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FTC: Amazon Duped Consumers into Prime, Then Made It Hard to Leave

| Mike O'Brien

The Federal Trade Commission has filed suit against Amazon, alleging it duped millions of consumers into signing up for its Prime subscription program, then made it difficult for them to quit, an allegation the company vigorously denies. The FTC claims Amazon intentionally complicated the cancellation process, adding it “slowed or rejected changes that would’ve made it easier …”

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Alt-Commerce: The Future of Consumer Buying and Selling

| Olivia Viniss

In recent years, a new wave of non-traditional, alt-commerce models has emerged, challenging our assumptions about consumer purchasing and preferences. Alt-commerce represents a radical shift in the way people buy and sell products. Innovation and technological advances, coupled with the need to foster closer customer relationships, have given rise to new selling channels.

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Prime Day Squares Off Against Walmart, Target Deal Days

| Mike O'Brien

Let the Prime Day show begin! Or rather, make that shows, as Target and Walmart are once again offering up competitive summer bargain events as each tries to shake off the economic doldrums, steal the other’s thunder and stir up consumer interest in a raft of online savings. Amazon could use a win considering all the heat it’s facing, although expectations aren’t set high.

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REI Ups Circular Efforts With Second New Store for Old Gear

| Ian McRae

Outdoor retailer giant and sustainability market leader REI announced plans to open a new circular Re/Supply location in Clackamas, Oregon in late August 2023.  The new store follows REI’s Re/Supply store in Manhattan Beach, California, which opened in 2020. The new store location will feature lightly used gear and apparel that REI receives through its returns and trade-in programs.

The Growing Importance of Sustainability: How Should Retailers Respond?

| Brian Kilcourse

For retailers, sustainability encompasses everything from ethical sourcing and social responsibility on factory labor to environmentally conscious manufacturing processes and reducing the carbon footprint associated with bringing products to market, and all the way to product end-of-life recycling. The reason: consumers have clear ideas about what “sustainability” means when shopping for products.

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Online Prices See Largest Year-Over-Year Drop Since Pandemic Onset

| Mike O'Brien

Online prices continue to fall as inflationary pressure has eased and retailers discount to clear out stocks ahead of Q4 ordering. Prices were down 2.3% year-over-year in May, the largest drop since the onset of the pandemic, and down 1.2% from April 2023, according to Adobe Analytics. It was good news for consumers but bad news for retail ledgers. Big-ticket categories remain challenged.

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How Generative AI Wins Shoppers, Converts Browsers

| Chinedu Eleanya

Despite concerns about what generative AI heralds for society and humankind, in the form of warning letters from prominent tech executives and academics, many consumers are excited about the prospects for the technology. Like every technology-driven shift in commerce, smart merchants will take a customer-first mindset when evaluating available generative AI solutions and investments. 

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Trader Joe’s on Why It’s Just Not That Into Ecommerce

| Mike O'Brien

Trader Joe’s, the distinctive small-scale-yet-nationwide grocery chain that feels more like a Starbuck’s without the pricey coffee and wifi, has thus far resisted the market pressure to follow the rest of its industry brethren into ecommerce, and explained its rationale in a podcast episode. Hint: it has to do with fulfillment and supply chain costs hitting prices, and maintaining the experience.

The INFORM Act: What You Need to Know

| Mike O'Brien

The INFORM Act goes into effect June 27, to help stem the tide of counterfeit goods on ecommerce marketplaces. The FTC can impose fines and injunctions against marketplace operators that don’t provide information on high-volume sellers. Alexandra Megaris of Venable LLP helps us gain a better understanding of its ramifications.