🌀 Can Temu blitz
continue in 2025? 🕵️

Welcome to MarketMaze, the #1 newsletter for staying on top of the latest in Marketplace and E-commerce. Get all the insights you need in just five minutes a week!

🌀This week’s maze:

1. The Big Story 🧠
What's with Temu?

2. Data 📊
Discounts vs Add-to-cart and purchases

3. News 📖
🗞🇪🇺 eBay expands Klarna BNPL to 7 European countries
🗞🇺🇸 Automattic ordered to restore WP Engine access
📣🇪🇺 Google ends ‘blue links’ test, presses EU
📣🇦🇺 Australia pressures Big Tech to pay for news
🦄🇫🇷 Mirakl acquires Adspert to boost e-commerce ads
🦄🇵🇰 Laam secures $5.5M for South Asian fashion growth

+ over 15 other hot news from the last week you need to know 🔥

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Based on recent data from SMEC (1,2), Google Trends and Momentum Works we can assume Temu will continue to be visible in 2025 potentially at the level from Q4 2024

📈 Temu Leads Global E-Commerce in 2024

2024 marked Temu’s rise, following the trends set by Shein in 2023 and Wish.com in 2021.

Google search interest for Temu skyrocketed in 2024, making it a major e-commerce player.

Shein’s dominance peaked in 2023, and Wish.com led briefly in 2021 before fading.

📉 Slowdown Mirrors Wish.com’s Decline

Temu’s visibility slowed in 2024, echoing Wish.com’s rapid decline after 2021.

Google Ads visibility for Temu dropped significantly in 2024.Wish.com vanished from Google searches entirely by 2022.

Rising competition from Amazon highlights the saturated market Temu faces.

🛒 Black Friday Data Highlights Competition Drop

Black Friday 2024 data reflects Temu’s reduced advertising efforts.

Only 40% of advertisers competed with Temu in 2024, down from 70% in 2023.

💰 PDD Reports Record Revenues

Despite Temu’s continued marketing push (although at lower levels), parent company PDD reported exceptional financial results.

PDD’s Q2 2024 net income doubled compared to Q2 2023, showing strong profitability.

Rising sales and marketing expenses underline PDD’s ongoing investment in Temu.

Financial backing from PDD could sustain Temu’s position into 2025 and beyond.

ECDB recently shed some light on the Add-to-Cart (ATC) vs discount rate relation.

• A 10 percentage point (p.p.) increase in discount rate leads to a 7.5% rise in add-to-cart (ATC) rate, but with an 80% cart abandonment rate, this translates to only 1.5% more sales.

• ‍5p.p.increase in discounts drives a 3.74% higher ATC rate, while a 20p.p.increase results in a 14.96% gain.

• These effects vary significantly across industries and regions – e.g., German fashion markets behave differently from Bulgarian electronics, making localized discount strategies essential.

🇺🇸 Google Shifts Search Ads Beyond Keywords. Google is testing keywordless search ads, replacing traditional keywords with search themes and audience signals. Advertisers can input themes like “recliners” instead of bidding on keywords. The full launch may come in 2025.

🇺🇸 Etsy overhauls leadership with key promotions. Etsy promotes Kruti Patel Goyal to chief growth officer, names Lanny Baker CFO, and appoints Brad Minor as CMO. The shakeup follows mixed Q3 results, including $662.4M in revenue but a $30.5M net income drop.

🇫🇷 Mirakl leads marketplace development in 2024. Mirakl named leader in Forrester Wave™ Q4 2024 report. Recognized for AI, Retail Media, seller onboarding. Helps businesses like Saks and Coca-Cola Hellenic innovate with marketplaces. Scored highest in 21 of 33 criteria, simplifying eCommerce growth.

🇺🇸 Alibaba’s Pic Copilot targets US SMEs. Alibaba launches Pic Copilot in the US, an AI design tool for SMEs. It enhances imagery, supports virtual try-ons, and saves $200/user. Black Friday users generated 80K images, boosting sales. Now offers 50 free credits for US SMEs.

🇳🇱 Mollie and PayPal team up for EU payments. Mollie and PayPal join forces to simplify marketplace payments across Europe, offering seamless options like BNPL, local methods, and gift cards, with reduced operational costs through Mollie Connect’s streamlined support and integration.

▶🇬🇧 Royal Mail launches exclusive parcel lockers. Royal Mail will roll out 250 exclusive parcel lockers by early 2025, starting in London. These lockers will enhance convenience for online shoppers, sellers, and returns, offering 24/7 access in high-traffic areas.

▶🇩🇪 DHL unveils AI tools to boost customer experience. DHL Supply Chain launches AI tools to clean data, speed up quotes, and enhance legal and customer support. Developed with BCG X, these innovations ensure efficient logistics and personalized services, enhancing customer satisfaction globally.

▶🇮🇳 Amazon launches Freight and Shipping in India. Amazon has launched Amazon Freight and Amazon Shipping in India. These services offer businesses streamlined logistics, covering 14K+ pin codes. They aim to simplify B2B and B2C shipping with reliable, cost-effective solutions.

▶🇫🇷 Mirakl acquires Adspert to boost e-commerce ads. Mirakl acquired Adspert, a German ad optimization startup, adding 30 employees to its team. With $555M raised in 2021, the French company is strengthening its retail media capabilities for clients like Carrefour and Best Buy.

▶🇵🇰 Laam secures $5.5M for South Asian fashion growth. Laam raised $5.5M in funding to connect 1,200 South Asian fashion sellers with buyers in 100+ countries, led by Disrupt.com and Zayn VC. With machine learning and global logistics, Laam plans UAE and U.S. expansions in 2025.

▶🇩🇪 The Platform Group enters B2B finance market. The Platform Group acquired a 50.1% stake in FirstWire GmbH, a Cologne-based B2B finance platform, on Dec 9, 2024. The deal strengthens its service goods segment, with completion expected in Jan 2025. The price remains undisclosed.

▶🇮🇳 Culture Circle raises $2M to go global. Culture Circle, India’s luxury sneaker marketplace, raises $2M from Info Edge Ventures to grow globally. Founded by Devansh Jain and Ackshay Jain, the app has 1M+ users, 4K sellers, and ranks among top shopping apps in India.

▶🇶🇦 Hudhudshop raises six-figure pre-seed funding. Hudhudshop, a Qatar e-commerce platform, raised a six-figure pre-seed round. Launched in 2021, it distributes Turkish products across the Gulf. Funds will boost tech, loyalty programs, and future investments, said CEO Tarek Moein.

That’s all. See you next time in the 🌀Maze!