Beyond the Basket - 27/03/26

Friday 27th March | #68 | Join Free

Consumer confidence just collapsed to a record low, the EU is coming for Temu and Shein with fines and website blocks, and new research shows AI could be quietly eroding your brand trust one bad recommendation at a time. Oh, and the government finally wants to make big businesses pay their invoices on time. Busy Friday. Let’s dive in 🤿 - Mike

In the basket today:
👎 Bad AI recommendations could cost you customer trust
📉 UK consumer confidence hits record low
💬 UK's first WhatsApp returns service launches at Rugs Direct
👩‍⚖️ Government signals toughest crackdown on late payments in 25 years
🇪🇺 EU moves to fine and block platforms selling unsafe cheap imports

+plus longer reads on breaking ecommerce's own rules to build better customers, why parcel lockers are having a moment, a first-person dive into the fake Google review underworld, and a case for why The Works quitting online might be genius.

TLDR: New research from Rithum and Retail Dive finds that 58% of UK and US shoppers (surveyed jointly) blame the retailer when an AI recommendation contains incorrect product information, and 16% say they would avoid purchasing from that brand entirely.

Why it Matters: 70% of shoppers surveyed have already used an AI tool for shopping in the last three months, and 64% of 18–27 year olds say they buy based on AI recommendations without verifying them elsewhere. That's a meaningful share of your potential customers acting on AI outputs with no safety net, which means stale prices, wrong stock levels, or inaccurate descriptions don't just cause returns, they erode brand trust permanently.

Your Move: Audit your product listings across every channel you sell on this week, prioritise pricing accuracy, availability, and descriptions, as these are what AI surfaces first and what shoppers are most likely to act on without a second look.

TLDR: UK consumer confidence has collapsed to its lowest level on record, with the BRC's (British Retail Consortium) measure of economic expectations falling to -53 in March, down sharply from -30 in February, as the Middle East conflict stokes fears of higher inflation.

Why it Matters: Expectations for personal finances also fell to a record low of -17, with the drop most pronounced among the Boomer generation, who are most reliant on investment and pension funds. For online sellers, the key nuance is that spending intentions edged upward, likely reflecting expectations that rising energy costs will push prices higher rather than any enthusiasm to spend more. Shoppers may still spend, but they'll be more deliberate, more value-focused, and less forgiving of friction or disappointment.

Your Move: Review your pricing, messaging, and product mix for value signals, consider whether your current copywriting and imagery reflect confidence and quality, because cautious shoppers are more likely to scrutinise, and research more before they commit.

TLDR: Rugsdirect.co.uk has gone live with the UK's first fully operational WhatsApp-based returns service, powered by stampfree.ai, letting customers book and manage returns directly in WhatsApp, no apps, no portals, no print labels.

Why it Matters: Returns are notoriously high-friction, especially for bulky items, and new research from stampfree.ai shows 88% of consumers are comfortable using messaging platforms like WhatsApp to manage returns, signalling a shift away from traditional returns portals. This is genuinely novel UX territory, and Rugs Direct being a large-item seller, where return logistics are genuinely painful, makes it a smart category to pilot it in.

Your Move: If returns friction is driving customer complaints or negative reviews in your business, look at what stampfree.ai is offering, the WhatsApp-native approach is worth understanding even if you're not ready to implement it yet.

TLDR: The government has announced plans for a 60-day cap on payment terms for large firms paying smaller suppliers, mandatory interest on late payments at 8% above the Bank of England base rate, and new powers for the Small Business Commissioner to investigate and fine persistent offenders.

Why it Matters: Late payments cost the UK economy £11 billion a year and force 38 businesses to close every single day, so the ambition behind these proposals is significant. For ecommerce sellers who supply larger retailers or wholesale accounts, the proposed reforms would shift the balance of power meaningfully if passed. Under the plans, large companies that persistently pay late could be removed from the Prompt Payment Code and lose access to public sector contracts.

Your Move: Don't wait for legislation to kick in, set your own payment terms to 30 days as standard now, send invoices promptly after completing work, and note that under the proposals, large businesses would only be able to raise invoice disputes within 30 days of receiving your invoice.

TLDR: The EU has agreed new customs rules allowing member states to fine ecommerce platforms up to 4–6% of annual import value for repeatedly importing unsafe products, and block their websites entirely as a last resort.

Why it Matters: Under the proposals platforms repeatedly importing non-compliant goods would lose fast-track customs status, face escalating fines, and risk being blocked from EU shoppers entirely. For UK sellers competing against ultra-cheap Chinese platforms in European markets, this could offer a meaningful shift in the competitive landscape.

Your Move: The full reform doesn't come into force until 2028, but use the runway now, review your product compliance documentation and EU fulfilment model before enforcement catches up.

🔍 Bigger Picture: Lille clinches bid to host EU Customs Authority - The agency tasked with enforcing the incoming customs reforms is expected to be operational by 2028. Read More >

Curated deep dives, longer reads and analysis shaping the future of ecommerce and digital marketing.

This brand broke ecommerce's biggest rule
Fast Company (4 min read) Read here →
How Huckberry built a newsletter that linked away from their own site, and ended up with customers worth three and a half times more than those who arrived via ads.

Are parcel lockers becoming a serious supply chain play for retailers?
Retail Gazette (7 min read) Read Here →
As competition in the parcel locker landscape heats up Retail Gazette looks at the benefits of out of home delivery for retail brands.

I was paid to write fake Google reviews - then it got weird
The Guardian (5 min read) Read here →
A first-person account of being recruited to leave fake Google reviews for cash, and how it quickly unravelled into a cryptocurrency scam that's targeting small businesses at scale.

Why The Works' decision to stop selling online matters
Insider Trends (5 min read) Read here →
A more philosophical take, arguing that as AI-driven ecommerce becomes relentlessly functional and transactional, leaning into the irreplaceable physicality of a store might be smarter than it looks.