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  • Ecommerce Round Up - April 4, 2024

Ecommerce Round Up - April 4, 2024

πŸ’Έ Will the internet get taxed in 2026? πŸ–ΌοΈ Pinterest teams up with Amazon (and maybe even Google) πŸ‘— This AI recommends clothes that actually fits you

Good morning! Today we got some news on: 

πŸ’Έ Will the internet get taxed in 2026?
πŸ–ΌοΈ Pinterest teams up with Amazon (and maybe even Google)
πŸ‘— This AI recommends clothes that actually fits you

Will the internet get taxed in 2026?

πŸ’Έ Tax-free for decades

For decades, a rule at the World Trade Organization (WTO) prevented countries from charging customs duties on digital products. This basically meant most online stuff was tax-free, helping ecommerce boom.

This perk just got extended until 2026 - but has a big question mark after that.

πŸ“ What’s happening?

Digital trade, like streaming your favorite show, is a much bigger player in the global economy than ever before.

Countries see the massive profits made by tech giants and want a piece of the pie. Tariffs, or basically taxes on digital goods, could be a way to do that.

πŸ’³οΈ What it could mean for you

The problem? Nobody really knows how these digital tariffs would work in practice. The internet was just a baby in 1998 when the rule was first created, and nobody foresaw the tech giants of today.

Plus, slapping tariffs on things like online movies or software downloads could backfire. It could make things more expensive for everyone, from businesses to regular people.

Some countries, especially developing ones, are betting on these tariffs to boost their income. Others worry it'll just make everything more expensive and stifle competition.

Pinterest teams up with Amazon (and maybe even Google)

Pinterest's collabs are paying off after their partnership with Amazon Ads, launched in 2023.

  • Imagine browsing Pinterest for recipe inspiration, then clicking on an ingredient and being brought to Amazon to buy it.

30% of Pinterest's search ads now feature Amazon products, making its mark on the platform. Analysts predict this could bring Pinterest an extra $120 million in revenue.

But Pinterest isn't stopping there. They've got their sights set on a potential partnership with Google, too.

Currently, 80% of their users are outside the US, but only generate 20% of revenue. A Google partnership could boost revenue per user in those markets.

Pinterest is also making big strides on its own. They recently launched a "collage" feature that lets users get creative and add shoppable products to their digital mood boards.

This AI recommends clothes that actually fits you

πŸ‘— Clothes that fit

Ever order clothes that looked amazing online, only to be disappointed when it arrived and didn't fit quite right?

You're not alone. Ill-fitting clothes are a major hassle for online shoppers, leading to returns, wasted money, and unnecessary frustration.

But a new German startup called Sizekick is looking to change that.

πŸ€– How it works (with AI)

Sizekick uses AI to recommend the perfect size for online clothes shoppers. They offer two ways to get your perfect fit:

♻️ Sustainable too!

  • Ill-fitting clothes often get returned, which means they get shipped back and forth, creating a carbon footprint. Sizekick's AI is designed to reduce these returns.

Sizekick recently partnered with STRONGER, a popular activewear brand, showing Sizekick's commitment to making online shopping easier and greener, not just for fashionistas, but for fitness enthusiasts everywhere.

πŸ“° Check out what you missed!

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