Learn about Meta’s Automatic Adjustments and Amazon’s low-cost store. Plus, discover Wayfair’s new customer loyalty program, how Stanley plans to use AI and about UPS’s new returns robots.
In this week’s retail news, Meta unveils “Automatic Adjustments” for ads, USPS implements a peak season rate hike through January and Wayfair launches its new loyalty program. Learn how Stanley uses AI to predict supply chain disruptions while UPS’s Happy Returns deploys robots to cut processing times. Plus, Amazon shuts down Amazon Today and is preparing to launch its low-cost store. Stay tuned for the latest commerce and retail updates in our weekly blog.
Meta's new 'automatic adjustments' feature sparks concern among advertisers over loss of control
Meta recently introduced a feature called “automatic adjustments” across many ad accounts, allowing its system to make significant campaign changes without explicit advertiser consent.1 This feature gives Meta authority to pause or activate campaigns, adjust budgets, consolidate ad accounts and merge audience segments without notifying advertisers. While intended to optimize performance, this change has raised concerns among advertisers about losing control over their campaigns. Some have reported unintended impacts, such as budget cuts and merged audiences that disrupted targeting and reduced ad spend.
Advertisers are alarmed by Meta’s newfound control, which shifts strategic decision-making from brands to automated systems. Reports from users reveal instances where profitable ad sets were deactivated, and segmentations were altered, hindering campaign effectiveness. This automation, though potentially beneficial for performance, is viewed by many as an overreach that limits advertisers' strategic oversight.
To opt out, advertisers can navigate to “All tools,” select “Automated rules,” and turn off “automatic adjustments.” This update highlights the importance of reviewing ad settings to decide if Meta’s automation aligns with individual campaign goals and comfort levels with relinquishing control.
Amazon plans new budget storefront to challenge Temu and Shein
Amazon is developing a new budget storefront featuring low-cost items like apparel, home goods and unbranded products under $20, directly challenging ecommerce giants Temu and Shein.2 Unveiled at a private event for Chinese sellers, the storefront will allow merchants to ship products directly from China to U.S. consumers, with an estimated delivery window of nine to 11 days. This strategy reduces costs by bypassing Amazon’s traditional U.S.-based fulfillment services and mirrors Shein’s on-demand manufacturing model.
Amazon’s initiative looks to capture the U.S. market’s growing demand for budget-friendly goods, a space where Temu and Shein have gained substantial traction. This move aligns with Amazon’s recent efforts to strengthen ties with Chinese merchants, including a new innovation center in Shenzhen and reduced fees for clothing items under $20. While no launch date has been set, Amazon plans to start accepting products this fall.
USPS implements temporary price increase for 2024 holiday season
The United States Postal Service (USPS) introduced a time-limited price adjustment for select package services during the 2024 peak holiday season.3 Approved on August 8 and announced on September 5, the adjustment is designed to cover additional handling costs, ensuring reliable service throughout the busiest time of year. The rate changes, which took effect on October 6, 2024, will remain in place until January 19, 2025, and apply to Priority Mail Express, Priority Mail and USPS Ground Advantage services.
This seasonal peak season carrier pricing aligns USPS with competitive industry practices and supports its Delivering for America 10-year plan. The temporary increase aims to strengthen USPS’s capacity to deliver mail and packages six days a week in a financially sustainable way. Full rate details are available on the Postal Explorer website and the Postal Regulatory Commission’s daily listings. Notably, USPS maintains some of the most affordable postage rates worldwide, offering strong value for customers during the holiday rush.
Wayfair introduces new customer loyalty program with exclusive perks and savings
Wayfair Inc. has launched "Wayfair Rewards," a new loyalty program offering members exclusive savings and benefits on home goods.4 Available for $29 per year, Wayfair Rewards provides members with 5% back in rewards on all purchases across Wayfair and its specialty brands, including AllModern, Birch Lane, Joss & Main and Perigold. These rewards can be used on future purchases and do not expire as long as the membership remains active.
Other perks include free shipping on all orders, early access to major sales events like Way Day and access to exclusive member-only sales with steep discounts across various categories. Members also receive special offers, a birthday perk and priority customer service with a dedicated support line.
Wayfair Chief Commercial Officer Jon Blotner highlighted the program's value, noting that it caters to a range of shopping needs, from home renovations to small decor updates. Blotner stated, "Wayfair Rewards ensures members get exceptional savings every time they shop with us." The program is currently available to U.S. customers.
Stanley 1913 partners with Kinaxis to prevent supply chain disruptions with AI technology
Food and drinkware maker Stanley 1913 is implementing artificial intelligence software from Kinaxis to predict and prevent potential supply chain issues.5 Utilizing the Kinaxis Maestro platform, Stanley 1913 looks to detect real-time supply chain obstacles and quickly execute solutions, according to a press release issued by Kinaxis on October 28.
“We have explored the use of advanced predictive analytics through machine learning and artificial intelligence, allowing us to gain end-to-end supply chain visibility and enabling powerful scenario planning to facilitate sustainable growth,” said Karthik Sivakumar, Stanley 1913’s VP of supply chain and operations. The AI-driven solution is also expected to help Stanley 1913 minimize its carbon footprint, Sivakumar added.
Happy Returns boosts efficiency with robotics upgrade at East Coast hub
Happy Returns, a UPS company, has reduced processing times at its Shoemakersville, Pennsylvania, hub after deploying Geek+ robotics, as detailed in a recent white paper.6 The hub, now equipped with 150 Geek+ S20C robots and 10 robot induction stations, is the company's first automated returns center, established in collaboration with Geek+ in under six months. The robots can sort and carry items up to 44 pounds to nearly 200 destination chutes for shipment back to retailers.
The automation has led to increased accuracy, reduced product loss and a 35% drop in median return processing times, with an average return time of 14 business days. “The Geek+ robots provide us with significant efficiency and flexibility,” said Kristen Hennessey, Happy Returns’ senior automation manager.
This investment comes amid a broader slowdown in robotics adoption across North America due to inflation and high borrowing costs, per the Association for Advancing Automation. However, Happy Returns is expanding, with UPS anticipating a doubling of its volume and revenue in 2024.
Amazon shutting down same-day delivery service, Amazon Today
Amazon is winding down its Amazon Today service, which offered same-day delivery from mall and brick-and-mortar retailers, according to sources.7 Development on the service has stopped, and most of the program will close by December 2, with select partners fulfilling orders through January 24, 2025. Launched in 2022, Amazon Today allowed participating retailers, such as Office Depot, Petco and GNC, to deliver products directly to customers within hours using Amazon Flex drivers.
The decision fits into Amazon CEO Andy Jassy's cost-reduction strategy, targeting initiatives with higher operating expenses. Jassy, who initiated extensive layoffs beginning in 2022, has restructured the company’s operations to adapt to shifting economic conditions, cutting over 27,000 jobs. Amazon Today’s delivery model proved costly compared to traditional warehouse-based routes, as retail delivery runs were less efficient for Flex drivers. Although Amazon continues to expand its facilities dedicated to same-day deliveries, the closure signals a recalibration in its approach to ultrafast delivery.
Amazon’s move surprised some, as the company was recently promoting Amazon Today to new retailers. Impacted employees will be reassigned within Amazon or offered severance packages.
Cart.com’s 321 de minimis webinar offers helpful insights into the potential timeline and impact of the rule changes
Cart.com’s "Navigating the 321 de minimis changes” webinar offered attendees insights into the announcement of the rule changes and regulatory shifts impacting global brands importing goods into the U.S.
Cart.com’s president, Ilias Simpson, was joined by former White House Supply Coordinator Tim Manning to discuss how the 321 policy changes could affect retail brands. Together, they highlighted how the updates could disrupt existing supply chains and increase import costs. Manning provided in-depth insights into policy intentions and how they aimed to level trade standards and enhance public safety. Watch the full webinar on-demand to learn the essential strategies set forth by Simpson and Manning for navigating this evolving regulatory landscape and safeguarding your brand’s operations.
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