Learn about Amazon’s Black Friday inventory deadline, ThredUp’s new personalization tools and how chief marketers feel about AI. Plus, Pitney Bowes ecommerce logistics news, OnTrac’s Midwest delivery coverage and Carter’s campaign.
In this week’s news, see what Pitney Bowes GEC shutdown means for brands and what a new survey reveals about marketing and AI. Plus, learn about where OnTrac is launching delivery coverage and Amazon’s new Black Friday inventory deadline. Visit our blog every week for a roundup of the latest commerce news.
Carter’s launches “More Than Just Cute” campaign to appeal to Millennial and Gen Z parents
As the back-to-school season approaches, Carter’s, the 160-year-old children’s apparel brand, has introduced a new campaign aimed at capturing the attention of millennial and Gen Z parents.1 The campaign, “More Than Just Cute,” is the first to emerge from Carter’s partnership with the agency Mischief. It moves beyond superficial “cuteness” to emphasize the practical and durable aspects of Carter’s clothing, reflecting the evolving priorities of today’s parents.
The centerpiece of the campaign is a 30-second hero spot titled “All I Am,” where a voiceover dismisses the idea that “cute” is sufficient to describe an infant, instead highlighting moments like crawling in mud and playing with apple sauce. “Don’t settle for just cute,” the narrator urges. “You’re more than that.”
Carter’s Chief Marketing Officer, Jeff Jenkins, explained, “The consumer is changing – more Gen Z is becoming parents, and they have a different expectation of a brand.” He added that the campaign seeks to redefine Carter’s by showcasing its long-standing qualities of durability, quality and comfort through a fresh lens. The campaign also includes 6-second videos featuring relatable parenting moments and will run across various digital platforms, including Facebook, TikTok, Instagram and YouTube, in addition to traditional media channels.
CMOs embrace creativity and AI to drive business transformation, Dentsu report finds
Global chief marketing officers (CMOs) are increasingly confident in the power of creativity to transform businesses, according to Dentsu Creative’s 2024 CMO Report.2 The survey, which included responses from 950 CMOs and 25 CEOs in the U.S., revealed that 83% believe creative ideas can significantly impact their organizations. Additionally, 81% view creativity as more critical to their business than ever before, with 79% identifying marketing as a key driver of business transformation.
Dentsu Creative's global brand president, Abbey Klaassen, noted, “They need and value creativity more than ever. But it’s a new kind of creativity; creativity that is business-driven, making an impact across every aspect of their organization.”
Generative AI is increasingly seen as an asset rather than a threat. Over three-quarters of CMOs expressed interest in training AI to align with their brand’s voice and aesthetic. The report highlighted a growing confidence in AI, with fewer CMOs doubting its ability to create emotionally resonant content compared to last year. Despite this optimism, CMOs face significant challenges, including predicting consumer trends and participating in cultural conversations meaningfully. Nearly 79% plan to invest more than 10% of their budget in innovation, with 56% allocating over 20% in the coming year. However, concerns remain about losing control over brand narratives, with 60% wary of collaborative brand-building efforts.
ThredUp unveils AI-powered shopping tools to personalize secondhand fashion
ThredUp, one of the leading online resale platforms for apparel, shoes and accessories, has launched a new suite of AI-powered shopping tools to enhance the customer experience.3 These innovative features, available starting today, are designed to make ThredUp’s extensive inventory of over four million items more personalized and accessible to shoppers.
The AI-powered tools include an improved search function, image search and a style chatbot. These features allow users to find specific items using natural language descriptions, upload images to discover similar products, and even receive personalized outfit recommendations from the chatbot. “AI presents an enormous leap forward for secondhand shopping by bringing emotion and storytelling to the millions of unique shopping journeys that happen regularly on ThredUp,” said James Reinhart, CEO of ThredUp.
The new search capabilities are powered by advanced machine learning algorithms that continuously learn and refine results, ensuring a more tailored shopping experience. Customers can now effortlessly curate outfits, recreate looks and find items that match their exact preferences, making it easier to shop sustainably and discover unique fashion finds. ThredUp’s mission to inspire the world to think secondhand first is further supported by these tools, which make recommerce and secondhand shopping more intuitive and enjoyable for all users.
Amazon sets early deadline for sellers to ensure Prime-ready inventory for Black Friday
With the busy holiday season approaching, Amazon has set an October 19, 2024, deadline for third-party sellers to send their inventory to fulfillment centers, ensuring their products are Prime badge-ready for Black Friday.4 To maximize sales during the peak holiday period, Amazon recommends that sellers ship their Fulfillment by Amazon (FBA) inventory in August and September.
“Our fulfillment center teams will be focused on receiving inventory in September and October to ensure your products are placed in the right fulfillment centers ahead of peak,” Amazon advised sellers. By November and December, Amazon’s focus will shift to processing customer orders, as these are the busiest months of the year.
Amazon has also announced that sellers may face lower inventory capacity limits in October and November, although sufficient space will be provided for six months of inventory on average. To help sellers manage this, Amazon’s Capacity Monitor tool allows them to view and adjust their storage limits. To simplify operations, Amazon has eliminated the inventory storage overage fee as of July 1, 2024. This change means sellers will no longer incur fees if their inventory exceeds capacity limits during the peak season.
The October 19 deadline is a week earlier than last year, reflecting Amazon’s commitment to maintaining fast delivery speeds during a condensed holiday season. Sellers who miss this deadline may struggle to find space at Amazon fulfillment centers during November and December.
Pitney Bowes exits global ecommerce segment
Pitney Bowes has announced the sale of its controlling interest in the Global Ecommerce (GEC) segment to Hilco Commercial Industrial, which will oversee the wind-down of the business through Chapter 11 bankruptcy.5 The decision comes as part of a strategic move to eliminate $136 million in annual losses associated with GEC and to refocus on the company’s core, cash-generating segments SendTech, Presort and Financial Services.
Pitney Bowes’ GEC unit, which provided domestic and cross-border parcel shipping services, struggled to achieve profitability amid macroeconomic challenges and industry headwinds. Despite a 7% year-over-year revenue growth in Q2, the unit posted a $31 million loss in adjusted earnings. The shutdown process will conclude early next year, with parcel delivery and returns services ceasing operations in the coming weeks.
“Exiting GEC will allow Pitney Bowes to streamline the company and increase profitability across our core businesses,” said Lance Rosenzweig, Interim CEO of Pitney Bowes. “This path also gives us a clear runway to deliver stronger results in 2025.” The sale marks a broader industry trend, as many parcel delivery providers have struggled post-COVID-19. The shutdown of GEC, once a significant player in the global and domestic parcel industry, will likely have market-wide effects, particularly in a down market with overcapacity issues.
OnTrac expands ecommerce delivery network to Midwest
OnTrac has expanded its ecommerce delivery network into the Midwest, enabling retailers to reach over 17 million additional consumers with faster delivery at a lower cost.6 The expansion covers Chicagoland, Illinois and extends to key markets in Wisconsin, Minnesota, and Missouri, including Madison, Milwaukee, Minneapolis-St. Paul and St. Louis.
Chief Commercial Officer Josh Dinneen emphasized the strategic importance of the expansion: “We chose to expand to Chicago and the Midwest based on overwhelming customer feedback for a proven alternative carrier with our speed, cost-savings, service and scale. OnTrac will now serve the top 30 metro markets in the U.S., helping our retail partners reach 70% of the population across 35 states and Washington, D.C.”
The new 334,000-square-foot center, equipped with advanced material handling technology, will facilitate millions of deliveries across the Midwest. This expansion builds on OnTrac's recent initiatives, including seven-day-a-week delivery launched in March and the transcontinental delivery service connecting the East and West Coasts.
