🛍 DTC Daily - Friday, Jan 20

1 - Etsy creates a cart shortcut

📰 TL;DR - Etsy announced some changes to how it displays search results that are likely to ruffle the feathers of some sellers on the platform. You'll now see a "add to basket" underneath some products on search results pages. They say their own metrics show an increase in conversion when the button is present, which makes sense with everything we know about how customers want shopping and checkouts to be as quick as possible.

💡 Insight - This sounds nice in theory, but in practice, the button currently only works on listings that don't have available variations or customization options. Many Etsy sellers prefer to stuff all options into a single listing to avoid getting hit with multiple listing fees. That means a great many sellers simply aren't going to benefit from this, especially small sellers who keep a close eye on those fees. Etsy says they're working on it, though.

You can read the article here...

2 - Buyers are on a budget

📰 TL;DR - Forbes rounded up three consumer trends for the year in retail ahead, and among them is a warning that budgets are going to be tighter. With the economic outlook being, well, pretty bleak, customers may opt for being thrift over existing brand loyalty. In response, luxury brands are looking at more affordable offerings and others are expanding loyalty programs.

💡 Insight - Customer loyalty is paramount to your success as an e-commerce brand. Loyal customers spend more per order, come back more often, and are more likely to recommend your brand to friends and family. Aside from ensuring you're pricing smartly, having a customer loyalty program — such as point collection or earning discounts — is a no-brainer in these times.

You can read the article here...

3 - The murky future of social commerce

📰 TL;DR - Depending on who you ask, social commerce will either be the savior of e-commerce or an overhyped bust. While global social commerce sales are expected to grow, the concept still hasn't caught on in North America and Europe the way it has in Asia. Add to that, some brands, like Dior and Michael Kors, have completely stepped back from selling on Instagram despite being among the first adopters. Among the problems are a worse checkout experience and the inability to capture details like emails for marketing.

💡 Insight - Despite the issues, social platforms are a viable sales channel if you commit to the cause. According to Hootsuite, the biggest barrier for customers is a lack of trust that they'll get the same customer service experience as if they buy directly from an e-commerce site. So, if social commerce is part of your repertoire, it's crucial that you're active on these platforms and offer customer service via DMs and comments.

You can read the article here...

4 - Shein's valuation takes a dive

📰 TL;DR - Fast fashion giant Shein's valuation has reportedly taken a turn as it's in talks to raise $3 billion at a valuation of $64 billion — a downgrade from a $100 billion valuation in April. (TechCrunch notes that a Shein spokesperson said some of this was inaccurate, for what it's worth.) That's all ahead of an expected IPO in the U.S.

💡 Insight - Aside from the impact of global market downturns, there are some fair questions to ask about Shein's future. For every TikTok showing a $200 Shein haul, there's another decrying the environmental impact of fast fashion and the human impact of selling a dress for $8. The brand has stepped up its environmental, social, and governance efforts, but it will it be enough to woo value-conscious Gen Z customers?

You can read the article here...

5 - Resale is the talk of the retail town

📰 TL;DR - A report from this week's National Retail Federation annual conference says that "resale" was the word on many a lip. Word is that the recommence market is going to be big — like $300 billion big by 2031. In fact, J. Crew just jumped in with its "J. Crew Always" secondhand market.

💡 Insight - I know, we talked about resale yesterday, didn't we? It's true, and it's also true that we're bullish about the bright future of resale, but this report also makes a great point about how the new face of resale looks very different from a messy Salvation Army rack. It's all about the "treasure hunt" for amazing goods at discount prices, or sometimes even paying over the original price for a rare find. If you can capture your own secondhand market, or indeed launch a secondhand-exclusive business, you'd be in good company.

You can read the article here...

If you want to reach our audience, fill out this short partnerships form.