Google is enhancing retail with agentic commerce, where AI assists shoppers. They introduced the Universal Commerce Protocol (UCP), an open standard for seamless shopping, co-developed with major retailers. UCP will enable a new checkout feature on Google product listings. The Business Agent allows direct interaction with brands on Search. New attributes in Merchant Center will improve product discovery, and Direct Offers will provide exclusive discounts to boost sales.
Shoppers are more deliberate, with U.S. impulse buys dropping from 30% to 26%. Retailers can connect with consumers by using Google’s AI tools for discovery and advertising. AI in Search helps answer complex queries, while omnichannel offerings optimize sales. New insights in Google Merchant Center and expanded creative features enhance performance. Personalized loyalty programs are essential for retention, helping retailers succeed this holiday season.
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Temu has ceased shipping products from China to the U.S. due to new tariffs imposed by President Trump, which ended the de minimis rule and raised tariffs on Chinese goods. Consequently, U.S. shoppers faced high import charges. Temu now only lists products available in U.S. warehouses, marking items from China as out of stock. The company is shifting to a local fulfillment model and actively recruiting U.S. sellers to help local merchants reach more customers.
TikTok Shop UK has launched GMV Max, an AI-powered tool to automate advertising campaigns for brands and small businesses, cutting setup time in half. GMV Max automates campaign creation, including audience targeting and bidding, optimizing performance by identifying high-performing assets. It simplifies ad management, allowing sellers to focus on profitability.
Google Cloud is introducing AI tools for retailers, including Google Agentspace for building intelligent agents that enhance customer experiences and streamline operations. Vertex AI Search has been improved for better product discovery, while Connected Stores enhances the omnichannel experience. Retailers like Wayfair are leveraging these tools for efficiency. Partnerships with NVIDIA and Everseen focus on optimizing marketing and in-store experiences.
Amazon is allowing retailers to use its advertising tools to run sponsored ads on their websites, simplifying targeted ad campaigns. The Amazon Retail Ad Service enables companies to display relevant ads on their sites, initially available for U.S. retailers for a fee. Amazon's ad revenue reached $14.3 billion, ranking third in digital advertising. The service allows customization of ads and uses AWS for data management, potentially enhancing Amazon's ad technology.
Meta Platforms Inc. will publish eBay listings on Facebook Marketplace to comply with a €798 million EU antitrust order. The test will occur in Germany, France, and the US, allowing users to browse eBay listings while completing transactions on eBay. Despite these changes, Meta disagrees with the EU's ruling and is appealing it. The EU's order mandates compliance within 90 days, following a crackdown on Big Tech by former competition chief Margrethe Vestager.
Cut+Dry and Instacart have partnered to enhance advertising in foodservice by integrating Instacart's Carrot Ads technology into Cut+Dry's platform. This collaboration provides food manufacturers and distributors better access to buyers and new revenue opportunities. It allows brands to influence purchasing decisions directly and expand their reach in the foodservice market, driving growth and increasing sales.
Gemini models and generative AI are transforming retail by personalizing shopper experiences, automating customer service, enhancing marketing, improving operations, and identifying trends. Retailers like Victoria’s Secret, Best Buy, Estée Lauder, Woolworths, and Wayfair use Gemini to analyze data, automate interactions, generate content, optimize supply chains, and speed up development. These advancements help retailers meet customer needs, streamline operations, and innovate.
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