⭐ Your Ecommerce Coffee Break Newsletter (Issue 150)

Top stories for online sellers & DTC brands—your quick ecommerce briefing.

👋 It's Tuesday, and here's your ecommerce reality check: DTC brands are shuttering faster than they're launching as tariff chaos strangles cash flow. TikTok builds a US escape route while Prime Day scammers flood the web with fake sites.

Grab your coffee, it’s a 1-min skim or a 3-minute to make you a smarter online seller.

In Today’s Edition:

  • Today’s Headlines Handpicked For You!

  • 🎧 On the pod: The Scariest Ad Mistake Shopify Stores Make

  • DTC brands are dying faster than ever

👋 And as always, feel free to send feedback or just say hi: [email protected].

📰 WHAT’S HAPPENING

📈 General Ecommerce News

  • E-commerce Slows Sharply Amid Tariff Uncertainties [read more]

  • Brands grapple with strained cash flow amid tariffs [read more]

  • Few consumers trust retailers to use their data responsibly [read more]

  • US prices for China-made goods rise faster than inflation [read more]

  • Almost 87% of Dutch consumers shop online [read more]

🛒 Platforms & Marketplaces

  • TikTok is building a new app for US users [read more]

  • Prime Day scammers launch 120K fake sites [read more]

  • How to Find Trending Products On Amazon For Your Store [read more]

  • Best Amazon Seller Tools to Grow [read more]

  • Shopify announced the next level of its collaboration with OpenAI [read more]

📱Social Media & Advertising

  • Facebook and Instagram users complain of account bans [read more]

  • How to Sell Amazon Products on Instagram Effectively [read more]

  • Top 10 CRO Best Practices for eCommerce Store [read more]

  • Meta Adds Copyright Check [read more]

  • TikTok pushes deeper into AI-powered ads [read more]

🎙️ ECOMMERCE COFFEE BREAK PODCAST

Podcast

The Scariest Ad Mistake Shopify Stores Make

In this Ecommerce Summer School archive episode, we explore how AI is changing paid advertising for online stores.

Drew Smith, co-founder of upp.ai, explains how artificial intelligence can automate these tasks. He shares how their product data platform helps businesses show more products to customers and increase sales.

Drew discusses real success stories where companies went from showing only 3% of their products to 84% visibility.

🎧 Play Episode: [Website] [Apple Podcasts] [Spotify] [YouTube]

Rate & Review: Help others discover the show by rating the show on Apple Podcasts or Spotify.

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💡 DTC BRANDS ARE DYING FASTER THAN EVER

The big picture: Shopify store closures now outpace new installs for the first time—1.5 closures per install in Q2 2025.

By the numbers:

Small DTC brands: 

  • Revenue down 25% YoY in June

  • Overall DTC market: Down 9%

  • YoY Consumer spending sentiment: Weakest since 2023

  • 1% of brands filed Chapter 11 in April alone

Why it matters: This isn't just a downturn—it's a structural clearing of an oversaturated market.

The perfect storm:

  • Tariff chaos tied up cash in unsold inventory

  • Rising CAC while acquisition efficiency plummets

  • Market saturation in key categories post-COVID

  • Margin compression from inflation + tariffs

  • Cash flow crisis as brands pulled forward retention revenue

Real examples:

  • Flaus canceled a $30K Hamptons pop-up.

  • Beau Ties cut staff hours.

  • Loftie saw lamp sales drop 80%.

The deeper issue: Brands built on cheap customer acquisition, plug-and-play tools, and operational simplicity are hitting their limits in today's capital-scarce environment.

What's next: Expect accelerating closures as the ecosystem can't support this many brands competing for shrinking demand and rising costs.

→ Action: Audit your cash flow and acquisition costs immediately—the clearing is accelerating and only profitable, well-capitalized brands will survive.

🔥 Free Store Revenue Potential Discovery Call

Want to make more money from your store? Let’s find out what you’re missing.

I’m giving a free 20-minute call to check your store. No boring tips. No pushy sales talk.

I’ll look at your store, find one big problem that’s losing you money, and tell you exactly how to fix it. If it makes sense, we can talk about working together to make your store grow fast.

Ready to make your store better? Don’t guess—get a clear plan. I only do 5 free calls a week, so grab yours now!

After our call, you’ll know one simple step to make more money.

Have suggestions? Help us better serve our 8,198 readers by sharing your honest feedback at [email protected]

Yours in ecommerce success,

Claus

Ecommerce Coffee Break

The Ecommerce Coffee Break Podcast + Newsletter ☕ 100% powered by caffeine and curiosity. ❤️ Buy me a coffee to support independent media that delivers unbiased ecommerce advice.

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