Changing Valentine's Day habits, Shopify price increase, AI recommendation engines, and more | D2C Digest

Weekly DTC News

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!

💘 Gen Z chooses pre-loved gifts over Valentine's Day clichés, says study.

Adevinta's research highlights a trend among Gen Z in Europe, showing a preference for unique, pre-loved gifts over new, mass-produced items for Valentine's Day.

The survey underscores Gen Z's move towards sustainable gifting and the role of second-hand marketplaces in offering meaningful alternatives. This shift not only addresses consumerism concerns but also emphasizes the affordability and environmental benefits of second-hand shopping.

So D2Cs could align with this demand by offering products that cater to the desire for individuality and environmental responsibility. Emphasizing the story behind the products, their sustainable attributes, or their unique qualities can resonate with this demographic. Wdyt?

Happy Valentine’s Day

The article from eCommerceDB highlights significant trends for eCommerce in 2024, focusing on the integration of AI, augmented reality, and more to transform the shopping experience.

According to the study, AR and VR technologies are reshaping eCommerce, merging digital and physical experiences, and winning consumer approval in Europe. These innovations not only enhance online shopping engagement but also reduce returns by allowing virtual try-ons. The flexibility of headless commerce architectures facilitates the seamless integration of these technologies, as demonstrated by events like Metaverse Fashion Week, which showcase their potential to revolutionize retail engagement.

Read more about these trends here.

💰 Shopify Increases Plus Prices

Shopify has announced a price increase for its Plus plan, going from $2,000 to $2,500 monthly for one-year terms—a 25% hike. Opting for a three-year term reduces the monthly cost to $2,300.

Merchants can lock in their current rates by committing to a three-year contract by April 24. Additionally, third-party transaction fees, platform fees, and Shopify Payments rates will see slight increases, alongside a new 0.18% fee for B2B orders. This adjustment, the first since 2017, aims to support Shopify's enhancement of commerce tools and services amidst inflation.

AI Recommendation Engines are Changing eCommerce

Visenze recently published an article on how AI recommendation engines are changing the landscape significantly.

They say AI recommendation engines are significantly personalizing the shopping experience, leading to increased customer satisfaction and sales. These engines use AI and machine learning to analyze first-party data, enabling tailored recommendations that improve conversion rates and average order values. Predicted to generate significant revenue by 2025, these technologies democratize personalized shopping, benefiting businesses of all sizes by fostering customer loyalty and encouraging repeat purchases.

Read more about it here.

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