🛒 Prime Day 2025.

Happy Tuesday!

Someone asked if AI could do their shopping for them. Told them it’s already happening — just don’t forget to check your cart.

From ad bidding overhauls to extended Prime Day deals and tariff shakeups, this week’s packed with shifts that’ll keep you on your toes.

Let’s dive in! 🚀

ECOMMERCE ADVERTISING

🔍 Google & Microsoft Simplify Ad Bidding

Both Google and Microsoft Ads are cleaning house—removing confusing bidding options and improving transparency across campaigns.

Google’s AI Max for Search, rolled out globally, now shows ads for broader queries using AI. Early results? Not huge on conversions yet, but complementary, high-quality traffic is coming in—without cannibalizing existing keywords.

What’s new:

Search term match type segmentation: Shows which terms AI Max is picking up

Landing page visibility: See which pages AI Max is driving traffic to—and exclude poor performers or test winners in other campaigns

Meanwhile, Brand Reports now offer aggregate reach and frequency data across YouTube, Display, and Demand Gen. Still missing? Conversion tracking for those cross-channel views.

Microsoft Ads is dropping tCPA and tROAS starting August 4. Like Google, they’ll now use:

Maximize Conversions with optional CPA targets

Maximize Conversion Value with optional ROAS targets

These changes streamline bidding strategies and improve visibility—especially for AI-powered campaigns. If you’re not using AI Max yet, now’s a good time to test and monitor landing page performance.

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ECOMMERCE TRENDS

🛒 Amazon Stretches Prime Day to 4 Days

Prime Day 2025 is now a 4-day event as Amazon leans on extended sales and Gen Z perks to counter tariff pressure and waning consumer excitement.

For the first time, deals drop every 5 minutes. Gen Z Prime members (ages 18–24) get 5% cashback and pay only $7.49/month, signaling a clear push toward younger buyer loyalty.

🔍 Key trends to watch:

Tariff tension: Some sellers are holding back discounts to protect margins, while others, like Outdoor Fellow, are using pre-tariff inventory to offer steep deals.

Cautious spending: Despite Adobe’s forecast of $23.8B in online sales, many consumers may focus on necessities like beauty and school supplies.

Retailers follow suit: Walmart, Target, and Best Buy are matching the extended period, offering aggressive deals across both online and in-store.

Expect selective shopping, smaller splurges, and sharper discount targeting. Prime Day may be longer—but it’s not guaranteed to be bigger.

ECOMMERCE NEWS

📈 U.S. Tariff Hike Incoming—70% Rates Kick In August

The 90-day pause on reciprocal tariffs ends July 9, and starting August 1, the U.S. will impose tariffs of 10% to 70% on imports from select countries without deals in place.

The Trump administration is targeting 18 key trading partners, sending formal notices detailing tariff rates Monday. Treasury Secretary Scott Bessent confirmed the pause will not be extended and that affected countries will revert to the April 2 tariff baseline unless deals are reached immediately.

🔍 Key points:

Letters sent at noon EST Monday will confirm country-specific rates.

Countries like Vietnam already reached new agreements (20% tariff); China and the U.K. have preliminary deals.

Negotiations after July 9 remain unclear, but implementation is locked for August 1.

Importers should prepare now—review contracts, evaluate supply chain exposure, and consider front-loading inventory. This move may trigger price volatility and strategic sourcing shifts well into Q4.

ECOMMERCE AI

🤖 AI Replaces Product Innovation in Mid-Market Survival Mode

Tariff volatility and economic uncertainty are forcing U.S. mid-market firms to ditch product launches and prioritize operational efficiency through AI, according to PYMNTS Intelligence.

63% of companies are now leaning into AI for survival—not splash. Meanwhile, 38% have delayed or canceled innovation efforts due to market instability.

🔍 Key shifts:

AI is being deployed in demand forecasting, vendor analytics, and real-time inventory management

Many firms no longer see AI as futuristic—it’s foundational

31% say tariff-related pressure is limiting their ability to fund AI or innovation at all

The new playbook is clear: optimize first, innovate second. AI is now a tool for stability, not just scale. As these systems mature, we may see bold ideas return—this time, backed by data.

ECOMMERCE TRENDS

📱 76% of Consumers Now Own 4+ Connected Devices

A new PYMNTS Intelligence report reveals that device ownership is rising, but consumer expectations are splitting into three tech personas—Basic, Mainstream, and Connected—with major implications for digital services.

🔍 Key findings:

76% of consumers own 4+ devices, but most are content with what they have.

Bridge millennials are 3x more likely to be “Connected Tech” users than baby boomers.

Lower-income consumers remain in the Basic group, showing that access—not enthusiasm—is the barrier.

26% of Mainstream users now use mobile for purchases, signaling a shift toward mobile-first banking and payments.

48% of Connected Tech users used a digital wallet in the past 30 days, while 60% avoided cash entirely.

Banks and retailers must tailor digital experiences by tech persona. Mobile-first strategies for the mainstream, and hyper-digital services for the Connected Tech crowd, are essential to staying relevant.

NEWSLETTER TLDR;

WEEKLY ROUND UP

AD TECH: Google & Microsoft simplify ad bidding with AI-powered Maximize Conversions strategies. Google’s AI Max expands search reach with better landing page insights; Microsoft drops tCPA and tROAS for streamlined options starting August 4. Time to test AI-driven bidding.

ECOMMERCE: Amazon extends Prime Day to 4 days with deals every 5 minutes and Gen Z perks like cashback and cheaper memberships. Retailers Walmart, Target, and Best Buy follow suit—but cautious consumers may limit spending to essentials.

TRADE: U.S. tariffs of up to 70% kick in August 1 after a 90-day pause ends. Importers should prep for price shifts and supply chain changes—especially with new deals pending for some countries like Vietnam and China.

AI IN RETAIL: Mid-market U.S. firms prioritize AI for operational stability over new product launches amid tariff and economic pressures. AI is now foundational for demand forecasting and inventory management, with innovation taking a back seat.

CONSUMER TECH: 76% of consumers own 4+ connected devices, but expectations split into Basic, Mainstream, and Connected personas. Mobile-first and hyper-digital strategies are crucial for banks and retailers to engage these diverse tech users.

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