🚨 U.S. Bans Chinese AI Tool Over Spy Fears

Hey hustlers, big moves this week!

The U.S. just banned DeepSeek AI over massive security threats—will other countries follow suit? Mobile payments are skyrocketing, but retailers are losing out due to deadly checkout friction.

Aussie merchants are getting hammered by chargebacks, and most aren’t even using the tools that could save them. And FedEx? They're slashing their revenue forecast again—competition’s never been fiercer.

Let’s dive in! 🚀

ECOMMERCE SOCIAL MEDIA

🤳🏻How Influential Are Influencers? It’s Complicated

Influencers may not be as powerful as we think—at least when it comes to frequent purchases. A new PYMNTS Intelligence report shows that while 56% of consumers have made an influencer-recommended purchase, only 12% buy this way more than six times a year.

📌 Key Takeaways:

• 95% of shoppers do extra research before buying an influencer-recommended product.

• Trust takes time: Only 23% of buyers would purchase from an influencer they just discovered.

• Frequent buyers rely on multiple sources, often consulting friends or family before purchasing.

Among those who buy based on influencer recommendations, 47% trust food and cooking creators the most—and 19% say they buy from them most often.

Influencers can steer purchasing decisions, but they’re rarely the final word. Brands looking to leverage social commerce should focus on building long-term trust and credibility.

SPONSORED BY SWAP COMMERCE

Calculate your savings with Swap's ROI Calculator

Ecommerce has a lot of moving parts, often leading to expensive and cumbersome operations. It’s time to consolidate for growth.

Check out Swap’s ROI Calculator to see how streamlining your ecommerce operations can boost your business—and your bottom line.

Swap is the EcommerceOS for Shopify brands, bringing global shipping, returns & exchanges, package protection, and cross-border logistics under one roof. By consolidating your tech stack, Swap helps online brands save up to 30% on ecommerce tools and reclaim 7 working days per month.

Calculate your savings today.

ECOMMERCE AI

🚨 U.S. Commerce Department Bans DeepSeek on Government Devices

The U.S. Department of Commerce has prohibited the use of DeepSeek, a Chinese AI model, on government-furnished equipment due to security concerns over potential data access by the Chinese government.

🔎 Key Details:

• A mass email to staff warned against using DeepSeek’s mobile apps, desktop apps, or websites.

• New York, Virginia, and Texas have already banned DeepSeek from government devices.

• A bipartisan bill introduced in Congress aims to outlaw DeepSeek across all federal government devices.

Several countries, including Australia, Italy, and Taiwan, have implemented bans, while France, South Korea, Ireland, and Belgium are considering restrictions. South Korea’s intelligence agency flagged DeepSeek for storing chat records and tracking keyboard input patterns—data reportedly transmitted to Chinese servers.

A recent AppSOC report found that DeepSeek could facilitate malware generation, hallucinations, and toxic content, prompting experts to warn against its use in enterprise settings.

MOBILE COMMERCE

📱 Rewards & Easy Payments Win Over Mobile Shoppers

Mobile shopping isn’t just about browsing—it’s about seamless payments and personalized rewards. A new PYMNTS Intelligence report reveals that nearly 50% of recent retail purchases involved a smartphone, making mobile the key battleground for merchants.

🎯 What Shoppers Want:

• Speed & convenience: 58% say mobile is the fastest way to shop.

• Stored payment credentials: 54% use saved payment info for quick checkouts.

• Rewards matter: 67% want to earn perks when they buy.

Despite demand, 60% of merchants say their payment tech isn’t up to speed. While 57% offer a unified omnichannel experience, many still need to upgrade their systems to meet mobile-first expectations.

Shoppers are choosing retailers that offer fast checkouts, flexible payments (like BNPL), and loyalty rewards. Merchants who adapt will win over more buyers—those who don’t risk losing them to competitors.

👉 How often do you store your payment details with merchants?

ECOMMERCE TRENDS

🦘Australia’s eCommerce Merchants Want Help Battling Chargebacks

For Australian eCommerce businesses, chargebacks are more than just a nuisance—they cut into profits, disrupt cash flow, and damage customer relationships. A high chargeback rate can also trigger penalties from payment processors.

According to PYMNTS Intelligence’s Online Merchant Checkout Innovation Report, Australian merchants are actively seeking better protection from their payment service providers (PSPs):

• 44% of merchants say limiting chargebacks is a top priority.

• Fraudulent disputes—where customers falsely claim they never received products—are a growing issue.

• Only 18% of merchants receive automatic updates from PSPs that include chargeback resolution tools.

Despite these concerns, many merchants aren’t fully leveraging PSP features:

• 82% can request new PSP tools, but only half have done so.

• 48% say their PSPs provide a smooth user experience, but only a fraction report benefiting from lower fees or better approval rates.

Merchants who proactively work with PSPs to integrate automated chargeback prevention tools could reduce disputes and protect revenue.

🔗 Is your business equipped to handle chargebacks?

ECOMMERCE SHIPPING

🚢 Global Shipping Slowdown: FedEx Faces Rough Waters

FedEx’s financial outlook just took another hit. For the third straight quarter, the logistics giant slashed its revenue forecast, citing weak U.S. industrial demand, declining shipment volumes, and the loss of its USPS contract.

📉 By the Numbers:

• Revenue: $22.7B (-3.8% YoY)

• Net income: $771M (-13.6% YoY)

• FedEx Express: Down 4% to $10.5B

• FedEx Ground: Down 3% to $7.8B

🌍 What’s Driving the Decline?

• Economic slowdown: High interest rates are curbing business and consumer spending.

• Competition: Amazon’s in-house logistics and tech-driven startups are eating into FedEx’s market share.

• Regulations & fuel costs: Stricter environmental policies and volatile fuel prices add financial strain.

FedEx is investing in AI-driven logistics, route optimization, and autonomous delivery to stay competitive. It’s also doubling down on retail partnerships to provide full supply chain solutions.

👉 Can FedEx weather the storm, or is this a long-term trend?

Signing off,

The Merchant @CartHustle