Monday, October 23

The 5 things in DTC you need to know today

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🚨 In today’s newsletter 🚨

  • A massive Black Friday—Cyber Monday report

  • How returns are becoming less of a hassle for customers

  • How to use your own packaging with Amazon

Let’s get into it👇

#1 - 🔥 BFCM trends you need to know

📰 TL;DR - E-commerce mobile app builder Tapcart has put out a hefty Black Friday—Cyber Monday trends report that’s definitely worth reading. There’s a lot to dig into here, but I’ll highlight some key stats. First, shoppers are excited for BFCM — 97% in fact. They’re also pretty enthused about BFCM marketing, with 93% saying they’re at least somewhat excited by BFCM ads. Only 7% were very annoyed by them. Also, 70% find the messaging in BFCM ads to be appealing, and 25% say they’re extremely appealing. Also interesting is that despite the enthusiasm, Gen Z is the most likely to feel overwhelmed and unsubscribe if they receive too much marketing. All that and tons more in the link.

💡 Insight - Since this comes from Tapcart, there’s also a big section on mobile shopping, and the results really show that mobile is king. For BFM, 71% will shop through their phone browser and 68% will use mobile shopping apps. Younger generations showed the highest affinity for mobile shopping apps. Tapcart also had Nik Sharma draw some conclusions from the report, which is also worth a read because he has some tips for how to handle BFCM if you have a standalone app. BFCM is a great time to promote an app, like with exclusive offers and products.

#2 - 📦 Returns are getting easier

📰 TL;DR - As much as e-commerce brands hate returns, consumers hate them too. For example, there’s been a rise on boxless and labeless returns. For these, shoppers just need to show up at a drop-off point with the unpackaged item and the rest is taken care of. Amazon has locations for this, and there’s also a company called Happy Returns that can do this, with some 10,000 drop-off locations. There are also companies that will come to the shopper’s door and pick up a return, such as Pollen Returns. Even Uber now has a package return service.

💡 Insight - This article points out that these kinds of services could save you money in the long run. Label-free and boxless returns mean items are shipped back in bulk, saving on fees for each individual package. Of course, whether any of these services would be worth it to you depends on your current volume of returns and how much it’s costing you. Apparel is the category with the highest return rate, so brands in that space may find these solutions particularly valuable.

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#3 - 🎁 Inside Amazon’s push to reduce packaging

📰 TL;DR - This piece takes a closer, insider look at Amazon’s mission to send as many goods as possible in their original packaging. In 2022, about 11% of Amazon deliveries shipped this way, and got up to 13% during October’s Prime Big Deal Days. So clearly there’s still work to do. Some items, such as things that are very small, need envelopes or boxes because the label needs to go somewhere. Other things are just more efficient to ship by being compiled into one box. But for eligible items, Amazon has been working with brands to make their original packaging work for this program.

💡 Insight - I think this is actually all great news if you sell through Amazon. As a DTC brand, you’ve likely worked very hard to create memorable and attractive packaging for that perfect unboxing experience. If it can ship without an Amazon box or envelope, that means that experience can start right from someone’s doorstep. This also creates the feeling that a customer has ordered directly from you, instead of via Amazon. Amazon actually has some case studies you can look at.

#4 - 🛠️ Things worth checking out

🇪🇺 ZALANDO - Zalando, an EU e-comm company, has launched its own fulfillment service. Read here.

😎 MOTIVATION - This survey looked at what incentivizes customers to shop online.

💃🏽 TIKTOK - Read about how one beauty brand is leveraging TikTok Shop.

🗣️ SHOPPERS - This survey looks at what shoppers want out of an e-commerce experience, from reviews to quick delivery.

👂🏼 LISTENING - This guide looks at examples of social media listening and how you can use it.

#5 - 🤖 Chatbots welcomed by shoppers

📰 TL;DR - This survey look at shoppers’ attitudes to AI and bots. First, 74% are interested in getting more accurate product data by using generative AI. Product detail seems to be a struggle — 50% say they have trouble getting it. As well, 50% won’t complete a purchase due to unclear or missing product data. When it comes to customer service, 54% prefer messaging, as opposed to having to call or email. And 4 out of 5 see the benefits of chatbots.

💡 Insight - There was a time when it was a big question as to whether customers would feel comfortable talking to a bot for customer service instead of a person. I think it’s fair to say we’re past that. Speed matters more than anything, and a good CS chatbot can do things like provide tracking info or initiate a return so much faster than a person. The product data insights are also interesting and really show that a poorly-written or vague product description can lose you a sale.

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