In this week’s news, discover Etsy’s first-ever loyalty program launching in September and explore how FBA Returnless Resolutions works. Learn about JC Penney’s ambitious $1 billion investment plan and see how DoorDash is making 2-hour mattress delivery a reality. Plus, find out why Gen Z is twice as likely to shop via social commerce this holiday season. Visit our blog weekly for a roundup of the latest commerce news.
Etsy will begin testing its first-ever loyalty program in September, to revive sluggish sales and attract more frequent shoppers.1 The program, named Etsy Insider, will be invite-only at first, offering perks like free shipping and discounts. “We want people to start their shopping journey on Etsy rather than come to Etsy when they’re just looking for something very specific,” said Raina Moskowitz, Etsy’s Chief Operating and Marketing Officer.
The program's monthly fee is expected to be similar to the cost of a latte. Etsy hopes this initiative will reverse the decline in its gross merchandise sales, which fell 5.3% in the first quarter of this year compared to the same period last year. The company has also faced challenges from inflation and increased competition from rivals like Temu.
Neil Saunders, managing director at GlobalData Retail, highlighted that Etsy’s platform has become more difficult to navigate, leading to what he calls the “junkification” of the site. Despite these issues, Etsy is focusing on returning to its artisan roots to stand out in a crowded ecommerce market. The company will decide on a broader rollout of Etsy Insider based on consumer feedback from the trial.
Amazon has introduced "FBA Returnless Resolutions," a new program that allows sellers to offer refunds without requiring customers to return the item.2 Designed to streamline the return process, the program eliminates the need for physical reverse logistics, making it a cost-effective option, particularly for international sellers and those dealing with low-cost items.
Products such as dangerous goods, bulky items and items priced over $75 are not eligible for the program. Sellers enrolled in FBA Returnless Resolutions can reduce return-related fees while enhancing customer convenience. Amazon closely monitors returns for fraudulent activity to protect sellers from potential abuse.
In addition to Returnless Resolutions, Amazon offers the FBA Grade and Resell program, which grades returned items and, if eligible, relists them for resale. This dual approach allows sellers to recover value from returns while maintaining customer satisfaction.
J.C. Penney is embarking on a significant transformation, investing over $1 billion into its operations by fiscal year 2025 to secure its future.3 Central to this strategy is the integration of advanced technologies, including AI and machine learning, into its supply chain operations. Chief Information Officer Sharmeelee Bala, who joined in 2022, is spearheading these efforts, emphasizing the importance of technology as a key enabler rather than an afterthought.
To improve customer and employee experiences, J.C. Penney has adopted new tools for pricing, assortment planning and order fulfillment. The retailer is also modernizing its distribution centers, implementing automation technology like the Joey Pouch sorting system to enhance efficiency and reduce manual errors.
Bala highlighted the challenge of upgrading the company's legacy systems while ensuring they deliver improved efficiency. “When I look at the total cost to serve, because that’s something that as a CIO, I have to keep looking at my ecosystem and say, ‘How do I make it more efficient for me to serve my business partner?’” Bala said. “How do I look at it as ensuring that we are building for the future and not just for today?” By focusing on AI, machine learning and building a robust enterprise data platform, J.C. Penney aims to create a more efficient and future-ready supply chain, positioning itself to compete in the changing retail landscape.
Mattress Firm, the largest mattress specialty retailer in the U.S., has teamed up with DoorDash to offer same-day delivery for sleep products from over 2,300 locations across the country.4 This partnership, launched just in time for the college back-to-school season, allows students and parents to conveniently purchase mattresses, bedding and sleep accessories through DoorDash, making it easier to outfit dorm rooms and apartments.
As part of the initiative, Mattress Firm is also launching the "Collegiate Sleep Squad," a group of 10 student brand ambassadors who will promote the importance of quality sleep on college campuses. These ambassadors will receive free bedroom makeovers, host product giveaways and share exclusive promotions with their peers.
The initiative underscores Mattress Firm's commitment to helping students prioritize sleep through easier access to top-quality sleep products. “Our partnership with DoorDash revolutionizes mattress and bedding delivery, offering on-demand delivery that today’s college students have come to expect,” said George Hanson, Mattress Firm’s Chief Digital Officer. “With the support of our on-campus sleep experts, we’re on a mission to help students prioritize sleep through easier access to the best sleep products.”
Gen Z consumers are driving a significant shift in holiday shopping habits, with 42% planning to purchase gifts directly through social media platforms in 2024, according to a May 2024 survey by Basis Technologies and GWI.5 This is more than double the average rate of 20% across all age groups.
The survey highlights a generational divide in social commerce adoption: 26% of millennials plan to buy gifts via social media, followed by 15% of Gen X and just 6% of baby boomers. Instagram (57%) and Facebook (56%) are the top platforms for social commerce, with TikTok (43%) and YouTube (38%) also gaining traction. Despite social commerce accounting for only 6.6% of total e-commerce sales in 2024, it is expected to contribute $82.82 billion, indicating a growing trend as consumers become more comfortable shopping through social platforms.