US
Amazon’s SellerX Set for Auction Amid Financial Struggles
Amazon brand aggregator SellerX will be auctioned on September 17 due to financial insolvency, driven by the decisions of its main creditor, BlackRock. Founded in 2020 with nearly $900 million in financing, SellerX once thrived by acquiring small online stores, but it has since faced significant financial difficulties. With mounting debts, SellerX laid off employees in 2022 and 2023, and its founders have stepped down. BlackRock reported a loss of $31.2 million by mid-2023, prompting the loan to be marked as non-performing. To recover losses, BlackRock will auction the company’s assets in Berlin.
Halloween Spending in the US Set to Break Records
Despite inflation, US consumer spending for Halloween is projected to surpass last year’s record of $12.2 billion. Over half of the surveyed consumers plan to spend more than $51 on candy alone, with additional increases in spending on costumes and decorations. Popular candy choices include chocolate and gummy treats, while many shoppers wait until the last week of October to make purchases. Retailers are encouraged to bundle candy, costumes, and decorations to entice early buying. Innovations such as AR costume previews and social media challenges are expected to enhance the Halloween shopping experience.
Globe
UPS Introduces New Fees for Heavy Shipments from Asia to the US
UPS is implementing a surcharge of $0.25 per pound on shipments from ten Asian countries, including Japan, South Korea, and Australia, while packages from China and Hong Kong will face a $0.50 per pound fee. These surcharges aim to compensate for the increased costs brought on by the surge in e-commerce shipping to the US. The higher fees also apply to heavy packages and include fuel surcharges, with potential for future adjustments. Experts believe FedEx may introduce similar measures, as the Asian-US trade lanes see significant growth, especially from China.
Mercado Libre to Build a New Logistics Hub in Argentina
Mercado Libre has announced a $75 million investment to construct a second logistics center in Argentina, scheduled for completion by the end of 2025. The facility, which spans 53,000 square meters, will increase daily package handling capacity to 400,000 and create 2,300 new jobs. This investment reflects Mercado Libre’s long-term confidence in Argentina’s growing e-commerce market, which boasts a 12.5% retail penetration rate—higher than the Latin American average. Mercado Libre’s continued expansion in Argentina is part of its strategy to strengthen its logistics infrastructure across the region.
Temu Faces Mixed Reactions in Germany Despite Safety Concerns
A recent survey by ZVEI revealed that over two-thirds of German consumers are aware of potential safety risks when purchasing from Temu, yet 51% intend to continue shopping on the platform. Many consumers are drawn to Temu’s competitive prices, despite concerns over product safety and compliance with European regulations. Nearly 40% of users reported negative shopping experiences, such as products breaking quickly or being unusable. Temu’s presence is also impacting local businesses, with 72% of surveyed German retailers citing competition from the platform as a concern.
Kaufland Expands to Austria Following Polish Success
German e-commerce platform Kaufland has expanded into Austria, following the launch of its Polish site in early August. The Austrian e-commerce market, which is growing at an annual rate of 11%, presents new opportunities, and Kaufland aims to capitalize on this by offering a broad range of products. To entice sellers, Kaufland is offering special benefits for those who register before the end of the year. The platform already attracts 32 million monthly visitors in Germany, and the expansion into Austria will allow Kaufland to compete with Amazon and Allegro.
Temu’s Strategy to Attract US and European Brands
Temu is working to onboard more American and European brands, hoping to replicate the success of platforms like AliExpress and Shein. The company, which already has over 300,000 sellers, is pushing to expand its international presence and aims to reach $600 billion in global sales by 2024. Temu faces a challenge in convincing established brands to join, as many are hesitant due to the platform’s focus on budget-friendly products. However, Temu is targeting Amazon’s top sellers to diversify its offerings and attract more consumers from outside China.
UK E-commerce Market Sees Continued Growth
The UK has become the third-largest e-commerce market globally, contributing 4.8% of total online retail sales. In 2024, online sales will account for over 30% of all retail in the country, with revenues expected to hit $160 billion. Amazon remains the top platform, with more than 400 million monthly visits, followed by Shopify and eBay. Meanwhile, the UK has seen a rise in e-commerce websites, with over 580,000 new sites launched in the past year. Social media platforms like Instagram and TikTok have become preferred shopping channels for younger generations.
Amazon Expands Rail Shipping Network in India
Amazon India has expanded its collaboration with Indian Railways to enhance its logistics network and offer faster delivery services across the country. The partnership will prioritize key rail routes and optimize logistics hubs, allowing Amazon to meet growing e-commerce demand in India. Since starting this initiative in 2019, Amazon has expanded to over 130 rail routes, covering 91 cities and growing its shipping volume by 15 times. The cooperation is vital for meeting Amazon’s one- and two-day delivery promises, particularly as the holiday season approaches.
AI
ChatGPT User Base Doubles to 200 Million Active Users
ChatGPT’s weekly active user count has surged to 200 million, double its user base from the previous year, fueled by the launch of the cost-effective GPT-4o mini model. The AI tool is now used by 92% of Fortune 500 companies, and its accessibility has broadened due to the lower costs and energy requirements of the mini model. The success of ChatGPT has also driven up OpenAI’s valuation, which is expected to exceed $100 billion. Investment talks are underway with tech giants like Apple and Nvidia, and OpenAI has signed agreements with the US government to further research and test AI models.
New Open-Source AI Model for Advanced Material Design Unveiled
A new open-source AI model has been introduced for advanced material design, targeting innovations in fields such as aerospace, energy, and healthcare. The model leverages machine learning to predict properties and behaviors of materials, potentially speeding up the research process. It is designed to be accessible to academic and industrial researchers, offering a wide range of applications. The developers aim to democratize the use of AI in material design, fostering collaboration and accelerating breakthroughs. The initiative highlights the growing role of AI in scientific and engineering advancements.
Intel Partners with Japan’s AIST to Launch Advanced Chipmaking Facility
Intel has teamed up with Japan’s National Institute of Advanced Industrial Science and Technology (AIST) to open a chip manufacturing research center. This facility will feature extreme ultraviolet (EUV) lithography equipment, a first for Japan, used to create the smallest chipsets at 5 nanometers or below. The center will be available to chip manufacturers and materials companies on a fee basis, aimed at boosting Japan’s global competitiveness in semiconductor design. With a construction timeline of 3-5 years, the facility is expected to cost hundreds of millions of dollars, positioning Japan at the forefront of semiconductor R&D.
NaNoWriMo and AI Writing Controversy Explained
National Novel Writing Month (NaNoWriMo) is facing backlash over the use of AI-generated writing tools by some participants. The challenge, designed to push writers to complete 50,000 words in a month, now grapples with how AI fits into creative processes. Critics argue that AI dilutes the spirit of the event, designed for human creativity, while supporters see AI as a tool to boost productivity and overcome writer’s block. The debate raises broader questions about the role of AI in art and literature, with NaNoWriMo organizers yet to take a formal stance.
Nvidia and Other Investors Back Applied Digital with $160 Million in Funding
Nvidia and other prominent investors have invested $160 million in Applied Digital, a company specializing in high-performance computing and data centers. The investment will help Applied Digital scale its infrastructure, which is geared toward supporting AI workloads and other data-intensive tasks. Nvidia’s involvement underscores its interest in expanding AI capabilities across industries. This funding round positions Applied Digital to be a key player in the growing market for AI infrastructure, offering solutions for enterprises looking to harness the power of AI technologies.
