Coffee & Commerce #54: End of De Minimis, Google’s ChatGPT Data Leaks & WhatsApp Gets Ads

Good afternoon,

Here’s the headlines for this week: 8 August 2025

ECOMMERCE

President Trump signed an executive order ending the “de minimis exemption,” which had allowed imports under $800 to enter the U.S. without tariffs or customs paperwork.
The exemption was previously revoked for China in May, causing a 35% drop in shipments from China to the U.S. via FedEx and UPS. The new order expands this to all countries starting August 29.
Trump cited misuse of the exemption for tariff evasion and opioid smuggling. De minimis shipments have surged from 134M in 2015 to 1.36B in 2024, largely driven by low-cost platforms like Shein and Temu.

Shipments under $800 mainly help low-income and minority households; removing the de minimis rule would cut welfare by $10.9–$13B.
Without de minimis, tariffs get regressive: Poor zip codes would face 11.8% tariffs, up from 0.5%, while the rich would see smaller increases.
Exporters lower prices to avoid tariffs, revealing demand elasticities and supporting the use of thresholds for trade policy.

TECH

Conversations shared via ChatGPT's "Share" feature have been indexed by Google, making sensitive exchanges, including those about mental health, trauma, and personal experiences, publicly accessible through search, even when users intended them only for close contacts.
While OpenAI states that only chats explicitly marked for web indexing appear in Google searches, many users are unaware their shared links are publicly visible. OpenAI has since removed the opt-in visibility feature, but thousands of conversations were already indexed.
Experts warn this reflects a broader disregard for user privacy by tech companies. Critics, including AI ethicists and cybersecurity analysts, highlight the gap between user expectations and actual platform behavior, raising alarm over how easily personal content can be exposed online.

Google Chrome now offers AI-generated store summaries (desktop only, U.S., English) based on reviews from platforms like Trustpilot, Bazaarvoice, and Yotpo, helping users assess product quality, service, and returns directly from the browser.
The feature strengthens Google’s position against Amazon’s AI shopping tools and up-and-coming AI-native browsers like Perplexity’s Comet and Opera Neon.
It’s one of many recent AI-driven initiatives, like AI Mode, virtual try-ons, and agentic checkout, designed to turn Google into a fully integrated, modern shopping destination.

TikTok is introducing "Engaged Session," a tool that lets advertisers measure user behavior after clicking an ad, tracking users who spend at least 10 seconds on a landing page without relying on pixel-based tracking.
The tool provides key engagement metrics like Cost per Engaged Session and aligns with third-party analytics tools (e.g., Google Analytics), showing early results like a 46% cost reduction and 62% longer session times.
As Gen Z increasingly uses TikTok for search, and privacy laws hinder traditional tracking methods, Engaged Session gives brands a way to retarget high-intent users and improve campaign effectiveness, especially on placements like Search Ads.

TikTok ads now support Amazon’s Buy with Prime, letting users purchase directly within the TikTok app using their Prime benefits—no external redirects needed.
Sellers with TikTok ads and Buy with Prime can sync catalogs, run targeted campaigns, and utilize Amazon’s Multi-Channel Fulfillment, bypassing TikTok’s native fulfillment system and complexity.
This integration boosts the creator economy by linking viral TikTok content to Amazon's checkout, while introducing new challenges in ad attribution across platforms.

RETAILERS

Walmart Outpaces Amazon in Same-Day Deal Days Showdown

Nearly half (48%) of Walmart’s grocery-only customers opted for same-day delivery, compared to 36% for Amazon, highlighting Walmart’s growing strength in local fulfillment.
Walmart benefits from its physical store network, supporting curbside pickup and in-store shopping, while Amazon’s delivery-dependent model lacks the same flexibility in grocery logistics.
Amid rising tariffs, inflation, and shifting consumer habits, major players like Walmart, Amazon, and Target are leveraging new strategies and tech, with same-day delivery becoming a critical competitive edge.

Amazon is once again allowing customers to leave star-only seller feedback without written comments. The move is aimed at increasing feedback volume, especially from satisfied customers who previously skipped writing reviews.
Sellers are frustrated as they cannot appeal these star-only ratings through the usual Feedback Manager. While Amazon allows reporting violations, sellers argue that without written content, it's nearly impossible to identify or contest unfair ratings.
This system was previously scrapped after backlash, but Amazon claims new safeguards (like requiring reasons for low ratings and automatic abuse detection) will address concerns. Many sellers remain skeptical and are calling for reconsideration.

ADVERTISING

Ads are coming to WhatsApp

Meta will introduce ads in WhatsApp's Updates tab which is a major shift from WhatsApp’s longstanding ad-free stance, impacting 1.5B daily users.
In addition to ads, WhatsApp will offer Promoted Channels in the Channel directory and allow paid subscriptions for Channels providing exclusive content, mirroring models on YouTube and Twitch.
Despite the shift, Meta insists personal chats will remain private and end-to-end encrypted; only limited data like location and channel engagement will inform ad targeting.

With consumer mobile gaming spend surpassing $20B in 2024, major players like Warner Bros. Discovery and Netflix are doubling down on gaming, reflecting the medium’s rising influence in both entertainment and advertising.
Disney's Hulu and ESPN now feature interactive advergames like Quiz Show and Beat the Clock, while Amazon has launched trivia-based ads tied to product engagement and rewards.
Previously ad-resistant Discord rolled out sponsored quests, enabling streamers and viewers to earn in-game rewards by completing brand-sponsored challenges in supported games.