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Facebook Marketplace: The Rise of a Thrifter’s Haven
Shopify Acquires Checkout Blocks for Custom Checkout Solutions
4 in 10 Ecommerce Marketers Use AI for Customer Service
TikTok Halts European Ecommerce Expansion to Focus on US
Generative AI: A Double-Edged Sword for Ecommerce Marketers
ECOMMERCE MARKETPLACES
Facebook Marketplace: The Rise of a Thrifter’s Haven
Ethan Gaskill, a 29-year-old content creator, starts his day by checking Facebook Marketplace instead of social media. With his Los Angeles home furnished with second-hand treasures and a TikTok following of over 220,000, Gaskill trusts the platform for hidden gems. His finds include a $1,000 Herman Miller light for $400 and a $5,000 bed for 20% of its price.
Facebook Marketplace is now a major contender in e-commerce. With 3.07 billion monthly active users as of 2023, up to 1.2 billion shop on Marketplace. It has surpassed Craigslist’s user base and rivals Amazon and eBay.
Launched in 2016, Marketplace evolved from local sales to a global platform, especially during the pandemic. It’s popular among small businesses and artisans. However, it faces challenges with scammers and bot accounts, which Meta aggressively combats.
Marketplace appeals to Gen Z for its fast-paced, interactive nature. Content creator Dre Vez spends hours daily on the platform, finding it both entertaining and useful. Meta’s 40 million daily young adult users in North America reflect this trend.
While not a major revenue driver, Marketplace’s local exchanges and unique finds keep users engaged. “You never know when that next amazing thing is gonna pop up,” says Gaskill. Read the full story here.
ECOMMERCE TECH
Shopify Acquires Checkout Blocks for Custom Checkout Solutions
Shopify has acquired Checkout Blocks, a no-code solution that allows Shopify merchants to customize their checkout process. Checkout Blocks founder Gil Greenberg announced the acquisition on June 6, stating that more than 850 Shopify Plus merchants have used the solution. Following the acquisition, the company is making its Starter plan free for all Shopify Plus merchants.
“From day one, our goal was to help as many Shopify merchants as possible to customize their checkouts,” Greenberg said. “This acquisition allows us to succeed on an even bigger scale. Only good changes ahead!”
A Shopify spokesperson confirmed the news, praising Checkout Blocks as a world-class product that enables merchants to unlock customized extensibility. “We are thrilled to welcome them to Shopify,” the spokesperson said.
Launched in September 2022, Checkout Blocks quickly became one of the most popular checkout apps on Shopify. It allows merchants to add new fields, control delivery and payment options, and design fully branded checkouts.
According to PYMNTS Intelligence, a satisfying checkout experience is crucial, with 91% of customers saying it impacts their willingness to shop again. Consumers expect features like payment method choice and order confirmation for a smooth eCommerce experience. Read the full story by TechCrunch.
ECOMMERCE TRENDS
4 in 10 Ecommerce Marketers Use AI for Customer Service
In a significant shift toward digital transformation, nearly 4 in 10 ecommerce marketers worldwide now leverage AI for customer service and support. This data, reported by Qualtrics and Klaviyo in February 2024, highlights the growing reliance on AI technologies to enhance customer interactions and streamline support processes.
The trend isn’t limited to current adopters. Another 29% of ecommerce marketers are interested in integrating AI-powered customer service in the future, indicating broad recognition of AI’s potential.
AI’s application extends beyond customer service. A third of ecommerce marketers (33%) use AI for product recommendations, with an additional 35% considering it for the future. These figures underscore AI’s utility in personalizing shopping experiences and predicting customer needs.
Consumer preferences also drive these advancements. According to an October 2023 IBM survey, more than 8 in 10 adults (86%) worldwide want AI assistance for service or issue resolution, propelling businesses to innovate continuously.
For industry leaders, these insights offer valuable benchmarks. Companies can evaluate current AI usage, identify new areas for AI to streamline operations, and pitch AI-driven innovations. Embracing AI is not just a trend but a critical step towards staying competitive.
ECOMMERCE SOCIAL MEDIA
TikTok Halts European Ecommerce Expansion to Focus on US
TikTok is hitting the brakes on its ecommerce expansion in Europe, including countries like Spain, Italy, and Germany, as it shifts focus to its US operations, Bloomberg reported, citing sources briefed on the matter.
ByteDance, TikTok’s parent company, aims to generate more growth for TikTok Shop in the US, even amid potential regulatory challenges. Earlier this year, the company announced its goal to develop its online shopping arm into a US$17.5 billion business in the US by the end of 2024.
A TikTok representative, declining to comment on the European pause, told Bloomberg that the company’s moves are based on market demands.
In the US, TikTok faces a potential ban if ByteDance doesn’t sell the app by January. ByteDance has legally challenged this, arguing that divestiture is impossible for commercial, technical, or legal reasons.
Despite reports of developing a US version of its recommendation algorithm, TikTok has dismissed these claims.
Meanwhile, in Europe, TikTok is under investigation for an app version that pays users for watching content. The app, used in France and Spain, allegedly promotes addiction by encouraging extended screen use. Read the full story from Bloomberg.
ECOMMERCE AI
Generative AI: A Double-Edged Sword for Ecommerce Marketers
Generative artificial intelligence (GenAI) has the potential to transform how B2B and B2C ecommerce marketers operate, but its vast capabilities have also created confusion, according to a new Forrester Research report.
“The sheer level of capabilities it brings to so many different fields have created a maelstrom of confusion,” Forrester states in the report, Generative AI Brings Superpowers to Portfolio Marketers. The launch of ChatGPT and the rapid proliferation of GenAI tools have sparked ongoing discussions about their potential impact and dangers.
Challenges highlighted in the report include:
Access Variability: Organizational practices around GenAI use vary widely. “Many organizations are still playing it safe and banning any employee use of GenAI tools.”
Confusion Over Tools: Businesses are perplexed by the multiple ways to access GenAI capabilities. “Organizations and employees are confused about which tools to use, how, and when.”
Lack of Standards: Without defined processes, portfolio marketers rely on word of mouth to find tools that fit their needs.
To harness GenAI effectively, Forrester advises against a “one size fits all” approach. Instead, marketers should identify specific areas where AI can boost speed, efficiency, and campaign awareness.
Key benefits of GenAI include:
Speeding Expertise: Summarizing vast information quickly.
Automating Tasks: Handling mundane activities like data entry.
Sparking Creativity: Helping marketers spur creativity.
Repackaging Content: Increasing productivity in content creation.
Enabling Personalization at Scale: Enhancing communication and engagement based on detailed customer data.
“Content-generation GenAI tools can be trained on the best on-message content to help sales, marketing, and other teams when creating emails, ads, and landing pages,” Forrester says.
Signing off,
The Merchant @CartHustle