Sent Items #150: Wednesday, March 20, 2024

I wrote my first issue of Sent Items back in 2017. Seven years later I’m on #150. Not bad!

Been a busy few weeks as I launched a new business called Third Person with my partner from Second Marathon. You can find my LinkedIn post announcing our launch here (link). 

Third Person is a digital marketplace that enables eCommerce brands to discover and engage with 3PLs. Built for brands by the people behind Second Marathon, they can receive personalized matches, review unique 3PL profiles, and easily connect with 3PLs. A completely new way for brands to find the right 3PL for their business.

If you’re a Brand looking for your first or next 3PL, we welcome you to sign up here: https://www.thirdperson.co/

If you’re a 3PL wanting to join Third Person, please sign up here: https://www.thirdperson.co/3pl

I came across this cartoon the other day and I think it does a great job summarizing one of the problems Third Person solves: qualifying sales leads and reducing noise!

Relatedly, a great 3PL we’ve done a lot of work with, DCL, just published a blog post I penned discussing, you can guess, “How to Pick the Best 3PL”.

Now onto some stories…

Wonder, Marc Lore’s Food-Delivery Startup, Raises $700 Million (link)

• A year after scrapping plans to develop a nationwide network of food trucks, a former Walmart executive’s startup wants to open nearly 100 delivery-focused restaurants around the New York City area with new investor funding.

• Lore founded Wonder in 2018 before he finished a stint as head of eCommerce at Walmart.

• Wonder’s 11 locations in New York’s Manhattan and Brooklyn boroughs and New Jersey primarily offer takeout and delivery from several restaurants cooked in a single kitchen. Its plans call for adding nearly 100 more locations over the next two years, Lore said.

• The startup initially set out to build a network of truck-based restaurants preparing hot curbside meals from popular chef-inspired menus. In the early years, around 500 Wonder trucks blanketed some suburban New Jersey and New York communities.

• Wonder later shifted to a less expensive operating model focused on physical kitchens. That shift temporarily erased much of Wonder’s revenue. 

• Last fall Wonder bought Blue Apron for $103 million. Blue Apron lost money in 2022, during its last full year as a public company, but reported $459 million in sales.

FedEx and Amazon Explored Partnership in eCommerce Returns Last Year (link)

• Although no deal was reached, the talks underscore the shifting dynamics in the parcel delivery industry. The discussions revolved around FedEx accepting Amazon returns at its retail locations, according to the report. The move would have allowed FedEx to tap into Amazon’s return business, which is currently managed by various companies, including FedEx competitor UPS.

• The talks took place around the same time Amazon introduced a fee for customers returning packages at UPS stores last spring.

• FedEx and Amazon’s relationship has been tense since 2019 when FedEx ended its delivery contracts with Amazon, viewing Amazon’s development of its own delivery capabilities as a threat.

Alibaba brings 5-day delivery on AliExpress to US via Cainiao in battle against Shein, Temu (link)

• Customers who place an order in the US on AliExpress, Alibaba’s international eCommerce platform, can now expect to receive their parcel in five days, delivered by Cainiao, the Alibaba logistics unit 

• Alibaba’s latest efforts come amid the rapid rise of a new breed of online retailers with Chinese roots, led by Shein and PDD Holdings’ Temu, which have made a splash in the US and other international markets on their competitive pricing tactics.

• AliExpress said its Choice service, which was rolled out last year and offers fast delivery of higher quality goods, saw orders grow by more than 60% yearly growth.

• For those who enjoy Podcasts, the Jason and Scot Show did a great deep dive of Temu, which has become the fastest growing retailer in history. In this episode they cover who Temu is, how big they have become, who their customers are and what retailers they are likely impacting, their go to market strategy (and especially their marketing spend), the controversy around their use of the Global Postal Treaty, and some of their potential risks. You can listen to it here (link)

Imports Under Closely Watched U.S. Trade ‘Loophole’ Surge (link)

• Related to the previous headline, more packages than ever are entering the U.S. under a trade provision—frequently used by Temu and Shein—that allows duty-free entry with little scrutiny.

• The so-called de minimis provision allows packages with contents under $800 in value to enter the country under a simplified procedure. Critics say that is a loophole helping companies end run tariffs and defy bans on imported goods made with forced labor.

• So far in fiscal year 2024, at least 485 million packages have entered the U.S. under the provision. That compares with 685 million packages in all of fiscal year 2022,

• The House Select Committee estimates Temu and Shein alone account for about a third of all de minimis shipments. Both companies have also faced allegations that some of the goods they sell might be made using forced labor.

- Matt

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