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- Ecommerce Round Up - April 4, 2024
Ecommerce Round Up - April 4, 2024
πΈ Will the internet get taxed in 2026? πΌοΈ Pinterest teams up with Amazon (and maybe even Google) π This AI recommends clothes that actually fits you
Good morning! Today we got some news on:
πΈ Will the internet get taxed in 2026?
πΌοΈ Pinterest teams up with Amazon (and maybe even Google)
π This AI recommends clothes that actually fits you
Will the internet get taxed in 2026?
πΈ 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.
Think of it like a free trial ending. While some countries are happy with the extension, others are eyeing a potential goldmine.
π Whatβs 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.
π³οΈ 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.
Recent findings by Piper Sandler suggest Google ad units might be popping up on the Pinterest app in the US. This could be a big win for Pinterest, especially internationally.
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.
50% of Pinterest's active users are also shoppers, and many of them also shop on Amazon. This means there's a huge audience hungry for a easy shopping across platforms.
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
π 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.
π€ 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:
β»οΈ Sustainable too!
Sizekick is also passionate about sustainability.
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.
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