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!
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🥃 TikTok updates alcohol advertising policy
TikTok has quietly updated its advertising policy to allow alcohol ads in certain countries, under strict conditions. Based on local laws and regulations, these changes permit the promotion of alcoholic beverages like beer, wine, and spirits, provided the audience is primarily of legal drinking age.
For the U.S., this means alcohol ads can only target users aged 21 and over, with at least 73.8% of the audience expected to meet this age requirement, as per census data.
The ads must avoid targeting individuals under the legal drinking age, showcasing excessive drinking, or offering alcohol as a prize or incentive. Additionally, alcohol e-commerce ads, including the sale or delivery of alcohol, are still prohibited.
In the U.S. and Canada, alcohol advertisers must work with TikTok sales representatives to ensure eligibility, and ads must clearly state the product’s alcohol content (ABV). Certain types of alcohol-related content, such as promoting alcohol clubs, branded merchandise, or 0% alcohol beverages, may be permitted if they meet the platform's guidelines.
In countries like the UK, Ireland, and Australia, the promotion of alcoholic beverages is prohibited, but ads for bars, pubs, and drinking events are allowed if targeted only at users over 18. Brands must include responsible drinking messages in their ads, and TikTok recommends disabling comments to avoid underage interactions.
However, TikTok continues to ban alcohol-related branded content in influencer marketing, meaning alcohol brands must tread carefully when collaborating with creators on the platform.
😂 Retailers cut return costs by—guess what? Encouraging fewer returns!
Retailers are feeling the pressure of rising return costs, but they are also finding ways to turn returns into opportunities for growth, according to Catherine Dummitt, VP of marketing at Narvar.
A key approach is streamlining the return process to retain customer loyalty, offering options like in-store returns, drop-off points, and box-free returns to enhance the customer experience.
Narvar’s 2024 State of Returns Report highlights strategies such as incentivizing exchanges over refunds through discounts or loyalty points, helping retailers retain sales, and improving customer satisfaction. Speeding up the resale of returned items is another priority, with optimized return routes allowing items to return to inventory 30% faster, ensuring they are resold while still in season.
Technology plays a critical role, with return management platforms automating the process and offering real-time updates, which reduce costs and improve customer satisfaction. These platforms also analyze return data to help retailers refine offerings and prevent unnecessary returns.
Personalized returns are also effective. Tailoring return options, like extended return windows for VIP customers, can boost retention and loyalty. Promoting buy-online-return-in-store (BORIS) options helps reduce shipping costs and encourages in-store purchases.
Preventing returns is another focus, with Narvar’s report noting that 27% of returns are due to late deliveries and 29% to product damage. Accurate product descriptions, better packaging, and reliable delivery estimates can help reduce these rates. Fraud prevention measures, like requiring photos of returned items and account logins, are also being implemented to deter fraudsters.
Looking forward, retailers are investing in AI and automation to streamline returns, enhance customer satisfaction, and incorporate sustainability into their return strategies.
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D2C DIGEST
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