e-commerce

e.l.f. Cosmetics partners with Twitch and Amazon Ads to launch a shoppable in-stream experience, “eyes.lips.first.,” allowing viewers to purchase products directly through e.l.f.’s Twitch channel. This innovative approach makes e.l.f. the first cosmetics brand to integrate e-commerce directly into Twitch streams. The collaboration aims to capitalize on Twitch’s engaged audience, offering seamless product discovery and purchase opportunities. e.l.f.’s Patrick O’Keefe will discuss the partnership at TwitchCon San Diego 2025.

Honor is aggressively pursuing AI integration in its smartphones, aiming to become a top-three brand in China. Its new AI features, debuting on the Magic8, allow users to compare prices and find deals across e-commerce platforms, saving money. Honor is investing heavily in AI, envisioning a future where AI becomes the primary user interface, offering personalized services. Collaborations with Alibaba and others support this strategy, enabling features like smart photo suggestions and voice-activated taxi hailing. Honor’s long-term goal is to connect businesses with consumers via AI.

Google’s AI Mode is evolving to include visual search results, integrating image generation capabilities. This expansion, powered by Gemini 2.5 and other Google technologies, addresses queries better suited for visual answers, like shopping inspiration and interior design ideas. Users can refine results with follow-up prompts, tailoring visuals to their preferences. This move, driven by competition from AI alternatives, aims to enhance user experience and maintain Google’s leadership in the AI-driven search landscape, potentially impacting e-commerce and online advertising.

Pattern Group, an “ecommerce accelerator” for brands on marketplaces like Amazon, debuted on the Nasdaq (PTRN) with shares opening slightly below its $14 IPO price. The IPO raised $300M, valuing the company at $2.5B. Pattern, founded in 2013, helps brands optimize sales, reporting strong revenue growth in Q2 2024. However, the company relies heavily on Amazon (94% of 2024 revenue) and faces competition and risks associated with trade uncertainties, potentially impacting its future performance.

Amazon has upgraded its Seller Assistant, an AI agent for third-party merchants, with new “agentic capabilities” allowing it to execute actions with seller permission. This enhances operational efficiency, freeing sellers for strategic tasks. The tool, leveraging Amazon’s Bedrock, can manage inventory, create growth plans, and resolve account issues, potentially preventing suspensions. Over 1.3 million sellers use its listing tools, automating up to 70% of content. Amazon earns revenue from seller services, not direct AI tool charges, indicating a focus on platform enhancement and seller growth.

Douyin, the Chinese version of TikTok, is combating fraud targeting users of its mobile phone recharge service. A data leak stemming from vendor supply chain issues led to phishing scams where users were pressured to refund “errors.” Douyin has removed 25 non-compliant vendors, freezing their payments and blacklisting them. The incident highlights the need for stricter vendor due diligence, data security, and monitoring to maintain user trust and a secure e-commerce environment.

Alibaba’s Hong Kong shares surged over 19% driven by strong cloud computing results and AI chip development news. Cloud revenue grew 26% YoY, fueled by AI services, with AI-related product revenue experiencing triple-digit growth for the eighth consecutive quarter. The company’s investments in AI and its entrance into China’s competitive “instant commerce” market are viewed favorably despite temporary earnings pressure. Overall, positive sentiment followed a solid earnings report with significant net income increase and promising e-commerce revival signs.

Affirm (AFRM) shares jumped 12% after exceeding Wall Street expectations in its fiscal fourth quarter. Earnings reached 20 cents per share with a 33% year-over-year revenue increase to $876 million. Net income was $69.2 million, a stark contrast to last year’s loss. Affirm’s volume surged 44%, driven by partnerships with Shopify and Amazon, despite losing Walmart as a partner. The company issued strong fiscal 2026 guidance, highlighting growth in consumer transactions and the success of its Affirm Card, which saw GMV surge 132%. AI is also boosting merchant volume.

Alibaba (BABA) reported a mixed Q1 fiscal year performance. Net income beat expectations with a 78% jump, driven by equity gains and the Trendyol sale. Revenue, however, fell short of estimates. Cloud computing revenue soared 26%, fueled by AI demand, with AI-related product revenue growing at a triple-digit rate for the eighth consecutive quarter. Despite macroeconomic headwinds in China, Alibaba’s stock showed resilience. Investors are optimistic about AI initiatives and investments.

Affirm shares soared after reporting strong fiscal fourth-quarter results, beating expectations with EPS of 20 cents and revenue of $876 million. Revenue jumped 33% year-over-year, and gross merchandise volume increased by 43% to $10.4 billion. The company reported a net income of $69.2 million, a significant improvement from the previous year’s loss. Affirm projects first-quarter revenue between $855 million and $885 million. Despite facing competition from Klarna and Walmart’s shift, Affirm has partnerships with Amazon, Shopify, and Apple.