🚨 In today’s newsletter 🚨

• A major brand increases return fees

• New AI tool from Amazon

• Plus another nifty AI art tool for Shopify merchants

Let’s get into it👇

#1 - 📦 H&M increases return fees

📰 TL;DR - Earlier this year, H&M rolled out returns fees, and now they’re increasing them in some markets. In some European markets, the return fee was €0.99 — now it will be €1.99 as of November in various markets. It also used to be that H&M loyalty club members were exempt from return fees, but that’s going away, too. I did some looking around for comparison and found that the return fee is $4.99 in the US (club members exempt) and $5.99 in Canada (again, members exempt). H&M is one of many, most apparel, brands that charge return fees.

💡 Insight - The return fees trend has been interesting to follow. As this article points out, return fees are no longer taboo. That means if returns are hurting your bottom line, it’s fair to consider charging your own. However, it’s still a balancing game. Surveys have shown that consumers don’t like them, and we also know that unfavorable return policies can affect customer satisfaction and conversions. So it’s not a decision to be taken lightly. It’s also definitely more normalized for apparel, so take that into consideration, too.

➡️ You can read the article here...

#2 - 📸 Amazon rolls out AI tool for photos

📰 TL;DR - According to this report, Amazon is beta-testing a nifty new feature for creating ads. It uses AI image generation to take otherwise boring product images and give them nice backgrounds and scenes. So you could take an image of your product on a white background and place it seamlessly into a scene, like a kitchen counter or backyard or whatever. Amazon says that placing products into a scene can lead to a 40% higher CTR. This article found a few common AI flaws if you zoom in, but otherwise, the results are a pretty crisp stock photo-like quality.

💡 Insight - This is great news for those of you with smaller operations who don’t have the luxury of staging a photo shoot every time you want to make an ad campaign on Amazon. I totally buy that a product in a scene is more compelling than a plain white backdrop because audiences can more easily picture the product in their own life. It also saves a step from creating an AI background and having to Photoshop the final image yourself. The video of the tool in action makes it look ultra easy to use, so it will definitely be worth giving a try.

➡️ You can read the article here...

📣 If you want to reach our audience of 10,000+ DTC store owners, email [email protected] or set up call here 

#3 - 🤖 A new AI app for product images

📰 TL;DR - Speaking of AI image generation, a former Shopify employee has launched a tool that should make product images a breeze. It’s called ImagineCreate AI and comes from Fatima Yusuf, who was previously the head of Shopify’s app ecosystem business. Just launched, the tool can take a product image, remove the background, and put it into a scene, similar to the Amazon tool above for wider usage, like for your product listings or social posts. The web app can be integrated into your Shopify admin and automatically pull in product images.

💡 Insight - Having just launched, there are no reviews in the app store yet but it’s pretty clear how useful this could be if you’re not handy with photo editing or looking to save time. It’s also pretty affordable, starting at $20 per month and I noticed it comes with some other generative AI tools. There’s also additional image editing like adding text, so it’s kind of like an AI-powered Canva alternative. That being said, you can definitely achieve the same results on your own using something like DALL-E or MidJourney and a little editing, although that would involve some costs, too.

➡️ You can read the article here...

#4 - 🛠️ Things worth checking out

👙 SKIMS - Kim Kardashian’s massively popular underthings line is expanding into menswear.

💄 AMAZON - Amazon is hosting another of its annual beauty sale extravaganzas.

📚 LEARN - Here are 13 courses for learning about e-commerce.

🇮🇳 INDIA - India’s e-commerce market is growing at a rapid pace, read more about it here.

🥇 TOP PLAYERS - These are the top 10 e-commerce companies in the US — not surprisingly it’s mainly marketplaces.

#5 - 🔥 How to write better CTAs

📰 TL;DR - This piece is a guide to writing calls-to-action that are actually worth clicking. I will note this guide isn’t specific to e-commerce, but it has great and universal advice. Like, for example, use some punchy verbs that are action-oriented. Or put in some compelling numbers. Also, keep it short, tailor it to the device it will be viewed on, and get a little creative.

💡 Insight - Look, simply adding a “buy now” doesn’t really cut it. A good copywriter or ad creative could definitely talk your ear off about the art of a CTA, but if you’re a solo entrepreneur you’re taking on those tasks yourself. This is a good read if that’s you.

➡️ You can read the article here...