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Commerce chronicles: July 29, 2024

Jul 29, 2024 - Alyssa Wolfe
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July 29 Commerce Chronicles | News about Google, Macy's, TikTok & more
9:19

Helen of Troy looks to diversify production, TikTok sees big spending during ‘Deal For You Days’ and Google announces change of course for third-party cookies. Plus, Macy’s takes personalization to a new level and Michael’s expands same-day shipping.

In this week’s news, learn about how much U.S. shoppers spend during TikTok’s ‘Deal’s for You Days,’ Helen of Troy’s production strategy and how Macy’s is honing in on personalization efforts. Plus, discover if third-party cookies are here to stay and how DoorDash and Uber Eats help brands offer same-day delivery. Visit our blog every week for a roundup of the latest commerce news.

Google shifts again on third-party cookies

Google has announced a significant shift in its approach to online privacy by opting not to phase out third-party cookies in Chrome, marking a notable change after years of development and delays.1 This move has emerged from extensive feedback from various stakeholders, including regulators, publishers and ad tech companies, who expressed concerns over the potential disruption caused by the removal of cookies.

The updated plan emphasizes user choice, proposing a new Chrome experience where users can make informed decisions about their web tracking preferences. This shift aims to balance privacy enhancement with the ad-supported internet ecosystem. Google will continue to develop and invest in its Privacy Sandbox APIs while introducing additional privacy controls, such as IP Protection in Chrome’s Incognito mode.

The decision has sent waves through the advertising industry, which has been preparing for a cookieless future. Some marketers view this as a reprieve, while others are concerned about the potential impact on the growing alternative ID space and the broader trajectory toward privacy and user consent. Industry experts predict that the development of cookieless technologies and privacy regulations will continue, urging advertisers to adapt to a landscape where consumer choice and consent are paramount.

As Google collaborates with regulators and the industry to finalize its approach, the focus remains on creating a more private web while supporting a vibrant digital advertising ecosystem. The journey towards enhanced online privacy continues, with Google’s latest move marking yet another step.

Helen of Troy aims to diversify production for a more resilient supply chain

Helen of Troy, the U.S.-based parent company of brands like Oxo Pop, Hydro Flask and Osprey, is working with suppliers to move production to areas outside China but still within Asia to diversify its supply base and mitigate tariff risks.2 This strategy comes as the Biden administration plans further tariff increases on Chinese goods, following the initial tariffs imposed by the Trump administration in 2018. During a July 9 earnings call, CFO Brian Grass noted that about 79% of Helen of Troy’s products are manufactured in Asia, with 15% outside China. The company has relocated some Hydro Flask production to the Western Hemisphere and pursued sourcing in North America, though the latter has seen limited success. Grass highlighted the ongoing success of shifting production within Asia and indicated that more projects are underway to continue this strategy. Brands are striving to create more resilient supply chains to mitigate risks associated with geopolitical tensions, tariffs, and disruptions like the COVID-19 pandemic. By diversifying their production locations, they aim to ensure continuity, reduce dependency on any single region, and maintain stable operations amid global uncertainties.

U.S. Shoppers spent a record high on TikTok Shop during ‘Deals For You Days’

TikTok Shop launched "Deals For You Days" in the U.S. on July 9, offering significant discounts on thousands of popular products.3 The sale featured top brands like L'Oréal Paris, Maybelline New York, NYX Professional Makeup, Our Place, Too Faced and Zwilling USA. It included TikTok LIVE shopping sessions with brands such as Benefit Cosmetics and COOLA, and influencers like simplymandys, Stormi Steele and Tati Westbrook showcasing their favorite products.

This new shopping experience let merchants and creators engage with followers through content challenges and live events, enhancing product discovery and deal shopping in real-time. TikTok Shop saw a surge in sales, capturing 37% of Chinese ecommerce sales during the first week of "Deals For You Days.". Despite customers spending an average of $52 each, 70% of what Temu and Shein customers spend,4 the impulse buying behavior on TikTok Shop stands out. The promotion, which coincides with major sales events like Walmart Deals, Target’s Circle Week and Amazon Prime Day, has yet to announce an end date, suggesting ongoing opportunities for exclusive discounts and offers across beauty, fashion, books and home categories.

text reading the ecommerce platform for selling b2b, image of person shopping ecommerce clothing store on laptop

Macy’s ramps up personalization efforts with tailored offers

Macy’s is intensifying its personalization efforts to enhance customer experience (CX) and marketing strategies.5 Partnering with Deloitte Digital, the retailer conducted a thorough assessment of its MarTech capabilities and implemented personalized omnichannel journeys targeting five key behaviors: driving second purchases, encouraging complete looks, reviving engagement, engaging loyalty members and boosting cross-channel spending. According to Deloitte Digital's research, brands excelling at personalization are 48% more likely to exceed revenue goals and 71% more likely to improve customer loyalty.6

Macy’s has sent 500 million personalized offers, reaching over 30 million customers. A partnership with Adobe has been crucial for Macy’s, allowing them to utilize tools like Adobe Experience Platform and Adobe Journey Orchestration to manage and visualize customer journeys. This approach has improved cross-channel engagement and increased conversions. Macy’s aims to shift towards more journey-driven communications, ensuring a seamless, unified brand conversation across all customer touchpoints, whether in-store, online or through various digital channels.

Michael’s leverages DoorDash and Uber Eats to expand same-day delivery

Michaels, the leading destination for arts and crafts supplies, has announced plans to enhance its same-day delivery service through new partnerships with DoorDash and Uber Eats.7 This expansion will allow customers across the U.S. to shop for a wide range of products, including home décor and party essentials, from over 1,200 store locations with same-day delivery. In addition to these new channels, Michaels will continue its existing same-day delivery service through Instacart.

This initiative is part of Michaels’ broader omnichannel transformation, aimed at providing customers with convenient and flexible shopping options. “Convenience, choice and flexibility are central to a best-in-class omnichannel experience, and it's more important than ever to deliver on that promise to our customers,” said Heather Bennett, Executive Vice President of Marketing and ECommerce at Michaels “Our partnerships with DoorDash and Uber Eats enable us to expand our same-day delivery offering, making our assortment available wherever and however customers want to shop while reaching new audiences and adding value for core customers.” The new partnerships will help Michaels reach new audiences and add value for its core customers, enabling them to access products quickly and easily at the same in-store prices.

Cart.com announces Constellation WMS and TMS

Cart.com, a leader in unified commerce and logistics software, announced the launch of Constellation WMS and Constellation TMS, expanding its proprietary warehouse and transportation management systems as standalone offerings. These new modules complement Constellation OMS, Cart.com's existing distributed order management system, and can be utilized independently or as an integrated suite.

Constellation WMS optimizes warehouse operations with capabilities such as omnichannel functionality, intelligent pick pathing, streamlined receiving and processing, simplified returns management and consolidated labor management. This system drives efficiency and accuracy across day-to-day operations while providing robust reporting tools. Constellation TMS offers dynamic rate selection and end-to-end visibility to meet customer cost and delivery targets. It enhances procurement by leveraging both user-specific and Cart.com's negotiated rates, centralizing all transportation management activities.

Cart.com Founder and CEO Omair Tariq emphasized the system's efficacy, stating, "Constellation has been the critical software foundation for Cart.com's own network of fulfillment centers. Our modern technology will enable merchants and warehouse operators to drive better performance and customer experiences."

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