📊 E-commerce Storm

Fed's worst fear realized: inflation surges while job market crumbles..

Author

The Merchant
September 23, 2025

In partnership with

Happy Tuesday!

Told my car to find the cheapest gas station. It suggested I walk instead. Even my dashboard knows inflation's real.

Economic storms brewing as recovery secrets emerge from battle-tested entrepreneurs, Amazon's stealth innovation disrupts retail warfare, and automotive payments evolve beyond human control.

Let's adapt! 💪

ECOMMERCE NEWS

📈 Inflation Hits 2.9%, E-commerce Costs Rising

Inflation accelerated to 2.9% in August, the fastest pace in 2025, while jobless claims hit 263,000 - the highest since October 2021. The Consumer Price Index rose 0.4% monthly, driven by tariffs that are pushing up costs across retail categories.

Tariffs are raising prices on imported goods and supply chain services. This directly impacts e-commerce businesses dealing with 0.3% increases in vehicle costs, 1% jumps in used cars, and 0.5% rises in apparel and electronics.

💰 Key Impacts:

  • Highest tariffs since 1930s driving up import costs

  • Food prices up 0.5%, shelter costs rise 0.4%

  • Core inflation at 3.1%, well above Fed's 2% target

  • Job market cooling as unemployment reaches 4.3%

For e-commerce businesses, this creates a double squeeze: rising costs from tariffs and supply chain inflation, combined with consumers who may spend less as job market uncertainty grows. The Federal Reserve faces pressure to cut rates, but persistent inflation above their 2% target complicates their decision-making process.

SPONSORED BY ADQUICK

Run IRL ads as easily as PPC

AdQuick unlocks the benefits of Out Of Home (OOH) advertising in a way no one else has. Approaching the problem with eyes to performance, created for marketers with the engineering excellence you’ve come to expect for the internet.

Marketers agree OOH is one of the best ways for building brand awareness, reaching new customers, and reinforcing your brand message. It’s just been difficult to scale. But with AdQuick, you can plan, deploy and measure campaigns as easily as digital ads, making them a no-brainer to add to your team’s toolbox.

You can learn more at AdQuick.com

ECOMMERCE TRENDS

📋 36 Ways to Revive an Ecommerce Business

When business growth stagnates, this comprehensive checklist offers actionable strategies across operations, risk management, and marketing to "jolt a company forward."

From implementing EOS (Entrepreneurial Operating System) for accountability to expanding into untapped channels like TikTok Shops and direct mail, each recommendation comes from real-world experience running a struggling brand.

🔧 Key Categories:

  • Operations: Build frameworks, define culture, outsource strategically, improve manufacturing

  • Risk Management: ADA compliance, trademark protection, secure authentication, audit subscriptions

  • Marketing: Explore new platforms, increase AOV, optimize post-purchase flows, expand globally

  • Growth Tactics: A/B testing, influencer partnerships, category expansion, loyalty programs

The advice spans from foundational elements like defining core values, to tactical moves like using direct mail for unsubscribed customers and leveraging Reddit for SEO benefits. For stagnant businesses, this serves as both diagnostic tool and recovery roadmap.

ECOMMERCE TECH

🔍 Amazon Launches Lens Live

Amazon debuts Lens Live, a new visual search feature that enables real-time product discovery through camera recognition. Users can point their phone cameras at any item and immediately see potential matches from Amazon's catalog displayed in a scrolling carousel.

While browsing in camera view, customers receive product summaries and suggested questions to streamline comparisons without leaving the camera screen.

📱 Key Features:

  • Real-time image recognition with instant product matching

  • Rufus AI integration for product summaries and comparisons

  • On-device computer vision for low-latency results

  • Direct cart/wishlist addition from camera view

The tool builds on Amazon's existing Lens offering, adding seamless integration with Rufus, Amazon's generative AI shopping assistant.

ECOMMERCE SOCIAL MEDIA

🛍️ Shopping Shifts to Social Media

Social commerce is on the rise, as online shopping is moving to social media. This represents a fundamental shift in how consumers discover and buy products moving from search-based shopping to entertainment-driven purchases through social feeds.

Singapore's Sea Ltd's Shopee platform dominates traditional e-commerce covering half of South-East Asia's market, but has to adjust due to the social commerce surge.

📱 Social Commerce Metrics:

  • Two-thirds of TikTok Shop sales flow through video or live streams

  • TikTok Shop sales more than doubled recently across major markets

  • Traditional e-commerce faces disruption from discovery-based shopping

The battle has shifted from operational excellence to capturing "online eyeballs" in an entertainment-first shopping environment.

DIGITAL PAYMENTS

🚗 Volvo Tests In-Vehicle Payment Use in NC

North Carolina launches the country's first in-vehicle toll payment pilot program in partnership with Volvo and Mastercard. The initiative lets Volvo drivers pay tolls directly through their car's infotainment system, with no need for external devices or mobile apps.

The program allows Volvo owners to link their vehicle identification number to a payment method, enabling automatic payments as soon as they pass through tolled roadways.

🚘 Key Features:

  • Up to 100 participants in the pilot launching late 2025

  • Google built-in infotainment systems required

  • Automatic payment processing through vehicle identification

  • V2X technology foundation eliminating traditional toll transponders

This technology represents a foundation for embedded vehicle commerce, with future applications extending to parking, fuel, EV charging and other everyday services.

NEWSLETTER TLDR;

WEEKLY ROUND UP

INFLATION IMPACT: Consumer prices jumped 2.9% in August, the fastest pace in 2025, while jobless claims hit 263,000. Tariffs are driving up costs across retail categories, creating a double squeeze for e-commerce businesses facing rising import costs and consumers with less spending power.

BUSINESS REVIVAL: Beardbrand founder shares 36 actionable strategies to revive stagnant e-commerce operations. The comprehensive checklist covers everything from implementing EOS frameworks to exploring TikTok Shops and direct mail, offering both diagnostic tools and recovery roadmaps for struggling brands.

VISUAL SHOPPING: Amazon's new Lens Live enables real-time product discovery through camera recognition. Users can point their phone at any item and instantly see Amazon matches, with Rufus AI providing product summaries without leaving the camera view. Currently rolling out to iOS users nationwide.

SOCIAL COMMERCE: Traditional e-commerce faces disruption as shopping moves to social media. Sea Ltd's Shopee dominates South-East Asia but battles TikTok Shop, where two-thirds of sales flow through video streams. Social commerce now represents one-fifth of regional online shopping.

CONNECTED VEHICLES: North Carolina launches the first in-vehicle toll payment pilot with Volvo and Mastercard. The program lets drivers pay tolls through their infotainment system, laying groundwork for embedded vehicle commerce in parking, fuel, and other services. Cars are becoming active shopping platforms.

ADVERTISE WITH US

Want to get in front of 5,200+ sharp eCommerce minds?

CartHustle is where brand builders, marketers, and DTC founders stay ahead.

Reach the people moving carts and markets.

Signing off,

The Merchant @CartHustle