At a glance: 

• Shoppers who get a clear explanation of why an AI recommended a product are nearly 2x more likely to buy without verifying anywhere else. 
• Only 32% of shoppers named accuracy as the top trust-builder in AI recommendations. 49% chose a clear explanation of why a product was selected. 
• 47% of 28-to-43-year-olds say AI makes them faster decision-makers. Shoppers “very familiar” with AI tools are 3x more likely to purchase without verification. 
• When product data is wrong or incomplete, 80% of shoppers stay in the AI channel and ask again. 

A shopper asks ChatGPT for noise-canceling headphones for an open office, under $300. One result explains why it fits: isolates low-frequency hum, weighs less than comparable models, includes a transparency mode for conversations. Another lists a name, a rating, and a price. 

In a Rithum and Retail Dive survey of 1,046 U.S. and U.K. online shoppers, 49% named a clear explanation of why a product was chosen as the top trust-builder in an AI recommendation. Always-accurate information came in at 32%. And shoppers who get that explanation are nearly twice as likely to buy without checking anywhere else. 

Why shoppers value AI explanation over accuracy in product recommendations 

Shoppers expect AI to get the basics right. 67% named price as the top detail AI needs to be accurate on, followed by reviews and availability. But when asked what would most increase their trust, they reached past accuracy. 49% chose a clear explanation of why a product was selected. Always-accurate information came in at 32%. 

Any ecommerce team has seen this on a product detail page. Accurate price and clean specs keep a listing live. Rich attributes are what make it sell. The same applies to AI. An LLM builds its explanation from whatever product data it can find. If your listing includes driver size, noise cancellation type, and a note about comfort for all-day wear, the AI has something specific to say. If it doesn’t, the AI defaults to price. 

A jacket listed with fabric composition, weight, care instructions, and a note that it runs slim through the shoulders gives AI something to work with. A jacket listed as “men’s jacket, blue, available in S-XL” gives AI a price to compare. 

Newer brands with complete, attribute-rich product data already use this to their advantage, earning more persuasive recommendations than established names running on thin listings. When product data is wrong or incomplete, 80% of shoppers stay in the AI channel and ask again. The next answer is built on whatever data is available at that point. 

AI-powered shoppers buy faster and verify less 

47% of 28-to-43-year-olds say AI makes them faster decision-makers, compared to 21% of shoppers 60 and older. Shoppers who are “very familiar” with AI tools are 3x more likely to purchase without verification.   

For these shoppers, the explanation in the recommendation has to do the work that a product page, a review site, or a friend’s opinion used to handle. When the explanation falls short, the shopper moves to the next option in the response. There is no second visit, no follow-up search. The sale goes to whichever product explained itself best.   

How to optimize product content for AI recommendations 

Product content built for explanation earns stronger AI recommendations than content built only for visibility.   

• Enrich product attributes beyond the minimum required fields. Include use cases, compatibility notes, and sizing context. 

• Keep pricing and availability current across every channel where AI pulls data. 

• Monitor where shoppers verify AI recommendations and ensure your data holds up in those places too. Shoppers turn to search engines first at 28%, followed by online reviews at 19% and friends and family at 17%. 

• Test your own visibility: ask an LLM about your product category and evaluate whether your products appear with a clear, specific reason attached. 

• Prioritize data hygiene: validate and standardize titles, attributes, categories, and inventory/pricing sync so AI doesn’t amplify broken inputs across channels. 

Prioritize data hygiene: validate and standardize titles, attributes, categories, and inventory/pricing sync. AI can’t fix bad data. It can only move faster with whatever you give it, and when the inputs are off, that speed works against you. 

For a full breakdown of the data, download The New Discovery Engine report. 

The post Shoppers trust AI recommendations more when they explain why appeared first on Rithum.

The most significant changes in retail aren’t always the flashiest. I’ve sat on both the retailer and tech side of the table, and I’ve learned that trends in this space often grow gradually. Paying attention to the smaller shifts can alert you to the seismic shakeups that lie ahead. 

When Sam Howard, Rithum’s Head of Merchandising, and I joined the Retaili$tic Podcast, we covered a lot of the trends impacting the industry. Some were major focal points across the industry, while others were smaller ones we’ve kept an eye on at Rithum. Here are five that I’ll be watching after our discussion on Retaili$tic—and what lies ahead for each.

1. The brand vs. retailer divide is disappearing

Not long ago, there was a distinct difference between brands and retailers. But that line has become increasingly blurred: business models are blending, and so are the problems leaders face. 

As Sam said on the podcast, the continued adoption of direct-to-consumer (DTC) strategies is what’s closing the gap: “There’s seldom a differentiation between a retailer and a brand anymore because so many brands are leaning into DTC expansion and creating a connection with the customer . . . most brands are retailers in and of themselves.” 

This strategic convergence means that the pain points once unique to either brands or retailers are now shared. Marketplace integrations, fulfillment, returnpolicies, and retail media are all creating challenges for businesses looking to connect with customers, and it’s why companies need platforms and partnerships that can flex across models. 

2. Merchants are analysts

There’s a persistent myth that merchants are purely creatives: taste-driven, product-focused, instinct-led. But that’s only part of the picture. The reality is that modern merchants are weighing increasingly sophisticated analytics as heavily as intuition. 

During the episode, I spoke on my experience with merchants embracing data: “Merchants are completely data-obsessed. Their job is so dependent on reading the data and following it. For both profitability and performance … they’re looking at a lot of things.” 

Supporting merchants’ data-driven decision making is where Rithum shines. We help merchants become better analysts by surfacing performance metrics beyond sales. Our clients understand what their customers need, and Rithum provides data-based insights that empower them to meet those needs. 

3. Smart retailers are turning physical space into strategy

Physical stores aren’t dead, but they’re not just stores anymore, either. Retailers are reimagining how their square footage serves marketing, fulfillment, community, and experience. 

I shared her vision for the future of physical retail, and I stand by it: Today, when you go to a store and try an item on, but you don’t necessarily leave with it. You order it online and it gets sent from somewhere else. That’s where I see it heading: physical locations becoming more of showrooms and experiences. 

This isn’t a shocking shift, as it aligns with what we hear from clients: Gen Z wants more than a transaction. They want an experience as much as they want the product, if not more. Retailers are embracing this and experimenting with spaces that function as marketing, content, and fulfillment centers all at once. 

4. The future of retail media is generative and intent-driven

AI has flipped retail media on its head. It’s no longer just about ads; instead, a strategy to meet today’s search behaviors needs to encompass all kinds of discovery avenues.  

Traditionally, retail media was all about search engine marketing for brands. Now it’s shifting to what we’re calling GEO, or generative engine optimization. When you type into ChatGPT, ‘Find me these running shoes under $150,’ you have a much more focused intent. That’s different than showing up on a site to browse. (I dive into this more on the podcast, give it a listen if you want more details). 

This is a huge shift. It changes how brands build product pages, structure metadata, and leverage tools needed to get found. At Rithum, we’re already exploring how to support brands as shoppers turn to AI tools for recommendations, and are ready to help those who want to revamp their strategies. 

5. Consumers want to buy from brands that reflect their values

Consumers’ preferences extend beyond product quality and pricing. What ultimately fosters lasting loyalty (particularly among Gen Z) is alignment on values and identity. 

“Especially for younger generations, people want brands and retailers to play into their value set,” Sam explained. “The more brands and retailers can reflect those values—in events, in partnerships—the more authentic it feels. I think that authenticity is just so valuable.” 

Our returns data backs this up. 88% of consumers said they expect free returns, but more than half said they’d accept restrictions if framed as environmentally responsible. This is where loyalty lives now—in values, not just in products. 

Staying a step ahead of emerging trends 

These shifts are redefining how brands and retailers operate. At Rithum, we work to make that transformation easier. Whether it’s aligning inventory models, surfacing performance insights, or helping brands show up where discovery happens, we equip our clients with the tools to stay ahead. 

Check out the podcast for the full discussion, and reach out to our team if you want to talk about these trends in more detail—we’d love to hear what’s on your mind. 

Some quotes have been lightly edited for context and clarity. 

The post The Future of Retail Media & 5 Industry Shifts I’m Still Thinking About After the Retaili$tic Recording appeared first on Rithum.

Annual ecommerce sales have surpassed $1 trillion, yet 60% of retailers and brands still struggle with profitability. This striking contradiction was at the heart of a recent webinar I moderated, featuring three industry experts who brought unique perspectives on scaling challenges. 

Rithum’s Senior Sales Director Nathan Bird joined Lauren Rowinski, General Manager of Multi-Channel Solutions at Walmart, and Matt Ligon, Senior Director of Channel Partnerships for Walmart Marketplace to discuss this profitability paradox.   

Here are the three biggest takeaways from their conversation that are still sticking with me: 

Takeaway #1: Growth Without Foundation Creates Operational Chaos 

Although it sounds counterintuitive, success can actually slow brands down. Nathan explained the common scenario many fast-growing brands face: 

“Growth usually means more channels, more SKUs, more people, and more data sources. And without a strong foundation, teams are left doing patchwork: updating product information, chasing inventory numbers, or merging reports manually to understand performance.” 

–  Nathan Bird, Senior Sales Director, Rithum

This fragmentation creates what our experts called the “Stack Overflow,” where teams are logging into five to six different systems daily just to manage their ecommerce operations. According to live polling during the webinar, 60% of attendees were experiencing exactly this challenge.  

And the hidden costs go far beyond manual labor. Lauren emphasized how disjointed systems impair decision-making speed: “Acting and operating with speed can set sellers and brands apart. Adoption of new APIs, products, and listing strategies really start to compound over time.” 

The solution isn’t necessarily fewer tools. It’s ensuring those tools communicate effectively. As Nathan noted: “What’s critical is that your systems are talking to each other and not past each other, and most importantly, speaking the same language.” 

Takeaway #2: Visibility Is Essential to Profitable Scaling 

Visibility, specifically, the ability to see profitability by SKU and by channel in real-time, emerged as a common thread between stories of scaling successfully in the webinar. 

Nathan shared a case study of Flat River Group, an ecommerce distributor in the toy category. “As their business grew, so did their operational complexity. While they had logistics and supply chain in place to support growth, they lacked the technical infrastructure to integrate with new marketplaces at speed.” 

Using unified platform automation, Flat River expanded to six new marketplaces, including Walmart, Target, eBay, Macy’s, Michaels, and Oriental Trading, in just eight months, all without hiring additional team members. 

The key differentiator wasn’t just automation itself, but the visibility it provided. “The majority of clients we speak to struggle to see profitability by SKU and by channel, and are often flying blind,” Nathan explained. “That’s usually where the operational cracks start and where the fastest improvements come from.” 

This visibility enables what Matt called “playing offense” rather than defense: “You really want to operate in a state where you’re playing offense,” he said, emphasizing how unified data enables brands to act with confidence rather than react to problems. 

Takeaway #3: Multi-Channel Infrastructure Is Becoming Table Stakes 

The third major insight focused on the evolving role of fulfillment and logistics in ecommerce success. Rather than viewing different marketplaces as separate challenges, according to Walmart and our own Rithum team, winning brands are treating them as components of a unified customer experience. 

Lauren highlighted how Walmart’s approach exemplifies this shift:

“Through our Multi-Channel solutions, sellers can leverage their Walmart Fulfillment Services inventory for orders from other marketplaces like Amazon, eBay, Shein, Temu, and social media shops, like TikTok and Instagram.” 

– Lauren Rowinski, General Manager of Multi-Channel Solutions at Walmart

This strategy addresses one of the webinar’s key findings: fragmented fulfillment creates poor customer experiences and drives up costs. The solution is about meeting customers where they are in their purchasing journey. 

As Matt explained: “Rather than trying to change customer behavior, you can really insert yourself directly in their preferred purchasing path. Many consumers start with product searches directly on marketplaces, bypassing search engines or individual brand websites.” 

The numbers support this shift toward multi-channel infrastructure: Walmart alone sees approximately 270 million customers and members shop across their stores and e-commerce channels each week.  

The brands we see succeeding in 2025 are building systems to reach customers across all marketplace touchpoints. Want to dive deeper into how they do it? Watch the full webinar recording to hear more from these experts. 

(Some quotes have been lightly edited for context and clarity.) 

Jennifer Connally is Product Manager at Rithum.

The post The Profitability Paradox: 3 Key Insights from Walmart and Rithum on Solving Ecommerce Growth Challenges in 2025 appeared first on Rithum.

Returns are no longer a background cost or occasional loss. They are influencing how consumers shop, what they expect from retailers and brands, and whether they come back. Our newly published 2025 Global Returns & Profit Impact Report offers a detailed look at where returns are happening, why they happen, and what retailers and brands can do to reduce the impact.  

Based on responses from more than 6,000 consumers worldwide, our report highlights the behaviors and expectations that are shaping the post-purchase experience—and what separates companies that manage returns well proactively compared with those still taking a reactive approach. 

Shoppers plan to return before they even check out 

The data from that survey suggests that returns are not just a post-purchase inconvenience—they are a core part of online shopping today. According to the consumer survey, 36% of shoppers admit to overbuying with the intention of returning part of the order. This behavior, also known as “bracketing,” is especially prevalent in apparel categories, such as shoes and clothes. It’s also an even stronger trend among shoppers under the age of 35, where 50% say they commonly buy more than they need (for example, multiple sizes and colors), knowing they will return part of the order. 

Bracketing is likely a strong factor behind why apparel and footwear dominate return volumes, with 68% of consumers saying they returned clothing or shoes in the past 12 months. Electronics also rank high among returned items, particularly in Europe, where more than half of German and UK consumers returned an electronic product last year.  

Poor product content is still driving returns 

One of the top reasons cited for returns is poor fit, mentioned by 61% of consumers surveyed. But returns are not only about sizing. A third of respondents said they returned products because the item didn’t match its online description or images. This mismatch highlights the need for retailers to go beyond generic content and ensure that each listing reflects the reality of the product. While consumers many not always say it directly, this lack of confidence often leads to bracketing. When shoppers aren’t sure how any item will look, feel or fit as expected, they buy extras to cover their bases. 

Customer reviews are also playing a larger role in the purchase decision, especially in apparel. Half of consumers say they rely heavily on reviews when buying clothing or shoes. This makes transparency not just a bonus, but a competitive requirement. Inaccurate listings, missing details, or outdated visuals aren’t just conversion risks, they lead directly to a cycle of poor reviews and costly returns. 

Return policies are becoming make-or-break 

Return policies are shaping not just immediate buyer behavior, but long-term loyalty. According to the survey, 88% of consumers now expect free returns to be a standard feature, and 41% say they consider a retailer’s return policy before making a purchase. Nearly half (47%) said they’ve stopped shopping with a retailer because the return policy didn’t meet their expectations. 

This shift makes return policies a delicate balance. Offering free returns may cut into margins in the short term, while unclear or overly restrictive policies can damage trust and reduce repeat business. Retailers and brands are finding success by combining accessibility with just enough friction. One effective lever is time: 51% of global consumers consider a return window of 14 days or less to be reasonable. When positioned well, these types of limits can feel fair—especially when paired with fast, convenient return options and clear communication.

Localization matters as one size does not fit all 

Return behavior varies widely by region. In Europe, shorter return windows are more accepted: 57% of German consumers and 64% of French consumers believe 14 days or less is reasonable. In contrast, North American shoppers tend to expect longer windows and often treat the return period as an extension of the shopping process. 

Product category also influences return behavior across regions. In parts of Europe, it’s common for over 60% of apparel purchases to be refunded. Meanwhile, beauty and personal care products are more likely to be returned in North America, reflecting regional norms around trial and satisfaction guarantees. 

These patterns make clear that brands and retailers need region-specific policies and messaging. A policy that feels fair in one market may feel restrictive in another, and a uniform global return process risks alienating loyal shoppers. 

Turn returns into an advantage 

While return rates rise, margins are under pressure. Free shipping, free returns, restocking, and reverse logistics all eat into profit. But many of these costs are avoidable with the right tools and strategy. Our new report identifies key ways that returns are often a costly, but avoidable, downstream effect of poor upstream processes. With the right data and a proactive approach, retailers and brands can reduce return volume, recapture margin, and retain more loyal customers. 

The 2025 Global Returns & Profit Impact Report is a guide for doing exactly that. Download the full report to explore category-specific trends, country-level return insights, and steps you can take today to reduce costs and protect profit. 

Read the full report here. 

The post Introducing the 2025 Global Returns & Profit Impact Report appeared first on Rithum.

What do we mean by fragmented channels?

One of the biggest roadblocks to growth I’ve seen is when selling channels and systems become disconnected, requiring duplicate efforts and manual work to keep each channel updated. Instead of a unified omnichannel platform, you might be juggling separate inventories, overhauling product content, and adjusting pricing strategies to remain profitable. This fragmentation simply slows everything down, often without you realizing it.

In this recent report from Coresight, retailers cited complicated and multiple sources of inventory as the top challenge in both product delivery (68%) and returns management (84%). “Limited real-time information” also ranked in the top five issues, cited by 69% of retailers and 70% of brands for returns. (Real-time information is typically easiest to access when you have centralized inventory data.)

The industry knows that disconnected systems are creating blind spots. But it’s tough to find a fix when these gaps don’t show up as line items on a budget. Instead, they’re often masked by top-line growth, and don’t surface until profits plateau (or worse, dive off a cliff).

In my experience, here are five of the most common hidden costs that brands run into when expanding to new channels—and some tips on how to solve them before they erode profitability.

Hidden Cost 1: Overselling and Stockouts

A consumer searches for your product on Amazon and clicks your listing . . . only to be met with “unavailable.”

These moments don’t just hurt the bottom line—they damage customer loyalty and your standing on marketplaces.  Without centralized inventory management, even basic fulfillment becomes a liability. And when inventory isn’t synced across channels, it leads to costly mistakes: Retailers lose a staggering $1.8 trillion globally each year due to inventory distortion, with out-of-stock issues accounting for more than half of that.¹

You might see the cost there, but the harder hitting hidden impact is what happens next: When faced with a stockout, fewer than half of consumers will make a substitute purchase, and nearly a third will buy the item elsewhere.² One day out of stock can tank your product’s rank by over 28% on Amazon, and after 3+ days of being out of stock, rank can fall by 83%. These hits take months to recover from.³

Hidden Cost 2: Manual Processes That Drain Resources

If your team is still juggling listings, pricing, and orders with manual tools and workarounds, then you’re paying an invisible tax on growth.

The thing is, you probably know this: the inefficiencies of manual work are no secret. But if you’re like the e-comm professionals surveyed by Coresight, you’re not investing in automation and operational systems to fix it:

“Despite identifying returns, product content, and delivery as the top three profitability challenges, brands and retailers continue to overinvest in areas like marketing and marketplace expansion, while underinvesting in automation and systems that address these core operational pain points.” – Coresight report

Manual inefficiencies are widespread and costly, with 60% of brands and retailers reporting a known impact. Returns especially hit hard, with 83% of brands citing lack of automation as a major concern (we have a whole report on the impact of returns coming out soon—stay tuned for that!).⁴

The growth investment is understandable, of course. It’s a competitive world out there, especially now. But the overfocus on scaling without the scaffolding of connected automation will drain more resources the more you grow. Automation and operational systems would not only have a direct impact on margin in your current state, but enable faster growth, if only they became a priority. And the stakes are high: it can cost $50 to $150 to manually process just one purchase order. Multiply that by thousands of SKUs, and the resource drain is staggering.⁵ (Want to read more about the impact of manual processes? Check out this Trotec case study, where they achieved a 20% increase in GMV after implementing new automations.)

Hidden Cost 3: Inconsistent Product Listings That Undermine Consumer Trust

Your product listings are the digital shelf, which make them the most important online real estate you own. Discrepancies in product descriptions, titles, and images can lead to mismatched expectations. And those mismatches lead to returns.

Returns cost US online businesses more than $800B annually, and poor product data is one of the biggest avoidable returns drivers.⁶ Product content isn’t just a conversion tool—it’s a profitability lever. But 67% of brands say they still struggle with product content optimization, especially when listings must meet different standards across fragmented, disconnected marketplaces. According to Coresight, this is the single biggest challenge brands face in building sustainable growth and profitability.

Hidden Cost 4: Lack of Visibility into Channel Profitability (and Beyond)

Top-line revenue is only part of scalability. The true test is whether your channels are delivering profit (not just volume). If reporting is fragmented or incomplete, brands often can’t see which channels are profitable (and which are quietly bleeding).

You can’t fix what you can’t see. Eighty percent of brands told Coresight they lack the insights needed to identify their most profitable channels. This lack of visibility makes it all too easy to invest in underperforming platforms or pull back from high-profitability ones without realizing it. This misalignment can sneak into more granular decisions as well. A push for two-day shipping might help the commercial team hit revenue goals, but it can strain logistics costs. Without item-level cost visibility, commercial teams could say this was a great decision—then end up hurting profitability. More granular operational insights help at every level, and often more than you might think.

Hidden Cost 5. Lost Agility in a Fast-Moving Market

Speed and strategy are key to scaling. But brands that can’t react quickly to shifts in demand, pricing, or fulfillment lose more than time—they lose market share. Coresight found that across product assortment and content management, the inability to respond to change was cited by over 60% of respondents as a key roadblock to profitability.

New marketplaces launch and gain traction fast. Trends spike and fade overnight. Winning means moving quickly. When launching a promotion means updating listings across five different systems—or when a supplier issue takes days to reach the e-commerce team—disjointed operations turn growth liabilities. In a fragmented setup, rolling out new products or adjusting assortments is often a slow, manual process. If a new trend arises (e.g. a sudden spike in demand for a certain style or gadget), a fragmented operation may take weeks to get the product listed everywhere, by which time more nimble competitors have already captured the sales. One analysis noted that retailers with disjointed channels often waste 15–20 hours a month reconciling product data across systems​.⁷

Those delays are essentially lost revenue. Speed and coordination are table stakes in today’s digital world. And the best way to move fast is to have connected visibility and data.

The Strategic Shift: From Fragmented to Connected Commerce

The most successful brands aren’t scaling with fragmented, brute force. They’re scaling with intelligence. Unified commerce platforms empower these brands to:

• Sync inventory across all channels in real-time
• Standardize product data to build trust and boost conversions
• Automate order routing and listing updates
• Generate cross-channel reports that show true profitability

Growing fast while fragmented will hurt you in the long run (and probably the short run, too). But scaling smarter will enable growth across channels without growing pains.

Want to see what unified commerce looks like in action? Talk to one of our Rithum experts to learn how to simplify and scale multichannel selling.

1. https://www.retailtouchpoints.com/features/industry-insights/ihl-study-inventory-distortion-will-cost-retailers-1-77-trillion-in-2023
2. https://hbr.org/2004/05/stock-outs-cause-walkouts
3. https://dataweave.com/blog/amazon-stock-out-impact-on-ecommerce
4. https://coresight.com/research/unlocking-success-the-pathway-to-profitability-for-us-brands-and-retailers/
5. https://www.ascendsoftware.com/blog/the-average-cost-of-processing-a-purchase-order-a-detailed-analysis
6. https://nrf.com/media-center/press-releases/nrf-and-happy-returns-report-2024-retail-returns-total-890-billion
7. https://www.linkedin.com/pulse/unmasking-hidden-complexities-channel-expansion-brandon-pemberton-lzdjc/

The post The 5 Hidden Costs of Fragmented E-commerce Channels appeared first on Rithum.

Amazon Prime Day 2025 is on track to break records, just as it did in 2024 where U.S. shoppers spent $14.2 billion online during the 48-hour sales event.¹ This year, Prime Day will span over four days in July, offering some unprecedented opportunities for sellers.

July may seem far off, but by planning early, you can better keep up with consumer demand and increase conversions.

Here are the five things to do right now to get ready for the biggest Prime Day event in history.

1. Lock down inventory early and always leave room for the unexpected.

Don’t be stuck scrambling to meet Amazon’s FBA deadline. Instead, forecast based on past Prime Day and holiday sales data, and work on adjusting SKUs and preparing backup plans.

Keep these milestones in mind:

• Submit Best Deals and Lightning Deals by May 23.
• Keep an eye on Price Discounts. The submission window opens May 5 and closes 6 hours before the event starts in July (check back here for the official sales event dates once released).
• Make sure all your FBA inventory arrives by June 9 for minimal shipment splits or by June 18 for Amazon-optimized splits.
• Diversify fulfillment to reduce delivery times and increase Buy Box eligibility.
• Use Rithum to monitor inventory during the sales event across all channels.

2. Price to win the Buy Box, without killing your margins.

The Buy Box is essential during Prime Day, when buyers are moving fast and clicking even faster. If you don’t win the Buy Box, your listing won’t get the visibility it deserves. It’s important to understand pricing floors while using automation to move quickly when the market shifts.

Focus on preparing by:

• Reviewing last year’s deal performance to find pricing sweet spots.
• Using repricer tools (like Rithum’s) that adapt to competitor moves and inventory levels.
• Set up Lightning Deals and Coupons with >5% discounts for Prime members. Thereby ensuring access to the nearly 189 million U.S. Amazon customers that had a Prime membership as of September 2024, up 9% from the year before.²
• Ensuring price parity across Amazon, Walmart and other marketplaces to avoid suppression. Features like Rithum’s repricer automation, performance monitoring, stock alerts, order routing and management, shipping integration, and returns management help sellers avoid errors on marketplace listings.

3. Don’t wait to launch retail media ads.

Successful sellers launch ad campaigns weeks in advance and use that time to optimize. Now’s the time to spread your budget wisely across different ad types and audiences.

Focus on:

• Running Sponsored Products, Brands, Displays, and Video campaigns.
• Segmenting campaigns into branded, non-branded, and competitor targeting.
• Automating budget increases during Prime Day traffic spikes.
• Using Rithum’s real-time ad performance tools to shift spend where it matters most.

4. Craft pages that stop the scroll and convert.

Your product page content is crucial to your conversion rate. A shopper is much less likely to click “Buy Now” on a weak product page. But investing in content that converts is a long-game that needs to happen well before the big sales event.

Focus on:

• Optimizing images, titles, bullets, and descriptions across your catalog.
• Creating A+ content boosts conversion by up to 20%, according to Amazon.³
• Scheduling storefront updates to showcase Prime Day deals and promotions.
• Using Amazon’s A/B testing tool (Manage Your Experiments) to find what works best.⁴

5. Don’t just sell on Amazon; drive traffic to it.

Smart sellers proactively reach out to shoppers, rather than waiting for shoppers to find them. Use external channels to fuel Amazon sales and collect referral bonuses in the process.

Focus on:

• Running social, search, and email campaigns with Amazon Attribution tags.
• Earning brand referral bonuses to offset referral fees (up to 10% back).
• Using Rithum to track and optimize multichannel performance and profitability.

Bonus tip: Stay on top of the right metrics in real time.

The sellers that sell well are those that keep their eyes on the dashboard. That way, you’re able to quickly see what’s working versus what’s not.

Focus on:

• Watching seller health metrics like on-time shipping and cancelation rates.
• Tracking Buy Box percentage, ad ROAS, and low-stock alerts hourly during Prime Day.
• Using Rithum’s centralized dashboard and custom reports to adjust on the fly.

Want to learn how Rithum can help you be prepared before, during, and after Amazon Prime Day in July? Schedule a demo today to learn more.

Sources
1. https://blog.adobe.com/en/publish/2024/07/18/adobe-analytics-prime-day-drove-billion-online-us-retailers-growing-yoy
2. https://cirpamazon.substack.com/p/amazon-prime-membership-is-a-big
3. https://sell.amazon.com/blog/prime-day-tips
4. https://sell.amazon.com/blog/prime-day-tips

The post Sellers Who Win Amazon Prime Day 2025 Will Do These 5 Things appeared first on Rithum.

While Rithum’s experts broke down key challenges of multichannel selling in our recent The Rise of 3P Commerce: Why Multichannel Selling Is the Future of E-Commerce webinar, it became clear from audience questions that brands and retailers are feeling the pressure. From tighter margins, shifting fulfillment models, and the challenges of building meaningful retail partnerships, here’s how your peers are thinking about 3P commerce as they’re scaling online and facing profitability challenges (and our experts’ advice).

Q1. Where does dropship end and marketplace begin? And what does that mean for retailers and brands?

“Retailers are expanding assortments at a rapid pace through dropship and private marketplace investments to meet customer demand,” said John Fobare, Vice President, Client Partnerships. “At the same time, brands are using public marketplaces to test new products and enter new markets without relying solely on wholesale or DTC.”

“3P gives you the ability to run a hybrid strategy. You can reach new customers through marketplaces while using your owned channels to protect and serve your most loyal ones. The two don’t have to compete, they can complement,” said James Lang, Vice President, Client Partnerships.

Ultimately, the question isn’t where one model ends and the next begins—it’s how you use each one strategically.

For retailers, dropship and private marketplaces are third-party (3P) business models that offer flexibility to meet consumer demand.

• Dropship allows retailers to expand assortments without holding inventory. Suppliers ship directly to consumers on the retailer’s behalf, and retailers only pay for what sells. It’s great for reducing risk but comes with tighter margins and less control over the customer experience.
• Private marketplace (also known as curated marketplace) gives selected sellers more autonomy, including handling pricing, shipping, customer support, and returns. Retailers maintain oversight and can scale more easily by setting global seller terms instead of managing contracts individually.
• A hybrid model allows retailers to use dropship to build out a 3P commerce program to offer more assortment without buying and stocking the inventory themselves. This allows you to be flexible because you can shift high-performing dropship items to your wholesale model, increasing your product margins. Test new products and categories with low risk – and those that perform well can be moved to your dropship program.

For brands, marketplaces offer direct access to consumers across multiple platforms, and many are embracing them as a core part of their revenue strategy.

• 3P commerce helps brands extend their owned inventory to unowned channels. This enables brands to reach more consumers through a multichannel selling strategy.
• According to the State of 3P Commerce Report, nearly one-third of global executives say over 50% of their total revenue now comes from 3P sales channels. That’s how important these business models are for brands looking to scale without relying solely on wholesale or owned direct-to-consumer channels.

The key takeaway:

Brands and retailers are increasingly turning to hybrid models. Dropship enables retailers to build assortment and test demand. Marketplaces allow sellers to scale with lower overhead costs and more automation. Rithum’s unified commerce solution helps retailers and brands manage these models in one platform, reducing complexity and driving better ROI.

Q2. How do brands stay connected to retailers as 3P grows? Doesn’t it shift the balance out of control?

This is a concern we hear often, and it’s a fair one. As fulfillment shifts to suppliers and brands take more ownership in 3P environments, it can feel like traditional retail relationships are fading.

But the data—and the discussion—tell a different story.

“Retailers and brands are starting to treat 3P as an extension of the 1P relationship,” Fobare said. “What’s happening now is more collaboration because both sides know they need each other to meet the customer where they are.”

Staying connected means:

• Bringing data to the table: Brands can use performance insights from marketplaces to guide assortment decisions and pitch new opportunities to retail partners.
• Participating in retail media: With 85% of executives confident in retail media as a growth lever, collaboration on campaigns and promotions is now essential.
• Aligning on customer experience: Brands that maintain strong service level agreements (SLAs), consistent content, and reliable fulfillment earn more trust and more visibility – on both sides.

“To maintain control over the customer experience, you’ve got to partner with the right platforms and set clear standards. High-quality product data, consistent branding, accurate listings are how brands stay front and center,” Lang said.

The key takeaway:

The future isn’t about control, it’s about collaboration. Whether it’s a 1P or 3P relationship, the brands and retailers who win are the ones who work together to deliver the best customer experience.

Q3. How can Rithum help brands create new relationships with e-retailers?

Retailers are doubling down on 3P models—whether dropship, curated private marketplaces, or something hybrid. Brands, on the other hand, are looking for scalable access to new sales channels without starting from scratch each time. But the real challenge is connection: how do you find the right partner, the right model, at the right time?

That’s where Rithum comes in.

“We partner with over 40,000 brands, suppliers and retailers to expand into new channels like marketplaces, increase marketing ROI, and launch dropship and private marketplace programs,” said Brandon Klein, Director of Product Marketing at Rithum. “There isn’t much of the buying journey that we don’t touch.”

For brands, Rithum helps surface the right retailers and platforms to match your category, operational readiness, and growth goals. For retailers, Rithum simplifies onboarding and helps scale assortment with trusted suppliers fast.

“Brands and retailers benefit from being in more places at once,” Fobare said. “3P is one of the fastest ways to expand your presence and grow revenue.”

The key takeaway:

3P commerce isn’t a single strategy. It’s a flexible, high-growth model that brands and retailers are using to reach new customers, test new products, and reduce risk. But it’s not without its complexity.

The key is knowing which model to use when and how to scale each one with the right infrastructure, data, and partnerships.

“The goal is simple. Owned inventory and 3P should work together, not against each other,” Lang said.

Whether you’re a retailer expanding a private marketplace or a brand launching on Amazon, Rithum’s unified commerce platform helps you connect, scale, and grow smarter. Learn more by watching the full webinar here.

 (Some quotes have been lightly edited for context and clarity.) 

The post You Asked, We’ve Answered – The Top 3 Questions from Our 3P Commerce Webinar appeared first on Rithum.

From supply chain resilience to TikTok shop and everything in between, Rithum experts have big thoughts on how brands and retailers can scale, optimize, and future-proof their businesses. During our webinar last week, Rithum’s James Lang and John Fobare joined Rithum’s Director of Product Marketing, Brandon Klein, to talk about where third-party (3P) commerce is headed and how businesses can best keep up. 

Here are the three biggest takeaways from their deep-dive conversation: 

Takeaway #1: Selling on multiple channels builds business resiliency 

Much like a well-balanced investment portfolio, having multiple sales channels is key to weathering economic volatility and shifting consumer behavior. In the webinar, these multiple channels were defined as third-party (3P) commerce; fast-growing business models where brands sell their products through a retailer’s storefront, such as a marketplace or dropship program, instead of managing direct sales themselves. 3P commerce enables retailers to offer a wider product selection without holding inventory. For brands, it helps them reach more customers across multiple sales channels. Marketplaces such as Amazon and Walmart have made this approach popular, with consumer shopping on these platforms growing 30% in 2023 compared to 2022. 

The value of 3P is evident in the numbers, which Brandon talked through in the webinar: 99% of the surveyed global brand and retailer executives say that 3P selling is the best business model to weather economic volatility and 70% of executives report that up to half of their total revenue comes from 3P sales. James emphasized the importance of 3P in today’s complex e-commerce ecosystem:”3P commerce is one of the fastest ways for brands to expand their presence and grow revenue. It allows businesses to tap into new customer bases and diversify their sales strategy without heavy upfront investment.”  

With consumers able to “shop-hop” (as Fobare called it) across channels, comparing prices and reviews, 3P commerce also helps businesses maintain visibility where their customers are most active. With 68% of global executives reporting an increase in third-party commerce sales over the past year, and 59% planning to expand their 3P strategies even further over the next twelve months, multiple channel selling doesn’t just build resiliency but also is the key to staying competitive. 

Final thought:

For those still focused on a singular marketplace, Lang was sympathetic . . . but still stressed the importance of not falling behind: “The resistance to change is understandable, but 3P is simply evolving with the trends. If you’re not meeting the customer where they are and offering the choices that they’re looking for, your customer will just go and find it where it’s available. Brands and retailers that can overcome some of these hurdles can really unlock the full potential of 3P.” 

Takeaway #2: AI and automation are growth game-changers

AI and generative artificial intelligence (genAI) are playing increasingly vital roles in our world, and e-commerce is no exception. Many executives are turning to automation and AI to help optimize inventory, improve fulfillment accuracy, and personalize customer interactions at scale. 

“AI is helping to deliver a lot of value,” said Lang. “You know, we see resources being deployed to add higher value to operations or replace a lot of that mundane work and getting them into greater value-added activities.” Seventy-one percent of survey respondents in a recent study said that AI is very important to their business and their ability to manage e-commerce successfully. But at the same time, a separate study shows that 71% of C-suite execs report genAI adoption challenges, with concerns about its use in silos across the company. This is the hurdle with any new tech: getting past the “new hotness” of something exciting and figuring out how to strategically get the most value out of a technology investment. 

At Rithum, our AI Magic Mapper, powered by RithumIQ, is a great example of how AI and automation can help remove silos, instead of build them. The Magic Mapper supports marketplace expansion by mapping product catalogs across multiple channels in minutes instead of days, and helps you analyze trends, improve personalization, and optimize pricing in real time—ultimately enhancing customer experience and driving conversions. 

Final thought:

As Fobare explained, “Retailers and brands want to focus on what adds the most value—consumer engagement, storytelling, and product development—not on the technical complexities of integrating new sales channels. AI and automation free up resources so they can do just that.” 

Takeaway #3: Social selling is the future of commerce

With e-commerce becoming more complex, many businesses are looking for unified solutions that bring inventory, fulfillment, pricing, and customer data under one platform. Managing multiple channels separately creates inefficiencies, while a centralized system provides real-time insights that enable better decision-making. “Once we get past the strategy part—we know we’re going to do it, we know where and why—it all comes down to efficiency,” Fobare said. “Businesses have scarce resources, and no one  can afford to reinvent the wheel every time they expand to a new channel. Instead of spending valuable time figuring out how to make these connections work from scratch, companies need to streamline the process and focus on what drives growth.” 

Social selling is one of the biggest new channels that businesses are looking to pull into their system right now. As Klein pointed out, 82% of executives rely on social commerce as part of their 3P selling strategy and “29% went so far as to say they rely on social commerce ‘a great deal.’”

Younger generations increasingly rely on social platforms to not only research products, but to also purchase what they discover. Retailers and brands who use 3P commerce to get a unified view and meet customers where they are shopping (be it social media or a marketplace) will capitalize not only on the ongoing shift to social selling, but quickly capture future channels (wherever they may be). 

Final thought:

3P commerce isn’t just an add-on, but a competitive necessity and major revenue driver for brands and retailers that use it wisely. Whether you’re expanding into new marketplaces, fine-tuning your pricing strategy, or streamlining your fulfillment process, success comes down to having a clear plan and the right tools. 

________________________________

These takeaways just scratch the surface of the hour-long webinar roundtable, which covered everything from TikTok shop to supply chains. Watch the full webinar recording for a deeper dive into all the trends shaping e-commerce today. 

 (Some quotes have been lightly edited for context and clarity.) 

The post AI & Automation, Ecommerce Resilience, & the Power (and Pitfalls) of Diversification: 3 Hot Takes from the Future of 3P Commerce Webinar appeared first on Rithum.

How does Gem Stone King keep up with more than 300,000 SKUs listed on Amazon, Walmart, eBay, its own direct-to-consumer (D2C) website and other channels during peak selling for Valentine’s Day? By using Rithum.

“As we’ve prepared for the busy Valentine’s Day season, Rithum’s platform has been an essential tool, ensuring our product listings remain accurate and up to date across multiple sales channels,” said Gem Stone King E-Commerce PPC Manager Andrew Molchan.

Rithum provides support when consumer demand spikes during peak sales periods

Gem Stone King is managing a vast catalog across multiple marketplaces. Pivoting during the fast-paced sales event is the difference between conversions and empty carts.

“The ability to push quick updates, adjust listings, and maintain pricing consistency across multiple platforms is critical during this time. Since consumer demand spikes during Valentine’s Day, we can’t afford to have outdated product information or stock inaccuracies.”

– Andrew Molchan, E-Commerce PPC Manager, Gem Stone King

A curated collection and positive customer experience for Valentine’s Day

Gem Stone King has the flexibility to curate collections for Valentine’s Day. Top-selling products include sophisticated gold and platinum jewelry, as well as lab-grown diamond jewelry, heart-shaped designs and stones. Consumers can also customize pieces with their birthstones or add custom engravings.

Rithum enables Gem Stone King to create customized product feeds tailored to each marketplace channel’s specific requirements. Powerful reporting tools provide valuable insights into performance trends, enabling the brand to make data-driven decisions and spot trends followed by reallocating resources to support those fluctuations in demand.

“Over the last year, we’ve seen a huge improvement in how we manage our multichannel selling strategy and listings. The integrations with marketplaces have been significantly enhanced, allowing us to manage listings more efficiently,” Molchan said.

Reach more Valentine’s Day shoppers through retail media ads

Brands and retailers using Rithum can adjust for content optimization and assist with advertising to reach consumers across the multiple sales channels they are shopping. Sponsored ad placements allow consumers to engage with brands and products, allowing advertisers to tell their story directly. According to Walmart first-party data, marketplace sellers who advertise with sponsored ads see, on average, $4 in attributed product sales for every $1 of ad spend.* Compared to non-ad exposed customers, those exposed to a brand’s Walmart Connect ads were 6x more likely, on average, to buy brand items.**

For more insights into how Rithum can help you elevate your multichannel selling strategy and ensure smooth operations during peak selling events, contact our team and schedule a demo today.

The post How Gem Stone King Manages 300,000+ SKUs Across Multiple Marketplaces for Valentine’s Day appeared first on Rithum.

We’ve analyzed trends that stood out from the five-day period between Thanksgiving through Cyber Monday and how these lessons can impact 2025 e-commerce trends for brands and retailers. Consumers spent more online than ever before, according to Adobe Analytics data. For Rithum clients, AI, social commerce and retail media strategy took center stage. Here’s what brands and retailers are investing in to reach more consumers in 2025.

1. Explosion of product categories for third-party (3P) marketplaces is reshaping e-commerce in 2025.

Brands and retailers will continue to use artificial intelligence (AI) to manage product inventory across multiple sales channels including marketplaces and direct-to-consumer websites. Retailers like Amazon and Walmart use AI for real-time inventory management.

“Walmart’s rapidly expanding assortment presents new challenges to suppliers. However, our latest Walmart Categorizer, now in Rithum’s AI Magic Mapper, ensured seamless migration for hundreds of clients managing millions of SKUs. This highlights Rithum’s leadership in scalable AI solutions,” said Sebastian Spiegler, Director of AI, Rithum.

Rithum is currently focusing on Profitability Benchmarking, which is the process of identifying top channels, pricing strategies and returns insights.

“Profitability Benchmarking at the SKU-level is the ‘holy grail’ for brands. This process is a key 2025 focus area for Rithum and is already being piloted with strategic clients,” Spiegler said.

2. TikTok Shop will continue to revolutionize discovery and influence.

In just one year, TikTok Shop has become one of Rithum’s top 10 sales channels since launching in December 2023. This includes merchant giants like Amazon, Walmart, Target+, eBay and Zalando.

“TikTok’s innovative platform connects content with commerce enabling intuitive product discovery through viral, low-effort videos created by thousands of creators. TikTok account users with only a thousand followers are now product curators, streamlining affiliate marketing and enabling effortless monetization directly in the app,” said Lou Camassa, Director of Product at Rithum.

Currently, Rithum supports TikTok Shop in the US and UK, with launches in Spain and Ireland planned for early 2025.

“This is an incredible proposition for EMEA sellers to tap into a growing and dynamic market,” Camassa said

3. Brands and retailers are being more strategic about retail media budgets.

Consumers continued to shop well before BFCM in October. As a result, Rithum retail media clients spread-out retail media budgets.

“Rithum retail media brands and retailers had to strategically pace their seasonal budgets for a longer peak season before and after BFCM. Specifically, during BCFM week, we advised clients not to over-invest and instead ride a continuous wave of peak seasonality wins while managing the budget thoughtfully. While budget increases only averaged 3%, we were still seeing wins. This included meeting their efficiency goals with an average of 1.7 advertising cost of sales (ACOS) as one example,” said Meghan Barden, director, global retail media, Rithum.

Going into 2025, Barden believes that the promotional holiday period will continue to extend into October and well through the end of December. Clients should be prepared to extend their seasonal budgets to accommodate this length of time. Also, brands and retailers should be open to peaks and valleys in their spend and return. Leveraging product data YoY, such as noting high performing SKUs, is a strategic way to map the seasonal timeframe approach in 2025.

Delve deeper into what’s trending in third-party (3P) commerce in 2025.

Read more about trends in AI, cross-border commerce, social commerce, retail media and supply chain in Rithum’s 2024 State of 3P Commerce Report.

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