E-COMMERCE

Google

Google has made it easier for retailers to get discovered across its AI surfaces and added shopping features to YouTube to make it easier for people to buy directly while watching videos.

At its annual Rethink event in September, Google introduced a new AI performance insights tab within Merchant Center that will give retailers a look at what users are typing when shopping for products. This feature is unique because retailers will be able to see the language used by shoppers on Google’s AI surfaces like AI Mode, as opposed to synthetic prompts or guesswork offered by other tools on the market, Jason Goldberg, chief commerce strategy officer and Publicis Groupe, told Retail Brew.

“This AI performance insight is the first time we have real user data on how people are actually using the surface with AI to shop, and so that’s a very important new data signal,” Goldberg said.

The tech giant also started beta testing its business agents (or AI chatbots that customers can use to chat with brands), first announced in January for YouTube ads and asked retailers in the US to try it out. “This is what’s really emerging as a big trend at the moment is these new AI ad formats that are essentially conversations with an ad [or] chat ads,” Sky Canaves, eMarketer analyst for retail and e-commerce, told Retail Brew.

Keep reading here.—VC

      

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By putting Pay Later upstream—on product pages, in cart previews, and in pre-checkout messaging—shoppers see the option way before they’re weighing whether to hit “buy now.” For planning past the holiday rush, this is less of a Q4 tactic and more of a foundation for the year ahead. Merchants who move Pay Later messaging upstream and add a second button see a +13.5% increase in PayPal sales.³

According to data from PayPal, 96% of Pay Later customers are repeat customers.² By bringing Pay Later into the customer experience, you could earn that kind of loyalty.

Grow your business today.

OPERATIONS

Kinga Krzeminska/Getty Images

As anyone who ever mistakenly bought a “What is Even Happening” triple-XL T-shirt can tell you, returns are an inevitable part of the retail business.

Last year, retailers estimated that 15.8% of their annual sales would be returned, for a total of $849.9 billion, which was in line with 2024’s returns rate of 16.9% totaling $890 billion, according to a report from the National Retail Federation and Happy Returns, a returns software and reverse logistics company from UPS.

But CFOs need to get greater visibility into the full scope of their costs before they can rest easy about their returns strategy, one CFO told us.

Keep reading here on CFO Brew.—NP

      

COMMUNITY

Brian Tu

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

Brian Tu is chief revenue officer at fulfillment company DCL Logistics, which works with companies like Therabody and Magic Spoon.

How would you describe your job to someone who doesn’t work in retail? We are the engine behind retail. DCL Logistics stores, packs, and ships for brands, getting a package to your doorstep or a pallet to a major retailer. If a retailer asks for 2X an order, with new packaging, and in less time, we make it happen—getting products delivered on time and in full.

One thing we can’t guess about your job from your LinkedIn profile? I’m more of an air-traffic controller for fulfillment. I spend my days talking with brand leaders about growth, launches, retail, and marketing. I love connecting them with the people, ideas, and expertise that can help them get there.

What’s your favorite project you’ve worked on? During Covid-19, we volunteered our time to ship PPE to hospitals, offices, and retailers. It was a fast turnaround to do it, but incredibly rewarding to use our infrastructure for good.

Which emerging retail trend are you most excited about right now, and why? I’m really excited about the rise of everywhere-commerce. The emergence of true omnichannel retail.

Keep reading here.—EC

      

Sponsored By PayPal

Early bird gets the bigger cart. Holiday shoppers browse differently when they know Pay Later is an option. That’s why product pages, cart previews, and pre-checkout messaging need to say so. Merchants who move Pay Later messaging upstream and add a second button see a 13.5% increase in PayPal sales.¹ Enable it today.

swapping skus

Today’s top retail reads.

Into the breach: Online apparel retailer Asos told users their personal data such as names and contact information were leaked in a suspected cyber attack, sending shares falling. (Bloomberg)

Lap of luxury: British retail company Frasers Group launched a luxury division to house its retail operations along with stakes in fashion brands like Burberry, Mulberry, and Hugo Boss. (Business of Fashion)

Priced out: Walmart defended its pricing practices and patents amid a back-and-forth with advocacy group Groundwork Collaborative after the group released a report accusing the retailer of using new technology for dynamic pricing. (Retail Dive)

^{*A message from our sponsor.}

Retail Brew

Retail Brew’s reporters take stock of brick-and-mortar retail: what’s working, what’s struggling, and where store strategy is headed as the holiday rush nears.