Commerce chronicles: Apr 8, 2024

Poshmark celebrates Earth Month, AppLovin and Flip to launch ad marketplace and eBay releases marketing trends calendar. Plus, the supply chain’s growing role in circular economy, Lowe’s is the first home improvement retailer on DoorDash and AI’s role as fashion consultant.

In this week’s news, see how Poshmark makes big plans to celebrate Earth Month and the supply chain plays a role in the circular economy. Plus, Lowe’s is now on DoorDash, eBay shares a marketing trends calendar to help merchants and Flip and AppLoving to launch an ad marketplace for merchants. Visit our blog every Monday for a roundup of the latest commerce news.

AppLovin and Flip to launch ad marketplace for merchants

AppLovin Corporation, a creator of technologies that connect businesses to ideal customers, and Flip, a social commerce platform, announced a partnership to relaunch Flip's marketing platform using AppLovin's AXON technology. In addition, Flip announced raising $144 million in a Series C funding round, including a $50 million investment by AppLovin.¹

AppLovin's AXON technology, launched in early 2023, is now available to Flip brands, enabling them to leverage the AI advertising engine for better reach and returns on the Flip platform. “We have seen the significant impact AXON makes on campaign performance as brands see stronger return on investment. With AXON powering Flip’s ads, the Flip consumer will find more products to purchase. Likewise, brands on Flip will be positioned to drive significantly more sales,” said Adam Foroughi, Co-founder and CEO of AppLovin

This collaboration extends Flip's audience network to AppLovin's 1.4 billion daily active users, enhancing brand visibility and sales potential. The funding round, led by Streamlined Ventures, with participation from Mubadala Capital, WestCap, and AppLovin, signifies Flip's growing market presence and valuation of $1.05 billion. Flip's CEO, Noor Agha, expressed confidence in their ability to empower brands profitably with new advertising capabilities and emphasized Flip's mission to revolutionize social shopping through user-generated content and one-click checkout.

Poshmark celebrates Earth Month with live events, content and prizes

Poshmark, a leading fashion resale marketplace, has partnered with seven sustainable brands for live shopping events during Earth Month, utilizing Poshmark's Posh Shows product to connect directly with fans, support secondhand sellers, auction merchandise and celebrate product durability and circularity.² Brands like Rothy's, Pact and Christy Dawn will host shows featuring merchandise from Poshmark sellers, promoting sustainability and giving preloved items a second life. The company observes a growing trend among shoppers towards sustainable materials and brands, along with a notable surge in searches for listings containing phrases like "organic cotton" and "100% wool," indicating a preference for natural materials. In alignment with Earth Month, Poshmark will highlight the secondhand community on its social channels and blog, offering tips on upcycling, sourcing and packaging. Furthermore, Poshmark aims to highlight and encourage circularity. Steven Tristan Young, Chief Marketing Officer of Poshmark said, "By inviting brands to host Posh Shows for the first time, our partners will be able to build genuine connections with Poshmark's highly engaged, environmentally-conscious community, all while helping our sellers make sales and working together to champion a more circular future for fashion."

Poshmark will contribute 10% of net gross merchandise value from each show to support tree planting projects with veritree, further enhancing their commitment to environmental causes. These initiatives reflect Poshmark's dedication to sustainability, demonstrated by their efforts to keep millions of items in circulation, support tree-planting projects and encourage community engagement in Earth Month activities. Additionally, the company is offering over $15,000 in Posh Credit prizes to those who 'list, Reposh or purchase an item, or tune in to a Posh Show during eligible periods in April.'

eBay releases marketing trends calendar to help advertisers strategize

Throughout the year, eBay buyers are active during various peak periods, from the unexpected to the predictable.³ The company analyzed 2023 purchases to reveal spikes across key categories, to help merchants prepare for similar trends in 2024. With the information eBay gathered they created a calendar that outlined when buyers shop, which categories they prefer and how purchase patterns fluctuate. The goal was to aid merchants in the strategic planning of inventory and advertising to gain a competitive advantage.

For example, the calendar shows that in March, Cell Phone Cases, Covers and Skins saw a 10% increase, while Women’s swimwear spiked by 60% in May. Sellers can use this information to leverage advertising, such as Offsite Ads to extend reach beyond eBay or launch Promoted Listings Advanced for heightened visibility. This ensures that listings are highly visible and reach purchase-ready buyers when it matters most.

Lowe’s becomes first home improvement retailer on DoorDash

Lowe's and DoorDash have teamed up to offer on-demand delivery from over 1,700 Lowe's stores nationwide, marking DoorDash's first venture into the home improvement category.⁴ Customers can now shop for gardening tools, spring cleaning essentials and more directly from Lowe's on the DoorDash app, with participating stores available on DashPass. This collaboration aims to meet customers' needs for same-day delivery and provides a convenient way to access DIY supplies and everyday essentials. “As Lowe’s continues its omnichannel journey, expanding same-day delivery options helps us meet our customers where they are,” said Neelima Sharma, senior vice president, digital commerce and technology at Lowe’s. “Our collaboration with DoorDash unlocks an opportunity for us to reach new DIY customers who are shopping directly on the DoorDash app, helping them get everything they need for spring.” The partnership highlights retail's growing need for hybrid order fulfillment capabilities to meet customer expectations. 

Survey shows consumers believe AI can improve their fashion sense and online shopping experiences

There's plenty of evidence that AI is trending in retail, especially in the apparel industry. In a recent article outlining the findings by search and discovery platform Algolia, 44% of respondents in a survey believed artificial intelligence (AI) could enhance their fashion sense.⁵ One in four respondents trusted AI bots more than their friends to pick outfits for them. They also felt AI could use retail purchases and preferences to create recommendations for scenarios like wedding guest outfits, vacation outfits, professional attire and capsule wardrobes. This sentiment is particularly strong among Gen Z and millennials. Consumers also believe that AI can help identify fashion trends and keep their wardrobe up-to-date and think that wider adoption of AI by online retailers will lead to better shopping experiences.

Supply chain’s growing role in the circular economy

Supply chain challenges often arise from rapidly shifting consumer demands. Recently, there’s been a push for environmentally friendly practices and a rise in secondhand ecommerce driven by changing consumer attitudes toward affordability and sustainability.⁶ For ecommerce businesses, it presents a significant opportunity. Research indicates that over 70% of ecommerce consumers bought or sold pre-owned products in 2023, with the used goods market projected to reach $1.3 trillion by 2031. As consumers prioritize sustainability, businesses must respond by integrating eco-friendly ecommerce practices and collaborating with like-minded suppliers. Transparent and visible supply chains are crucial for achieving optimal potential and building consumer trust. Leveraging data analytics and embracing innovative strategies will enable ecommerce firms to thrive in this evolving landscape, positioning themselves as key enablers of a fast-growing circular economy.