Big shifts in e-commerce you can't ignore!

Hello 👋

Here’s the latest DTC and e-commerce marketing news and trends…

Latest brand moves…

Here’s your essential update on the latest DTC developments, from retail expansions to financial shifts:

• Stix: Now available in over 200 Giant supermarkets across multiple states.

• Dôen: Launches a collaboration with Gap, featuring in select stores and online.

• Vacation: Sunscreen brand rolls out nationwide in Target stores.

• Goodles: After a $13M Series A, now sold in Walmart.

• Foxtrot: Acquired by Further Point Enterprises for $2.2M after foreclosure.

• On: Reports a 21% sales increase, hitting $560M, with a 39% rise in DTC sales.

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The lending cracks threatening creators’ e-commerce dreams

Creators like MrBeast and Emma Chamberlain have been expanding their offline businesses, with Chamberlain Coffee recently raising an additional $4.6 million. While this trend continues, it's facing challenges due to issues in retail business credit.

Ampla’s struggles: Ampla, a New York-based lender, backs small e-commerce brands by funding upfront costs like manufacturing and marketing. Known brands like Carbone Fine Foods and Feastables have used Ampla’s services. Ampla is reducing or cutting credit lines after some customers struggled to repay loans, and it’s now looking to sell itself after failing to raise new equity.

Impact on e-commerce vrands: Losing Ampla’s credit support makes it harder for small e-commerce brands to secure funding. Some clients are having trouble finding new lenders due to their financial ties to Ampla’s products. While big names like Emma Chamberlain can turn to venture capital, smaller creators often can't and struggle to get bank financing.

Retail market challenges: Despite some positive signs in U.S. consumer spending, startup food and drink brands are struggling. In April, non-alcoholic beverage chain Boisson filed for bankruptcy, and Foxtrot, a grocery chain, shut all its stores despite raising nearly $200 million.

Creators aiming for offline expansion need to brace for a tough market. Retail is challenging, and cracks in the lending market only make it tougher.

AI and personalization are revolutionizing luxury E-commerce…

Luxury e-commerce is undergoing a major transformation fueled by AI, personalization, and shifts in consumer behavior. As industry giants like Farfetch and Matches struggle, new trends and technologies are reshaping how customers shop for high-end fashion. Here’s what you should know about:

The fall of e-commerce pioneers: Farfetch reported a 1.3% revenue decline before being acquired by Coupang. Matches faced profitability issues, as explained by co-founders Tom and Ruth Chapman, and was sold to Apex private equity in 2017.

Changing market dynamics: The luxury market is now dominated by the wealthiest consumers, who focus on mega brands enhancing both online and physical retail experiences. Luxury brands are bypassing multi-brand retailers by hiring top talent from prestigious hospitality brands to improve their retail experiences.

Consumer behavior shifts: Discretionary income has dropped, especially among high earners in big tech and companies like L’Oréal, making it harder for them to feel wealthy. Shoppers are using online platforms for research, seeking better prices and personalized experiences.

AI and personalization: Platforms like Lyst use AI to personalize shopping experiences, boosting engagement and satisfaction. Lyst saw a 20% increase in conversion rates due to AI-driven personalization. Lyst leverages a vast catalog and customer behavior data to offer tailored recommendations and enhance the shopping experience.

Privacy changes and market impact: Apple’s "do not track" feature has increased customer acquisition costs, straining profitability for online luxury platforms. Luxury brands are focusing on maintaining control over pricing and distribution, while online platforms struggle with rising costs.

What else happened this week…

• Gorgias secures $29M to expand its AI-powered customer experience platform for ecommerce, aiming to automate 60% of customer support and enhance brand growth.

• Pepper raises $30M led by ICONIQ Growth to boost independent food distributors with advanced tech, increasing sales by 23% and saving reps 10+ hours weekly.

• TikTok Shop is set to launch in continental Europe this summer, starting with beta tests in Germany, France, Italy, and Spain, aiming to expand further across Europe and Mexico.

• YouTube announced advertisers could now agree to buy 100% of ad inventory on channels of top 1% creators.

• Forbes 30 Under 30 Asia: Retail & Ecommerce spotlights entrepreneurs like Yoomee Hwang of YOLO and Croket, and other innovators transforming niche markets with advanced tech and unique solutions.

• E-commerce subscription platform Ordergroove expands to the UK, boosting recurring revenue for retailers like Hotel Chocolat, Halfords, and Lily’s Kitchen.