Google's SGE is making ecommerce confusing

🔎 Google’s Search AI

Google’s AI-powered Search Generative Experience (SGE) understands your questions in a natural way and makes finding info easy, without needing to click on actual links.

❓️ How it works

Imagine searching for "best running shoes for flat feet." Instead of a jumble of websites,

• SGE gives you a breakdown curated by Google's AI

• It could highlight top picks based on reviews (reviews seem to be an important source for SGE), discuss features and even show shipping options

🚩 Bad on Search?

A recent study by SE Ranking, an SEO platform, analyzed 1 billion queries across nine industries to see how SGE impacts ecommerce. The results:

• For ecommerce queries, SGE displayed an answer 49% of the time.

• Among those, 72% were "opt-in" – meaning that the user had to click on a button to see the SGE result (this could potentially push ecommerce sites further down the search page).

A post by Malte Landwehr, Head of SEO at idealo, found that 6 out of the top 10 losers in ranking were ecommerce sites. 

No ecommerce site made it to the top 50 winners in terms of ranking changes due to SGE, according to the same post.

🛍️ Yet good for ads?

On the other hand, a new study by SE Ranking looked at 100,000 keywords and found that shopping ads are mostly placed above the SGE results, suggesting Google prioritizes their visibility.

So, what does this mean for online retailers? The good news is SGE has good and bad use cases for shoppers. They can discover new products and find helpful comparisons, all within the SGE results.

Plus, shopping ads seem to be displayed often alongside SGE, sometimes above the SGE snippet itself, making price comparisons easy.

Reviews are also a big part of SGE’s results, meaning companies should make their reviews public and, if possible, get them as high rated as possible.

Disclaimer: The information provided is for general informational purposes only and should not be construed as professional advice. Consult with a qualified professional for specific guidance related to your business.

The European Commission is investigating AliExpress

📝 What’s the DSA?

The European Commission (EU) has launched an investigation into AliExpress suspecting it of violating the Digital Services Act (DSA).

• The DSA aims to make online platforms more accountable for the content they host for a safer and cleaner digital space

💻️ The site’s content

So, what exactly has AliExpress done to raise red flags? The EU is particularly worried about the spread of illegal and harmful content. This includes:

• Fake medicines, food, and dietary supplements: The EU is concerned that these products could pose a serious health risk to consumers?

• Pornographic material: Is AliExpress doing enough to prevent minors from accessing pornographic content?

• Hidden links and dodgy influencers: Is AliExpress turning a blind eye to sellers using sneaky tactics to sell non-compliant products? Influencers promoting harmful or illegal items could also be in trouble.

🔎 Does AliExpress even care?

Beyond content concerns, the investigation will also look into how AliExpress handles things like:

1. Content moderation: Is AliExpress doing enough to remove harmful or illegal content from its platform?

2. Transparency in advertising: Are buyers getting clear and honest information about the products they see advertised?

3. Data access for researchers: Does AliExpress give researchers the necessary data to study online trends and potential risks?

It's the first time the EU has investigated an online marketplace under the DSA. If the allegations are true, AliExpress could get hefty fines and be forced to tighten its content moderation and safety measures.

Meet the king of Latin American ecommerce

📦️ The face of Latin America

Meet Mercado Libre.

As the biggest ecommerce platform in Latin America, it's become a household name in Brazil, Argentina, and Mexico.

Here’s some fast facts on Mercado Libre:

• They have over 65 million buyers visit the site every month

• They have roughly 12 million sellers

• They get 29 orders every second

This dominance isn't by accident. Mercado Libre is riding a wave of growth in Latin America, where people are turning more to online shopping and digital payments.

They have a powerful logistics network, handling nearly 50% of all deliveries themselves.

🥊 Staying competitive

But competition is heating up, with Amazon setting their sights on Latin America, and Asian giants like Shein and Temu coming in too.

To stay ahead of the game, Mercado Libre is making a $2.5 billion investment in 2024 to:

• Expand warehouses

• Improve logistics

• Offer even more credit options to buyers

• Upping salaries for employees

• Investments in marketing and technology.

One exciting area of focus is Artificial Intelligence (AI). Mercado Libre is using AI to make the shopping experience smoother and faster.