Did you know that digital shopping is on the rise?

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The Grammy’s are over. Did your favorites win this season?

At SellerBites, we want YOU to win. 

That’s why we’re tackling how you should avoid the black hat tactics you might encounter along the way. Read on further to know more!

• Digital shoplifting is on the rise 📈
• Make shipping better for customers 📦️
• Use of AI in cyber threats 💀
• Amazon ads are back on X 📱
• What type of branding should you use? ✅

BLACK MARKET

Fortune has recently reported on troubling ecommerce news: Gen Zers and Millennials admit to ‘digital shoplifting.’ Yikes!

According to a Sucore’s survey of 2,000 Americans between Dec. 6 and Dec. 13, 2024, half of Gen Zers and millennials who earn more than $100,000 per year admit to the scam.

What’s considered digital shoplifting? 🛒

Digital shoplifting includes malpractices such as:

• claiming a package was never delivered or was stolen
• disputing legitimate credit card charges (first-party fraud)
• saying the product was not ordered 

Why is this happening? 😡

Consumers point fingers at inflation, influencers, and lenient refund policies. As people struggle with prices, influencers post refund hacks. 

And it’s not just the young and the wealthy. Other generations have admitted to committing first-party fraud. 

The worst part is perpetrators often face no punishment. Or, at worst, get their accounts blocked by the merchant.

Seller impact

Retailers lose 3.75 times the transaction cost due to chargebacks, increased fees, and damaged relationships with payment processors. Fraud experts recommend merchants strengthen transaction verification to combat digital shoplifting and deny false claims.

TOGETHER WITH WALMART MARKETPLACE

How to make shipping better for your customers

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BITES OF THE WEEK

• Electronic Grooming: India is seeing a rise in online purchases of grooming products.
• African Frauds: African fraudsters shifted from creating synthetic identities to exploiting real ones.
• Choose Wisely: The right platform will impact your store's design, user experience, payment processing, and scalability.

TRENDING

How can AI help prevent cyber threats

Speaking of accounts and ownership, TikTok’s U.S. account is still up in the air. The deadline for a takeover has passed, but some are hoping TikTok can turn things around and find a U.S. owner soon.As you’ve read above, digital shoplifting is an actual thing.

The worst part is… it’s also on the rise.

But how can you prevent this and other unwanted attacks from happening for your store? E-Commerce Times tackled some tips on how to use AI.

How AI can save the day 🤖🛡️

AI can assist with business improvements and brand trust by:

• Personalization. AI-driven tools can analyze consumer preferences and offer personalized shopping journeys.This hyper-personalization may increase customer loyalty.
• Automation. Automation will enhance warehouse management, inventory tracking, and customer service.  
• Tax compliance. AI will assist retailers in managing complex tax regulations across channels.
• Payment personalization and security. 
  • Sellers must offer payment methods that align with customer preferences. Failure to do so could mean losing up to 37% of prospective customers due to transaction abandonment.
  • Robust security measures (like two-factor authentication and biometric verification) can help protect transactions. Just balance the steps so there’s little friction during checkout since overly rigid security could block legitimate transactions.

Seller solutions

To keep up with the fast-paced changes, brands and merchants must be adaptable. Brands should focus on innovation, secure payment options, and circular economy models (reuse, recycling, resale) to stay competitive.

Above all, stay up to date with the latest ecommerce news. (SellerBites got your back!)

SOCIAL PULSE

Amazon ad spending is back on X

Back in 2022, Amazon and other companies pulled back on ad spend in X (formerly Twitter). Apple completely stopped its ad spending on X in 2023. Most of the exodus is due to trust concerns and negative content after Musk bought the platform.

Fox reports this is no longer the case. Companies are reevaluating and returning to the platform. However, the ad buys are still much lower than before Musk bought Twitter. 

Amazon, for one, is planning to increase ad spending. This reversal is noteworthy, given Amazon’s size and influence. Others tend to follow when a big company has made such a move.

This news may be a sign to include X in your advertising strategies. They offer multiple ad formats for video, images, or words—even a combo of the three.

TECH MARKETING

What type of branding should you use?

Branding is not just designing a logo or color scheme for your business. According to Shopify, it’s a visual and emotional representation of your brand. It’s a powerful tool for elevating your brand following. A 2020 study by Zendesk found that 74% of shoppers are loyal to at least one brand. 52% will go out of their way to buy from a brand they love. 

7 Types of Branding for Ecommerce:

1. Company Branding: Creating a cohesive identity across all platforms, from logos to tone of voice. 

💡 Example: Fluff Cosmetics' minimalistic website and packaging align with their sustainable mission—straight to the point, no additional fluff and designs!

2. Product Branding: Giving individual products their own personality through packaging and marketing, often mirroring the company’s broader identity. 

💡 Example: Hiut Denim’s special product line with distinct design.

3. Service Branding: Branding intangible services through storytelling and user experience. 

💡 Example: Airbnb’s reliable service and visual storytelling. The pictures of the listings and experiences alone would be enough for people to book them.

4. Ingredient Branding: Focusing on a key component of a product as a selling point. 

💡 Example: Taza’s cacao beans or Oceanfoam’s algae-based foam.

5. Personal Branding: Promoting an individual who represents the business. 

💡 Example: Sonja Detrinidad’s TikTok content that blends personal anecdotes with her ecommerce store, Partly Sunny Projects.

6. Collaborative Branding: Partnering with other brands to create a unique product or service. 

💡 Example: Grind’s collaboration with artist Sophy Hillington.

7. Rebranding: Updating a company’s identity to better align with its mission or target audience. 

💡 Example: MìLà restaurant rebranding from Xiaochi to reflect its growing DTC business.

Want to focus more on your brand?

Make sure to identify what type of branding you’d want to implement first, or what works best for your brand. From there, tailor your branding kits around it.