Hey there! Welcome to CartHustle, the ecommerce newsletter that’s as good as the ‘cha-ching’ sound of a cash register.
Your order this week:
eCommerce tool of the week 🪛
Amazon sued over ‘dangerous partnership
New AR makeup filter by Snapchat and NYX
What is Temu and is it legit – 99% off
Holiday season trends to look out for
The future of retail is omnichannel
eCommerce Book of the Week 📚
eCommerce Tool of the Week
(not a sponsor just a tool we like)
VWO is the world’s leading web testing and conversion optimization platform that enables growing businesses to optimize their web experience across desktop, mobile, and other devices, to deliver a unique experience.
Amazon sued over ‘dangerous partnership’
Amazon faces a proposed consumer class-action lawsuit, accused of operating an “illegal internet gambling enterprise” by distributing over 30 illegal casino-style apps and processing payments for virtual chips.
Filed by a Nevada resident claiming addiction to these games, the lawsuit alleges Amazon’s collaboration with virtual casinos constitutes a “dangerous partnership.” Citing a 2018 U.S. appeals court ruling that deems “social casino” apps illegal under Washington state gambling law, the case is part of a broader legal trend targeting online slot machines.
Despite the games being free to play, users can win virtual chips, compelling them to purchase more for continued play.
The lawsuit contends that Amazon, aware of the illegality, maintains a 30% financial interest by promoting and brokering these slot machine games.
Edelson, the plaintiff’s law firm, notes this as their eighth lawsuit regarding social casino apps and anticipates presenting the case to a jury. Seeking damages and restitution, the lawsuit estimates the affected consumer class to be “tens of thousands.”
New AR makeup filter by Snapchat and NYX
Snapchat and NYX Professional Makeup have unveiled Beauty Bestie, a groundbreaking AR makeup filter that integrates virtual experimentation with tangible product purchases.
In contrast to traditional AR beauty filters, this collaboration transforms virtual experiences into a dynamic marketing tool. As NYX aims to expand its online customer base following pharmacy closures, Beauty Bestie stands out.
Accessible by searching ‘NYX Beauty Bestie’ or visiting NYX’s Snapchat profile, the filter offers daily makeup looks adaptable to user preferences. Beyond experimentation, it provides product recommendations with direct links to NYX’s website for convenient purchases.
Future plans involve a feature enabling users to scan a physical NYX product through their phone camera, unlocking tutorial videos. The convergence of AR and beauty experiences reflects a growing trend, with Snapchat’s AR Enterprise Services (ARES) facilitating virtual product trials and online shopping.
Beauty Bestie marks a shift where virtual beauty seamlessly blends with reality, creating an immersive and convenient shopping journey. This AR filter showcases the potential of augmented reality to reshape consumer engagement with beauty products.
What is Temu and is it legit – 99% off
Temu, a buzzworthy online marketplace, has surged in popularity with rock-bottom prices but has faced scrutiny for reliability, data privacy, and alleged ties to forced labor. The platform’s aggressive social media promotions and peculiar product range have drawn attention, but questions loom over its legitimacy and safety.
Temu operates as an online marketplace, leveraging discounted goods, referral incentives, and constant sales to engage users. Despite concerns, it claims the title of the UK’s most-downloaded shopping app, amassing over 100 million US users.
Their affordability roots in a direct-to-customer model, sourcing from Chinese vendors to offer lower prices. The platform’s success hinges on its appeal to budget-conscious consumers seeking deals on various items.
While Temu is a legitimate store, user reports highlight issues like non-delivery and damaged items. Safety concerns persist, with accusations of concealed malware in the app and data risks associated with its parent company, Pinduoduo. Temu’s return policy allows refunds within 90 days, but complexities arise due to its third-party marketplace status.
Consumer rights expert Martyn James advises caution, emphasizing potential disparities in advertised and received items.
While Temu’s allure lies in budget offerings, ethical concerns, data risks, and dispute complexities underscore the need for cautious exploration. Users must balance the appeal of low prices against the unconventional marketplace’s associated risks in the ever-evolving online shopping landscape.
Holiday season trends to look out for
As the holiday season approaches, small businesses are strategically embracing e-commerce trends to elevate sales and enhance customer experiences. Consumers, post-economic challenges, are more intentional in their purchases, seeking value-driven products with a focus on quality and transparent pricing.
With sustainability a priority for 82% of consumers, small businesses are adopting eco-friendly practices such as eco-friendly packaging and recycling programs. Choosing environmentally conscious partners, like FedEx, aligns with this trend.
The rise of social commerce provides an opportunity for small businesses to engage a broader audience through platforms like Instagram and Facebook. Techniques like video marketing, livestreaming, and collaborations with influencers can enhance the shopping experience.
Given the 52% surge in consumers using new payment methods, supporting digital wallets and “buy now, pay later” options attracts a wider customer base. Promoting flexibility in digital payment options streamlines the checkout process.
Balancing customer satisfaction with return-related costs is crucial. Hassle-free and transparent return policies contribute to customer loyalty. Creative approaches, like fees for added convenience, can enhance the returns strategy.
With 57% of online shoppers exploring global options, small businesses can tap into international markets for growth. Adapting websites, offering competitive shipping, and optimizing for global audiences are key strategies.
Enhancing the delivery experience is paramount. Offering multiple shipping options, real-time tracking, and convenient delivery slots contribute to customer satisfaction. Collaborating with reliable logistics providers, like FedEx, ensures a seamless delivery process. As small businesses gear up for the holiday season, strategic alignment with these e-commerce trends can pave the way for increased profits and customer loyalty.
The future of retail is omnichannel
The retail landscape has transformed dramatically in recent years, with online purchases surging by 32% in 2020. However, this shift poses challenges, particularly the decline in high-margin impulse purchases typically made in physical stores. In response, retailers are turning to the edge—the frontier of real-time data insights—to redefine customer experiences.
Successful retailers leverage edge data for seamless omnichannel interactions, resulting in increased sales and reduced costs. Personalized marketing, driven by real-time analytics and AI, exemplifies this approach, enhancing sales by up to 20%. Technologies like AR and VR further elevate customer experiences, increasing conversion rates by 83.1% and reducing returns by 40%.
Accurate stock availability, facilitated by advanced inventory management systems using real-time updates and predictive analytics, ensures post-purchase customer satisfaction. Edge computing also reduces costs through automated return management systems and AI-driven theft prevention.
Dell Technologies, with its extensive retail expertise, provides comprehensive solutions for edge and data centers, offering a robust IT foundation for data processing at the edge.
eCommerce Book of the Week
$100M Offers: How to Make Offers So Good People Feel Stupid Saying No
Author byline:
I took home more in a year than the CEOs of McDonald’s, IKEA, Ford, Motorola, and Yahoo combined as a kid in my 20s using the $100M Offers method. It works. And it will work for you.
Not that long ago, though, my business had gotten so bad that I literally couldn’t even give my services away for free. At the end of each month, I would look at my bank account hoping to see progress (but there wasn’t). I knew something had to change…but what?
Over the next 48 months, I went from losing money to making $36 for every $1 spent. In that time period, we generated over $120,000,000 across four different industries: service, ecommerce, software, and brick and mortar.
But, unlike everyone else, we didn’t have great funnels, great ads, or a wealthy niche. In fact, we didn’t even send emails until we had crossed $50M in sales. Instead, we were able to do this one thing really well: We created offers so good, people felt stupid saying no.
Signing off,
The Merchant @CartHustle