Coping high logistics costs, converting customers to newsletter subscribes, and more | D2C Digest

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Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing. 

Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!

🛳️ How to cope with increasing logistics costs?

You may remember we talked about increasing global shipping costs due to intensified Houthi rebel attacks on the Suez Canal, a Panama Canal drought, and strikes by dockworkers in the US and Germany, with shipping costs from China to Europe soaring to about $7,000 per 40-foot container, up from around $1,200 pre-pandemic.

We had a great discussion with Bahadir Efeoglu, co-founder of the Shopify inventory optimization app Fabrikatör and a supply chain enthusiast, to gain a clearer perspective on the situation and explore how brands can survive these price increases.

Here is the thread:

In summary, always monitor your supply chain and seek improvements. Diversify your channels, avoid relying on a single route or shipping method, and be open to exploring new inventory strategies.

📬 How to incentivize customers to subscribe to your newsletters?

We recently shared the news that online retailers are missing out on £34.4 billion in sales due to shoppers abandoning their baskets at checkout. The main reasons for this trend are high delivery costs, lack of preferred shipping options, and new fees for returns.

Read more about it here.

A recent DHL eCommerce trends report confirms this. According to DHL, high delivery costs are the top factor frustrating customers, followed by long delivery times and the need to pay for returns.

But the report gives more insights into have to gain customer loyalty.

Since the top three benefits are all related to money, it's clear that today's online shoppers are very focused on costs.

Lastly, it's clear that having a marketing newsletter to communicate with your customers is important. But how can you collect email addresses? The report also answers that question.

Around the world, only 17% of shoppers have never signed up for an email newsletter. Since 77% of shoppers find discount codes important, it's no wonder that discounts and rewards are the main reasons people subscribe to email newsletters.

🤝 Social media apps are using pop-up shops to boost commerce

Social media platforms such as Snapchat, Pinterest, and TikTok are stepping into retail with pop-up shops.

One example is Snapchat, which teamed up with Selfridges to create an augmented reality locker room where shoppers can try on sports uniforms digitally.

Shoppers can virtually try on sports kits, interact with brands, and experiment with AR lenses, including custom Team Selfridges Sportopia football kits.

Similarly, Pinterest collaborated with Anthropologie on a Holiday Showhouse in Brooklyn, while TikTok partnered with Rare Beauty (Selena Gomez’s beauty brand) for a cosmetics pop-up and hosted a music event in London.

These pop-ups aim to offer unique experiences that blend the digital and physical worlds and appeal especially to younger shoppers who use social media for shopping inspiration and purchases.

😄 Looks like even social media platforms are going omnichannel. Are you?

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