Good afternoon,

Here’s the headlines for this week: 13 June 2025

ECOMMERCE

Shein and Temu see U.S. demand plunge on ‘de minimis’ trade loophole closure

• The U.S. has closed the 'de minimis' loophole, which previously allowed imports under $800 to enter duty-free, significantly impacting Shein and Temu's operations.
• Both companies have experienced a sharp decline in U.S. orders, as they now face higher tariffs, leading to increased prices for consumers.
• This policy change aims to level the playing field for domestic retailers and address concerns over unfair trade advantages enjoyed by certain ecommerce platforms.

CONSUMERS

ICE Raids Have Sent Latino Shoppers Into Hiding and Big Brands Are Hurting

• Intensified immigration enforcement has led to widespread fear among Latino communities, causing many to avoid public spaces, including retail stores.
• Major brands like Coca-Cola and Home Depot report declining sales in areas with significant Hispanic populations, attributing the downturn to reduced foot traffic.
• Retailers are responding with targeted marketing efforts to regain trust, but the long-term economic impact remains uncertain.

TECH

Amazon ‘testing humanoid robots to deliver packages’

• Amazon is developing humanoid robots capable of delivering packages directly to customers' doors, aiming to automate last-mile logistics.
• These robots are being trained in specialized facilities and are designed to work in conjunction with Rivian electric delivery vans.
• The initiative reflects Amazon's commitment to leveraging advanced robotics to enhance delivery efficiency and reduce reliance on human labor.

Meta Phases Out Native Checkout Experience For Facebook & Instagram Shops

• Meta is discontinuing its native checkout feature on Facebook and Instagram Shops, requiring merchants to redirect customers to external websites for purchases.
• This shift reverses Meta's previous strategy of keeping transactions within its platforms and may affect small businesses that relied on the integrated system.
• The change is expected to be fully implemented by August 2025, with Meta citing a focus on streamlining operations and reducing costs.

YouTube Begins Showing Posts In The Shorts Feed

• YouTube has started integrating static community posts into its Shorts feed, allowing users to engage with a broader range of content.
• This update aims to increase creator visibility and diversify the types of content available in the Shorts section.
• The move reflects YouTube's strategy to enhance user engagement and compete with other short-form video platforms.

Square Adds Conversational AI Assistant to Business Technology Platform

• Square has introduced a conversational AI assistant within its business platform, enabling merchants to interact with their data using natural language queries.
• The assistant can provide insights into sales trends, customer behavior, and operational metrics, streamlining decision-making processes.
• Currently in public beta in the U.S., the feature represents Square's commitment to integrating AI tools to support small and medium-sized businesses.

Meta to Challenge EU Tech Crackdown on Platforms

• Meta is legally contesting the European Union's classification of its platforms under the Digital Services Act, arguing that the regulations are unfair and disproportionate.
• The company claims that the supervisory fees imposed lack transparency and are based on flawed calculations, particularly concerning user metrics.
• The outcome of this legal challenge could have significant implications for how large tech companies are regulated within the EU.

RETAILERS

Amazon says it will crack down on fake reviews

• Following an investigation by the UK's Competition and Markets Authority, Amazon has pledged to enhance its efforts to detect and remove fake product reviews.
• The company plans to implement stricter enforcement actions against sellers and users who engage in deceptive review practices.
• These measures aim to improve consumer trust and ensure the integrity of product ratings on the platform.

ADVERTISING

Amazon Doubles Prime Video Ads to 6 Minutes Per Hour

• Amazon is increasing the ad load on its Prime Video streaming service from 3 to 6 minutes per hour, aligning with industry standards.
• The additional advertising time is expected to generate significant revenue but may affect viewer satisfaction.
• Amazon is exploring ways to balance monetization with user experience, including offering ad-free options at a higher subscription tier.

TikTok Announces AI Ad Tools For Precise Targeting

• TikTok has unveiled new AI-driven advertising tools designed to enhance targeting precision based on user behavior and preferences.
• These tools aim to improve ad performance and provide advertisers with more effective ways to reach their desired audiences.
• The initiative underscores TikTok's commitment to leveraging artificial intelligence to optimize its advertising platform.

See you next week,

The ChannelSight Team

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