In this week's retail news, USPS plans to reduce its workforce by 10,000 to hopefully address financial challenges and streamline operations. On a bright note, several companies, including Ulta Beauty, Wix and TikTok, are adding new features and offerings to their userbases. Squarespace also recently took a different angle to promote its new AI tool by showcasing the humans behind the tool. Stay tuned for the latest commerce and retail updates in our weekly blog.
Stay tuned for the latest commerce and retail updates in our bi-monthly blog.
Commerce chronicles highlights:
- USPS plans to reduce its workforce by 10,000 in the next 30 days
- Ulta Beauty set to release new online marketplace
- Wix recently launched a new automation builder
- TikTok adds new options for sellers to automate aftersales requests
- BestBuy leans into influencer marketing with a new program
- Amazon Echo will rely on the cloud for voice recordings
- Squarespace launches "Human Powered" campaign to promote its Blueprint AI tool
USPS plans to reduce its workforce by 10,000 in the next 30 days
According to Postmaster General Louis DeJoy, USPS plans to cut 10,000 jobs in the next 30 days through a voluntary retirement program in collaboration with Elon Musk's Department of Government Efficiency.
While the agency had been planning to reduce staff since January, it wasn't until this week that they revealed the number of jobs impacted. Overall, the reduction of 10,000 positions won't significantly impact things for citizens as the USPS currently employs over 640,000 workers across the nation.
USPS also announced plans to cut its $78B operating costs by more than $3.5B as part of a broader effort to address financial challenges and streamline operations within the agency.
Business implications for USPS workforce reduction
For USPS, these cuts could lead to operational efficiencies, potentially freeing up resources for reinvestment in technology or automation.
However, if the reduction isn't managed carefully, it could impact employee morale and result in service delays, particularly in areas with already strained postal operations.
On a broader scale, this move could serve as a model for other government agencies or organizations looking to optimize their workforces without compromising service levels.
Ulta Beauty set to release new online marketplace
During a recent earnings call, Ulta Beauty announced that it planned to launch a new online marketplace later this year to expand its ecommerce presence and offer a broader range of beauty and wellness products.
Initially, the marketplace will be available to brands on an invitation-only basis so Ulta Beauty can curate the selection. The invitation-only model gives Ulta control over the brands that join, ensuring that the curated selection aligns with its brand values and customer expectations.
For Ulta, this move strengthens its loyalty program by allowing customers to earn points on marketplace purchases, adding another layer of value. It also enhances the customer experience by enabling physical store returns, encouraging online and in-store shopping.
Business implications for Ulta Beauty’s new online marketplace
As ecommerce continues to grow, this strategy could drive increased sales, attract new customers and solidify Ulta’s position as a top player in the beauty industry.
For brands, joining Ulta’s marketplace offers an opportunity to tap into a loyal customer base.
However, because the marketplace is invite-only, smaller brands might face challenges getting accepted unless they have a strong presence or partnership with Ulta. Over time, this could lead to more competition among brands and a chance to connect with an engaged, beauty-focused audience.
Wix recently launched a new automation builder
Wix Automations is a new builder designed to support advanced business workflows via a visual drag-and-drop canvas. Many users are comparing the product to Shopify's Flow app, which allows for similar automation.
Wix Automations also has a native integration with Wix Services, allowing for advanced workflows such as one that rewards repeat customers with unique coupons based on their purchase behavior.
Users can now build automation from scratch or customize pre-built automation, which Wix customizes for each user based on the apps installed on their website or store.
Business implications for Wix’s new automation builder
For businesses using Wix, this new tool could drive significant efficiency improvements. The ability to set up automation for tasks like rewarding repeat customers with personalized coupons can save time and increase customer engagement.
Wix’s integration with Wix Services also opens up new possibilities for businesses to streamline their operations and improve the customer experience.
The organization's move could make automation more accessible to smaller businesses that may not have the resources to invest in complex systems. As the demand for automation grows across industries, Wix’s new tool could help it capture a larger market share by offering an easy-to-use solution for businesses of all sizes.
TikTok adds new options for sellers to automate aftersales requests
TikTok sellers now have the ability to automate approval of aftersales requests such as returns, refunds, replacements and cancellations. The new feature also allows the exclusion of PO Box deliveries to avoid complications during shipping.
The platform also introduced the ability for fashion sellers to set specific items in their store as "final sales."
Business implications for TikTok’s new aftersales automation features
TikTok’s introduction of automated aftersales requests for sellers is a major step toward improving the platform’s ecommerce capabilities.
By allowing sellers to automate the approval process for returns, refunds, replacements and cancellations, TikTok is streamlining operations and reducing manual workload. This feature could enhance the overall seller experience, making it easier to manage customer service and ensuring faster response times.
For sellers, the ability to automate these requests means more efficiency and fewer operational bottlenecks. It also allows them to focus on other important aspects of their business, like marketing or inventory management, while ensuring that customers’ after-sales needs are handled promptly.
Additionally, the option to exclude PO Box deliveries helps avoid complications, particularly for sellers in categories where shipping logistics are critical, such as fashion.
TikTok’s move to add more ecommerce tools could make the platform a more attractive option for sellers looking for a streamlined, all-in-one solution.
BestBuy leans into influencer marketing with a new program
According to Best Buy's CEO Corie Barry, the company is launching an influencer program to compete with Amazon and Walmart. In the near future, influencers and creators will be able to build their own branded digital storefronts on Best Buy's website.
Business implications for Best Buy’s influencer program
Best Buy’s new influencer program marks a significant shift in its marketing strategy as the company looks to compete more directly with Amazon and Walmart.
The company is now beginning to tap into the growing trend of influencer-driven commerce by allowing influencers and creators to build their own branded digital storefronts on Best Buy’s website. This move could help Best Buy reach a broader, younger audience that trusts influencer recommendations and seeks out more personalized shopping experiences.
For Best Buy, this program offers the opportunity to increase its online sales by leveraging the power of influencer marketing. Influencers can help drive traffic to Best Buy’s website, boost product visibility and promote higher engagement with the brand.
Adding this new marketing strategy could also increase sales across both traditional and emerging product categories, particularly in tech and electronics, where influencer recommendations have significant sway.
Overall, this program could signal a new wave of ecommerce marketing, where influencers play a more integral role in shaping customer purchase decisions.
Amazon Echo will rely on the cloud for voice recordings
Beginning March 28th, Amazon Echo will send all voice recordings to the cloud, and users will no longer have the option to process their Alexa requests locally.
Amazon wrote, "As we continue to expand Alexa's capabilities with generative AI features that rely on the processing power of Amazon's secure cloud, we have decided to stop supporting this feature."
Although a concern for privacy enthusiasts, it makes sense that Amazon can no longer process the requests on a device with a processing power similar to a smart clock, especially given the launch of advanced AI-powered tasks through Alexa+.
Business implications for Amazon Echo’s shift to cloud-based voice recordings
With the ability to process more advanced tasks and generative AI features, Amazon is positioning Alexa as an even more capable assistant.
This shift to cloud processing for Amazon allows for more robust and scalable AI capabilities, enabling faster updates and more sophisticated features. It also likely means reduced strain on device hardware, ensuring that Echo devices continue to deliver smooth user experiences even as AI technology evolves.
While privacy concerns may arise, Amazon’s focus on security could help mitigate backlash, especially if users see tangible benefits from the new AI features.
Squarespace launches "Human Powered" campaign to promote its Blueprint AI tool
Recently, Squarespace launched the "Human Powered" campaign to promote its Blueprint AI tool, which helps users create personalized websites through text prompts.
In the campaign, the company touches on the talented human designers who helped shape the designs and elements that the new tool provides users.
Business implications for Squarespace’s “Human Powered” campaign
Squarespace's "Human Powered" campaign, which promotes its new Blueprint AI tool, highlights its focus on blending advanced technology with human creativity.
By emphasizing the role of human designers in shaping the tool's capabilities, Squarespace is positioning its AI as a user-friendly solution that still maintains a personal, creative touch. This approach is likely to appeal to businesses and individuals who want the efficiency of AI without sacrificing the customization and design quality that Squarespace is known for.
For Squarespace, this campaign is an opportunity to differentiate its AI tool from competitors by showcasing its unique blend of machine-driven design and human influence.
The campaign angle could also help expand the appeal of Squarespace to users who may be hesitant to fully embrace AI-driven design, reassuring them that the technology is there to enhance, not replace, creativity.
Enjoying Commerce Chronicles? Subscribe to our blog for more information and insights on recent commerce news and trends.
