Home » Latest News » E-commerce & AI News Flash Collection (Jul 7): eBay Faces Decline, Vietnam’s Digital Economy Boom

E-commerce & AI News Flash Collection (Jul 7): eBay Faces Decline, Vietnam’s Digital Economy Boom

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A recent KPMG report reveals that social media platforms like TikTok are significantly shaping the shopping habits of Gen Z, who prefer online shopping influenced by trends, idols, and influencers. The report highlights that social commerce (63%) and live commerce (57%) are crucial to their shopping experiences. TikTok’s strong presence in Asia has prompted retail companies to leverage influencers and key opinion leaders on the platform to promote products. “TikTok Made Me Buy It” garnered over 8.4 billion views in 2022, emphasizing the platform’s impact on consumer behavior. A study found that 85% of Gen Z respondents are influenced by social media in their purchasing decisions, with TikTok and Instagram leading the way.

Threads Grows but Faces Engagement Challenges

Meta’s social platform Threads has reached 175 million monthly active users since its launch in July 2023. However, user engagement remains a challenge, with daily usage and session lengths significantly dropping. Threads’ growth has been bolstered by promotions on Instagram, with plans to integrate with interoperable social networks and introduce an API. Meta is considering introducing ads on Threads by 2025, potentially making it an attractive platform for advertisers seeking a safer alternative to X (formerly Twitter).

eBay’s Struggles in a Competitive Market

eBay has been losing market share to competitors like Amazon, Walmart, Shein, and Temu, impacting its user base and revenue. The number of active users on eBay has stagnated, dropping from 138 million in Q1 2022 to 131 million. The company has also undergone several rounds of layoffs, particularly in Israel, where it once had a significant presence. Analysts attribute eBay’s decline to its failure to effectively integrate its numerous acquisitions and maintain a focused product strategy. Despite these challenges, eBay’s stock has seen an 18% rise since early 2024.

Globe

Shopee’s Success with Local Products in Indonesia

Shopee’s “Choose Local” feature attracted over 29 million Indonesian consumers in the first half of 2024, showcasing the popularity of local products. Regions like Klaten, Pandeglang, and Mojokerto saw significant growth in transactions from local SMEs and brands. Popular local products vary by region, with fashion items, specialty foods, and beauty products leading the way. Shopee’s comprehensive export services have enabled over 26 million local products to reach global markets, doubling the transaction volume from the previous year.

Alibaba’s New B2B Initiative for Korean Products

Alibaba International Station announced plans to launch a dedicated website for Korean products to meet the growing demand from B2B buyers. The exclusive site will allow Korean SMEs to showcase and sell their products, with a membership trial program costing approximately $199 annually. Popular Korean products on Alibaba include automotive parts, instant noodles, skincare products, masks, red ginseng, and industrial components. Alibaba aims to support high-quality Korean products in gaining global market access and expanding their international sales channels.

About You to Ship Directly from Factory

About You has announced that it will begin shipping products directly from factories, a move aimed at improving efficiency and reducing delivery times. This strategy allows the company to better manage its inventory and cut down on logistics costs. The direct shipping model is expected to enhance the customer experience by providing faster deliveries. By integrating this model, About You aims to stay competitive in the fast-paced e-commerce market. This approach will initially be rolled out in specific regions before potentially expanding globally.

Amazon’s Revenue Soars in Spain

Amazon has reported a remarkable revenue of 7.1 billion euros in Spain, reflecting its strong market presence and consumer demand. The e-commerce giant’s performance in Spain showcases its ability to capture and retain a significant customer base. Amazon’s extensive product range, competitive pricing, and efficient delivery services have contributed to its impressive revenue figures. The company continues to invest in logistics and infrastructure to support its growth in the Spanish market. Amazon’s success in Spain mirrors its global strategy of expanding and dominating the e-commerce landscape.

Vietnam’s Digital Economy Boom

Vietnam’s digital economy has grown rapidly, contributing approximately 16.5% to the country’s GDP last year with an annual growth rate exceeding 20%. By 2025, Vietnam is expected to lead digital economy growth in ASEAN, with a significant focus on IT products and services, e-commerce, digital content, and financial services. The country’s digital payment adoption is also growing fast, projected to increase by about 19% from 2022 to 2023. Vietnam’s digital economy is set to reach a GMV of $43 billion by 2025, driven primarily by e-commerce and online travel industries. Despite challenges, Vietnam’s digital economy presents substantial opportunities for economic development in the ASEAN region.

AI

AI-Powered Satellite Enhances Earth Monitoring

A new AI-powered satellite has been launched to improve real-time Earth monitoring capabilities. This satellite utilizes advanced AI algorithms to provide more accurate and timely data on environmental changes. The technology aims to enhance disaster response, climate research, and resource management by offering detailed and precise information. The satellite’s AI system can process large volumes of data quickly, making it a valuable tool for scientists and policymakers. This innovation marks a significant advancement in the field of Earth observation and environmental monitoring.

Digi-Key Explores AI in Smart Cities

Digi-Key has introduced a new video series exploring the role of AI in developing smart cities. The series delves into how AI technologies can be integrated into urban infrastructure to enhance efficiency, sustainability, and quality of life. Topics covered include smart traffic management, energy optimization, and public safety improvements. The video series aims to educate and inspire stakeholders about the potential benefits of AI in urban environments. Digi-Key’s initiative highlights the growing importance of AI in shaping the future of cities worldwide.

China Dominates Global Generative AI Patent Filings

China has emerged as the leader in global generative AI patent filings, showcasing its significant investment and advancements in AI technology. The country has filed the highest number of patents in this field, surpassing other major players. This dominance reflects China’s strategic focus on AI development and innovation. The surge in patent filings indicates robust research and development activities within Chinese institutions and companies. China’s leadership in generative AI patents underscores its ambition to become a global AI powerhouse. This trend is expected to drive further technological advancements and collaborations in the AI sector.

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