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Shein’s profits slump
In its first quarterly results as a listed company, Shein reports a 67 percent drop in profit to $228 million. In Europe, sales fell by 13.9 percent. One reason: Shein had already raised prices and cut advertising before the EU’s €3 fee per product category took effect. Shein aims to counter this with more inventory in Europe and higher-priced brands – which, for Stefan Wenzel, marks its path to becoming an entirely ordinary competitor. Read more on Reuters (figures) and on LinkedIn (analysis)
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Amazon brings GWD to Europe
Amazon is expanding its Global Warehousing and Distribution (GWD) service to Germany, France, Italy, Spain and the UK by the end of the year. Sellers will then be able to store their goods in bulk close to the factory, for example in Shenzhen. Only once demand arises will they distribute them to the FBA centers of the individual marketplaces. Get more details on Ecommerce News
AliExpress lures shoppers with VIP status and discount codes
According to media reports, AliExpress is testing a free VIP program called Elite in markets including Germany, the UK and Spain. Customers who spend more than $800 a year receive, by invitation, a 5 percent discount, round-the-clock customer service and easy returns. Elite is seen as part of a shift towards branded goods and premium services. Meanwhile, “Local Day” is still tempting shoppers with codes worth up to €60 until October 7. Find out more on PYMNTS (Elite) and teltarif (Local Day)
JD and MediaMarktSaturn: EU takes its time
The EU Commission has once again extended its review of JD‘s planned takeover of MediaMarktSaturn. A decision is now due by November 4. That leaves the deal on a tight schedule: MediaMarktSaturn needs approval by November 10, otherwise the takeover could collapse for contractual reasons. Read more on on Exciting Commerce
Prisma.fi becomes a marketplace
Finland’s S Group is opening its online store Prisma.fi to selected third-party sellers from Finland and the rest of Europe from October, powered by Mirakl. At launch, several dozen sellers are set to nearly double the assortment, which could grow tenfold in the long term. See more on Yle
Pricing News
Germany’s top court overturns Prime price hike
A legal setback for Amazon: Germany’s Federal Court of Justice has ruled in the final instance that Amazon’s 2022 Prime price increase from €69 to €89.90 a year is invalid. The reason: the underlying clause in its terms and conditions lacked transparency. Amazon is now temporarily lowering the fee for long-standing members. Refunds of fees already paid are still pending in a separate class action. See the full story on Spiegel
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