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Coffee & Commerce #47: Tariff-Driven Prime Day, Amazon’s Secret Cleanup & Meta’s AI Ad Push

Good afternoon,

Here’s the headlines for this week: 6 June 2025

ECOMMERCE

  • Over half of consumers plan to stock up on essentials during Prime Day due to anticipated tariff-induced price hikes.
  • Approximately 45% aim to buy products they expect will become more expensive later in the year.
  • Social media platforms like Facebook and YouTube are primary sources for discovering Prime Day deals.

  • Retailers are initiating back-to-school promotions earlier, with sales beginning as early as Memorial Day weekend.
  • Brands like Hydros are expediting inventory and offering aggressive promotions to capitalize on early demand.
  • Tariff uncertainties are prompting consumers to prioritize value and essentials in their purchases.

  • QVC hosted its first Super Brand Day on TikTok, achieving its highest-viewed livestream to date.
  • The company plans to expand its TikTok presence internationally, including a partnership with TikTok U.K. in February.
  • Streaming and social platforms have become significant revenue drivers, with notable increases in user engagement.

  • China's regulator issued draft guidelines urging eCommerce platforms to charge reasonable fees to merchants.
  • The guidelines aim to alleviate financial pressures on small businesses amid economic challenges.
  • Platforms are encouraged to set flexible pricing strategies and provide better support to smaller merchants.

TECH

  • Amazon and The New York Times have entered into a licensing agreement concerning AI-related content usage.
  • The deal allows Amazon to utilize select Times content to train its AI models.
  • This partnership underscores the growing intersection between media organizations and AI technology development.

  • Brazil is piloting a "dWallet" program enabling citizens to monetize their personal data.
  • The initiative allows users to deposit data into a digital wallet and earn money when companies purchase access.
  • This program positions Brazil at the forefront of data ownership and monetization efforts globally.

RETAILERS

  • Amazon has once again ceased purchasing ads on Google Shopping, indicating a shift in its advertising strategy.
  • The move reflects ongoing adjustments in Amazon's approach to digital advertising and customer acquisition.
  • This decision may impact the visibility of Amazon products on Google's shopping platform.

  • Amazon initiated the "Bend the Curve" project to remove billions of underperforming product listings.
  • The initiative aims to streamline the marketplace, improve customer experience, and reduce cloud storage costs.
  • Despite the purge, Amazon continues to expand its product selection, focusing on quality over quantity.

  • Temu and Shein are experiencing significant growth in Europe, with Temu's EU sales increasing over 60%.
  • In contrast, both companies face declining sales in the U.S. due to tariff pressures and regulatory changes.
  • The shift includes increased advertising spend in European markets and a strategic focus on international expansion.

  • The EU has accused Shein of violating consumer protection laws by offering misleading discounts and false purchase deadlines.
  • Shein faces potential fines and is required to comply with regulations under the Digital Services Act.
  • The company has one month to address these issues or face penalties up to 6% of its global revenue.

  • Dollar General reports strong performance, driven by demand for essentials and value-focused shopping.
  • The retailer's strategic focus on affordability and convenience resonates with cost-conscious consumers.
  • Despite broader economic challenges, Dollar General continues to expand and invest in growth opportunities.

  • Amazon's Fire TV Stick is reportedly being used to facilitate large-scale streaming piracy.
  • The device's open platform allows for the installation of unauthorized apps that provide access to pirated content.
  • This issue raises concerns about digital piracy and the responsibilities of platform providers.

ADVERTISING

  • Meta plans to fully automate ad creation and targeting using AI by the end of 2026.
  • The system will generate ads from scratch based on product images and budget inputs, personalizing content for users.
  • While beneficial for small businesses, larger brands express concerns over creative control and content quality.

MARKETING

  • Brands are developing strategies to engage Gen Alpha, focusing on authenticity, digital experiences, and social responsibility.
  • Understanding the preferences and behaviors of this emerging demographic is crucial for future marketing success.
  • Early engagement with Gen Alpha can build brand loyalty and long-term customer relationships.

See you next week,

The ÎåÒ»³Ô¹Ï¹ÙÍø Team

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