic beverages is prohibited, but ads for bars, pubs, and drinking events are allowed if targeted only at users over 18. Brands must include responsible drinking messages in their ads, and TikTok recommends disabling comments to avoid underage interactions.

However, TikTok continues to ban alcohol-related branded content in influencer marketing, meaning alcohol brands must tread carefully when collaborating with creators on the platform.

😂 Retailers cut return costs by—guess what? Encouraging fewer returns!

Retailers are feeling the pressure of rising return costs, but they are also finding ways to turn returns into opportunities for growth, according to Catherine Dummitt, VP of marketing at Narvar.

A key approach is streamlining the return process to retain customer loyalty, offering options like in-store returns, drop-off points, and box-free returns to enhance the customer experience.

Narvar’s 2024 State of Returns Report highlights strategies such as incentivizing exchanges over refunds through discounts or loyalty points, helping retailers retain sales, and improving customer satisfaction. Speeding up the resale of returned items is another priority, with optimized return routes allowing items to return to inventory 30% faster, ensuring they are resold while still in season.

Technology plays a critical role, with return management platforms automating the process and offering real-time updates, which reduce costs and improve customer satisfaction. These platforms also analyze return data to help retailers refine offerings and prevent unnecessary returns.

Personalized returns are also effective. Tailoring return options, like extended return windows for VIP customers, can boost retention and loyalty. Promoting buy-online-return-in-store (BORIS) options helps reduce shipping costs and encourages in-store purchases.

Preventing returns is another focus, with Narvar’s report noting that 27% of returns are due to late deliveries and 29% to product damage. Accurate product descriptions, better packaging, and reliable delivery estimates can help reduce these rates. Fraud prevention measures, like requiring photos of returned items and account logins, are also being implemented to deter fraudsters.

Looking forward, retailers are investing in AI and automation to streamline returns, enhance customer satisfaction, and incorporate sustainability into their return strategies.

These cannabis gummies keep selling out in 2024

If you've ever struggled to enjoy cannabis due to the harshness of smoking or vaping, you're not alone. That’s why these new cannabis gummies caught our eye.

Mood is an online dispensary that has invented a “joint within a gummy” that’s extremely potent yet federally-legal. Their gummies are formulated to tap into the human body’s endocannabinoid system.

Although this system was discovered in the 1990’s, farmers and scientists at Mood were among the first to figure out how to tap into it with cannabis gummies. Just 1 of their rapid onset THC gummies can get you feeling right within 5 minutes!

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D2C DIGEST

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Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing. 

Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

🤔 People kept buying items at regular prices on Amazon Prime Day and Walmart+ Week

As summer sales events like Amazon Prime Day and Walmart+ Week roll around, we often think of them as a hunt for the best deals. But a recent report from PYMNTS reveals there’s more to these events than just discounts.

Surprisingly, a significant number of shoppers—41% on Amazon and 44% on Walmart—picked up items at regular prices, showing that these events are about more than just snagging a bargain.

Generational habits also play a role in how people shop. Baby boomers and seniors tend to stick with discounted items, while Gen Z is more likely to mix it up, buying both on-sale and regular-priced goods.

Health and beauty products were a big hit, especially at Walmart, where 62% of shoppers added these to their carts. This could be because Walmart offers more budget-friendly options, while Amazon caters to those looking for a touch of luxury.

Another interesting trend is the tendency for shoppers to stock up. During Walmart+ Week, the average shopper bought 20 items, far more than the 11 items purchased during Amazon Prime Day. Younger shoppers, particularly Gen Z and millennials, were the most eager to fill their carts, focusing on deals and essentials.

Resource: Pymnts

🤝 Shopify’s integration with the YouTube Shopping Affiliate Program

Shopify has just made it easier for merchants to connect with customers through YouTube. With over 30 billion shopping-related videos watched on YouTube in 2023, this new integration lets viewers buy products directly from their favorite creators' videos.

If you’re an eligible Shopify Plus or Advanced merchant in the U.S., you can now join the YouTube Shopping Affiliate Program. This means you can collaborate with thousands of YouTube creators who can feature your products in their videos and live streams, allowing viewers to shop while they watch. Plus, you’ll get valuable insights into which creators and content drive your sales.

This is a big leap in the "shop while you watch" trend, offering exciting opportunities for both merchants and creators.

Check out Shopify President Harley’s post about this new integration 👇👇

Harley Finkelstein on LinkedIn: Shopify’s integration with the YouTube Shopping Affiliate Program is here.… | 108 comments

Shopify’s integration with the YouTube Shopping Affiliate Program is here. In 2023, people watched over 30 billion in shopping-related videos on YouTube… | 108 comments on LinkedIn

www.linkedin.com/posts/harleyf_shopifys-integration-with-the-youtube-shopping-ugcPost-7231722465327001600-AzKt/?utm_source=share&utm_medium=member_desktop

📢 Temu invites European sellers to join its platform

Temu is now inviting European merchants to join its platform, offering a chance to reach a broader audience.

As a seller, you’ll be in charge of your product assortment, inventory, and shipping, while Temu sets the prices that consumers see.

After quickly growing through a consignment model, Temu introduced a local-to-local option earlier this year, where sellers manage their own shipping. This gives international merchants a great opportunity to benefit from Temu’s increasing popularity, especially when it comes to faster deliveries and offering larger items to Western consumers.

The platform’s new marketplace model was launched in the U.S. this spring and has now opened up for registration in Europe. To sweeten the deal, Temu is waiving fees and commissions for now, and even offering free advertising on the platform—though it’s unclear how long these benefits will last.

Temu has made a big splash in Europe since its arrival last year, quickly becoming a favorite for many, with one in three Germans already making purchases on the platform. However, its rapid rise has sparked concerns among European interest groups, who are calling for stricter enforcement of regulations to ensure fair competition as platforms like Temu continue to grow.

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D2C DIGEST

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Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

💸 Back-to-School Shoppers Are Feeling the Pinch This Year 

As the back-to-school season kicks in, shoppers are shifting their online spending towards cheaper options.

Is economic pressure finally catching up with consumers?

Signifyd's latest data reveals that while e-commerce sales are still growing, it's the low-cost items that are flying off the shelves.

Shoppers are relying more on discounts and budget-friendly alternatives, raising questions about what this trend means for the upcoming holiday season.

Key Insights from July 📊

• Online spending grew by 10% in July, but the biggest gains were in orders under $100, which jumped by 17.7%.

• Big-ticket items over $500? Sales were nearly flat compared to last year.

• Even with average discounts of nearly 29% on home goods, shoppers still held back.

• While apparel spending was up by 12%, electronics sales stayed flat, and home goods dropped by 8%.

• The average order value dropped by 4%, signaling cautious consumer behavior.

As we head into the holiday season, the big question remains: Will this trend of trading down continue, or will shoppers loosen their purse strings again?

Source: Signifyd

🤺 2024 Paris Olympics: A fashion game-changer? 

The Olympics was one of the year's most significant events, drawing millions of viewers from around the world. While many celebrated the games, they also sparked criticism and debate.

But one thing about the Olympics was how it put the fashion industry into the spotlight. Brands partnering with the Olympics gain massive visibility, but does it translate to direct sales?

Take LVMH, for example. Despite being a top-tier partner, their direct financial returns seem limited so far.
However, their brand image has skyrocketed, with LVMH everywhere in the months leading up to the Games. 🚀

Yann Rivoallan from the French Women's Ready-to-Wear Federation noted that the Olympics provided a much-needed boost for French fashion.
Sales started climbing from July 26, thanks to the festive atmosphere.

Record Viewership, Modest Budget 📊

• Paris 2024 broke viewership records, with 54 million French viewers tuning in.

• And they did it with a budget much smaller than past Games—talk about smart spending.

A Boost in Sports Product Sales 🛒

• This massive audience isn’t just watching—they’re buying, too.
  42% of consumers are more likely to buy products endorsed by top athletes.

• Brands like Athleta and New Balance are cashing in on this trend.

Partnerships and Brand Visibility 🌍

• The Games have been a huge opportunity for brands to stretch their global reach.

• Louis Vuitton, for example, has made a big splash, reinforcing their image as a luxury leader.

New rules since 2021 mean athletes can now be directly linked to brands, opening up new avenues for collaboration.
This shift has been a game-changer, driving brand visibility and new sales opportunities.

Image from the opening ceremony of the Paris Olympic Games. Credits: Getty, LVMH.

Paris and France Get a Boost 🇫🇷
The economic ripple effects of the 2024 Paris Games could be huge—up to €11.1 billion for Paris and its region.
And beyond the money, the Games have boosted Paris’ tourist appeal, especially after a tough 2023.

The Champs-Élysées became a luxury showcase during the Olympics, drawing in nearly 300,000 visitors daily.
This attention has attracted new investors and pushed up rents on this iconic avenue.

The 2024 Paris Olympics have sparked new trends, blending tradition with innovation.
Now the big question is: Can the LA Games in 2028 make a similar splash?

📱 Social Shoppers Choose Instagram for Fashion, TikTok for Beauty Products

As social media shopping takes off, platforms are finding their niches.

A PYMNTS report surveyed nearly 3,000 U.S. consumers to see where they shop online.

Key Insights 

• Instagram is the top choice for buying clothes, with 47% of its shoppers purchasing apparel.

• For beauty products, TikTok leads the way, with 33% of its users making a purchase.

• YouTube shines in food and beverage shopping, with 40% of users buying in this category.

Source: Pymnts

🤔 Which social media platform is your biggest revenue driver?

💻 Post of the week

Twitter tweet

D2C DIGEST

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Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing. 

Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

💪 Influencer marketing? Sorted!

Curious how a $50K influencer mistake turned into a game-changing strategy? In our latest podcast, Tomer Hen, co-founder of Switch Supplements, reveals how he moved away from traditional influencer deals to a more authentic, relationship-driven approach that’s now fueling his brand’s growth.

Tomer shares why sending free products to the right influencers can be more powerful than paid partnerships, and how this simple shift can boost your brand’s credibility and sales.

His top advice?

• Avoid Paying Upfront: Build genuine relationships instead.

• Focus on Ideal Customers: Choose influencers whose followers align with your target audience.

• Consistency is Key: Engage with 50-70 influencers to create significant word-of-mouth momentum.

Want to know all the secrets to finding ideal influencers and building genuine connections that convert? Tune in to learn Tomer’s proven 5-step framework. 👇👇👇

Hacking the influencer marketing: Tomer Hen from Switch Supplements

open.spotify.com/episode/5LAnKYtRM4MNQ3sdW9tgg5?si=7b303f87e10a4157

💰 High fees but crazy conversions: A different perspective on Amazon

You might remember when I mentioned the frustrations many have with Amazon last week, particularly regarding IP protection 👇👇

Is Amazon a “broken mess?“, Winning Gen Z with a simple hack, and more | D2C Digest

Weekly D2C News

d2cville-newsletter.beehiiv.com/p/amazon-broken-mess-winning-gen-z-simple-hack-d2c-digest

At the time, it was about Sean Frank, CEO of Ridge Wallets, expressing his frustration after trying to upload a design patent and receiving a dismissive “stop contacting me” response.

However, this week, I came across a different perspective on Amazon that made me reconsider—it might still be a great marketplace after all.

While it’s true that Amazon has its challenges (and takes a hefty 15% referral fee and doesn't give you that valuable customer email) it also offers unmatched purchase intent and conversion rates.

For established CPG brands, advertising on top keywords can deliver conversion rates as high as 15-25%! Even with CPCs over $3-5, Amazon Sponsored Ads often offer the best ROAS, beating other channels—especially when paired with Subscribe & Save.

And let’s not forget Amazon's organic rankings—nailing those can drive huge returns without additional spend!

Despite the clear potential, many brands overlook Amazon’s growth opportunities, focusing too much on efficiency. But with the right segmentation and targeting, Amazon should be your most efficient channel for acquiring new customers.

Don’t sleep on Amazon. It might just be the game-changer your brand needs.

📱 Amazon, again: They partnered up with TikTok and Pinterest

Another Amazon news, but this is important.

Amazon has teamed up with TikTok and Pinterest, which will allow users to shop directly from Amazon without leaving these apps!

So by linking their profiles to their Amazon accounts, users can view real-time pricing, Amazon Prime eligibility, and more, making purchases directly from ads.

This collaboration is part of Amazon's strategy to integrate shopping into popular social media platforms (they already formed similar partnerships with Facebook, Instagram, and Snapchat).

With 28% of consumers already shopping via social media, Amazon is making it easier to buy products the moment they catch your eye.

How about that?

🚚 Finding a 3PL can be a pain in the back - but nailing the right questions can save you!

Finding the right 3PL partner can be a real headache, especially for enterprise businesses.

That’s why I wanted to share this valuable resource prepared by my friends at Fulfill.com. They've put together a super helpful guide to make sure you’re asking all the right questions before choosing a shipping partner.

It's especially helpful for enterprise-level RFPs, designed to help brands with $10M+ ARR compare multiple warehouse options.

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Check them out!

D2C DIGEST

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Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing.

Here is the second edition of our new series where we share the best ecom tool stacks from the most successful D2C brands worldwide! Hang on tight, because the best toolstacks are coming your way!

💪 Sweatpants + Overalls: Swoveralls

In the third episode of our podcast where we host successful D2C entrepreneurs, we had a wonderful conversation with Kyle, Founder and CEO of USA-based clothing brand, Swoveralls.

Back in 2015, Kyle identified a trend: every month, approximately 500-1000 people were searching for "sweatpant overalls" on Google.

“It seemed there was already a demand that I would have fulfilled.”

But then the question is, if there is really a demand, or is it just wishful thinking?

“You come up with an idea, and of course, your idea is great. Because it came out of your own brain. But how many other people care about that?” Kyle questions.

He has experienced this firsthand and thinks one of the major mistakes entrepreneurs make is assuming everyone will love their idea just as much as they do. Overestimating the demand for your product is a common error, he notes.

His advice? Stay grounded in data. Rather than relying solely on intuition, gather solid evidence that the problem you're addressing genuinely concerns your potential customers.

To achieve this, Kyle uses a range of excellent top-tier tools that provide extensive data for his business.

Let’s take a look at their tool stack at Swoveralls

📊 Attribution: Triple Whale An obvious choice for many brands: It helps centralize the metrics from all the tools you use, right into your pocket.

👣 Conversion tracking: Elevar Top-notch tracking app, which can be integrated with Klaviyo, Google, and Meta.

🧠 Business intelligence: Polar Analytics Polar promises you'll "never spend your Monday doing manual reporting again," and we think that's fantastic!

📦 Inventory optimization: Fabrikator A top-class tool that helps in forecasting demand, planning inventory, and replenishing on time.

🤝 Customer service: Siena AI Empathic AI customer service that's almost human, which is designed for ecommerce.

🫂 Loyalty: Rivo Loyalty & Referrals We love that Rivo offers a fully customizable loyalty and referrals platform that is actually built for fast-growing DTC brands!

Well, Kyle uses more tools than these. Check their full tech stack out at D2CVille.com, along with hundreds of other D2C brands and ecom tools!

D2C DIGEST

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Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing. 

Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

📝 Your complete BFCM Guide

There are only 115 days left until Black Friday/Cyber Monday!❗

It will arrive sooner than you think.

Did you start preparing already?

We’re here to help you get ready. ✅ 

That’s why we’re offering our complete BFCM Guide, a comprehensive checklist for before, during, and after BFCM. Access it here!

Link

💎 Changing perception of luxury post-Covid

I recently came across a very interesting article on FashionUnited, about how people’s perception of luxury has changed, especially after Covid and between generations.

It's quite insightful as there are implications for D2C companies as well.

So recently, Mercedes Erra, founder of Maison BETC, and Clément Boisseau, co-founder and CEO of strategy, conducted a study on luxury consumer behavior during and post-Covid. They aimed to understand the new relationships between consumers and luxury brands.

Why does it matter?

Mercedes and Clément believe that brands must engage with people by addressing fundamental issues like their relationship with luxury. Especially when it comes to understanding Prosumers, the most proactive and predictive consumers, influence trends. Identified through specific questions, they represent 20% of the study’s 1,800-person sample, including Gen Z, Millennials, and Boomers, who have spent at least €2,000 on luxury annually.

Their key findings:

- The study spanned nine major luxury markets: China, Japan, South Korea, Saudi Arabia, UAE, France, Germany, the UK, and the USA.

- Luxury sales surged during Covid, driven by the wealthy. Post-Covid, these consumers must choose between luxury items and other expenditures.

- The primary luxury products are bags and perfumes, with brands like Chanel and LVMH's Loro Piana and Sephora performing well.

Changing attitudes:

Well, this part is the most interesting. Because according to the study, Pre-Covid, "luxury shame" existed. Now, there's increased acceptance and admiration for luxury purchases. Consumers buy luxury "to please themselves" and appreciate those who can afford it.

Previously, consumers justified luxury purchases as investments. Now, they buy openly for personal enjoyment, a shift seen across social networks.

Global perspectives:

- In France, luxury is less openly embraced compared to the USA, South Korea, and Saudi Arabia.

- High admiration for luxury is seen in younger generations, with Gen Z showing the highest positive response to luxury as a source of dreams and aspirations.

Environmental concerns:

Clément Boisseau: 70% of prosumers and 62% of mainstream consumers believe luxury brands should be accountable for climate change. Yet, many think luxury is sustainable due to its long-lasting nature and the second-hand market.

Mercedes Erra: Younger consumers view luxury items as investments, focusing on resale value rather than manufacturing ethics.

😮 Over two-thirds of U.S. consumers are now Amazon Prime subscribers

Last week, I covered the impressive sales during Amazon Prime Days, which hit $7.2 billion on the opening day!

And there's even more news...

Amazon reported record-breaking sales, with an 11% increase in spending compared to last year, totaling $14.2 billion.

The latest PYMNTS Intelligence Amazon Prime Day study surveyed nearly 6,000 U.S. consumers to examine their subscription and spending habits with Amazon and Walmart. According to the study, over two-thirds of U.S. consumers now subscribe to Amazon Prime. Membership has grown to 67.3% this year, up from 65.4% last year, reflecting a growth of nearly 3%.

I mean, okay, WOW!

It’s crazy!

👖 How did Levi’s increase its sales by 19% in Q2?

D2Cs are here to disrupt traditional B2C business models, but they can still learn a lot from established brands.

One of those brands is Levi’s, which has been making smart changes to its website and mobile app, leading to a 19% sales increase in Q2. Here’s a closer look at what they did:

• Simplified Navigation: Levi’s revamped their main navigation to match how customers actually shop. By grouping products by gender first and then by category, they made it easier for shoppers to find what they’re looking for. Highlighting key features like fabric stretch, rise, and leg opening, along with adding more images and 360-degree videos, helped customers make informed decisions.

• Faster Site: They improved site and app load speed by 40% by only loading essential elements first. Levi’s also increased the frequency of content updates from every three weeks to twice a week, which keeps the site fresh and improves SEO rankings.

Impressive Results:

• 47% of Q2 sales came directly from their own channels.

• This marks nine straight quarters of growth.

• eCommerce sales are expected to hit $576.75 million this year, up from $556.11 million last year.

D2C DIGEST

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Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

📈 Declining online prices led to ecommerce growth in June

Okay, here is the good news for consumers: Inflation is slowing down, and prices are declining. But apparently, it’s also good news for merchants, as these declines lead to growth!

In June, U.S. online spending increased by 8% year-over-year, driven by a significant drop in ecommerce inflation, according to Signifyd's Ecommerce Pulse data. Grocery and general merchandise led the growth, with the Ecommerce Consumer Price Index falling 1.14% compared to June 2023.

U.S. inflation also saw its sharpest slowdown in three years, with the Consumer Price Index rising only 3% year-over-year, according to the Bureau of Labor Statistics.

"June’s lower ecommerce prices were mainly due to significant decreases in electronics and luxury goods," said Signifyd Senior Data Analyst Phelim Killough. General merchandise sales soared 30%, while apparel sales rose 8%, attributed to declining prices.

Here's a quick look at the numbers for June 2024 vs. June 2023:

Source: BusinessWire

How was your category affected?

💪 Amazon Prime Day hits $7.2 billion in sales on opening day

What a crazy time last week’s Prime Days were!

The first day raked in a whopping $7.2 billion in U.S. sales, according to Adobe Analytics, reported by Reuters. The two-day event also saw a massive 210% spike in back-to-school spending compared to June.

Total online sales jumped 11.7% on Tuesday, July 16.

This year, Amazon offered early access to deals, boosting participation. Data from Numerator showed the average spend per order was $60.03, up from $56.64 last year.

Adobe’s data revealed shoppers enjoyed big discounts: 23% off electronics, 20% off apparel, and 15% off toys. Sales in the first few hours were up 12% from last year.

“Consumers are spending strategically, which benefits sales like Prime Day,” said Sky Canaves, an analyst at EMarketer.

Prime Day 2023 saw Amazon’s highest-ever sales, with 375 million items sold globally and Prime members saving over $2.5 billion. Competitors like Walmart and Target also ran successful summer sales events, but Prime Day continues to dominate.

Ow, wow!

📱 TikTok Trend Helps Businesses Promote Products with Humor

Okay, let’s finish today’s newsletter with some fun news!

Have you seen the latest TikTok trend? Businesses are using hilarious videos to promote new products and deals. All it takes is a willing employee and a bucket of water.

The functional gadget brand Multitasky jumped on this trend to highlight their vegan leather waterproof laptop bag. The video starts with a splash of water, grabbing viewers' attention. The fun twist comes as the spokesperson struggles to finish the sales pitch, keeping viewers engaged till the end.

@multitasky

Protect your laptop from #coconutwater with our Vegan Leather Water Proof Laptop Bag 😂 💦 #coconutsplashtrend #cocotrend #splashchallenge #... See more

This trend is an excellent way to showcase your brand's personality and is simple to create. Want to see the video? Click here.

D2C DIGEST

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Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing and this is the 60th edition of D2C Digest. What a ride it has been so far!

Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

🤔 Why are ALL your clothes worse now and how can D2Cs change it?

Recently, I watched a 14-minute video on Reddit about the changing quality of clothing items over the last 20 years. It was prepared by More Perfect Union, a nonprofit newsroom for their YouTube channel, and presented by Sanya Dosani.

The video sought to answer the question on everyone’s mind: “Why are the clothes we buy so much shittier now compared to 20 years ago?”

Apparently, an average American used to spend 7% of their annual income on clothes in 1986, while the number is just 3% today! And there's more: In 2024, people in the USA buy 68 pieces of clothing every year, whereas the number used to be only 12 back in the day!

It sounds great, right? We buy more and spend less money. “What could possibly be wrong about this?”, you might think.

But there’s a catch: The clothes offered by large brands in 2024 are much less durable and elegant and use many more unnatural fabrics, compared to the clothes in the 80s or 90s! I think it’s not that difficult to notice this when you put two pieces of clothes side by side, one from the 90s and one from today.

There is a clear difference in quality, even at first sight.

There are many reasons for this shift and the the 14-minutes video explains why the clothing industry itself has changed drastically over the past few decades. It’s really helpful for understanding the declining product quality. Check it out!

One thing I couldn’t stop thinking about while watching this, though, is the role of D2Cs in this changing market. Many people criticize D2Cs, especially apparel brands, because of their high price points. Yes, people might not be fully aware of the unit costs behind this, and yes, it’s the responsibility of the brand owner to keep the costs low and offer competitive prices.

But most of the successful D2C brands already serve high-quality items and they do their best to offer affordable prices. And I really think there should be a cost to high quality.

By prioritizing transparency and uncompromising quality, D2Cs have the opportunity to redefine consumer expectations and elevate industry standards to their previous levels.

Plus, not only the apparel industry can benefit from this shift, but also other industries as well.

Lastly, as consumers, we honestly should buy less but prefer better products that will last longer. Investing in well-made, durable clothing not only reduces waste but also supports sustainable practices. It's about valuing honest craftsmanship and the longevity of our purchases over cheap, disposable items that contribute to environmental degradation.

I’m really curious: What do you think? Can D2Cs redefine standards?

📈 Q2 2024: Ecommerce revenue jumps 7.2% despite falling prices

CommerceIQ’s latest report shows retail ecommerce revenue jumped 7.2% in Q2 2024 compared to last year, even as prices fell. Here are the key takeaways:

More for Less: Consumers are buying more items at lower prices, boosting overall revenue.
Well, I’m not sooo sure it’s good news in light of the previous article, but it sure helps with revenues. 🫠 

Ad Spend Growth: Brands increased their online ad spend by 10.1%, prepping for Prime Day 2024 despite tighter margins.

Category Trends: Most product categories saw revenue growth, except Office Products. Pet and Beauty items led in ad spending, with increases of 68% and 79%.

Ad Strategies: Sponsored brand ads are on the rise as brands build audiences before big sales events.

Inventory Insights: Higher inventory levels helped reduce out-of-stock losses, though there's still a mismatch with consumer demand.

Guru Hariharan, CEO of CommerceIQ, highlights the adaptability and growth potential of ecommerce. Brands investing in AI-powered solutions are better positioned for sustainable growth.

For more details, check out the full State of Retail Ecommerce Report for Q2 2024!

P.S. How do you feel about these trends? Are lower prices or new ad strategies catching your eye? Let’s chat!

Peak Season Playbook: Conquer Shipping, Inventory, and Sales from Black by Kathleen Sullivan Garman

Hey, it’s still not too late to check our Peak Season Playbook with Kathleen Sullivan Garman for the Prime Day!

www.d2cville.com/stories/peak-season-playbook-conquer-shipping-inventory-and-sales-from-black-by-kathleen-sullivan-garman

🧑‍💻 Brands are discovering virtual goods

You might remember we talked about social media platforms partnering up with brands to go omnichannel last week: Here.

Simultaneously, the opposite is also happening: Fashion brands are diving more into the digital world to engage consumers and boost sales.

For example, Vans launched Vans World 2 on Roblox, offering new shoes virtually before they hit stores.

Looks cool!

Ralph Lauren, on the other hand, partnered with Zepeto to launch a digital fashion line, targeting tech-savvy consumers. They now sell digital apparel for avatars.

Ralpg Lauren & Zepeto

In a recent article, Pymnts experts argue that virtual goods build brand loyalty and open new revenue streams. They can also drive physical product sales through virtual integrations. We will see the results of such engaged ecommerce efforts soon 🤷🏻‍♂️

Speaking of it, we just published the new episode of our podcast where talk in-depth about engaged ecommerce and how it will affect the future of ecommerce. My guest was Irem Isik from Storyly, a user engagement platform that offers personalized, interactive, and shoppable content experiences. Irem shared her insights about what is engaged ecommerce and why it’s crucial for D2C brands! Check it out 👇👇

Engaged ecommerce: Irem Isik from Storyly

open.spotify.com/episode/5pCsDmMdeU1QROW0vmABz8?si=db0fe905ba9a44cd

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D2C DIGEST

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Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing. 

Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

🛳️ How to cope with increasing logistics costs?

You may remember we talked about increasing global shipping costs due to intensified Houthi rebel attacks on the Suez Canal, a Panama Canal drought, and strikes by dockworkers in the US and Germany, with shipping costs from China to Europe soaring to about $7,000 per 40-foot container, up from around $1,200 pre-pandemic.

We had a great discussion with Bahadir Efeoglu, co-founder of the Shopify inventory optimization app Fabrikatör and a supply chain enthusiast, to gain a clearer perspective on the situation and explore how brands can survive these price increases.

Here is the thread:

Follow us on LinkedIn for insightful conversations with industry experts like this one!

In summary, always monitor your supply chain and seek improvements. Diversify your channels, avoid relying on a single route or shipping method, and be open to exploring new inventory strategies.

📬 How to incentivize customers to subscribe to your newsletters?

We recently shared the news that online retailers are missing out on £34.4 billion in sales due to shoppers abandoning their baskets at checkout. The main reasons for this trend are high delivery costs, lack of preferred shipping options, and new fees for returns.

Read more about it here.

A recent DHL eCommerce trends report confirms this. According to DHL, high delivery costs are the top factor frustrating customers, followed by long delivery times and the need to pay for returns.

What frustrates online shoppers the most?
Source: DHL

But the report gives more insights into have to gain customer loyalty.

Which benefits are important to shoppers when buying online?
Source: DHL

Since the top three benefits are all related to money, it's clear that today's online shoppers are very focused on costs.

Lastly, it's clear that having a marketing newsletter to communicate with your customers is important. But how can you collect email addresses? The report also answers that question.

What incentivizes shoppers to subscribe to an online retailer’s email newsletter?
Source: DHL

Around the world, only 17% of shoppers have never signed up for an email newsletter. Since 77% of shoppers find discount codes important, it's no wonder that discounts and rewards are the main reasons people subscribe to email newsletters.

🤝 Social media apps are using pop-up shops to boost commerce

Social media platforms such as Snapchat, Pinterest, and TikTok are stepping into retail with pop-up shops.

One example is Snapchat, which teamed up with Selfridges to create an augmented reality locker room where shoppers can try on sports uniforms digitally.

Shoppers can virtually try on sports kits, interact with brands, and experiment with AR lenses, including custom Team Selfridges Sportopia football kits.

Similarly, Pinterest collaborated with Anthropologie on a Holiday Showhouse in Brooklyn, while TikTok partnered with Rare Beauty (Selena Gomez’s beauty brand) for a cosmetics pop-up and hosted a music event in London.

These pop-ups aim to offer unique experiences that blend the digital and physical worlds and appeal especially to younger shoppers who use social media for shopping inspiration and purchases.

😄 Looks like even social media platforms are going omnichannel. Are you?

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D2C DIGEST

How was today’s newsletter?
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Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing. 

Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

🚚 Delivery options costs cause abandoning baskets

Well, this is interesting news.

According to a recent Telegraph article, In 2023, online retailers missed out on £34.4 billion in sales due to shoppers abandoning their baskets at checkout. The main reasons for this growing trend include high delivery costs, lack of preferred shipping options, and new fees for returns.

Many shoppers abandon their carts due to unexpected costs, such as high postage fees revealed only at the end of the purchase process. Additionally, 47% of customers leave their carts when websites are slow to load, and poor customer service deters 21%. Other factors include complicated payment processes, distractions, and the search for discount coupons.

Top reasons for abandoning baskets.
Resource

😮 Amazon's new direct-from-China marketplace

Amazon has long dominated the market by offering fast delivery and low prices. However, Chinese retailers Shein and Temu have disrupted this balance by offering even cheaper prices, despite longer delivery times.

Consumers are showing they can wait longer for cheaper items, impacting Amazon's sales. In response, Amazon plans to launch a new online store featuring low-cost, unbranded items from China. These products will be priced under $20 and shipped tariff-free within 11 days.

This move raises several questions about the impact on Amazon’s relationship with its third-party sellers, who already struggle with increasing fees and competition from Amazon’s private labels.

Additionally, how will customers react to more cheap Chinese goods on Amazon, and is this strategy sustainable given potential changes to tariff regulations?

🤔 What do you think?

Amazon’s “Direct-from-China“ Model

🛳️ Shipping disruptions in the Suez Canal cause increasing prices and delays

Maybe a bit unexpected for Amazon, supply chains are yet again disrupted in the Suez Canal.

Global shipping prices are surging due to intensified attacks by Houthi rebels on vessels heading to the Suez Canal. This conflict has led ships to reroute around Africa, extending journeys by up to two weeks. These disruptions, coupled with a drought in the Panama Canal and strikes by dockworkers in the US and Germany, have significantly impacted the global supply chain.

Stephanie Loomis from Rhenus Logistics notes that shipping costs from China to Europe have soared to about $7,000 per 40-foot container, up from around $1,200 pre-pandemic. Similar increases are seen in trans-Pacific routes, with rates now over $6,700 from Shanghai to Los Angeles.

Retailers are bracing for potential product shortages and delivery delays, especially during the holiday season. Importers are facing frequent booking cancellations and rising fees, further complicating logistics. David Reich, whose company assembles gift baskets, has been hit with escalating “peak season surcharges” and limited shipping space.

Experts suggest these issues could exacerbate inflation, impacting the economy further. As carriers manipulate capacity to raise rates, the situation remains unpredictable, with no clear resolution in sight.

🤦 Yet another day, yet another crisis causing increased costs! Merchants operating international business, are you affected by this?

Sources: UN Global Platform, IMF PortWatch.

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D2C DIGEST

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Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing.

Today, we’re kicking off a brand new series where we will share the best ecom tool stacks from the most successful D2C brands from all over the world! Hang on tight, because the best toolstacks are coming your way!

💪 Managing two brands with only two people: Nano & Mate

In the fifth episode we did with successful D2C entrepreneurs, we had a great chat with Mert, co-founder of two wonderful toothbrush brands, Nano and Mate, which are based in Germany.

🤵‍♂️🧳 After over 10 years of consulting, traveling the world, and working with big corporations, Mert decided to try something new in 2020: He began experimenting with Shopify. After many trials, he and his co-founder Damian developed a toothbrush with 20,000 nano bristles, truly solving a problem for people with teeth problem.

But Mert is far more than a "former consultant turned entrepreneur." He and Damian manage two thriving businesses valued in the millions of euros, all without venture capital! 💶 Remarkably, they run everything with just the two of them as full-time staff.

Now, isn't that great?

To achieve such efficiency, Mert and Damian rely heavily on automation and top-tier Shopify apps, allowing them to focus on more critical tasks like branding and sales.

Let’s take a look at their tool stack at Mate & Nano

🫂 Customer service: Richpanel Not as widely used as Zendesk or Gorgias, Richpanel is still a good AI-powered customer alternative.

📦 Inventory optimization: Fabrikator A top-class tool that helps in forecasting demand, planning inventory, and replenishing on time.

⏎ Returns: 8Returns 8Returns gives your customers the option of registering their returns independently, while you can monitor the status of all returns.

💰 Subscriptions: Recharge One of our favorite Shopify apps, helps you drive more revenue from your subscriptions.

📊 LTV analysis: Lifetimely Great analytics tool, equips consumer brands with insights and reports for critical business decisions to scale growth

🤖 Workflow automation: Arigato The robot works 24/7 in the background for Nano & Mate’s success. A powerful tool that can automate almost everything!

Well, Mert and Damian use more tools than these. Check their full tech stack out at D2CVille.com, along with hundreds of other D2C brands and ecom tools!

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For DTC brands, leaked coupons = significant profit losses.

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D2C DIGEST

How was today’s newsletter?
🔥 Nailed it
👍 Average 
🤦 Epic Fail

Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing. 

Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

How much are coupon leakages costing your business?

For DTC brands, leaked coupons = significant profit losses.

KeepCart blocks leaks to sites like Honey, CapitalOne, and RetailMeNot, protecting your checkout and boosting your margins.

Stop code abuse and secure your revenue with KeepCart now! 

Get your $100 gift card to book a demo and join brands like Rhoback, Quince, and Vessi.

🗓️ Amazon announced this year’s Prime Day dates. Are you ready?

Important news for merchants who are selling on Amazon!

Amazon's Prime Day 2024 is set for July 16-17. This 48-hour event is exclusive to Prime members and features massive discounts on almost all categories.

As all of you know, Prime Day is Amazon's biggest annual sale, with brands offering their lowest prices of the year. Competitors like Walmart, Target, and Best Buy also host their own sales around this time, creating a boom in shopping activity.

For instance, Target Circle Week runs from July 7-13, and Walmart Deals are from July 8-11.

Did you see our Peak Season Playbook?

Prime Day will take place in over 20 countries, including the U.S., UK, Canada, Germany, Japan, and more, providing a global opportunity for merchants. So are you prepared?

So to get ready for the crazy days ahead, you may wanna check out our Peak Season Playbook, featuring an extensive checklist crafted with insights from industry experts!

Here is a quick snippet.

📢 More celebrity brands!

The D2C landscape is already tough, but it’s getting even more competitive!

You know nowadays every celebrity and influencer has their own brand. We even talked about it with Camille Barreto, Founder of We Are ME Cosmetics, a successful haircare D2C from the USA.

Celebrity marketing, being cash flow positive, and the future of the CPG: Camille Barreto from We Are ME Cosmetics

open.spotify.com/episode/4i84m1sD6RwpNgDawtbhLO?si=81bcef4811f54f38

Two high-profile influencers are joining the trend: Jake Paul with his men's skincare line and MrBeast with his upcoming beverage brand.

Jake Paul’s Skincare Line: W

Jake Paul, the YouTube influencer-turned-boxer, has announced the launch of "W," a skincare line targeted at men. This brand aims to disrupt the stagnant men's grooming market by offering affordable products priced under $10. Available at Walmart and later on Amazon, W’s initial offerings include body wash, body spray, and antiperspirant deodorant, with plans to expand into shampoo, conditioner, and more.

Paul sees a gap in the market, noting that men are increasingly interested in personal care. From 2018 to 2023, men's grooming grew into a $28 billion industry globally, and it’s projected to surpass $100 billion in the next four years.

Instagram post

Btw, do you think he stands a chance against Mike Tyson?

MrBeast’s Beverage Brand

MrBeast is also venturing into the D2C market with plans to launch "Beast Beverages." This move comes amid his ongoing legal battles over the MrBeast Burger franchise. Although details are scarce, the beverage line could include sodas, energy drinks, or sports drinks, positioning it to compete directly with brands like Prime Hydration, co-founded by fellow influencer Logan Paul.

MrBeast has already seen success in retail with his Feastables snack brand, which quickly sold out across the United States following a rebrand. His established relationships with major retailers like Walmart and Target will likely facilitate the introduction of Beast Beverages to a broad audience.

I am genuinely curious to what extent these influencer brands could be successful, but for that, we need to wait and see 🤔 What do you guys think?

D2C DIGEST

How was today’s newsletter?
🔥 Nailed it
👍 Average 
🤦 Epic Fail

Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing. 

Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

How much are coupon leakages costing your business?

For DTC brands, leaked coupons = significant profit losses.

KeepCart blocks leaks to sites like Honey, CapitalOne, and RetailMeNot, protecting your checkout and boosting your margins.

Stop code abuse and secure your revenue with KeepCart now! 

Get your $100 gift card to book a demo and join brands like Rhoback, Quince, and Vessi.

🧑‍💻 Google gives ecommerce merchants more product listing insights

Good news for Analytics geeks! 🤓

Google is updating its Search Console to give ecommerce owners more insights into their product listings on Google Shopping.

What's New?

Merchants can now track their product listings' performance via the Google Search Image tab, including metrics like impressions and clicks.

How to Access:

1. Go to the Shopping tab in the navigation bar.

2. Select the Google Search Image Tab.

3. Click Performance to view the report.

Key Takeaway:

This update helps ecommerce owners understand their product listings' visibility and identify which images attract the most clicks.

🍏 Consumers want local products, research shows

In today's world, you can buy anything from anywhere.

However, research by PYMNTS Intelligence reveals that buying local goods is still a top priority for many consumers.

Key Findings:

In the "Generation Zillennial Report," over 3,000 U.S. consumers were surveyed in April. One in three shoppers considers locally made or sourced products very important, ranking this higher than environmental sustainability or social values alignment.

Insights:

• 72% of consumers planned to shop at small businesses during the holidays, up from 65% in 2022.

• 61% intended to shop on Small Business Saturday.

• Main Street SMBs saw a 6% revenue increase over the past year, outpacing the 5.7% GDP growth.

👮‍♀️ Amazon fined over 5.9M for Labor Law violations

California’s labor regulator fined Amazon nearly $6 million for violating state law on warehouse productivity quotas. Investigations at two Amazon facilities found 59,017 violations of the Warehouse Quotas law, which requires employers to disclose quotas and prohibits unsafe practices preventing breaks.

Amazon failed to provide written notice of quotas, arguing it uses a “peer-to-peer evaluation system,” which the law aims to prevent. This scrutiny highlights concerns over the pace of work and worker safety.

Amazon disputes using fixed quotas, stating it evaluates performance based on team metrics and provides ample breaks. Amazon plans to appeal the fine, asserting improvements in injury rates and significant investments in safety initiatives.

I think Amazon's issue with regulators highlights worker welfare problems in e-commerce. Everyone should know that productivity shouldn't harm employee health and safety. And as consumers, we should know how products are made and support fair treatment of workers.

What do you think?

D2C DIGEST

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