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On today's podcast episode, we discuss what commerce media encompasses, the size of the financial and travel networks, and the companies to pay closest attention to in this space. Listen to the conversation with our Senior Analyst Sara Lebow as she hosts Senior Analyst Arielle Feger and Principal Analyst Sarah Marzano.

The retailer aims to open a new revenue stream by expanding the reach of its Buy with Prime service, which enables retailers to use Amazon鈥檚 fulfillment and payments services鈥攁nd, perhaps more importantly, to access the lucrative Amazon Prime customer base.

Over one-quarter (28%) of merchants currently use Walmart鈥檚 fulfillment capabilities, while their spending on advertising grew by over 50% in Q1. The big takeaway: Walmart has long been known for value鈥攂ut the company is also trying to make a name for itself as shoppers鈥� go-to choice for convenience.

This includes loyalty programs that demonstrate actual value to cost-conscious customers, along with frictionless order fulfillment from multiple point-of-sale (POS) destinations. Restaurants should also make data-driven decisions regarding the development and marketing of menu items. Read the full report, Restaurant Digitization 2024.

Rumors persist that the vertical video giant is launching fulfillment centers in the near future, which will help it attract more China-based sellers to the US, Enberg noted. Next year, we expect the platform to surpass Instagram in social buyer penetration and reach parity with Facebook, at 37%. That鈥檚 up from 6% of users buying on the platform as recently as 2020.

The integration is a win for PayPal after Amazon stopped accepting Venmo on its ecommerce site

Under Armour鈥檚 turnaround won鈥檛 be quick: The company lowered its FY25 outlook, saying its restructuring plan will cost about twice as much as expected.

Finding the right balance: TikTok parent company ByteDance lost roughly $500 million on TikTok Shop in the US as it spent heavily to hire staff, build a fulfillment network, and incentivize sellers by offering free listings, free shipping, zero commissions, and warehousing space. Recent reports suggest those investments are starting to pay off.

Last year, TikTok showed it was serious about social commerce: It beefed up its shopping ad types, it began to hire staff for US fulfillment centers, and it tested its Shop feature in the US. In 2023, the platform is investing even further into its social commerce capabilities:.

Building a better business: Amazon has been using machine learning over the past quarter century for everything from developing personalized ecommerce recommendations to optimizing fulfillment center pick paths to navigating drones for Prime Air, noted the company鈥檚 CEO, Andy Jassy, in his annual letter to shareholders.

Using customer data throughout the entire customer experience鈥攚hether it鈥檚 in operations, customer care, or ordering and fulfillment channels鈥攃reates meaningful opportunities to improve the customer experience. If you鈥檙e just using data for marketing, you鈥檙e leaving a lot on the table. This is about building mutually beneficial relationships.

AI helps FIs create an improved customer experience through an engagement layer that incorporates real-time customer data analysis, enabling personalized offerings and quick fulfillment. AI can assist FIs in enhancing their risk management capabilities by efficiently analyzing large volumes of data, resulting in faster, more accurate decision-making.

I think Walmart, because of the fact that they control the fulfillment of the orders, all the way down to the delivery, the gathering of the items in stores and in the warehouses, the packaging, the drivers, the people who are actually doing the delivery, they control that whole fulfillment chain.

Retailers will invest in lowering their click-and-collect charges, cutting queues, and slashing fulfillment times. More retailers will accept in-store returns, using tech like self-service kiosks to minimize store disruption and reduce operating costs. Inflation and Sustainability Bring Frugality to the Forefront. Conscious consumerism is on the rise.

It also comes at a cost, particularly if brands decide to use the retailer鈥檚 fulfillment and logistics services and splash out for advertising. Go further: For more insights on the beauty category, check out The Beauty Path to Purchase and our latest report on the US Beauty Consumer.

Walmart is also beefing up its logistics, but the retailer recently had to lay off fulfillment workers. Shopify and Walmart鈥檚 relationship could strain as competition continues. This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

US ecommerce livestreaming and owned fulfillment centers are on the horizon鈥攂uilding on the #TikTokMadeMeBuyIt phenomenon (30 billion views and counting) to entice young shoppers. A major push into livestreaming will focus on Gen Z consumers and creators. While sellers from China are already livestreaming to US users, transactions aren鈥檛 frictionless.

The company is also planning to open fulfillment centers in a bid to establish itself as an end-to-end commerce platform. By expanding its in-app commerce initiatives, TikTok鈥攁nd retailers鈥攚ill be better positioned to capitalize on the #TikTokMadeMeBuyIt phenomenon, which continues to generate billions of views.

Walmart announced earlier this month that it鈥檚 making its GoLocal delivery service and Store Assist local fulfillment app available to Salesforce clients, expanding its retail as a service offerings. 鈥淭his is part of Walmart's much broader shift,鈥� said our analyst Sky Canaves on our 鈥淏ehind the Numbers: Reimagining Retail鈥� podcast.

Side hustle: Outside of its core US retail business, Walmart is investing further in B2B, fulfillment, and international markets. The retailer has made recent updates to its Walmart Business services, including a new app, a streamlined ordering process, and spend analytics. Walmart is working to partly or fully automate some of its US warehouses to speed up delivery times and lower its costs.

The platform is reportedly building fulfillment centers in the US and has recently brought its TikTok Shop feature to US merchants. 5. Buy now, pay later gains steam. Over the holidays, buy now, pay later (BNPL) use picked up as consumers looked for alternative ways to fund their shopping. This year, BNPL will continue gaining users and growing payment value by 25.5% to reach $94.87 billion.

B2B email marketing is already ingrained with AI technology. But marketers still need to overcome challenges, adopt innovative strategies, and embrace this technology as a helpful and increasingly essential tool.

Temu鈥檚 newly opened US warehouses are helping it ship faster, allowing it to better compete with other major ecommerce players with local fulfillment centers such as Shein and Amazon. 鈥淭emu is not going to win the delivery race... but any chance they have to increase customer satisfaction and keep customers loyal is a good opportunity for them,鈥� our analyst Arielle Feger said. 3. The Home Depot.

Another platform to keep an eye on is TikTok, which is testing more in-app shopping features and is reportedly planning to build out fulfillment centers as owner ByteDance seeks to recreate the success it鈥檚 achieved with ecommerce in China and Southeast Asia. This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.