Hey there, January felt like a century or was it just me? 🙌
Your order this week:
Valentine’s Day break your heart or your wallet?
Amazon tests new AI shopping assistant
Walmart launches augmented eye-wear reality feature
Shopify’s winter 24 edition
TikTok test new feature to help ecommerce stores
2024 Valentine’s Day consumer trends
Love is in the air this Valentine’s Day as consumers prepare to express their affection for their loved ones.
According to the annual survey conducted by NRF and Prosper Insights & Analytics, consumers are projected to spend a staggering $25.8 billion on Valentine’s Day, averaging $185.81 per person.
The focus this year is on significant others, with a record-high expenditure of $14.2 billion expected, amounting to an average of $101.84 per person. While romantic partners take the spotlight, consumers across age groups are also planning to pamper their pets and indulge their friends, with spending returning to normal levels after last year’s diversified celebrations.
As shoppers search for the perfect expression of love, traditional gifts like candy and greeting cards remain popular. However, there’s a surge in spending on jewelry, flowers, clothing, and romantic outings. Harley Finkelstein, President of Shopify, notes an interest in unique experiences and non-traditional gifts, such as home cocktail sets and travel accessories.
Even those not partaking in Valentine’s Day festivities find ways to mark the occasion, particularly among younger demographics. Walmart, Macy’s, and Kay Jewelers are catering to the trend with “Galentine’s Day” gift guides, ensuring everyone can celebrate love in their own special way.
Amazon tests new AI shopping assistant
Amazon introduced Rufus, an AI assistant for shopping, allowing users to inquire about products via its mobile app.
Users can type or speak questions like “What are the differences between trail and road running shoes?” or “Compare drip and pour-over coffee makers.” Rufus leverages Amazon’s vast product catalog, customer reviews, and web data to provide insightful responses.
Currently in testing with a limited U.S. user group, Rufus aims to enhance the shopping experience by offering personalized assistance.
CEO Andy Jassy’s strategy includes integrating generative AI across Amazon’s operations. The company has launched various AI tools and services, leveraging platforms like OpenAI’s ChatGPT. These tools include AI-driven responses to queries, review summaries, and support for third-party sellers.
Amazon’s upcoming earnings report may offer insights into the progress of its AI initiatives. The company’s investment in AI reflects its commitment to improving customer engagement and driving innovation in e-commerce and beyond.
Walmart launches augmented reality optical try-on feature
Walmart introduces the Optical Virtual Try-On feature, part of its adaptive retail strategy to enhance customer experience. Tom Ward, EVP and Chief eCommerce Officer of Walmart U.S., emphasizes the company’s commitment to exceeding customer expectations.
Launching next month, the feature enables customers to virtually “try on” frames and purchase prescription eyewear through the Walmart app or website. Utilizing advanced algorithms and 3D data, Walmart offers a realistic virtual try-on experience, revolutionizing eyewear shopping.
David Reitnauer, VP Optical, Walmart Health & Wellness, underscores Walmart’s dedication to customer well-being, expanding assortment and services to meet evolving needs. Walmart bolsters Vision Centers nationwide, offering over 1,000 frames under $150 and trendy brands like DKNY and Nike Eyewear.
Through innovative technology and enhanced customer service, Walmart aims to simplify and elevate the eyewear shopping experience, reaffirming its role as a trusted destination for affordable, stylish eyewear.
Shopify’s winter 24 edition
Shopify’s introduces over 100 updates aimed at enhancing client experiences in conversion, channels, marketing, and operations. Notably, 45 of North America’s Top 1000 online retailers, including Fashion Nova and Steve Madden Ltd., rely on Shopify, amassing over $8.29 billion in web sales.
Key highlights include a revamped product model facilitating streamlined product listings and a simplified checkout process, reducing buyer completion time by four seconds. With new APIs and apps, retailers gain customization options for loyalty programs and order tracking.
Semantic search capabilities optimize storefront search results, while features like point-of-sale ship from store and Markets Pro enable international selling with ease. Shopify Audiences leverages machine learning for effective social targeting, while Shop Campaigns enhances customer acquisition with improved analytics.
Under “Shopify Magic,” AI-driven tools like Media Editor and Sidekick promise simplified business operations. These updates reinforce Shopify’s commitment to reshaping ecommerce, empowering retailers with innovative solutions for success.
TikTok bringing TikTok Shop links to more videos
TikTok experiments with a groundbreaking feature to make all posts on its platform shoppable, aiming to boost its TikTok Shop into a multibillion-dollar e-commerce venture in the U.S.
This feature, currently in limited testing, automatically identifies items in videos, leading viewers to explore similar products on TikTok Shop. Previously, only approved influencers and brands could tag products, but this innovation promises to embed e-commerce links across a broader spectrum of videos.
With ambitions to expand TikTok Shop U.S. business tenfold to $17.5 billion, TikTok seeks to rival major players like Amazon, Temu, and Shein.
Despite concerns over its impact on the app’s ecosystem, TikTok’s Black Friday and Cyber Monday success, with over 5 million new U.S. customers engaging with TikTok Shop, underscores its potential.
The platform’s slower growth prompts discussions about TikTok Shop’s influence, even as TikTok explores new avenues like opening studios in Los Angeles for creators to livestream and sell products, affirming its commitment to reshaping the digital marketplace.
Signing off,
The Merchant @CartHustle