Amazon's recent business moves, examining corporate layoffs, AI-powered shopping features, and new smart glasses technology for delivery workers paint an interesting view of its immediate future and what it could mean for consumers.
TikTok grabbed the lead in Cyber Five advertising traffic this year, passing the 50% mark, per Industry KPI data from MikMak, showing it was the main discovery channel for early holiday shoppers. TikTok’s major swing past Meta this year shows that it is proving more effective at routing users from content into product pages and retail websites where purchases take place. Despite TikTok’s ad traffic advantage, Meta had an edge in facilitating purchases. Meta posted a 6.8% conversion rate over the Cyber Five, compared with TikTok’s 1.06%. These trends suggest advertisers would benefit from using two strategies during the rest of the holiday season: using TikTok to spur demand and lure shoppers, but looking to Meta to convert that interest into sales.
The heat on Temu parent PDD Holdings is growing, at home and abroad. The company is being investigated by China’s State Administration for Market Regulation (SAMR) over reports of fraudulent deliveries, per Bloomberg, while Temu’s Dublin headquarters were raided last week by the EU over concerns that the company breached foreign subsidy rules. PDD is losing goodwill in many of the markets it operates in—including in China, its most important. Employees reportedly got into fistfights with SAMR investigators at the company’s Shanghai offices, leading to multiple arrests. Such confrontations are highly unlikely to endear PDD to the powerful regulator, which has the ability to instigate sweeping probes into the company’s business practices.
Affirm expanded its partnership with Shopify, bringing Shop Pay installments to the UK, per a press release. PayPal and Klarna’s deep entrenchment in the UK will make it difficult for other BNPL contenders to make advances. Powering Shop Pay installments could help Affirm accelerate its foray into the country thanks to Shopify’s established network of merchants and brand recognition.
SoFi debuted the SoFi Smart Card, a charge card aimed at rewarding consumers in essential categories, per a press release. SoFi’s latest product meets the needs of everyday consumers while offering competitive cash back in a necessary category. Issuers should expand rewards on essential categories like groceries and gas to stop middle- and working-class cardholders from switching to neobank competitors—offering card products that assist with affordability.
Klarna sealed a research partnership with Stripe-owned Privy to develop a crypto wallet for Klarna users, per a press release. Klarna’s jump into crypto could help pad its margins and keep users more enmeshed in its growing ecosystem of financial services. But fintechs dabbling in stablecoins now still need to overcome the overwhelming inertia facing stablecoin payments. Consumers just aren’t interested in crypto payments, and unless they see immediate, concrete benefits for making the switch, KlarnaUSD and other proprietary stablecoins—like PayPalUSD—will have limited addressable markets.
Solo dining is contributing more to restaurant spending as consumers carve out room for experiences despite rising financial stress. Solo diners now account for nearly half (47%) of quick-service restaurant (QSR) orders, up from 31% in 2021, according to Yum Brands, while a Toast report found a 22% spike in single diner reservations in Q3. The uptick in solo dining is a rare bright spot for the restaurant industry, which is otherwise struggling to find ways to engage consumers.
Retail media’s early free-for-all is giving way to a more deliberate approach. At last week’s EMARKETER Summit, leaders from Kellanova and Every Man Jack described how marketers are sharpening their focus, rethinking measurement, and preparing for an AI-driven discovery landscape.
On today's podcast episode, we discuss the Thanksgiving shopping season—what surprised us most, what it revealed about the fragility of the US consumer, and how much AI moved the needle for shoppers, and retailers. Listen to the discussion with Vice President of Content and host Suzy Davidkhanian, Senior Analyst Zak Stambor, and Analyst Rachel Wolff.
Canadian consumers are heading into the holidays with tight budgets, as surveys show a rising share cutting back or shifting spending toward essentials. This pullback, combined with flat retail sales and broader economic worries, suggests retailers shouldn't expect a late-season rebound to bail out weak demand. To lure what spending does occur, retailers will need to double down on value messaging and use loyalty programs to win over highly price-sensitive consumers.
Amazon’s move to fold perishable groceries into same-day delivery is paying off quickly, with nine of the top 10 best-selling items in eligible markets now perishables—a sign that shoppers trust the faster service for everyday needs. The shift supports CEO Andy Jassy’s bullish stance on grocery as Amazon expands same-day perishables to more than 2,300 locations and builds on more than $100 billion in online grocery sales over the past year. With Walmart and Kroger also ramping up rapid fulfillment, the stakes are rising in a grocery ecommerce market surging in both order frequency and value.
Online grocer Thrive Market will no longer sell alcohol on its marketplace in response to shifting consumption habits, the company told CNBC. Instead, it plans to double down on zero-proof drinks with a selection of over 20 brands and 100 products. Going all in on the sober-curious movement is a savvy move for Thrive Market, given its focus on organic and healthier products. Demand for nonalcoholic products like alcohol-free beer is soaring, driven by younger consumers as well as the better-for-you movement.
Luxury handbags and leather goods purchases dropped 12.8 percentage points among US adult luxury buyers since 2022, according to a September report from EMARKETER and Bizrate Insights.
Use cases for Perplexity’s Comet AI browser and assistant mark how agentic AI’s influence is happening upstream, within cognitive tasks and away from the point of purchase. Personal use makes up about 55% of total agentic queries within Comet, followed by professional (30%) and educational (16%), per a deep dive on the browser from Harvard Research and Perplexity. The biggest entry for brands isn’t only being shoppable inside AI systems, but becoming embedded in users’ daily workflows. Brands that surface in productivity-driven queries could shape preferences and promote awareness before consumers enter a shopping mindset.
77% of worldwide consumers are comfortable with AI resolving a question or issue, according to an August survey from CSG.
Attention metrics (AUs) in the social media video landscape are gradually fragmenting as audiences shift to platforms with interest-driven feeds, per our industry KPI data provided by Adelaide. Consumer attention fragmenting across platforms means that advertisers who are already struggling to reach target audiences on social media are facing an uphill battle. Focusing on interest-driven platforms like Reddit and Pinterest as they gain AUs can help drive stronger results, while maintaining investment in leaders like YouTube will remain essential.
Pinterest is piloting a new shoppable recipe format with Walmart’s help. Select recipes now feature a “Shop Ingredients” button that lets users add ingredients directly to their Walmart carts. The pilot fits squarely with Pinterest’s broader goal to make every pin on its platform shoppable, a strategy designed to fully monetize its influence over product discovery and shopping trends. It also fits with Walmart's aim to establish a presence on as many shopping channels as possible, be it social commerce or ChatGPT.
Google Chrome will now autofill users’ loyalty card numbers, travel details, and vehicle information housed in Google Wallet, per a company blog post. Maximizing its utility as a shopping interface is critical as Google Chrome’s browser dominance risks getting eroded by AI tools and browsers like Perplexity’s Comet. If volumes divert to new sources, like the PayPal-linked Comet, Google shoppers could maintain their loyalty in the browser by convenience the tools offer them during their checkout experiences.
Afterpay partnered with a slate of new merchants to increase flexible financing options for consumers ahead of the holidays, per a press release. New partners include Thursday Boots, Diesel, and SP5DER Worldwide. Block is betting on its ecosystem effect raising the value of all of its products. However, major partnerships are still needed to rocket a BNPL product to high use, like Klarna’s integrations with Walmart.