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Transcript

eCommerce News Update: Amazon AI Shopping, TikTok Shop, Tariffs, and Stripe’s $53B PayPal Bid · Selling on Giants: The eCommerce Marketplace Podcast

• 0:00
  SPEAKER_00: Welcome back to Selling on Giants.
• 0:01
  SPEAKER_00: I'm your host, Mr.
• 0:02
  SPEAKER_00: Will, and this week the biggest story is not one platform update.
• 0:07
  SPEAKER_00: It is the growing fight over who controls the customer before, during, and after the purchase.
• 0:13
  SPEAKER_00: Amazon is moving deeper into sourcing, inventory, compliance, and AI recommendations.
• 0:20
  SPEAKER_00: TikTok is reportedly testing whether it can run a seller's advertising, creators, content, and growth strategy.
• 0:28
  SPEAKER_00: DoorDash and Instacart are turning local store inventory into marketplaces.
• 0:34
  SPEAKER_00: Google is moving shoppers from an AI conversation into a retail cart.
• 0:39
  SPEAKER_00: And Stripe is trying to buy PayPal in a deal that could reshape the payment layer underneath all of it.
• 0:45
  SPEAKER_00: Every one of these stories points in the same direction.
• 0:48
  SPEAKER_00: The platforms do not just want to process the transaction, they want to own more of the operating system around commerce.
• 0:56
  SPEAKER_00: Before we get into that platform battle, we need to start with tariffs, because Q4 landed cost assumptions could change quickly.
• 1:03
  SPEAKER_00: The temporary 10% import surcharge that began in February was imposed for 150 days, putting its current endpoint on July 24th unless it is extended or replaced.
• 1:16
  SPEAKER_00: At the same time, the United States Trade Representative imposed a 25% tariff on most imports from Brazil with specific exemptions, effective July 22nd.
• 1:28
  SPEAKER_00: Separate forced labor investigations covering dozens of economies could create additional duties later.
• 1:34
  SPEAKER_00: The operator takeaway is not to panic and rebuild the supply chain.
• 1:38
  SPEAKER_00: It is to stop finalizing purchase orders, pricing, and holiday promotions using one landed cost assumption.
• 1:45
  SPEAKER_00: Product classification matters.
• 1:47
  SPEAKER_00: Country of origin matters.
• 1:49
  SPEAKER_00: The customs entry date matters.
• 1:52
  SPEAKER_00: Exclusions matter.
• 1:53
  SPEAKER_00: If you are placing Q4 orders now, work through multiple scenarios with your customs broker.
• 1:59
  SPEAKER_00: Confirm the HTS classification and expected entry date, then decide how much risk belongs in pricing, promotional planning, and purchase quantities.
• 2:10
  SPEAKER_00: Trade policy is becoming a permanent operating variable.
• 2:13
  SPEAKER_00: Amazon's latest account deactivation guide reinforces the same need for operational ownership.
• 2:20
  SPEAKER_00: The guide does not introduce a new policy, but it consolidates the performance, verification, authenticity, intellectual property, and restricted product issues that commonly lead to deactivation.
• 2:34
  SPEAKER_00: The useful part is the reminder that account emergencies usually begin as smaller notifications that someone ignored, misunderstood, or assumed another person was handling.
• 2:45
  SPEAKER_00: Account health needs a named owner.
• 2:47
  SPEAKER_00: One person should review account health and performance notifications every business day, escalate unclear requests quickly, and maintain the documentation the business may need before Amazon asks for it.
• 3:00
  SPEAKER_00: That includes invoices, supplier records, authorization letters, test reports, certificates, identity records, and tax information.
• 3:10
  SPEAKER_00: The worst time to discover that the supplier invoice is incomplete is after Amazon has removed the listings and revenue is already at risk.
• 3:18
  SPEAKER_00: Growth does not matter if the account is fragile.
• 3:22
  SPEAKER_00: Amazon is also extending its control farther upstream with global warehousing and distribution.
• 3:28
  SPEAKER_00: GWD expanded into Shanghai on July 16th, joining Shenzhen, and Amazon added support for FOB shipping terms across its GWD locations.
• 3:40
  SPEAKER_00: Eligible shipments received through the end of the year can receive 30 days of free storage, and Amazon says storage can cost up to 45% less than United States Amazon warehousing and distribution.
• 3:53
  SPEAKER_00: For China sourced brands, the pitch is straightforward.
• 3:56
  SPEAKER_00: Keep bulk inventory closer to the factory.
• 3:59
  SPEAKER_00: Let Amazon manage movement into the United States FBA network based on demand and reduce the amount of slow-moving stock sitting in higher cost domestic storage.
• 4:10
  SPEAKER_00: There is potential there, but sellers need to evaluate the trade-off honestly.
• 4:15
  SPEAKER_00: Lower storage costs and automated replenishment are attractive.
• 4:20
  SPEAKER_00: Greater dependence on Amazon for international freight, inventory positioning, and replenishment creates concentration risk.
• 4:28
  SPEAKER_00: I would price a controlled test shipment and compare the full economics against the current freight forwarder, overseas warehouse, third-party logistics provider, AWD, and Direct to FBA model.
• 4:43
  SPEAKER_00: Amazon is becoming a supply chain company that also runs a marketplace.
• 4:48
  SPEAKER_00: But that does not mean Amazon should automatically own every link in your supply chain.
• 4:54
  SPEAKER_00: The most interesting Amazon story this week is the early data around Alexa for shopping recommendations.
• 5:01
  SPEAKER_00: Marketplace Pulse reviewed a study covering nearly 2,000 non-branded queries and more than 12,000 recommendations.
• 5:08
  SPEAKER_00: Almost two-thirds of Alexa's recommendations fell outside the corresponding organic top 10, and more than 40% did not appear on the visible search results page at all.
• 5:20
  SPEAKER_00: That suggests Amazon is building a second shelf.
• 5:22
  SPEAKER_00: The first shelf is traditional search, where organic rank, sponsored placements, price reviews, availability, and conversion determine what shoppers see.
• 5:34
  SPEAKER_00: The second shelf is conversational.
• 5:36
  SPEAKER_00: A customer explains the outcome they want, and Amazon's AI decides which products are appropriate, sometimes reaching deeper into the catalog.
• 5:45
  SPEAKER_00: This creates opportunity for smaller brands, but only if the product data gives the AI something useful to work with.
• 5:53
  SPEAKER_00: Alexa needs to understand who the product is for, what problem it solves, which specifications matter, what it is compatible with, and why it fits the request.
• 6:04
  SPEAKER_00: Traditional search is not disappearing.
• 6:07
  SPEAKER_00: Sponsored products and organic rank still matter, but brands may now need to optimize for two discovery systems at once, and the second appears more willing to look beyond established search leaders.
• 6:19
  SPEAKER_00: This is exactly the kind of complexity that creates decision fatigue.
• 6:24
  SPEAKER_00: Teams hear tariffs, GWD, Alexa recommendations, TikTok managed services, Google AI shopping, and new local marketplaces, then assume they need to chase everything at once.
• 6:38
  SPEAKER_00: They do not.
• 6:39
  SPEAKER_00: Bellivix has helped brands sell over$500 million on Amazon, and we are a verified ad partner.
• 6:47
  SPEAKER_00: The value is not knowing that every new feature exists.
• 6:51
  SPEAKER_00: The value is knowing which changes matter to the account, where the economics work, and what the team should ignore.
• 6:58
  SPEAKER_00: We turn marketplace complexity into a clear operating plan across advertising, catalog, creative, inventory, and compliance.
• 7:08
  SPEAKER_00: If the number of channels and platform changes is outrunning your team's ability to make good decisions, visit Bellovics.com.
• 7:16
  SPEAKER_00: TikTok is pushing the question of platform control even further.
• 7:20
  SPEAKER_00: Business Insider reported that TikTok Shop is recruiting sellers for a managed services pilot expected to begin in August.
• 7:29
  SPEAKER_00: Under the reported model, TikTok would manage much of the seller's marketing, GMV Max advertising, creative testing, listing optimization, creator recruitment, and content production.
• 7:39
  SPEAKER_00: The reported price is a$10,000 flat fee plus a commission of 10 to 20% per sale, depending on category.
• 7:48
  SPEAKER_00: TikTok has not publicly confirmed the final terms, so brands should treat this as a reported pilot, not a broadly available program.
• 7:58
  SPEAKER_00: The strategic direction is still clear.
• 8:00
  SPEAKER_00: TikTok does not just want to host the marketplace, it is testing whether it can become the agency, media buyer, creator manager, content studio, and growth team surrounding the seller.
• 8:13
  SPEAKER_00: That may appeal to a brand that does not want to build an internal TikTok operation.
• 8:18
  SPEAKER_00: It may also become expensive once the brand includes the flat fee, commission, advertising, samples, fulfillment, returns, and cost of goods.
• 8:28
  SPEAKER_00: The bigger concern is control.
• 8:30
  SPEAKER_00: Who owns the creative and creator relationships?
• 8:33
  SPEAKER_00: How transparent is the reporting?
• 8:36
  SPEAKER_00: Can the seller control pricing and messaging?
• 8:38
  SPEAKER_00: What happens when the pilot ends?
• 8:40
  SPEAKER_00: And how comfortable should a brand be allowing the platform collecting the fees to also make the decisions that increase platform spend?
• 8:49
  SPEAKER_00: Any brand approached for the pilot should ask TikTok to put the full economics, ownership terms, and exit conditions in writing before committing.
• 8:58
  SPEAKER_00: At the same time, AI-generated videos are flooding TikTok shop.
• 9:03
  SPEAKER_00: TikTok's tools can generate shoppable videos from product assets, while the open affiliate system allows creators to promote eligible products without a direct brand relationship.
• 9:14
  SPEAKER_00: That creates enormous content scale, but it also creates a brand control problem.
• 9:19
  SPEAKER_00: A synthetic demonstration can make a product appear larger, faster, safer, or more effective than it really is.
• 9:27
  SPEAKER_00: An AI disclosure does not make a false demonstration acceptable.
• 9:31
  SPEAKER_00: Customers may still associate the claim with the brand even when the brand never approved the video.
• 9:37
  SPEAKER_00: Shark Ninja has reportedly prohibited AI-generated affiliate content in its program.
• 9:43
  SPEAKER_00: Other brands may make a different decision, but every TikTok shop seller now needs a policy.
• 9:50
  SPEAKER_00: Define acceptable uses, prohibited claims, disclosure expectations, and a process for reviewing the videos driving the most views and sales.
• 9:59
  SPEAKER_00: AI makes content abundant, trust becomes scarce.
• 10:03
  SPEAKER_00: Now let's move beyond traditional marketplaces because DoorDash and Instacart are turning local inventory into commerce infrastructure.
• 10:13
  SPEAKER_00: DoorDash is now a native sales channel inside Shopify for eligible United States merchants with physical stores.
• 10:21
  SPEAKER_00: Merchants can publish selected products to the DoorDash Marketplace, synchronize inventory through Shopify, receive the order in Shopify, and have a Dasher pick it up from the store.
• 10:33
  SPEAKER_00: This does not turn DoorDash into the delivery provider for every order placed on the brand's regular Shopify site.
• 10:40
  SPEAKER_00: It creates a new marketplace storefront inside DoorDash.
• 10:44
  SPEAKER_00: For local retailers, this lowers the burden of testing another channel.
• 10:49
  SPEAKER_00: Specialty food, gifts, sporting goods, beauty, pet, apparel, and home products that customers want quickly may fit.
• 10:57
  SPEAKER_00: But the economics still need to include DoorDash commissions, store-picking labor, packaging, refunds, and channel-specific pricing.
• 11:06
  SPEAKER_00: Instacart is making a similar move beyond grocery through a nationwide tractor supply partnership.
• 11:12
  SPEAKER_00: More than 2,400 stores are now available for same-day delivery of pet food, livestock supplies, tools, hardware, lawn products, and other rural lifestyle merchandise.
• 11:24
  SPEAKER_00: The fastest growing marketplaces may not look like marketplaces.
• 11:28
  SPEAKER_00: They may look like delivery apps connected to existing retail inventory.
• 11:32
  SPEAKER_00: Google's new Instacart integration moves that model one step further.
• 11:36
  SPEAKER_00: A customer can use AI mode in Google Search to plan something like a barbecue, build the grocery list, and add the ingredients into an Instacart cart.
• 11:45
  SPEAKER_00: The shopper still reviews the cart and checks out through Instacart, but the product selection process begins inside an AI conversation.
• 11:52
  SPEAKER_00: Search is becoming an action layer.
• 11:54
  SPEAKER_00: The customer describes an outcome.
• 11:57
  SPEAKER_00: AI assembles the basket.
• 11:59
  SPEAKER_00: A retail partner fulfills it.
• 12:02
  SPEAKER_00: For brands selling through Instacart or local retail partners, availability, attributes, images, retailer content, pricing, and category placement become inputs into whether the AI selects the product.
• 12:17
  SPEAKER_00: Machine readable product data is becoming shelf placement.
• 12:20
  SPEAKER_00: Finally, the payment layer may be heading toward major consolidation.
• 12:24
  SPEAKER_00: Reuters reported that Stripe and Advent International offered more than$53 billion to acquire PayPal.
• 12:32
  SPEAKER_00: PayPal has not accepted the offer, so merchants should not change payment providers based on the headline.
• 12:38
  SPEAKER_00: The reason the deal matters is bigger than the price.
• 12:42
  SPEAKER_00: Stripe brings merchant infrastructure.
• 12:44
  SPEAKER_00: PayPal brings more than 400 million consumer accounts, Venmo, wallets, buy now pay later, debit products, and global checkout relationships.
• 12:55
  SPEAKER_00: A combination would concentrate a significant amount of merchant data, consumer identity, payment behavior, and checkout infrastructure inside one company.
• 13:05
  SPEAKER_00: That becomes even more valuable as AI agents move closer to completing transactions.
• 13:12
  SPEAKER_00: The platform that owns the wallet can influence commerce just as much as the platform that owns Discovery.
• 13:18
  SPEAKER_00: When you connect the week together, the pattern is clear.
• 13:22
  SPEAKER_00: Governments are changing landed costs.
• 13:25
  SPEAKER_00: Amazon is moving upstream into inventory and sideways into AI recommendations.
• 13:31
  SPEAKER_00: TikTok is testing whether it can operate the seller's growth engine.
• 13:35
  SPEAKER_00: DoorDash and Instacart are becoming general merchandise marketplaces.
• 13:39
  SPEAKER_00: Google is connecting AI planning directly to carts, and payment companies are fighting for the infrastructure underneath checkout.
• 13:47
  SPEAKER_00: The practical takeaway is not to launch on every channel.
• 13:51
  SPEAKER_00: It is to understand who controls the customer relationship, the data, the inventory, and the economics before adding another platform to the business.
• 14:01
  SPEAKER_00: Keep the account healthy, model the landed cost, test logistics before committing, make the product data understandable, protect the brand from synthetic claims, and never confuse platform-managed growth with brand-owned growth.
• 14:17
  SPEAKER_00: If this episode helped you connect the dots, share it with someone on your team who is deciding where the business should invest next.
• 14:26
  SPEAKER_00: And if you are getting value from selling on Giants, subscribe and leave a review so more operators can find the show.
• 14:34
  SPEAKER_00: Mr.
• 14:35
  SPEAKER_00: Will here, signing off from Selling on Giants.
• 14:38
  SPEAKER_00: The platforms are building bigger ecosystems, so make sure your brand is building more control.