Good afternoon,

Here’s the headlines for this week: 9 May 2025

ECOMMERCE

Chinese eCommerce exports to US plummet by 65% in face of tariffs

• Chinese eCommerce exports to the U.S. dropped 65% in early 2025 due to 145% tariffs imposed by the Trump administration.
• Platforms like Temu and Shein have raised prices significantly, with some products increasing by over 40%.
• In contrast, exports to the EU rose by 28%, as Chinese sellers shift focus to European markets.

Visa, Mastercard, PayPal Fuel Agentic AI Commerce Boom

• Visa, Mastercard, and PayPal are introducing agentic commerce, enabling AI agents to make purchases on behalf of consumers.
• These systems use tokenization to securely link AI agents to users' payment methods, allowing controlled transactions.
• The move aims to transform digital commerce by integrating AI into the shopping and payment process.

As a Shipping Loophole Closes, Small Online Sellers Scramble

• The U.S. has closed the de minimis loophole, which previously allowed duty-free imports under $800, impacting small online sellers.
• Sellers relying on Chinese suppliers face increased costs and are seeking alternative sourcing strategies.
• The change disrupts the business models of many small ecommerce operations that depended on low-cost imports.

France Proposes New Fee on Cheap Online Orders from Temu and Shein

• France plans to introduce a new fee on low-cost online orders from non-EU countries, targeting platforms like Temu and Shein.
• The proposal aims to level the playing field for EU retailers and address concerns over unfair competition.
• If implemented, it could increase the cost of cheap imports and affect consumer purchasing behavior.

‘Made in USA’ is trending on Amazon, and sellers are leaning in

• Searches for "Made in USA" products on Amazon have surged, reflecting growing consumer interest in domestically produced goods.
• Sellers are updating listings and marketing strategies to highlight American-made products.
• Despite increased interest, actual sales of U.S.-made goods have not seen a proportional rise.

CONSUMERS

Meta and Shopify urged to act as scale of ‘ghost stores’ preying on Australian online shoppers revealed

• Over 140 fraudulent online stores, posing as local Australian businesses, have been identified, deceiving consumers with poor-quality or undelivered products.
• These "ghost stores" often operate through Shopify and advertise heavily on Meta platforms like Facebook and Instagram.
• Consumer advocates are calling for greater accountability from Meta and Shopify to prevent such scams.

TECH

TikTok fined $600m by EU for failing to protect user data

• The European Union has fined TikTok $600 million for inadequate protection of user data, particularly concerning minors.
• The penalty follows investigations into TikTok's data handling practices and compliance with EU regulations.
• TikTok is expected to implement significant changes to its data protection policies in response to the fine.

BRANDS

Here's how tariffs are hitting consumer brands from Coca-Cola to Amazon

• Tariffs on Chinese imports are increasing costs for major brands like Coca-Cola, Amazon, Adidas, and Hasbro.
• Companies are facing decisions to either absorb the costs or pass them on to consumers through price hikes.
• Some brands are exploring alternative sourcing and production strategies to mitigate the impact.

Dupe culture is more resonant than ever—and brands are leaning in

• Brands like EyeBuyDirect and Italic are embracing "dupe culture," offering affordable alternatives to high-end products.
• Marketing strategies focus on quality and value, appealing to cost-conscious consumers.
• The trend reflects a shift in consumer behavior towards budget-friendly yet stylish options.

RETAILERS

Walmart expands support for American-made products

• Walmart is increasing its commitment to U.S.-made products, aiming to invest more in domestic manufacturing.
• The initiative includes support for small and medium-sized American businesses.
• The move aligns with consumer trends favoring locally produced goods and aims to boost the U.S. economy.

ADVERTISING

How to Legally Repost User-Generated Content on Instagram

• Brands are advised to obtain explicit permission before reposting user-generated content to avoid legal issues.
• Proper credit and adherence to platform guidelines are essential when sharing such content.
• Utilizing user-generated content can enhance authenticity and engagement if done correctly.

See you next week,

The ChannelSight Team

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