Coffee & Commerce #50: In-Store Return Woes, Prime Day Rivalries & Costco Controversy

Good afternoon,

Here’s the headlines for this week: 27 June 2025

ECOMMERCE

43% of retailers say handling online returns in physical stores is a major challenge, with rising return volumes driving up costs and revealing that many stores aren't equipped for modern omnichannel demands.
Many retailers still rely on outdated, pandemic-era return systems, making it difficult to manage returns profitably and efficiently, especially with online return rates being three times higher than in-store ones.
While 72% of retailers see in-store returns as a chance to drive sales, only 17% of shoppers spend more post-return—highlighting a significant gap in customer engagement and upsell success.

President Trump issued a third executive order delaying enforcement of a bipartisan law requiring TikTok's divestiture from Chinese ownership, despite legal limits allowing only one such extension.
Lawmakers from both parties, including Sen. Mark Warner (D-VA) and Sen. Josh Hawley (R-MO), criticized the move as illegal and a national security risk, warning that Trump is ignoring the law and his own administration’s findings.
Rep. Brad Sherman accused TikTok's Chinese owners of bribing Trump with $300M in crypto, but TikTok and community fact-checkers clarified this was misinformation linked to an unrelated firm with TikTok ties.

TikTok Shop announces its "Deals for You Days" from July 7 to 19, offering discounts up to 50% across various categories.
A new live price match guarantee is introduced, providing cash back to select consumers who find lower prices elsewhere during live streams.
The platform's U.S. sales have more than doubled compared to the previous year, with over 75% of users purchasing from live streams.

Starting June 16, 2025, WhatsApp will display ads in the "Updates" tab, marking its first foray into advertising.
Users can subscribe to channels for exclusive content, and businesses can promote their channels within the app's directory.
While private chats remain ad-free and end-to-end encrypted, basic user data like country and language will be used to personalize ads.

Amazon CEO Andy Jassy informs employees that the company is accelerating its use of generative AI, which will lead to reductions in the corporate workforce.
Over 1,000 AI applications are in development, aiming to enhance efficiency and reduce reliance on human labor.
Employees are encouraged to upskill and adapt, as roles will evolve with the integration of AI technologies.

Walmart is piloting "dark stores" in Dallas—physical locations that fulfill online orders but are closed to the public.
These stores stock popular products to expedite order fulfillment and enhance delivery efficiency.
The initiative aligns with Walmart's goal to offer delivery options reaching 95% of the U.S. population within three hours or less.

Best Buy announces its "Black Friday in July" sale, set to coincide with Amazon's Prime Day, offering competitive deals.
The sale includes significant discounts on electronics, appliances, and other tech products.
This strategic timing aims to capture consumers looking for mid-year bargains.

A lawsuit alleges that Costco misleads customers by advertising "free shipping" while embedding delivery costs into product prices.
The plaintiff claims she paid $250 more online for a couch compared to the in-store price, despite the "free shipping" label.
The case argues that this practice violates consumer protection laws and seeks class-action status.

Target is considering a factory-direct shipping model to deliver products directly from manufacturers to customers, similar to Temu and Shein.
This approach aims to expand low-cost offerings and improve competitiveness amid declining sales and tariff uncertainties.
The initiative is in early stages, focusing on categories like apparel and household goods.