Temu Surpasses Monthly Amazon App Downloads

The perfect combination of low-cost products, free and fast shipping, and personalized purchase recommendations have helped Temu to successfully replicate the meteoric growth of its sister app, Pinduoduo, in overseas markets.

September 27, 2024

🛍️ Hey, Retailist Roundup readers! As we gear up for the weekend, let’s take a look at the latest happenings in the world of retail and e-commerce.

News from Retailist

The perfect combination of low-cost products, free and fast shipping, and personalized purchase recommendations have helped Temu to successfully replicate the meteoric growth of its sister app, Pinduoduo, in overseas markets.

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In the news: Top headlines this week

PayPal to allow cryptocurrency buying, holding and selling for US merchants. PayPal announced that U.S. merchants can now buy, hold, and sell cryptocurrency through their business accounts. This move follows the growing acceptance of cryptocurrency, especially after the U.S. SEC approved bitcoin exchange-traded funds. PayPal's decision responds to business owners' increasing demand for the same cryptocurrency features available to consumers. [Reuters]

Starbucks Stock Downgraded Amid CEO ‘Overdone Hype’. Starbucks' new CEO, Brian Niccol, is facing criticism for what some experts are calling "overdone hype" surrounding the company's stock, which has surged nearly 30% since August. Due to uncertainty over the next 12 months, Jefferies analyst Andy Barish downgraded Starbucks' shares to Underperform and lowered the price target to $76.65. Barish believes the stock's recent gains will stall and retrace as the focus shifts to company fundamentals. [Retail Wire]

Amazon increases hourly pay by $1.50, adds free Prime membership for thousands of workers. Amazon announced its "biggest ever investment in pay and benefits," dedicating over $2.2 billion to raise hourly pay by at least $1.50 for 800,000 full-time fulfillment and transportation employees. Workers will also receive a free Prime membership and immediate access to language classes. The wage increase brings the average hourly rate to over $22, though still below the retail industry average of $24.57. Including healthcare and other perks, Amazon claims total compensation exceeds $29 per hour. [Retail Dive]

Amazon launches AI-powered video ad generator ahead of the holidays. Amazon has introduced a new AI-powered tool that transforms product images into video ads, available in beta as part of its Sponsored Brands campaign suite at no extra cost. French skincare brand Gellé Frères is testing the feature ahead of Black Friday. Amazon also revealed a live image capability that adds dynamic elements, like steam from a coffee cup, to static images. These innovations reflect a broader push by digital platforms to use generative AI to boost ad spending. [Retail Dive]

Depop can now generate product descriptions from just one photo. Depop is leveraging generative AI and image recognition technology to help sellers create product descriptions, the fashion resale platform announced on Sept. 12. Users can upload a photo, and the tool will generate listing descriptions, including details like color, category, hashtags, and brand. The descriptions are tailored to match Depop's community tone and are currently available in English-speaking countries. [Retail Dive]

Many Americans Believe $100K Income Is Required To Live Comfortably. Money issues, particularly high-interest debt and rising living costs, are a major source of anxiety for many. A recent Edelman Financial Engines survey found that 58% of respondents would feel more comfortable with their expenses if they earned at least $100,000 annually, while 25% felt they needed $200,000. According to Amin Dabit, external factors like inflation and economic uncertainty, along with personal responsibilities, contribute to financial stress. [Retail Wire]

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