Juphy’s Weekly E-Commerce News Express – 03-07 March 2025
Ceyda Duz
This week’s e-commerce news brings exciting updates on key industry shifts. We explore the beauty industry’s move towards e-commerce and social commerce, Amazon’s strategic expansion with Amazon Haul, and the latest innovations from FedEx, LegitScript, and Skydeo. Discover how these industry leaders are adapting to the evolving market, enhancing customer experiences, and driving future growth in the world of online retail.
Beauty Retail’s Shift: From Foot Traffic to Digital Dominance
The beauty industry has seen explosive growth in recent years, with brick-and-mortar stores benefiting from strong foot traffic between 2021 and 2023. However, that momentum has started to slow. Recent data reveals a slight dip in physical store visits, signaling a shift in consumer behavior rather than a decline in demand.
E-Commerce and Social Selling Reshape Beauty Shopping
While in-store growth is stabilizing, online beauty sales are on the rise. Currently, 41% of all beauty and personal care purchases happen digitally, with Amazon leading the charge. A significant portion of this growth comes from shoppers moving away from traditional retailers like Walmart and Target, opting instead for the convenience of online marketplaces.
Beyond e-commerce, social commerce is rapidly gaining traction. Platforms like TikTok are driving impulse purchases, with around 6% of global beauty sales now happening through social selling. TikTok alone has captured roughly 3% of the market in under two years, highlighting the platform’s growing influence on beauty shopping trends.
Consumer Preferences: Indie, Sustainable, and Unique
Shoppers aren’t just changing where they buy but also what they buy. Smaller, independent beauty brands are experiencing faster growth than major legacy brands. In fact, brands outside the top 20 are expanding at a rate of about 7%—far outpacing established players.
Sustainability is also a key factor influencing purchases. Over half of beauty shoppers are willing to pay more for eco-conscious products, and brand loyalty is becoming less of a guarantee. As a result, brands that align with ethical and sustainable values are winning over modern consumers.
The Future of Beauty Retail: Key Strategies for Success
To stay competitive in this evolving market, beauty brands and retailers must:
- Invest in Social Commerce: TikTok, Instagram, and emerging platforms are shaping the future of beauty sales, making social selling a must-have strategy.
- Support Independent Brands: Consumers are actively seeking unique, niche beauty products, creating opportunities for retailers to feature and promote these emerging brands.
- Blend Online and Offline Experiences: Exclusive in-store events, product trials, and hybrid shopping experiences can keep customers engaged.
- Prioritize Sustainability: Transparency in sourcing, eco-friendly formulations, and sustainable packaging are now consumer expectations, not just trends.
While physical store openings are slowing, retailers are finding growth in smaller cities with less competition. The beauty industry remains a powerhouse, but success now depends on adapting to changing shopping behaviors and digital-first strategies.
Amazon’s Discount Play: Expanding ‘Haul’ to Compete with Temu & Shein
Amazon is making moves to strengthen its position in the discount e-commerce space. The retail giant is reportedly planning to expand Amazon Haul, its budget-friendly storefront, into Europe later this year. The platform, launched in November and available exclusively through Amazon’s mobile app, offers low-cost fashion, beauty products, and accessories—most priced under $20.
Why Amazon Is Betting on Haul
Amazon’s European presence continues to grow, with the company generating €39.6 billion in Germany and €36.7 billion in the UK in 2024. Despite this steady expansion (8.7% and 12.7% YoY growth, respectively), competition is heating up. Fast-fashion platforms like Temu and Shein are rapidly gaining traction in Europe, pushing Amazon to refine its strategy.
Recent job listings for software development roles on the Haul team suggest that Amazon is preparing for a broader international rollout, signaling its intent to challenge low-cost rivals head-on.
Potential Roadblocks: Sustainability and Logistics
A European launch won’t come without challenges. One key issue is packaging regulations. Unlike in other markets, Amazon has phased out single-use plastic bags in Europe, replacing them with recyclable paper bags and cardboard packaging. While more sustainable, these materials are costlier, potentially impacting Haul’s already slim profit margins.
What’s Next?
With Haul, Amazon aims to stay competitive in the budget e-commerce space, leveraging its logistics network and trusted brand name to attract price-sensitive consumers. If executed successfully, this move could position Amazon as a stronger alternative to Temu and Shein in the European market.
FedEx’s Picture Proof of Delivery in China
FedEx is enhancing delivery transparency in China with the launch of picture proof of delivery for residential shipments. Instead of requiring signatures, couriers now capture a real-time photo of the package at the recipient’s doorstep, which customers can instantly access via FedEx’s tracking tools and WeChat account—no login required. This initiative aims to increase trust, reduce delivery disputes, and improve the customer experience, especially in a market where e-commerce shipments are rapidly growing. By making delivery verification effortless, FedEx is adapting to evolving consumer expectations and strengthening its position in last-mile logistics.
LegitScript’s AI-Powered Risk Management Platform
LegitScript is stepping up online security with the launch of Xray AI Risk Intelligence, a cutting-edge platform designed for payment companies, e-commerce marketplaces, and online platforms. This AI-powered solution enables businesses to scan merchant websites in real time, detect policy violations instantly, and cross-check merchants against a risk database to uncover potential threats. In addition to the platform, LegitScript is introducing Risk Landscape Reports, a subscription-based service providing in-depth security insights. As online transactions continue to grow, AI-driven risk management is becoming essential for protecting platforms and consumers alike.
Skydeo’s Audience Manager for Smarter Ad Targeting
Skydeo is redefining audience targeting with the launch of Audience Manager, a powerful platform designed to help brands, agencies, and marketers discover, activate, and optimize predictive audience segments. This tool enables marketing teams to identify and engage high-value prospects seamlessly across social, mobile, connected TV, and programmatic channels. By leveraging predictive insights, Audience Manager empowers advertisers to enhance campaign precision, maximize reach, and drive better engagement in an increasingly data-driven landscape.
Winning in E-Commerce with Juphy’s AI Agent
As Amazon expands its discount storefront to compete with fast-growing platforms like Temu and Shein, staying ahead means more than just low prices—it requires exceptional customer engagement. Fast response times, seamless interactions, and personalized assistance can make or break a shopper’s experience. With Juphy’s AI-powered customer support and its multi-language feature, Shopify brands can automate responses, manage high inquiry volumes, and offer real-time shopping assistance across multiple channels in over 98 languages. This ensures that every customer gets the support they need—instantly. Want to deliver fast, frictionless support and boost conversions? Try Juphy AI for free today: apps.shopify.com/juphy
Key Takeaways
Beauty Retail’s Shift: The beauty industry is experiencing a major shift as in-store foot traffic slows, while online and social commerce sales surge. With 41% of beauty purchases happening online and TikTok rapidly influencing buying behavior, brands must adapt. Indie beauty brands are growing faster than legacy players, and sustainability is becoming a top purchasing factor.
Amazon’s Discount Play: Amazon is preparing to expand its budget-friendly storefront, Haul, into Europe. With fast-fashion competitors like Temu and Shein gaining ground, Amazon aims to capture price-sensitive shoppers with affordable fashion and beauty products. However, packaging regulations and sustainability concerns could pose challenges.
FedEx’s Picture Proof of Delivery in China: To enhance trust and reduce disputes, FedEx is rolling out picture proof of delivery for residential shipments in China. Customers can instantly view their package’s delivery confirmation via tracking tools and WeChat. This move aligns with the growing demand for transparency in last-mile logistics.
LegitScript’s AI Risk Management Platform: LegitScript has launched Xray AI Risk Intelligence, a new platform helping businesses detect merchant policy violations in real time. With the rise of online transactions, AI-driven risk management is becoming essential for fraud prevention and regulatory compliance.
Skydeo’s Audience Manager: Skydeo has introduced Audience Manager, a predictive audience segmentation tool for brands and advertisers. This platform helps optimize ad targeting across social media, connected TV, and programmatic channels—enhancing marketing precision and engagement.
