Home » Latest News » E-commerce & AI News Flash Collection (Jun 20): Amazon’s Legal Actions, ByteDance’s New App

E-commerce & AI News Flash Collection (Jun 20): Amazon’s Legal Actions, ByteDance’s New App



Amazon’s Fight Against Fake Reviews

Amazon has won four civil lawsuits in China related to fake reviews since 2024. The accused service providers were found guilty of unfair competition, including manipulating reviews and deleting negative feedback. Amazon is also assisting law enforcement in China with criminal investigations, leading to the arrest of over 20 individuals. The company continues to combat fake reviews globally, taking legal actions against more than 150 offenders since 2023. Over 250 million suspected fake reviews have been blocked across its marketplaces.

Momentum Commerce’s research indicates that American consumers spend more on Mother’s Day than Father’s Day on Amazon. The average price of Mother’s Day-related products is 74% higher than Father’s Day items. Search volume for Mother’s Day gifts remains high even after the holiday, while Father’s Day search volume drops sharply after mid-June. The most popular Mother’s Day search term is “Mothers Day Gifts” with a peak monthly search volume of 4.52 million. Brands are advised to adjust pricing strategies based on these trends.

Amazon to Replace Plastic Air Pillows with Paper Filler

Amazon announced its decision to replace plastic air pillows with paper filler in its packaging. This move is part of the company’s ongoing efforts to reduce plastic waste and enhance sustainability. The transition to paper filler will begin in Europe and expand to other regions over the coming few years. Amazon aims to achieve a significant reduction in plastic usage by the end of 2024. This initiative is expected to have a positive environmental impact and improve customer satisfaction with eco-friendly packaging.


US SMEs’ E-commerce Growth

A DHL Express survey of over 1,000 US SMEs shows 65% expect their e-commerce sales to grow in 2024. Inflation and shipping costs are major concerns, with 40% and 38% of businesses respectively citing these as their biggest challenges. Despite these issues, 53% of SMEs see international market expansion as their biggest opportunity. The EU, UK, Mexico, and Canada are key target regions for growth. Customs compliance remains a critical factor for successful global expansion.

Amazon’s Investment in Germany

Amazon plans to invest an additional €10 billion in Germany to expand its logistics network and cloud infrastructure. €8.8 billion will be used to establish cloud infrastructure in the Frankfurt region by 2026. The remaining funds will be invested in logistics, robotics, and office expansions. This follows a previous €7.8 billion investment in a “sovereign cloud” center in Brandenburg. Amazon aims to create 4,000 new jobs in Germany by the end of the year, bringing its total workforce in the country to 40,000.

ByteDance’s New Social App Whee

ByteDance is testing a new social app, Whee, similar to Instagram, available on Android in select countries. Whee focuses on personalized sharing experiences with close friends. ByteDance has not yet responded to future plans for Whee, including its availability on iOS. The app aims to compete with Instagram by offering a more intimate sharing experience. TikTok previously launched TikTok Notes, which also features social sharing capabilities.

Retail Advertising Costs

Retailers like Shein and Temu are increasing digital advertising costs globally by focusing on loyalty programs and high-spending customers. In Australia, e-commerce sales grew by 4% in March, with Shein and Temu’s sales nearing AUD 1 billion. Advertising costs on platforms like Facebook and Google have risen due to increased competition and privacy restrictions. Retailers are shifting their focus to retaining loyal customers rather than acquiring new ones. This trend is expected to continue impacting advertising strategies and costs.

X-Generation’s Influence in Korean E-commerce

In South Korea, consumers aged 40-59, known as Generation X, have become the main users of online malls. SSG.COM reports that 63% of its Gourmet Place sales come from this age group. Generation X users, who prioritize quality over price, are also the highest spenders on the platform. This shift has prompted e-commerce companies to adjust their marketing strategies to cater to older consumers. AliExpress and Temu have also seen significant growth among Generation X shoppers in South Korea.

China’s 618 E-commerce Festival Sees a Decline in Sales for the First Time in 8 Years

China’s 618 e-commerce festival experienced a decline in sales for the first time in eight years. Major e-commerce platforms, including Alibaba and JD.com, reported lower-than-expected sales figures. This decline is attributed to a slowing economy and decreased consumer spending. Analysts suggest that this trend may continue if economic conditions do not improve. Despite the decline, the festival remains one of the largest shopping events in China.

Otto Increases Seller Fees

German e-commerce giant Otto is increasing seller fees on its platform. The company cited rising operational costs as the reason for the fee hike. Sellers will experience higher charges for listing and transaction fees, which may affect their profit margins. Otto’s decision has received mixed reactions from the seller community, with some expressing concern over the potential impact on their businesses. The company assures that the fee adjustment is necessary to maintain the quality of its services.


Hugging Face Acquires AI Software Startup to Boost Datasets

AI company Hugging Face has acquired an AI software startup to enhance its datasets and machine learning capabilities. The acquisition aims to improve the quality and scalability of Hugging Face’s AI models. This move is expected to accelerate the development of new AI applications and services. The integration of the startup’s technology will provide Hugging Face with a competitive edge in the AI industry. Details of the acquisition deal have not been disclosed.

Self-Driving Tech Partnership to Advance Autonomous Vehicles in the UAE

A new partnership has been formed to advance autonomous vehicle technology in the UAE. The collaboration involves several leading tech companies and local government agencies. The goal is to develop and implement self-driving solutions for various applications, including transportation and logistics. This initiative is part of the UAE’s broader strategy to become a global leader in smart mobility. The partnership is expected to bring significant advancements in autonomous vehicle technology and infrastructure.

NASA’s Christyl Johnson on AI’s Role in Crewed Mars Mission

NASA’s Christyl Johnson discussed the crucial role of AI in the planned crewed mission to Mars. AI technologies will be used for mission planning, navigation, and real-time decision-making. Johnson highlighted the importance of AI in ensuring the safety and success of the mission. The integration of AI is expected to enhance the efficiency and reliability of Mars exploration. NASA continues to invest in AI research and development to support its ambitious space missions.

For Apple’s AI Push, China is a Missing Piece

Apple’s efforts to advance its AI capabilities face challenges due to the absence of China in its strategy. The company has been unable to fully leverage China’s AI talent and resources. Trade tensions and regulatory hurdles have limited Apple’s access to the Chinese market. Analysts believe that overcoming these challenges is crucial for Apple’s AI ambitions. The company’s global AI strategy must adapt to the evolving geopolitical landscape to achieve its goals.

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