DTC Dispatch #040

LATEST NEWS

Amazon credits algorithms predicting demand with delivery milestone

Amazon Prime delivery reached a significant milestone this year: As of July 30, over 5 billion items were delivered on the same or next day of ordering, a 30% increase from the previous year. Impressively, more than 60% of these orders came from independent sellers using Amazon’s fulfillment services.

This achievement underscores Amazon's ongoing emphasis on delivery speed. In his annual letter to shareholders, CEO Andy Jassy highlighted the company's record-breaking Prime Delivery performance. In 2023 alone, Amazon delivered over 7 billion items on the same day or overnight. Jassy attributed this acceleration to “regionalization,” with Amazon expanding same-day facilities and redesigning its logistics network to bring warehouses closer to customers.

These efforts have reduced service costs, enabling Amazon to expand its product range and lower prices.

Our take: Amazon Prime hit a milestone with over 5 billion same-day or next-day deliveries by July 30, a 30% increase from the previous year. Notably, more than 60% of these orders came from independent sellers using Amazon’s fulfillment services, showcasing Amazon's logistical prowess.

CEO Andy Jassy credited this success to "regionalization," with expanded same-day facilities and redesigned logistics bringing warehouses closer to customers. This strategy boosts delivery speed and lowers costs, allowing Amazon to expand its product range and reduce prices.

However, the rise in rapid deliveries raises environmental concerns. Amazon must balance logistical advancements with sustainable practices to ensure responsible growth.

Amazon's milestone underscores its innovation and customer commitment. Addressing environmental impact will be key to maintaining its market leadership.

Etsy to launch paid buyer membership program

Etsy, in its bid to stand out in the competitive e-commerce landscape, unveiled its inaugural buyer membership initiative, named Etsy Insider, this Wednesday. The program will debut in a closed-beta format by mid-September, initially rolling out to selected U.S. customers who can opt for either seasonal or annual memberships.

Members will enjoy complimentary U.S. domestic shipping on "millions of items," a birthday perk, exclusive discounts, access to special merchandise, and more. Additionally, each member will receive an exclusive annual gift crafted by an Etsy seller. Importantly, this program does not incur any costs for Etsy sellers, with the company covering membership benefits, including free shipping, through its membership fees.

Our take: Etsy's new buyer membership program, Etsy Insider, is a smart move to boost customer loyalty and stand out in the competitive e-commerce market. With perks like free U.S. shipping, birthday bonuses, exclusive discounts, special merchandise, and unique annual gifts from Etsy sellers, the program offers significant value to its members.

Crucially, Etsy covers the costs of these benefits through membership fees, sparing sellers from additional expenses. This strategy can attract more buyers and increase platform engagement.

However, the program's success hinges on a few factors. Membership pricing must be seen as a good deal, and the closed-beta phase needs to gather useful feedback for improvements. Etsy also needs to ensure that the benefits don't alienate non-members or disrupt overall pricing.

In summary, Etsy Insider could be a game-changer by enhancing customer loyalty and setting a new standard for e-commerce memberships. By focusing on customer benefits and protecting seller interests, Etsy shows its commitment to both buyers and sellers. The coming months will reveal the program's impact on Etsy's market position and community.

Is Fashion’s Lack of Disclosure Hampering Climate Progress?

What drives the fashion industry? The short answer is we don’t know.

Even “sustainable” or “eco-friendly” clothing often relies on coal, oil, and natural gas for production. According to Delphine Williot from Fashion Revolution, it's challenging to assess the true sustainability of garments because most brands don’t disclose crucial information. While 58% of top fashion brands share their sustainable material goals, only 11% reveal the energy sources powering their supply chains. In essence, 95% of brands keep their fuel sources a secret.

This lack of transparency is frustrating, especially as global temperatures rise—July 22 was reported as the hottest day on Earth. Despite claims of “clean” or “just” transitions, there's been little information on how brands are funding supply chain decarbonization or addressing climate impacts. Fashion Revolution’s new report aims to hold the industry accountable by focusing specifically on these issues.

Our take: The lack of transparency in the fashion industry is a pressing issue, underscoring a critical gap in our understanding of what truly drives fashion’s environmental impact. While many brands tout their commitment to sustainability with claims of eco-friendly materials, the reality is often more troubling. As highlighted by Delphine Williot from Fashion Revolution, most brands fail to disclose the energy sources powering their production, leaving a significant blind spot in evaluating their true environmental footprint.

The fact that 95% of brands keep their fuel sources hidden is particularly concerning in the context of recent climate reports, such as the record-setting heat of July 22. This secrecy undermines the credibility of sustainability claims and raises questions about how genuinely committed these brands are to addressing their climate impact. The absence of detailed information about supply chain decarbonization efforts and climate protections only deepens the frustration.

Fashion Revolution’s focused report is a crucial step in demanding accountability and transparency from the industry. By zeroing in on these issues, the report aims to force brands to confront the realities of their environmental practices and push for more honest and effective solutions. It’s a necessary move towards ensuring that claims of sustainability are matched by concrete actions and transparent practices.

Actress Blake Lively Springs Into Haircare Market with Blake Brown Beauty

Blake Lively, renowned for her signature flowing locks, is stepping into the haircare industry with her new brand, Blake Brown Beauty. Created in collaboration with Give Back Beauty, this line is inspired by Lively’s personal haircare routine, featuring a range of shampoos, masks, and styling products.

"Blake Brown has been a passion project for over seven years," Lively shared. "I aimed to create a premium, salon-quality line that's cleaner, cruelty-free, sustainable, and more accessible. Performance was our top priority, which is why it took so long to perfect. I’m incredibly proud of the final products."

The initial launch includes eight products, focusing on a system that alternates between strengthening and nourishing formulas to achieve the ideal balance of strength and moisture. Although the brand doesn’t offer a traditional conditioner, it provides Nourishing and Strengthening masks designed to seamlessly fit into any haircare routine.

Our take: Blake Lively’s entry into the haircare industry with Blake Brown Beauty is a noteworthy development. Known for her iconic hair, Lively brings a personal touch to the brand, which she has developed over seven years in collaboration with Give Back Beauty. Her emphasis on creating a cleaner, cruelty-free, and sustainable line reflects a growing consumer demand for ethical and effective beauty products.

The brand’s focus on performance and quality is commendable, particularly as it aims to balance strength and moisture with its unique system of strengthening and nourishing formulas. By forgoing a traditional conditioner in favor of masks, Blake Brown Beauty offers a fresh approach that could appeal to consumers seeking versatile and effective solutions.

Lively’s commitment to a premium, salon-quality line that prioritizes both ethical considerations and performance is a significant step. It reflects a broader trend in the beauty industry toward transparency and sustainability, and her personal investment in the brand adds authenticity that could resonate well with customers. If the products live up to the promises, Blake Brown Beauty has the potential to make a meaningful impact in the haircare market.

Simone Biles Touched Up Her Makeup With This $5 Lip Liner Before Winning Gold

Last night, the spotlight was firmly on Simone Biles and the US women's gymnastics team as they clinched gold in the women's artistic team all-around final. The competition was packed with unforgettable moments: Jordan Chiles flashed a wink during her thrilling floor routine, Suni Lee turned the balance beam into her personal playground, and Brazil's Flavia Saraiva, ever the champion, pushed through a set with a bandaged eye after an injury during warmups.

The event was a showcase of gravity-defying gymnastics, intense drama, and even a surprising beauty moment. Notably, Simone Biles was spotted touching up her makeup before her floor routine, using what appeared to be NYX Creamy Lip Liner in Espresso ($5) and Fenty Beauty Invisimatte Instant Setting and Blotting Powder ($37).

Our take: The performance by Simone Biles and the US women's gymnastics team was nothing short of spectacular, underscoring their dominance in the sport as they secured gold in the women's artistic team all-around final. The event showcased not only their extraordinary athleticism but also their charisma and resilience. Jordan Chiles' playful wink and Suni Lee's effortless balance beam routines added a layer of charm and flair, while Flavia Saraiva's determination in the face of injury exemplified the spirit of true sportsmanship.

The inclusion of a beauty moment, with Biles touching up her makeup before competing, added a unique and relatable touch to the evening. It’s a testament to her multifaceted presence, blending athletic excellence with personal style. This unexpected detail not only highlights her versatility but also resonates with a broader audience, showing that even at the highest levels of competition, personal grooming and confidence play a role. Overall, the night was a compelling blend of high-stakes gymnastics and authentic personal moments, making it an event to remember.