Learn about October Prime Day, new AI product listing advancements and the impending east coast port strike. Plus, Gartner releases 2024 holiday shopper survey results and Amazon makes big vendor central change.
In this week’s news, discover Amazon’s decision to shut down vendor central accounts, ending the 1P wholesale model for many U.S. vendors, and Depop's innovative AI-powered image recognition feature for streamlining resale listings. Learn about October Prime Day dates and how a U.S. East Coast port strike could hinder the automotive supply chain. Plus, a new study finds that shoppers increasingly desire a hyper-personalized experience, and a Gartner survey reveals that almost one-third of holiday shoppers plan to shop early and spend less. Visit our blog weekly for the latest updates in commerce and retail.
October Prime Day dates announced
Marketplace sellers are preparing for Amazon's Prime Big Deal Days 2024, returning on October 8-9, offering Prime members early access to holiday savings on products from top brands.1 Starting at 12:01 a.m. PDT on October 8, the 48-hour event will feature a range of deals, including discounts on Halloween costumes, beauty and fashion items, and up to 40% off winter fashion essentials.
Prime members can enjoy new deals as often as every five minutes. With Amazon encouraging non-members to join Prime or start a free trial to access these exclusive offers, sellers have the opportunity to reach new audiences. The event will be available in various countries, including the U.S., U.K., Germany, and, for the first time, Turkey.
New study finds that an increasing number of shoppers want a differentiated, hyper-personalized experience
The 2024 Retail Customer Experience Index, released by Incisiv in partnership with Talkdesk, highlights the critical need for retailers to embrace artificial intelligence (AI) and data analytics to meet growing consumer demands for hyper-personalization and seamless omnichannel interactions.2 The report benchmarks 131 leading U.S. retailers across 11 sectors, including apparel, luxury and home furnishings.
Findings reveal that only 34% of retailers currently personalize one-third of the shopper journey. However, AI integration has surged, with virtual assistants rising from 38% in 2022 to 59% in 2024. Personalized recommendations by support agents also saw significant growth, jumping from 27% to 49%. Ed Durbin, VP of Industry Strategy at Talkdesk, emphasized the pivotal role of AI, stating, “As consumers increasingly demand hyper-personalized, seamless interactions across multiple channels, retailers turn to AI-powered solutions to meet and exceed these expectations.”
Home furnishings lead in customer experience maturity, while apparel retailers excel in engagement through omnichannel strategies like text messaging and live chat. However, a gap remains between consumer expectations and current retail offerings. Dave Weinand, Incisiv's chief customer officer, stressed the importance of further technological adoption: “Retailers must accelerate their adoption of advanced technologies...to deliver the hyper-personalized, efficient service today’s consumers demand.”
A U.S. East Coast port strike could hinder the automotive supply chain
The International Longshoremen’s Association (ILA) is preparing to strike at ports along the U.S. Atlantic and Gulf Coasts, potentially disrupting the automotive supply chain.3 Representing over 85,000 dockworkers, the ILA is demanding a new contract with the United States Maritime Alliance (USMX), which includes employers like Maersk’s APM Terminals and SSA Marine. Negotiations between the two parties broke down in June, and with the current six-year contract expiring on September 30, the ILA has warned strikes will begin immediately if no agreement is reached.
The strike is expected to affect container ports, especially in automotive logistics. Major ports impacted include New York, Baltimore and Savannah. With containerized vehicle deliveries surging and September traditionally a busy month for imports, the strike could cause short-term demand spikes, though existing inventory may buffer potential container rate increases. Maersk has warned even brief disruptions could lead to backlogs lasting weeks.
Gartner survey shows that almost one-third of holiday shoppers plan to shop early and spend less
A recent Gartner survey reveals that 32% of consumers plan to start their holiday shopping before November, marking a shift in shopping patterns.4 Conducted in June 2024, the survey found that only 14% of U.S. consumers plan to increase spending compared to last year, while 21% intend to reduce their holiday budgets. High inflation and supply chain concerns continue to influence consumer behavior.
Kassi Socha, Director Analyst at Gartner, noted, “Over three-quarters of holiday shoppers continue to say that higher prices are what causes them to spend more for holiday gifts.”
Online shopping is gaining traction, with 20% of consumers planning to increase their online activity due to concerns about in-store prices. In-store shopping worries, including higher prices and inventory issues, have risen, with 60% of shoppers reporting at least one concern. Additionally, 57% of consumers plan to use services like Buy Online, Pickup In-Store (BOPIS) and same-day delivery this holiday season. Extended return policies are also increasingly important, especially for younger shoppers, with over 70% favoring flexibility on returns beyond the traditional window.
Amazon to shut down vendor central accounts, ending 1P wholesale model for many U.S. vendors
Amazon is making major changes to its Vendor Central program, significantly affecting first-party (1P) vendors.5 By November 9, 2024, Amazon will terminate many of its 1P vendor relationships, transitioning vendors to Seller Central, where they must operate as third-party (3P) sellers. This shift requires vendors to handle their own fulfillment, pricing, and customer service — a notable departure from the traditional 1P wholesale model.
Amazon's move signals its focus on streamlining operations and maximizing margins through the 3P marketplace. Vendors transitioning to Seller Central face an operational overhaul, including managing logistics previously handled by Amazon. While 3P sellers gain more control over pricing, they also bear higher fulfillment and storage costs, potentially leading to short-term revenue declines.
The transition comes with challenges, including the risk of account suspensions during Amazon’s verification process. However, for sellers already on the platform, this change introduces increased competition but also offers more control over inventory and branding. Adapting to the 3P model will be crucial, offering both challenges and opportunities for vendors and sellers alike.
Depop unveils AI-powered image recognition feature to streamline resale listings
Depop has introduced an AI-powered feature that streamlines the resale listing process by generating item descriptions from just a single photo.6 Utilizing image recognition and generative AI, the tool automatically fills in details like category, color, sub-category and brand when users upload an image. Sellers can then edit the suggested description, which mirrors the casual tone and hashtag usage typical of the Depop community.
Available in English-speaking countries, including the US, UK, Australia, Canada and Ireland, the feature is part of a broader suite of AI-driven improvements aimed at enhancing both the buyer and seller experience. Depop’s Chief Product and Technology Officer, Rafe Colburn, said, “Adding intelligent, automated descriptions provides inspiration to speed up and simplify the process, meaning our community can list more, sell more and earn more while contributing to a more circular fashion economy.”
With predictive recommendations and pricing guidance for sellers, and personalized search for buyers, Depop’s new AI tools are helping to connect users with trends faster and encourage more sustainable fashion practices.
