Coffee & Commerce #55: ⅓ of Brand Searches come from AI, More Drone Deliveries & Amazon’s Grocery Push

Good afternoon,

Here’s the headlines for this week: 22 August 2025

ECOMMERCE

A BrightEdge report reveals that AI agents now drive approximately one-third of all organic search traffic to brands—as of July, AI search activity had doubled, marking a seismic shift in SEO dynamics.
These AI agents include tools like ChatGPT, Gemini, Perplexity, Copilot, and Claude—acting on users’ behalf to find brand information, effectively reshaping how people discover products.
Brands must now rethink SEO strategies to ensure visibility in the “agentic” era, where intermediaries—not just traditional search—drive traffic.

The USPS has filed for temporary surcharges on key parcel services (Priority Mail, Ground Advantage, Priority Mail Express, Parcel Select), effective Oct 5, 2025 – Jan 18, 2026, pending approval.
The rate increases average 5.2% for Ground Advantage, up to 5.8% for Priority Mail, and are expected to generate about $99.5 million in additional revenue.
Purpose: to offset handling costs during peak season and support USPS’s long-term “Delivering for America” plan amid ongoing financial pressures.

The Department of Transportation has proposed eliminating the need for individual waivers, enabling Beyond Visual Line of Sight (BVLOS) drone operations—potentially opening the door to routine deliveries by Amazon, Starbucks, and more.
The rule defines operational limits—drones operating below 400 feet in FAA‑approved areas, with safety mandates like collision avoidance, remote ID, and traffic-management standards.
Industry reaction is positive: Amazon—with a goal to deliver 500 million packages by drone annually by 2030—is among those pressing for accelerated integration.

Retail Brew reports that customer acquisition costs are rising, even as brands like Levi’s continue investing in DTC channels.
AI innovations—especially generative tools like ChatGPT—are poised to transform consumer behavior and advertising strategies for DTC brands.
To stay competitive, brands must innovate with omnichannel marketing, personalization, and emerging tech.

CONSUMERS

U.S. Tariffs Are Not Driving International Expansion

Marketplace Pulse data shows that despite rising tariffs, 69.36% of Amazon sellers remain active in only one international marketplace, indicating stagnant cross-border growth.
Instead of diversifying globally, many sellers seem cautious, choosing to navigate headaches domestically.
Broader business surveys echo this—tariffs are dampening margins, not prompting expansion.

TECH

ChatGPT Confessions gone? They are not!

Digital Digging uncovered archived ChatGPT conversation “confessions”—many intended as private—that remain publicly accessible, through search engines and archives.
In one analysis, nearly 20% of 512 public threads contained sensitive or regrettable content that users never meant to expose.
A stark reminder of the permanence of online data and the risks tied to AI “Share” features.

Meta has filed briefs urging a federal court to dismiss the FTC’s antitrust case, arguing that “personal social networking services” is not a valid market and that it competes broadly with platforms like TikTok, YouTube, iMessage.
The company claims the FTC hasn't proven it holds monopoly power under legal definitions.
The outcome could set pivotal precedent for how regulatory bodies define digital competition.

YouTube is piloting an AI-based system (U.S.-only) to infer user age from viewing history and account behavior—launched around August 13, 2025.
Users flagged as minors face reduced personalization, content filters, safety nudges; misclassified adults can verify via ID, selfie, or credit card.
The system balances child safety with privacy concerns and hints at future safety-first AI moderation tools.

TikTok’s updated community guidelines—effective 13 September 2025—introduce tighter rules around AI content, monetization, and creator accountability.
The changes aim to increase transparency and protect users from misleading AI-generated or commercial content.
The stricter policy may recalibrate how creators produce and disclose AI-assisted creative work.

RETAILERS

Amazon’s same-day delivery now includes fresh groceries—meat, eggs, produce—in over 1,000 U.S. cities, with expansion to 2,300 cities by year-end.
The service is included in standard Prime memberships; no Fresh subscription needed. Orders must meet a $25 minimum, while non-prime customers pay $12.99.
Industry analysts see this as a major play to dethrone traditional grocers and disrupt services like Instacart and Walmart+.

While specific numbers remain unreported, data confirms Target has seen six consecutive months of declining store visits, signaling consumer shopping behavior shifts.
The trend suggests continued migration online or to competitors offering better omnichannel convenience.
Marks increasing urgency for Target to enhance digital platforms and in-store experiences.

Early reporting indicates that Amazon will maintain its two-day Prime Day format this October, consistent with prior events.
This steadiness helps sellers plan promotions effectively amid a shifting retail calendar.
Reflects Amazon’s cautious confidence as it navigates macroeconomic uncertainty.

Walmart is introducing 0% commission on toy category listings and waiving peak-season storage fees for sellers to boost third-party toy offerings.
A strategic incentive meant to lure sellers and diversify inventory ahead of holiday demand.
May pressure Amazon’s dominance in toy listings this season and shift seller economics.

According to Retail Brew, Tanger’s EVP attributes museum-like resurgence of mall traffic to experiential retail, purpose-driven events, hospitality, and convenience integration.
Malls are rebranding as lifestyle and community hubs, not just shopping venues.
This model highlights how physical retail can thrive when blending curated experience with accessibility.