🔧 Google Fixed PMax

Happy Tuesday!

My server crashed during a flash sale yesterday. The only thing that crashed faster was my hope and dreams.

From PMax evolution to tax law changes, AI-powered promotions, secret shopping habits, and marketplace battles, this week's got everything you need to stay ahead.

Let's dive in! 🚀

ECOMMERCE ADVERTISING

🎯 Google PMax Gets Major Visibility Upgrade

Google rolls out significant transparency and optimization features for Performance Max campaigns. The updates provide the much-needed visibility into channel performance and asset effectiveness.

The most notable improvement lets advertisers see which channels drive traffic and conversions. Advertisers can now determine if Google Discover accounts for 5% of spend but only a fraction of conversions, though they still can't exclude specific channels entirely.

🔍 Key Updates:

• Channel performance reporting across all platforms

• Final URL expansion controls and visibility

• Asset source tracking for performance comparison

• Streamlined negative keywords implementation

Additional improvements include easier access to search query data, simplified negative keyword implementation, and expanded Search Themes capacity. These updates mark Google's most significant effort yet to make PMax campaigns more transparent and customizable for advertisers.

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ECOMMERCE NEWS

💰 Major Tax Law Changes Benefit E-commerce Sellers

The One Big Beautiful Bill Act brings significant tax changes for online retailers. The comprehensive overhaul includes permanent 20% deductions for pass-through businesses, restored bonus depreciation, and simplified reporting requirements.

For small e-commerce businesses, the most impactful changes include making the Qualified Business Income (QBI) deduction permanent, allowing deductions of up to $16,000 on $80,000 in profit.

📊 Key Benefits:

• 100% bonus depreciation returns for equipment purchases

• Higher threshold for 1099 contractor reporting ($2,000)

• Immediate R&D deductions with retroactive benefits

• Import rule changes affecting de minimis exemptions

The legislation also impacts import rules, with the de minimis $800 duty-free threshold facing significant changes. As of August 29, 2025, an Executive Order subjects all goods under $800 to applicable duties, with OBBBA phasing out the rule entirely by 2027.

ECOMMERCE AI

🤖 Can AI Send the Perfect Ecommerce Promo?

The combination of first-party behavioral data and artificial intelligence may transform ecommerce outbound marketing. AI individualization aims to create personalized shopping experiences tailored to individual preferences, behaviors, and buying history.

Unlike traditional approaches, AI's speed and scale make true one-to-one marketing achievable for businesses of all sizes.

📊 Key Findings:

• Well-targeted promotions can actually decrease opt-outs

• First-party data enables personalization without third-party cookies

• Rich Communication Services messages provide app-like experiences with real-time testing

The technology follows a workflow of segmentation, testing, and continuous refinement that brings merchants closer to the perfect promotional send.

ECOMMERCE TRENDS

🕵️ Half of Europe's Shoppers are Incognito

Half of European consumers shop in secret, according to a recent YouGov survey. The main reasons are embarrassment and avoiding arguments at home.

The findings reveals significant regional and demographic differences in secret shopping habits. Age is also a factor, with 6/10 under-30s admitting to secret purchases in the past year.

🔍 Key Findings:

• 50% of adults made at least one hidden purchase last year

• One third hide adult product purchases

• 6 in 10 shoppers prefer online for anonymity

• Neutral packaging is crucial for secret purchases

Online retail plays a central role in enabling private shopping, with neutral packaging being equally important to consumers who value parcels that reveal nothing about their contents.

ECOMMERCE NEWS

📱 Temu Sees 12.5% Growth in European Users

Temu attracted an average of 115.7 million European users monthly in the first half of 2025, representing a 12.5% increase from the previous six months, based on their recent transparency report.

Growth was particularly strong in France with 19.4% growth, while Spain saw a 15.6% increase. Romania achieved the highest percentage growth at 20.5% to 4.7 million users.

📊 Key Stats:

• 115.7 million monthly users across the EU

• 80% of European orders targeted for local fulfillment

Temu has been allowing European merchants to sell on its platform for just over a year and aims to ship more online orders from within Europe, even though the platform faces increasing regulatory scrutiny.

NEWSLETTER TLDR;

WEEKLY ROUND UP

PMAX UPGRADE: Google PMax gets a significant upgrade with new optimization features that allow flexible Performance score targets and expanded asset options specifically designed for seasonal campaigns. This gives advertisers more control while maintaining automation benefits.

TAX BREAKS: The One Big Beautiful Bill Act brings permanent 20% deductions for e-commerce pass-through businesses and restores the original $20K/200 transactions 1099-K threshold. Important timing for Q4 planning and 2026 tax preparation, especially for equipment purchases.

PERFECT SEND: "AI Individualization" is transforming promotional strategies by creating hyper-personalized "segments of one" using first-party data. Surprising survey results show some customers actually request more messages when they're relevant.

STEALTH SHOPPING: Half of European consumers shop incognito, with 6 in 10 under-30s making secret purchases. Regional differences are stark - Italians and Austrians hide the most purchases, while the French are most open. Online retail with neutral packaging remains crucial for these privacy-conscious buyers.

TEMU GROWS: Temu continues its European expansion with 12.5% user growth to 115.7M monthly visitors. France leads with 19.4% growth, but increased regulatory scrutiny follows, with potential search engine delisting if product safety concerns persist. The platform aims for 80% of European orders to ship from local warehouses.

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Signing off,

The Merchant @CartHustle