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!
🆕 Shopify Winter Editions 24
As some of you probably followed, Shopify announced the latest updates on its platform last week at an online event. Notable updates include:
- The product variants limit has been increased to 2,000 from 100.
- The Combined Listing App has been introduced for Shopify Plus users.
- The Shopify Subscription App has been rolled out for managing subscriptions.
- Shopify Bundles have been expanded to include up to 30 products.
- New checkout extensibility features have been implemented.
- Native Exchanges have been introduced for easier exchange transactions.
- Inventory fulfillment based on location has been enabled for internationalization.
- Shopify Magic with AI-based image editing has been introduced.
- Semantic Search has been implemented for improved search functionality.
- A Performance Dashboard has been introduced for detailed analysis.
- B2B functionalities, including staff permissions and custom discounts, have been updated.
- Flexible storefronts with theme blocks have been introduced for easier customization.
🤔 Which one of these updates excited you the most?
🪦 Amazon Aggregators are dying
The landscape of Amazon aggregators, once a booming sector with firms like Thrasio leading the charge by acquiring numerous Amazon brands, has dramatically shifted.
Facing challenges from operational complexities and a tougher funding environment, these aggregators have pivoted from their original acquisition-driven growth model. They were fueled by low interest rates and e-commerce growth, aimed to unify Amazon brands for efficiency.
Now, with over $16 billion in capital raised primarily in 2021, the focus has shifted towards enhancing the growth of their existing portfolios, product launches, and channel expansion. The term "aggregator" is becoming obsolete, with the industry entering a post-aggregator era where acquisitions are no longer the central strategy, and the market dynamics have evolved significantly.
😬 EU Digital Markets Act and how it will affect your website
The EU Digital Markets Act (DMA) tightens user privacy regulations, particularly affecting major tech firms like Google.
DMA targets six large online platforms—Meta, Alphabet, Amazon, Microsoft, Apple, and ByteDance—as "gatekeepers," subjecting them to heavy fines for non-compliance.
DMA aims to prevent market abuse, ensure fair opportunities for smaller companies, and enhance user data privacy control. For ecommerce brands, Google is adjusting to comply with DMA, and may require two things:
- Providing EU users with the ability to opt out of connecting various Google services such as Google Shopping, Ad services, YouTube, Chrome, Google Play, Search, and Google Maps, thereby impacting ad targeting.
- Implementing a banner that offers users the option to either permit or limit data sharing for personalization purposes.
DMA applies to businesses promoting or selling products in Europe, with Google issuing warnings for non-compliant GDPR consent banners. To comply, businesses can use Google-certified Consent Management Platforms or apps like Shopify. Otherwise, you might face heavy penalties.
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