Monday 11th August | Join Free
Hello, in today’s issue, retail leaders call for a level playing field, AI-powered ad tech struggles to impress, and Blue Apron abandons subscriptions in favor of flexible, pay-as-you-go meal kits. Dive in, and as always, send us your leads or stories, or share this newsletter with a colleague who loves staying ahead.
eBay Pushes Sellers Toward Higher Ad Spend with ‘Boost’ Icon
X’s AI Ad Push with Grok Struggles to Win Advertiser Trust
B&Q Chief Calls for End to Import Tax Loophole Benefiting Shein & Temu
Iceland Hits Record Online Sales After Website Relaunch
Blue Apron Drops Subscriptions for Pay-as-You-Go
+plus an ad and ecom analytics dashboard tool you should try and an upcoming ecommerce webinar you shouldn’t miss.
Let’s get into it 👇
📈 eBay Pushes Sellers Toward Higher Ad Spend with ‘Boost’ Icon LINK
TL;DR: eBay has added a “Boost” icon on seller-side listings, prompting users to start advertising or increase their Promoted Listings ad rate, with suggestions jumping from 2% to as high as 11%.
Why It Matters: This feature is part of eBay’s broader push to monetize seller ad spend, a key revenue stream. The platform claims sellers see 40% more impressions when increasing their ad rate, but the jump can significantly erode profit margins, especially for low-priced items. The move has triggered pushback from sellers already frustrated with frequent pop-ups, ads, and nudges toward paid promotion. Negative sentiment may drive smaller sellers to limit listings or migrate to other marketplaces, risking eBay’s long-tail inventory advantage. Still, for eBay, aggressive ad monetization reflects the growing reliance on advertising to offset stagnant transaction volumes, mirroring Amazon’s strategy.
Your Move: If you sell on eBay, run a controlled A/B test before increasing ad rates, track conversion lift, not just impressions. Consider calculating net profit impact per sale to ensure ad costs don’t offset margins. For multi-platform sellers, compare ROI with other channels like Etsy, Poshmark, or direct store ads to optimize spend.
🤖 X’s AI Ad Push with Grok Struggles to Win Advertiser Trust LINK
TL;DR: Elon Musk’s Grok-powered automated ad system for X is designed to simplify campaign creation, but advertisers remain hesitant due to brand safety concerns, lack of human support, and the platform’s volatile track record.
Why It Matters: Automation has driven ad growth for Google and Meta, but X faces a steeper climb. Many advertisers are wary of handing over full campaign control to an unproven AI on a platform that’s historically underperformed and where brand safety controversies persist. Since Musk’s takeover, advertisers report losing direct account reps, making campaign troubleshooting nearly impossible. While some major brands like Kia, Uber, and the NFL have engaged, many SMBs, X’s target growth segment, are waiting for performance proof that often comes from big-brand adoption. Without that validation, X risks a stalemate: it can’t attract big spenders without proven results, and can’t prove results without those big spenders.
Your Move: If considering X for paid campaigns, test small with tight brand safety filters and independent tracking. Leverage third-party attribution tools to validate ROI before committing larger budgets. For brands with higher reputational risk, monitor Musk’s moderation and policy shifts closely before scaling spend.
🛠 B&Q Chief Calls for End to Import Tax Loophole Benefiting Shein & Temu LINK
TL;DR: B&Q CEO Graham Bell is urging UK Chancellor Rachel Reeves to scrap the “de minimis” import rule, which lets overseas sellers ship goods under £135 to UK customers without paying customs duty, a key factor in the rise of Shein and Temu.
Why It Matters: The rule has fueled a flood of low-cost imports, intensifying price pressure on UK retailers and suppliers. Bell argues it’s “killing the high street” more than any other factor, with some domestic suppliers forced out of business. The US has already revoked its de minimis exemption for Chinese goods and plans to end it for all countries; the EU will phase out its own by year’s end. Bell also warned that planned increases to business rates on large stores, intended to fund relief for smaller retailers, could further curb high street investment, even as rising minimum wages and national insurance costs push retailers toward automation (B&Q now rings up 80% of sales via self-checkouts, up from ~10% three years ago). Without reform, domestic retailers face a structural disadvantage on price, compliance, and safety standards.
Your Move: If you’re a UK retailer, prepare for possible import duty changes by modeling pricing and sourcing scenarios now. Audit your competitive exposure to low-cost online imports, and consider highlighting quality, safety, and sustainability credentials in marketing to differentiate from unregulated rivals.