Cyber Week 2024 Observations👀

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1. The Big Story 🧠
Cyber Week 2024 Observations👀

2. Data 📊
Google search decline 📉

3. News 📖
🛒 🇺🇸 Amazon debuts Nova AI, rivals Google, Microsoft
🛒 🇮🇹 Amazon launches drone delivery in Italy
👗 🇪🇺 EU may tax Shein, Temu packages for safety
👗 🇬🇧 Zalando joins TikTok Shop with 55 brands
🍔 🇮🇳 Myntra debuts 30-minute fashion delivery
🍔 🇫🇷 Just Eat confirms France exit in December

+ over 15 other hot news from the last week you need to know 🔥

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Cyber Week 2024 Observations

Black Friday and Cyber Week have evolved into extended, data-driven shopping events. Insights from Momentum Commerce (posted by Jon Elder), Smec (posted by Borys Musielak), and Amazon data (analyzed by François Maingret) reveal actionable trends.

📈 Cyber Week Beats Black Friday

Cyber Week sales were 1.3x–1.8x higher than Black Friday 2023, peaking 3 days before the event.

Black Friday sales grew 1.2x, showing slower growth compared to early-week deals.

Consumers now prefer extended shopping windows, spreading purchases across days rather than focusing on Black Friday.

💻 Google Ads Gain with Less Competition

Google Ads clicks increased 10%, while conversions rose 16%, according to Smec.

Cost-per-click dropped 11%, with conversion rates and average order values up by 3% and 9%, respectively.

Reduced visibility from Chinese advertisers like Temu and SHEIN drove these gains, creating less crowded ad spaces.

🛠️ Rising Costs Challenge Retailers

Amazon storage costs depend on item size. From 0.1$ for small toys up to 1$ for monitors monthly

Peak rates were 2.5x higher than off-season rates, adding pressure on profit margins.

Overstocking risks and bottlenecks made inventory planning critical for retailers.

Google search decline 📉

Google’s U.S. search ad market share is forecasted to drop below 50% by 2025. eMarketer and New Street Research (found via Piotr Podgórski) reveal Amazon’s growing ad revenue and consumer AI usage trends. This signals a potential transformation in the digital ad landscape.

📉 Google’s Market Share Under Pressure

Google’s U.S. search ad market share is predicted to fall below 50% by 2025.

This marks the first time since 2008 that its share will dip under half.

This could be attributed to competition from Amazon and AI tools disrupting traditional search habits.

🇺🇸 Amazon debuts Nova AI, rivals Google, Microsoft. At re:Invent 2024, Amazon introduced Nova AI models, claiming superior performance over rivals Google and Microsoft. CEO Andy Jassy outlined six variants designed for multi-modal tasks, including text, images, and video generation.

🇮🇹 Amazon launches drone delivery in Italy. Amazon tested its MK30 drone in Italy, capable of carrying 5 lbs. Approved by ENAC and ENAV, this marks a step toward Prime Air's commercial launch in Italy by 2025, following earlier U.S. operations in Texas and Arizona.

🇬🇧 Temu partners with UK suppliers for faster shipping. Temu now sources from UK suppliers, reducing delivery times to 2 days for 12M UK customers. The move includes plans for a London office and new hires, aiming to outpace rivals like Shein with low prices, free returns, and fast delivery.

🇳🇬 Temu shakes up Nigeria's e-commerce market. Temu has entered Nigeria, promising low prices and local partnerships to rival Jumia. With an $75B e-commerce market forecast for 2025, challenges like poor infrastructure remain.

🇵🇹 Miravia enters Portugal with bold expansion. Miravia, backed by Alibaba, expands to Portugal after success in Spain. Launching with 2K sellers and 3.5M products, it offers brands a no-cost entry and global reach. The Spanish platform already hosts 17M products and 12K vendors.

🇺🇸 Court upholds TikTok ban in the US. A U.S. appeals court upheld a law banning TikTok unless ByteDance divests ownership. ByteDance plans to appeal to the Supreme Court as the deadline looms, raising questions about user data, free speech, and global tech geopolitics.

🇺🇸 Amazon Sellers Rush to TikTok Shop Amid Ban. TikTok Shop has drawn retailers like Scrub Daddy, Beachwaver, and Yay’s Snacks with low fees and viral sales potential. Despite a potential U.S. ban by Jan. 19, sellers enjoy record-breaking sales, with TikTok’s GMV set to reach $50B in 2024.

🇪🇺 EU may tax Shein, Temu packages for safety. The EU is planning a tax or fee on ultra-low-cost e-tailers like Shein and Temu to address safety and counterfeiting concerns. Each second, 40 packages arrive in the Netherlands, prompting regulatory action for safety standards.

🇬🇧 Zalando joins TikTok Shop with 55 brands. Zalando launches on TikTok Shop UK with 55 brands like Nike, Adidas, and Coach. This move aims to expand Zalando's social commerce footprint and reach new audiences, combining entertainment and sales strategies with TikTok.

🇺🇸 ThredUp sells Remix to focus on U.S. market. ThredUp offloads its Remix unit for €1 and $64.7M in debt. CEO Florin Filote leads the buyout. ThredUp now focuses on its U.S. market after European revenue fell 18% to $13M. Shares surged to $200M post Q3 earnings.

🇺🇸 Goat fined $2M for shipping violations. FTC orders Goat to pay $2M for delayed "Instant" and "Next Day" orders and refund failures. Goat shipped late 37% of "Instant" and 16% of "Next Day" orders, despite extra fees. Refund issues highlight policy violations and poor customer service.

🇬🇧 Perfect Moment offers repair service. Perfect Moment now offers bespoke repairs for its skiwear. The “Perfect for Longer” service includes zips, patches, and refreshes. Available in the UK and Europe, it’s free for autumn/winter 2024 buyers.

🇩🇪 About You unveils Fabletics brand store. About You launched a Fabletics brand store on its platform. The move is part of Fabletics' strategy to expand beyond direct-to-consumer sales. It includes an extensive marketing campaign with influencers and key European exposure.

🇵🇱 Shein plans pop-up stores in Poland. Shein, a Singapore-registered e-commerce giant, is considering pop-up stores in Poland for 2024. The move follows successful events in Europe and the U.S., with up to 3K visitors daily. Details on locations remain uncertain.

🇬🇧 Debenhams reports $3.9M annual profit. Debenhams hit a $3.9M profit for the year to February 2024, bouncing back from a $903K loss. While sales fell 54% to $49M, GMV soared 65% to $430M, showing strong results from its marketplace model.

🇮🇳 Myntra debuts 30-minute fashion delivery. Myntra’s “M-Now” offers 30-min delivery of 10K+ styles in Bengaluru. It expands to Mumbai, Delhi, Pune soon. Backed by Flipkart, the service is part of India’s $42B quick-commerce boom by 2030.

🇫🇷 Just Eat confirms France exit in December. Just Eat Takeaway.com will stop operating in France on December 9, 2024. The move follows consultations that started in July 2024. This is part of their strategy to focus on profitable markets. Employees are receiving support.

🇮🇳 Swiggy expands Bolt delivery to 400 cities. Swiggy’s Bolt service is now in 400 Indian cities. It partners with 40K+ restaurants, including KFC and McDonald’s, for 10-minute deliveries. Using a 2-km radius strategy, Bolt aims to regain market share from Zomato.

🇮🇳 Zomato Leads Food Delivery with 57% Share. Zomato now holds 57% of India's food delivery market, surpassing Swiggy. In FY24, Zomato’s GOV grew 22% YoY, outpacing Swiggy’s 14%. Goldman Sachs highlighted Zomato's profitability, faster growth, and 31% CAGR projection.

🇪🇸 Glovo transitions 15K riders to employees. Glovo shifts 15,000 riders in Spain to salaried roles, complying with labor laws. The move aligns with Spain’s Rider Law and follows government pressure. Delivery Hero expects a $100M EBITDA impact in 2025.

🇵🇱 Bolt launches ski-focused ride service. Bolt launches Bolt Ski to serve skiers in Zakopane and other resorts. Cars equipped with ski racks make transport easy. Available this winter in top Tatra destinations. .

🇨🇦 Walmart Canada expands with DoorDash deal. Walmart Canada partners with DoorDash to deliver goods from 300+ Supercentres across 10 provinces. Customers enjoy access to groceries and essentials, with $0 delivery fees for DashPass members, boosting affordability and convenience.