Apple just made virtual shopping cooler

🍎 Apple Vision Pro: A shopaholic’s dream

The Apple Vision Pro was made into a laughing stock when first released, dubbed as ‘too useless and too expensive’.

Retail and fashion businesses, on the other hand, saw a big opportunity of creating a more memorable, personal and emotional connection through ecommerce that up until now was too foreign.

🥽 Obsess collabs with J.Crew and Elf

A virtual shopping and 3D ecommerce platform called Obsess has collaborated with J.Crew and Elf to release their own apps and shopping experiences with the Apple Vision Pro.

J.Crew’s virtual closet is an app that allows users to shop for J.Crew products in an interactive, 3D environment. It uses SharePlay for shared experiences:

• Customers can talk with J.Crew stylists via FaceTime calls

• Have group calls for more opinions on fashion choices

J.Crew lets users to explore a collection of products and have the choice to magnify to examine materials' texture and quality.

The app works with hand and eye movements, allowing users to mix and match pieces and visualize outfits on a personalized in-app mannequin.

e.l.f. Cosmetics takes a different approach: the gaming world. With "Your best e.l.f.," visitors can relax themselves in:

• Guided meditation and stretching

• A "Paint by Numbers" game

🎨 Apple Vision for designers and B2B

Another company, Swatchbook, also has its own marketplace for designers themselves:

• Designers will be shown a collection of highly detailed 3D materials that makes sourcing from suppliers much easier. 

It’s like turning the app into a visual design studio where the textures and products are there virtually, without needing to leave your own home.

Amazon could be held responsible for other vendors

⚔️ Amazon’s new battle could reshape its future

According to the Wall Street Journal, the U.S. Consumer Product Safety Commission is thinking of reclassifying Amazon as a distributor: a move that could make the company responsible for the safety and quality of products sold by 3rd vendors on its platform.

#️⃣ Amazon stats

Traditional retailers are already burdened with this responsibility. Amazon joining the group would come at a heavy price for the company that classifies itself as a logistics platform connecting buyers and sellers.

• Currently, over 60% of Amazon's sales come from 3rd party sellers

• There are roughly 2.5 million active third-party sellers on Amazon

⚠️ The danger of Amazon

If Amazon gets reclassified, it could face a heap of legal challenges. The company might be held responsible for:

• Product conditions

• Legitimacy

• Safety concerns

• Recalls for items sold through its platform

The Consumer Product Safety Commission's 2021 complaint against Amazon accused the company of distributing unsafe 3rd products through its logistics network.

Reports have also resurfaced alleging that some products sold on Amazon have even led to injuries.

Why Temu and Shein spend so much on Meta

🌐 9 digit ads

Temu and Shein are spending so much on advertising that they’re affecting Meta.

While Meta did not actually name the companies, according to estimates by analysts at JMP, Temu invested roughly $600 million, while Shein poured in around $200 million.

Social media marketing is one of their strategies to help enter and further dominate the US market.

🧹 Temu and Shein’s steamrolling continues

Temu has been on a roll for the past years, growing from 0 to 2 million users in 2 years. Shein, on the other hand, has the largest market in the US, taking 75% of the fast fashion market in 2023.

Even Etsy’s CEO had to comment, saying that the two companies have single handedly impacted the advertising costs of social media marketing.

The companies still take advantage of the trade loophole that lets them ship easily to the US. Under De minimis:

• Packages $800 or less are exempted from tariffs

1 billion packages entered the US in the fiscal year 2023 and 1/3 of these belong to Temu and Shein.