Happy Tuesday!

A customer tried declaring their imports as "emotional baggage." Customs disagreed.

Speaking of controversy, import rules are changing, TikTok sellers are making millions, Shopify just changed the AI game, Amazon blocks Google while Walmart charges ahead, and turns out digital beats generational marketing every time.

Let's dive in! 🎯

ECOMMERCE NEWS

📦 $800 Duty-Free Shopping Ends Next Month

White House announces sudden end to the de minimis provision, affecting all imports under $800. Starting August 29, 2025, that exception disappears for every country.

The change could add 10-50% in tariffs to previously duty-free items, with experts warning of broader impacts beyond just Chinese imports. Small businesses face additional compliance costs for customs brokers and bonds.

🔍 Key Changes:

• $800 threshold ends August 29

• 10-50% tariffs based on origin

• 25% of Etsy sales affected

The sudden policy shift signals a major restructuring of global e-commerce, pushing businesses toward domestic suppliers while potentially raising costs for U.S. consumers. For small merchants, the real challenge may be the hidden costs of compliance rather than just the tariffs themselves.

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ECOMMERCE NEWS

🎥 Live Selling: The Next E-commerce Gold Rush?

TikTok Shop's live selling feature is revolutionizing online retail, with some creators moving $50,000 in merchandise in just two hours. The platform's success mirrors China's booming live commerce scene, predicted to reshape U.S. retail.

Traditional e-commerce strategies are becoming obsolete. Companies now focus on training creators for live selling, seeing it as "the new QVC" for digital natives.

🔥 Key Trends:

• Live customer support integration

• Multi-platform selling capabilities

• QVC-style product demonstrations

The shift from static listings to live commerce signals a fundamental change in how products are sold online. While not every product fits the format (high-ticket items struggle), the instant engagement and entertainment factor make it increasingly crucial for modern e-commerce strategies.

ECOMMERCE AI

🛍️ Shopify Makes AI Shopping Actually Work

Shopify launches three game-changing AI commerce tools that let developers embed shopping experiences anywhere. The suite includes Universal Cart, Shopify catalog, and a Checkout Kit that works across millions of merchants.

Shopify's CEO, positions this as a major shift in how people discover products, with AI agents becoming the new storefront. Early tests show significant engagement increases when shopping stays within chat interfaces.

🔮 Key Features:

• Real-time inventory across millions of stores

• Universal cart works across merchants

• Seamless chatbot checkout integration

The move signals a fundamental shift in e-commerce, where traditional search gives way to conversational shopping. For merchants, this means their products could appear anywhere AI agents operate, dramatically expanding their reach beyond traditional storefronts.

ECOMMERCE AI

🤖 Amazon vs Walmart: The AI Shopping Wars Begin

Amazon investing heavily in their own "super agents", while Walmart announces its competing AI suite, setting up a battle for who'll control the future of automated shopping.

Amazon expects AI agents to become key customers, using AWS AI tools to automate retail transactions. Meanwhile, Walmart aims for AI to drive half of its eCommerce sales within five years.

🔍 Key Developments:

• Automated transactions in milliseconds

• Agent-to-agent commerce emerging

• AI-driven advertising formats launch

As shopping becomes increasingly automated, the real competition isn't just about products or prices anymore. It's about whose AI agents will control the discovery and purchase process, potentially reshaping how we think about retail altogether.

ECOMMERCE TRENDS

🌐 Digital-First Beats Generational Marketing

While brands chase "Gen Z strategies," data shows they simply prefer efficient digital tools that are now becoming universal.

PYMNTS research shatters common Gen Z myths, revealing that "digital-native" behaviors are becoming universal across age groups. What was once seen as Gen Z specific (mobile banking, telehealth, digital payments) is now mainstream.

🔍 Key Insights:

• Digital payment adoption spans all ages

• Mobile-first becomes everyone-first

• Frictionless experience drives loyalty

The message seems clear, as traditional retail goes digital-first, the winners aren't targeting generations they're removing friction points that frustrate everyone.

NEWSLETTER TLDR;

WEEKLY ROUND UP

IMPORT RULES: The $800 duty-free threshold vanishes August 29. Cross-border sellers face $80-200 in new duties per item, plus compliance headaches. Time to rethink those international suppliers.*

TIKTOK SELLING: Live commerce hits new highs. Creators moving $50K merchandise in 2-hour streams. Think QVC meets social media, but with instant checkout and real-time engagement.

SHOPIFY TOOLS: New AI commerce suite lets developers embed shopping anywhere. Universal cart means buy buttons could pop up in chatbots, games, anywhere AI lives.

AI COMMERCE: Amazon blocks competitor’s AI shopping tools while Walmart aims for 50% AI-driven sales. The automation arms race begins.

DIGITAL FIRST: Study shows everyone's going digital. Focus should remain on frictionless experiences instead of generational marketing.

*Worth noting: These changes reshape how we'll discover and buy products. Winners will adapt to AI-driven commerce while navigating stricter trade rules.

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Signing off,

The Merchant @CartHustle