Thrasio’s Bankruptcy | Shopify’s New Integrations
If you’re a Shopify seller whose target market is always on social media, you have reason to celebrate. The e-commerce platform recently integrated some of the biggest names in social networking to help you target more potential customers.
Here’s how the algorithm works.
Is Trasio Going Bankrupt?
Last year, Thrasio, one of the biggest e-commerce aggregators, announced a significant layoff as well as the appointment of a new CEO.
Today, the company is mulling bankruptcy.
The Wall Street Journal reported that Thrasio is looking into restructuring options to counter the shift in e-commerce trends post-COVID. Despite its substantial funding, it appears the Amazon aggregation model isn’t the best option anymore.
Earlier this month, another e-commerce aggregator, Benitago Group, also filed for bankruptcy. Prior to that, the company also laid off about 14% of its workforce.
In 2022, we published an article about how e-commerce aggregators remain optimistic about the market post-pandemic. It seems like this isn’t the case anymore for a few of these companies.
Let’s Have Dinner at Victoria Harbour!
If you’re in Hong Kong on October 17, stop by Victoria Harbour so we can chat and have dinner together. The whole EcomCrew team will be there, so it’s gonna be a fun night.
Regular admission is $59, but it’s free for Premium members.
See you in Hong Kong!
17 States Are Suing Amazon
“Amazon is a monopolist.”
This is the main allegation in the complaint filed by the Federal Trade Commission along with 17 attorneys general.
The case aims to make Amazon liable for its alleged antitrust violations. The specific practices cited to prove the claim include increasing seller fees to the point that it makes it difficult to be profitable, overcharging customers, and its pay-to-play system. The last one refers to the pay-per-click (PPC) system that allegedly leads to less relevant results, steering buyers towards more expensive products.
According to the complaint, the issue isn’t really about how big Amazon is. Instead, it’s about “how it uses its scale and scope to stifle competition.” The FTC and the states involved allege that Amazon uses “exclusionary conduct” to “block competition, stunt rivals’ growth, and cement its dominance.”
If the FTC is successful, it may be able to cause Amazon to restructure, i.e., break up. In addition, if there is sufficient evidence, they made be able to hold a few executives personally liable for the alleged antitrust violations.
In answer, Amazon states in a blog post that the lawsuit is “misguided” and could lead to higher prices that would ultimately harm customers.
Amazon Top Terms
Over the past two weeks, we've been diving into Amazon's top 10 search terms that have seen a remarkable surge in popularity from September 10 to 23.
In this week's Amazon top 10 terms, “Prime Day deals today 2023” is making waves at number three. The excitement is no surprise—it's all about Amazon revealing the dates for the second Prime Day in 2023.
Prime Day is renowned for its deals, and shoppers are already gearing up for the event. The keyword “Prime Day deals today 2023” is proof of early anticipation, with related products selling at an impressive rate of 351 units per day in the last two weeks.
In our recent podcast episode, “Preparing for Prime Day 2023 with JungleScout“, we talk about the strategies that you should be doing before, during, and after the biggest shopping holiday of the year.
Etc.
No e-commerce on TikTok? Indonesia has recently banned e-commerce transactions through social media, which is a major blow to TikTok’s plan on doubling down on its investment in Southeast Asia.
Rain check on the extra fees. Amazon will not be implementing its planned October 1 fee increase for SFP merchants. The company claims it’s because they’ve listened to sellers’ sentiments. Others say it’s because of the FTC lawsuit.
Generative AI. Amazon will be investing as much as $4 billion in Anthropic, an AI safety and research company based in San Francisco.
