Beyond the Basket - 06/10/25

Monday 6th October | #44 | Join Free

Hello and welcome to your Monday Beyond the Basket brief. Let's start the day with the news everyone's been dreading: those tariffs are finally showing up at checkout. Audio equipment up 14%, dresses up 8%, tools climbing 5%, retailers are done absorbing costs and passing them straight to shoppers. On a brighter note, Amazon's launched "Add to Delivery" so you can toss last-minute items onto orders already on their way. One click, no extra shipping fees, and zero willpower required. Convenience has never been more dangerous.

In today’s beyond the basket:
📈 Tariffs Begin to Bite U.S. Consumers
📦 Amazon’s “Add to Delivery” Simplifies Impulse Buying
👍 Meta Counts Likes and Shares as Clicks for Conversions
🛍️ Report: Shoppers Turn Gloomy Ahead of the Holidays
📺 YouTube Bets on AI-Powered Ads as Viewing Habits Shift

+plus three long reads, digging into how AI tools are being implemented in ecommerce, and how to challenge what you really believe about your customers.

Lets get into it 👇 - Mike Callachan (BtB founder)

TL;DR: The impact of Trump’s sweeping tariffs is starting to show up in consumer prices, from soup cans to car parts, as retailers pass along higher import costs.

Why It Matters: After months of absorbing costs, U.S. companies are now shifting the tariff burden to shoppers. Prices for audio equipment (+14%), dresses (+8%), and tools (+5%) are climbing, with furniture and auto parts next in line. While inflation overall remains moderate (2.9% in August), the ripple effects across imported goods are accelerating. For ecommerce brands, that means higher input costs, tighter margins, and more price-sensitive customers heading into Q4.

Your Move: Reassess your pricing strategy, can you absorb, offset, or reframe cost increases before they hit customer trust or conversion rates, or do you need to increase prices to protect margins?

TL;DR: Amazon has launched “Add to Delivery,” letting Prime members tack last-minute items onto pending orders with one click, no new checkout or shipping fees.

Why It Matters: This move blurs the line between checkout and cart, keeping shoppers inside Amazon’s ecosystem longer. It’s a direct play for higher order frequency and retention, especially as consumers spend more cautiously. For Amazon, every “add-on” is both a micro-conversion and a data point about real-time intent. For smaller DTC brands, it raises the bar again for convenience-driven loyalty.

Your Move: Audit your post-purchase experience, can customers easily add or bundle new products after checkout? Consider making it easy for them to amend or update orders after checkout, if your operations allow.

TL;DR: Meta quietly clarified that any ad interaction, including likes, shares, and saves, can trigger a conversion under its click-through attribution windows, not just link clicks.

Why It Matters: This means conversions can be credited to users who never left Meta’s platforms, potentially inflating performance metrics and confusing ROI analysis. While some advertisers welcome the nuance (arguing engagement still signals intent), others see it as muddying attribution data just as brands push for clearer post-iOS performance tracking. The update also affects how Meta’s algorithm optimises ad delivery, it’s learning from engagement, not just traffic.

Your Move: Review your Meta attribution settings and reporting logic, if engagement clicks count as conversions, recalibrate your benchmarks before making spend or creative decisions.

TL;DR: A new Modern Retail x Attest survey finds that 37% of U.S. shoppers feel more negative about the 2025 holiday season, with only 23% feeling more positive. Despite the mood dip, most still plan to spend, 38% say they’ll spend at least $500 on gifts.

Why It Matters: Economic pressure and tariff-driven price increases are reshaping holiday sentiment. Nearly 50% of shoppers will rely on savings or credit cards to fund purchases, while just 13% plan to use BNPL, suggesting caution rather than overextension. For retailers, this signals a more value-conscious holiday, one where promotional timing, flexible payments, and emotional messaging matter as much as discounts.

Your Move: Refine your holiday playbook, lean into early campaigns, clear value communication, and low-friction payment options to capture spend from cautious but still active shoppers.

TL;DR: YouTube is doubling down on AI-optimised ad formats, Video Reach, Video View, and Demand Gen, to help brands reach audiences as viewing moves from mobile to Connected TV (CTV).

Why It Matters: With 47.9M UK adults watching YouTube and the average viewer spending 78 minutes daily, the platform now leads all competitors in CTV viewing. YouTube’s pitch to advertisers is automation and scale: campaigns that dynamically adjust across screens and formats. Early case studies (from ASOS and Waitrose) show a 17% higher ROAS with AI-powered buying, but results rely heavily on YouTube’s own data. The platform’s £2.2B GDP contribution and 45,000 UK jobs supported underline its political and economic clout, making it both a key ad partner and an ecosystem that’s hard to challenge.

Your Move: Experiment with YouTube’s AI-driven ad formats, but track independent metrics, don’t rely solely on platform-reported ROAS when evaluating true performance or incrementally.

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