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Your order this week:
eBay Integrates Venmo
Luxury Brands Offer ‘Unprecedented’ Discounts
U.S. Consumers Demand Real-Time Inventory Updates
Will AI Transform Boring Buys into Thrilling Finds?
AI and Real-Time Payments: Solutions for E-commerce Challenges
ECOMMERCE TRENDS
eBay Integrates Venmo
eBay will integrate Venmo as a payment option to cater to Gen Z and millennial shoppers starting next week. This move aims to offer more choices and convenience, aligning with the preferences of modern consumers.
Venmo, popular among over 90 million users, allows buyers on eBay.com and the eBay app to pay using their balance, linked bank account, debit, or credit cards. It also enables seamless transactions by linking Venmo accounts directly to eBay accounts, eliminating the need for repeated payment details.
For sellers, this integration is expected to reduce cart abandonment and increase sales, as it accommodates buyers who prefer Venmo. eBay’s payment strategy focuses on providing safe, relevant, and frictionless commerce experiences across 190 markets.
According to PYMNTS Intelligence, peer-to-peer (P2P) payment methods like Venmo are gaining traction for their convenience and flexibility, bypassing the need for credit cards and enabling quick mobile transactions.
Healthcare payments firm TrustCommerce recently followed suit, integrating Venmo and PayPal to enhance payment flexibility for patients. This trend reflects a broader adoption of diverse payment options to meet consumer demand for seamless transactions.
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ECOMMERCE TRENDS
Luxury Brands Offer ‘Unprecedented’ Discounts
Luxury brands in China are facing economic headwinds by offering unprecedented discounts to clear unsold inventory and attract cautious consumers, according to Bloomberg.
Balenciaga, under Kering, has escalated discounts to up to 40% on sale items in early 2024, compared to last year’s 30%. Similarly, Versace, Givenchy, and Burberry have slashed prices by more than half on major eCommerce platforms like Tmall.
This shift marks a departure from traditional practices of using outlet malls or private sales, opting instead for flagship platform promotions. However, the move is seen as risky in China’s competitive eCommerce market, exacerbated by economic slowdown and increased return rates.
Contrastingly, brands such as Hermes, Chanel, and Louis Vuitton maintain exclusivity by refraining from public discounts, focusing on high-net-worth clients. This strategy buffers them against economic uncertainties and eCommerce vulnerabilities.
The repercussions are evident, with Kering forecasting a potential profit drop of up to 45% in early 2024 due to sluggish Chinese sales, while Burberry grapples with stock declines amid weakened demand in China and the U.S.
INVENTORY MANAGEMENT
U.S. Consumers Demand Real-Time Inventory Updates for Seamless Shopping Experience
U.S. consumers now expect to know, in real-time, whether the items they want are in stock before making a purchase. This demand for real-time digital inventory updates is highlighted in a recent report from PYMNTS Intelligence.
The “2024 Global Digital Shopping Index: U.S. Edition,” created with Visa Acceptance Solutions, surveyed over 2,400 U.S. consumers. 73% of consumers expect up-to-the-moment digitally updated inventory when shopping.
Recently, retailers learned that unexpected out-of-stocks could severely damage consumer loyalty. Today, solution providers are stepping up. Akash Gupta, CEO of GreyOrange, highlighted their investment in gStore, an app for omnichannel and in-store fulfillment activities. “We’re orchestrating end-to-end networks to ensure you have the right inventory in the right place,” Gupta said.
On the supply chain front, Gather AI announced a $17 million raise to scale its AI-powered warehouse inventory monitoring using autonomous technologies.
Retailers are keen to implement these features. The 2022 PYMNTS Intelligence study found that 68% of automotive merchants, 61% of grocery merchants, 50% of general retailers, and 42% of convenience stores and pharmacies plan to offer automatic real-time inventory checks.
Real-time inventory updates are a necessity in today’s retail landscape. Retailers must adopt these technologies to meet consumer expectations for transparency and efficiency.
ECOMMERCE AI
Will AI Transform Boring Buys into Thrilling Finds?
The landscape of online shopping could drastically evolve with Amazon’s AI integration, potentially shaping a new social commerce frontier. Utilizing AI for product storytelling could revolutionize how online products are promoted and perceived. With generative AI lowering content costs, engaging digital experiences could dominate e-commerce, influencing both culture and consumer behavior.
If Amazon were to acquire a leading social media company, the future of e-commerce in ten years could be radically different. Nearly half of U.S. consumers have already bought goods through social media. Generative AI could transform e-commerce from a straightforward transaction into an engaging story, reshaping the roles of e-commerce teams, marketers, and digital asset management (DAM) and product information management (PIM) systems.
The marginal cost of content creation is plummeting, and AI has the analytical and creative power to turn basic web experiences into rich media landscapes. This shift could make shopping a multitrillion-dollar experience.
Online shopping ranges from fast and boring to slow and fun. Platforms like Amazon, Walmart, and eBay cater to planned purchases with speed and efficiency, while social commerce on TikTok, Instagram, and Facebook is designed for serendipitous discovery.
Imagine Amazon, owner of a social media company, creating a database of social content that drives purchases. Using generative AI, Amazon could analyze this data to find patterns in characters, storylines, and video styles. This AI-powered storytelling could make e-commerce both fast and fun, revolutionizing how we shop online.
DIGITAL PAYMENTS
AI and Real-Time Payments: Solutions for E-commerce Challenges
AI solutions to address fraud and the move toward real-time payments could transform the landscape for online retailers and B2B sellers, according to a new report from Rapyd. Artificial intelligence (AI) and real-time payments are key players in e-commerce and digital goods sales, high-growth segments of the digital economy.
A primary driver for AI is the growing fraud threat. As e-commerce traffic increases, it becomes challenging for merchants to screen fraudulent transactions without degrading the customer experience. AI-powered fraud management tools can help online retailers and B2B sellers quickly flag suspect transactions, potentially lowering chargebacks and transaction disputes.
Fraud and chargebacks are major concerns in e-commerce and digital goods sales. Rapyd’s survey found that 48% of B2B sellers and 46% of e-commerce retailers cited fraud as a leading concern. AI can also enhance customer service through chatbots.
On the payments side, the move toward real-time payments is accelerating, offering immediate funds availability and improving cash management.
AI trends in e-commerce include more acceptance of real-time payments (46%) and AI applications (40%). Other trends are increased use of virtual cards (30%) and buy-now-pay-later loans (30%).
Online merchants prioritize ease of integration and speed of payments when evaluating payment providers. Online travel agencies see secure, efficient transaction processes as vital for growth, with real-time payments and AI applications being top fintech trends.
Signing off,
The Merchant @CartHustle