As subscriptions have taken over countless industries, companies have engaged in a plethora of practices aimed at making it almost impossible for consumers to easily cancel. The FTC has been working to address the problem, developing a rule to govern the practice.

“Too often, businesses make people jump through endless hoops just to cancel a subscription,” said Commission Chair Lina M. Khan. “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”

The agency is particularly focused on “negative option marketing.” In 2009 report, the FTC defined its use of the term.

The FTC uses the phrase “negative option marketing” broadly to refer to a category of commercial transactions in which sellers interpret a customer’s failure to take an affirmative action, either to reject an offer or cancel an agreement, as assent to be charged for goods or services. Negative option marketing can pose serious financial risks to consumers if appropriate disclosures are not made and consumers are billed for goods or services without their consent. With the explosion of Internet marketing over the past ten years, negative option offers are as much a fixture of online advertising as in any other advertising media. The workshop focused particularly on Internet-based negative option offers, because they are relatively new and present distinct issues regarding the form, content, and timing of disclosures.

The new rule will apply to virtually all negative option programs.

The Commission’s updated rule will apply to almost all negative option programs in any media. The rule also will prohibit sellers from misrepresenting any material facts while using negative option marketing; require sellers to provide important information before obtaining consumers’ billing information and charging them; and require sellers to get consumers’ informed consent to the negative option features before charging them.

The agency says the new rule will prohibit sellers from the following:

• misrepresenting any material fact made while marketing goods or services with a negative option feature;
• failing to clearly and conspicuously disclose material terms prior to obtaining a consumer’s billing information in connection with a negative option feature;
• failing to obtain a consumer’s express informed consent to the negative option feature before charging the consumer; and
• failing to provide a simple mechanism to cancel the negative option feature and immediately halt charges.

The agency’s new rules should go a long way toward improving the consumer experience, making it easy to cancel unwanted subscriptions.

The FTC, along with 17 states, sued Amazon last year for alleged antitrust violations. The agency accused Amazon of using “punitive and coercive tactics to unlawfully maintain its monopolies.”

As the case has been making its way through pre-trial motions, US District Judge John Chun has already dismissed some of the claims, including those brought by some of the states involved in the action. According to Reuters, Amazon was trying to convince Judge Chun to dismiss the entire case, saying the FTC had not provided any evidence showing Amazon has harmed consumers.

Interestingly, while Judge Chun did not dismiss the case, he did say it was too early in the process to consider Amazon’s position that it has benefited competition, seemingly leaving the door open that he could come to that conclusion later on.

With the FTC already facing dismissal of some of its claims, there is the distinct possibility that its case may be on shakier ground that it would like.

The FTC, under chair Lina Khan, has faced ongoing criticism for some of its decisions. The agency does not have a good track record of regulatory enforcement, losing a number of efforts to block high-profile mergers and acquisitions within the tech industry.

If the FTC loses its case against Amazon, it could spell for trouble for US regulatory efforts.

Streaming music services have long since replaced traditional purchased downloads as the digital music of choice for most users. Unfortunately, streaming services normally require an internet connection in order for users to be able to play their music.

Catch our chat on Spotify’s new offline mode for no-internet listening!

Spotify is addressing that downside with its users, especially when the unexpected internet outage hits, giving them the ability to continuing listening.

Have you ever hopped on a plane only to realize you forgot to download your favorite playlist? Are you looking for ways to save data with your data plan while still listening to your favorite artists? When the need for music is high and you find yourself offline, Spotify has you covered. Beginning today, we’re launching Offline Backup, bringing Premium users another way to keep listening to music offline, no downloads required.

Offline Backup takes your queued and recently streamed tracks and creates one easy-to-access playlist that is unique to you. To do this, we include tracks already stored on your device as part of your regular listening on Spotify (also known as cache). If you’re looking for a certain vibe, you can filter and sort songs within the playlist by artist, mood, and even genre—and Offline Backup evolves as you continue to listen, so you’ll always have something new.

The new feature will work especially well for those times when users are on the go, forget to download their favorite playlist, and find themselves in a spot without internet.

For the times that you forget to download your favorite audio, Offline Backup gives you another way to access music without using any extra data or storage.

After testing Offline Backup with users last year and receiving positive feedback, we’re excited to offer this to Premium users globally. Offline Backup will begin rolling out on Android and iOS this week, including Android Auto and Apple CarPlay.

The best part of the new feature is that users don’t need to worry about—the feature will work automatically.

• Offline Backup will appear automatically in the Home feed anytime you’re offline.
• – Make sure you’ve listened to more than five songs recently and have offline listening enabled. Find this under Settings and then Data Saving and Offline or Storage. Look for the Offline Listening toggle.
• You can add Offline Backup to Your Library for easy access at any time.
• Can’t find Offline Backup? Make sure your Spotify app is updated to the latest version.

Priceline’s launch of Penny marks a pivotal moment in the integration of AI into travel. The chatbot doesn’t just handle basic queries—it’s an intelligent, conversational assistant that anticipates user needs. Keller highlighted, “Penny is more than just a tool; it’s a personalized travel concierge that adapts based on user interactions.” What sets Penny apart is its ability to learn and adjust in real-time, continuously refining its recommendations, making travel planning not only easier but far more intuitive and efficient than traditional methods.

Catch our conversation on Penny, Priceline’s New OpenAI-Powered Chatbot!

Powered by OpenAI’s Cutting-Edge Technology

At the core of Penny’s abilities is OpenAI’s GPT-4o and its Realtime API, which enable the chatbot to understand complex queries and deliver personalized recommendations with natural language processing. Keller highlighted OpenAI’s role, noting, “We partnered with several companies, but OpenAI’s technology has truly set the bar.” Penny uses multimodal AI, processing both voice and text to offer an intuitive, hands-free interaction. Keller added, “Booking travel should be as easy as having a conversation,” underscoring the company’s goal to simplify the process.

Olivier Godement, Head of API Product at OpenAI, explained the technological impact: “Integrating Realtime API with Penny is a great example of how companies can use our tools to build natural conversation experiences into their applications.”

A Seamless Travel Experience

Unlike typical chatbots that rely solely on text-based interactions, Penny can now respond to spoken commands. “Voice just launched yesterday in a limited capacity,” said Keller, but in the coming weeks, it will offer full voice integration. Travelers can ask Penny for recommendations, such as “Find me a beachfront hotel,” and the chatbot will provide suggestions in real time. This evolution marks a major leap forward in how AI can enhance the customer journey.

“Priceline’s partnership with OpenAI allows Penny to anticipate user needs based on preferences and previous interactions,” Keller shared. This creates a personalized, efficient travel experience, helping customers from trip planning to booking with minimal effort. More than just a novelty, this feature taps into Retrieval-Augmented Generation (RAG) technology, allowing Penny to provide real-time, data-driven recommendations.

The Human Touch Meets AI

Priceline meticulously developed Penny’s voice to feel more human. After auditioning over 100 voice actors, the company selected a tone that would feel familiar and friendly to users. Kevin Heery, Chief Product Officer at Priceline, explained the importance of this choice: “Penny Voice makes planning a trip as easy as chatting with a friend.”

This attention to detail is critical as voice-driven AI tools become more sophisticated. Penny doesn’t just mimic human speech; it’s designed to respond emotionally to the user’s tone, delivering a more dynamic and engaging interaction. According to Keller, “Penny’s real-time voice recognition will make it possible to have actual conversations, where the AI adapts to the nuances in how someone speaks.”

Expanding Capabilities: The Future of AI in Travel

Currently, Penny’s capabilities focus mainly on hotel bookings, but Priceline has ambitious plans to expand its offerings to include flights, rental cars, and vacation packages. This broader scope aims to provide users with a complete travel booking experience. “We’re just scratching the surface of what AI can do in the travel space,” Keller noted, indicating that future iterations of Penny will include even more advanced features.

A key aspect of this future expansion is the integration of conversational continuity throughout the entire travel journey. This means that once a customer interacts with Penny to book a hotel, they can return later and seamlessly ask Penny to adjust other parts of their trip, such as changing a flight or adding a car rental. “With AI like Penny, we can offer a continuous, personalized experience from the moment the user starts planning their trip until they return home,” Keller said. This allows for a more cohesive user experience, which Priceline believes will set it apart from competitors.

The Role of AI in Customer Support

One of Penny’s most significant advantages is its potential to revolutionize customer support in the travel industry. Keller emphasized that AI will play a central role in improving response times and increasing accuracy in handling customer queries, especially in cases where travelers face urgent issues such as flight cancellations or unexpected changes. “AI can drastically reduce the time it takes to resolve these situations, providing immediate solutions where it might have taken a human longer to respond,” Keller explained.

In addition to improving the speed of customer support, AI will allow 24/7 service availability, ensuring that customers can receive assistance at any time, no matter where they are in the world. “There’s a huge volume of interactions every day, and AI is key to managing that,” Keller stated. This increased efficiency not only benefits customers but also reduces operational costs for Priceline.

Personalization at Scale

One of the key reasons why Penny stands out in the crowded field of AI-powered chatbots is its ability to personalize recommendations based on user data. Priceline’s vast customer data platform allows Penny to pull from past interactions to provide more relevant suggestions. Whether recommending a beachfront hotel or highlighting nearby restaurants, Penny’s personalized approach aims to make every interaction feel tailored to the individual. “Penny doesn’t just answer questions; she learns from each interaction, making her smarter and more helpful over time,” Keller noted.

As AI continues to evolve, this personalization will become even more sophisticated, with Penny able to anticipate user needs based on preferences and behaviors. This opens up the possibility for more dynamic interactions, where Penny could recommend upgrades or additional services based on the user’s travel habits. “We want to reach a point where Penny is almost like a personal travel concierge, offering suggestions and making recommendations even before the customer asks,” Keller revealed.

AI Integration Costs vs. Benefits

Despite the exciting potential of Penny and AI integration, Priceline faces notable challenges, particularly in refining Penny’s ability to handle the wide array of nuanced customer queries. While the chatbot supports over 120 languages, ensuring seamless interaction across various dialects and accents remains an ongoing development priority. “We are continuously refining Penny’s ability to adapt to different speech patterns and contexts,” Keller noted, highlighting the immense complexity involved in perfecting natural language processing for a global audience.

Beyond linguistic challenges, maintaining the balance between AI integration costs and the service benefits is another key focus for Priceline. Keller acknowledged that although each new iteration of OpenAI’s technology helps reduce overall costs, the sheer volume of interactions handled by Penny necessitates ongoing investment. “AI development is not a one-time effort; it requires sustained investment, but we are confident the long-term benefits will far outweigh the costs,” Keller said. This optimism is based on the assumption that the efficiency and customer satisfaction improvements brought by Penny will enhance Priceline’s bottom line, especially as the chatbot’s features expand.

Penny’s Role in Revolutionizing the Travel Industry

Priceline’s bet on AI is more than just a technological upgrade—it reflects a broader shift in the travel industry toward automation and personalization. As AI-powered solutions like Penny become more integrated into the customer experience, companies like Priceline aim to differentiate themselves in a highly competitive market. “The future of travel is here, and it’s powered by AI,” Keller remarked confidently. He believes that Penny Voice represents the first step toward a comprehensive AI-driven ecosystem where users will not only book trips but also manage their entire travel experiences through a single, intelligent assistant.

Another significant transformation expected is in the way travel agencies operate. While traditional travel agents may have been eclipsed by online platforms over the last decade, AI-powered agents like Penny could lead to a resurgence in personalized travel planning. Unlike human agents who are limited by time and availability, Penny can handle multiple customer queries simultaneously, offering tailored advice and making real-time adjustments to bookings. “Penny has the potential to bring back a level of personalization that we haven’t seen since the days of traditional travel agencies—only this time, it’s powered by AI,” Keller said.

Keller also mentioned that AI integration is likely to expand beyond customer-facing roles into broader organizational functions, helping companies streamline internal processes. For example, he noted that AI tools are already improving internal productivity by assisting Priceline’s engineering teams. “AI has helped us accelerate time-to-market for new features, allowing us to develop and deploy code more efficiently,” he explained. This increased efficiency not only enhances the customer experience but also enables Priceline to stay nimble and competitive in a fast-moving digital landscape.

A Glimpse into the Future of AI-Enhanced Travel

As Priceline looks toward the future, AI will play an increasingly central role in the company’s operations. With Penny leading the charge, Keller envisions a future where travelers interact with AI at every step of their journey—from initial trip planning to managing last-minute itinerary changes. “We are at the cusp of a new era in travel, and AI is going to be a key part of that evolution,” Keller said. He believes that as AI continues to advance, the technology will enable even more customized and predictive experiences, where travelers’ needs are met before they are even expressed.

In the long term, Keller expects Penny and similar AI-driven platforms to evolve into true personal travel assistants, capable of managing complex, multi-leg journeys with ease. This could extend to services like smart pricing recommendations, where AI dynamically adjusts travel offers based on real-time market data and individual preferences. “We’re not just improving booking systems; we’re building a platform that anticipates the customer’s next move,” Keller added.

A New Frontier for Priceline and AI

Priceline’s collaboration with OpenAI and the development of Penny mark a bold step forward in AI-driven travel innovation. By leveraging cutting-edge conversational AI technologies, Priceline is reshaping how travelers plan and book their trips, offering an unprecedented level of convenience, personalization, and efficiency. “At Priceline, we’ve always pushed technological boundaries to make travel easier. With Penny, we’re taking that to the next level,” Keller emphasized.

As AI becomes more integrated into both customer service and internal operations, it’s clear that Penny represents just the beginning of a broader transformation at Priceline. The company’s heavy investment in AI, alongside its collaboration with OpenAI, signals that AI-powered travel planning is not a far-off dream but a reality unfolding now. With the planned expansions and future upgrades, it seems certain that AI will continue to redefine how consumers experience travel, and Priceline is positioning itself at the forefront of this revolution.

“Penny is more than just a chatbot,” Keller concluded. “She’s the future of travel.”

The DOJ filed its lawsuit in September 2023, accusing eBay of selling hundreds of thousands of products that harm the environment. The list of harmful items eBay was accused of selling included pesticides, as well as devices designed to circumvent vehicle emission controls. This allegedly put the company in violation of the Clean Air Act (CAA), the Toxic Substances Control Act (TSCA), and the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).

Catch our chat on the judge tossing out the DOJ case against eBay!

“Laws that prohibit selling products that can severely harm human health and the environment apply to e-commerce retailers like eBay just as they do to brick-and-mortar stores,” Assistant Attorney General Todd Kim, of the Justice Department’s Environment and Natural Resources Division (ENRD), said at the time. “We are committed to preventing the unlawful sale and distribution of emissions-defeating devices and dangerous chemicals that, if used improperly, can lead to dire consequences for individuals and communities.”

“eBay’s sale of emission control defeat devices, pesticides and other unsafe products poses unacceptable risks to our communities disproportionately impacted by environmental and health hazards,” added U.S. Attorney Breon Peace for the Eastern District of New York. “Together with our partners, this office will vigorously enforce federal law against those whose conduct endangers public health and the environment.”

eBay’s Defense

In its defense, eBay argued that it was protected by Section 230, which shields online platforms from liability for what users of its platforms do. The law is a cornerstone of the internet, at least in the US, and has played a major role in the success of online platforms. eBay asked for the DOJ’s case to be dismissed on the basis of Section 230.

eBay raises the following arguments in support of dismissal: 1) the Complaint does not plausibly allege that eBay violated the CAA; 2) the Complaint does not plausibly allege that eBay violated the FIFRA; 3) the Complaint does not plausibly allege that eBay violated the TSCA or the Methylene Chloride Rule; and 4) Section 230 of the Communications Decency Act (“Section 230”) independently bars the United States’ claims.

Key to the defense was the definition of the word “sell,” and whether eBay sold anything directly.

Plaintiff alleges that eBay “sold” Aftermarket Defeat Devices; eBay contends that it does not actually “sell” any item listed on its platform. eBay’s Memo, at 25. In its motion to dismiss, eBay asserts that the ordinary meaning of “sell” requires ownership or possession over an item. Id. at 7. That is, eBay must own or possess an item to “sell” the item under the CAA. Id. eBay contends that because the Complaint fails to allege that eBay owned, held in its possession, or transferred any item covered by the CAA in exchange for value, the Complaint fails to allege that “eBay sold any product that violates the CAA.” Id.

Both parties agree that the word “sell” should be understood to convey its ordinary meaning, and both rely on the plain meaning provided in Black’s Law Dictionary. Id. ; Pl. Opp. at 9. However, eBay argues that “selling an item means transferring title or possession of that item for a price.” eBay’s Memo at 7. Specifically, eBay asserts “Black’s Law Dictionary defines ‘sell’ as ‘[t]o transfer (property) by sale,’ and [] defines a ‘sale’ as ‘[t]he transfer of property or title for a price.’ Black’s Law Dictionary 1603, 1634 (11th ed. 2019). Black’s in turn relies on the Uniform Commercial Code, which similarly states that ‘[a] ‘sale’ consists in the passing of title from the seller to the buyer for a price.’ UCC § 2-106(1).” Id. According to eBay, eBay must own or possess an item to “sell” the item within the meaning of the CAA. It follows that since eBay neither owns nor possesses the items listed on eBay.com, it cannot sell them.

Judge Merchant’s Decision

Ultimately, Judge Merchant agreed with eBay, finding that the company is protected under Section 230 and did not, in fact, directly sell the goods in question.

This Court agrees with eBay. The provision of neutral, automatic email prompts and messages, and of payment processing software does not materially contribute to the illegal products’ “alleged unlawfulness”. Under Section 230, an “information content provider” is “any person or entity that is responsible, in whole or in part, for the creation or development of information provided through the Internet or any other interactive computer service.” 47 U.S.C. § 230(f)(3). This means that “[a]n interactive computer service will be immune for content on its platform under Section 230 unless ‘it assisted in the development of what made the content unlawful,’ thus becoming an information content provider.” Ratermann v. Pierre Fabre USA, Inc., 651 F. Supp. 3d 657, 667 (S.D.N.Y. 2023) (citing LeadClick Media, 838 F.3d at 174). The administrative and technical support eBay provides to sellers does not “materially contribut[e] to [the content’s] alleged unlawfulness.” LeadClick Media, 838 F.3d at 176.

Finally, because the liability Plaintiff attempts to impose on eBay is “derived from its status as a publisher … imposing liability … does [] inherently require the court to treat” eBay as the “publisher or speaker of its affiliates’ [illegal content],” Section 230 immunity applies. Id. at 176- 77 (cleaned up). Therefore, although eBay’s motion to dismiss Plaintiff’s claim for injunctive relief fails under the TSCA, because Section 230 applies, eBay’s motion to dismiss Plaintiff’s claim for injunctive relief is granted.

The Implications of Judge Merchant’s Decision

Section 230 has been a hotly debated piece of legislation, with some lawmakers on both sides of the aisle wanting to revisit and revise it, if not eliminate its protections altogether.

On the other side of the debate are internet companies, as well as free speech advocates, who say the law is a critical free speech protection and vital to a healthy internet.

The Electronic Frontier Foundation outlines the benefits Section 230 provides:

Congress passed this bipartisan legislation because it recognized that promoting more user speech online outweighed potential harms. When harmful speech takes place, it’s the speaker that should be held responsible, not the service that hosts the speech.

Section 230’s protections are not absolute. It does not protect companies that violate federal criminal law. It does not protect companies that create illegal or harmful content. Nor does Section 230 protect companies from intellectual property claims.

The free and open internet as we know it couldn’t exist without Section 230. Important court rulings on Section 230 have held that users and services cannot be sued for forwarding email, hosting online reviews, or sharing photos or videos that others find objectionable. It also helps to quickly resolve lawsuits cases that have no legal basis.

Without Section 230’s protections, many online intermediaries would intensively filter and censor user speech, while others may simply not host user content at all. This legal and policy framework allows countless niche websites, as well as big platforms like Amazon and Yelp to host user reviews. It allows users to share photos and videos on big platforms like Facebook and on the smallest blogs. It allows users to share speech and opinions everywhere, from vast conversational forums like Twitter and Discord, to the comment sections of the smallest newspapers and blogs.

Judge Merchant’s dismissal of the DOJ’s lawsuit is a strong validation of Section 230’s importance and will help serve as precedent for other similar cases.

The FTC, along with 17 states, sued Amazon in September 2023 alleging “exclusionary conduct” in an effort stifle competition and disrupt rivals.

“Our complaint lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies,” said FTC Chair Lina M. Khan at the time of the lawsuit. “The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them. Today’s lawsuit seeks to hold Amazon to account for these monopolistic practices and restore the lost promise of free and fair competition.”

In its initial complaint, the FTC made clear that it was not suing Amazon because of its size, but because it uses its size unfairly. In particular, the FTC took aim at the company’s practice of trying to force sellers to gain “Prime” status, as well as punishing those who charged less for their products via other outlets. The company’s fees, sometimes accounting for half of a sellers earnings, also drew criticism.

“We’re bringing this case because Amazon’s illegal conduct has stifled competition across a huge swath of the online economy. Amazon is a monopolist that uses its power to hike prices on American shoppers and charge sky-high fees on hundreds of thousands of online sellers,” added John Newman, Deputy Director of the FTC’s Bureau of Competition. “Seldom in the history of U.S. antitrust law has one case had the potential to do so much good for so many people.”

According to The Wall Street Journal, US District Judge John Chun has agreed with Amazon, scaling back some of the FTC’s case. Judge Chun’s order remains under seal, meaning its unknown exactly what part of the FTC’s case was dismissed. Nonetheless, despite the good news for Amazon, the Journal reports that the FTC’s main claims remain intact.

Given the FTC’s dominance of the e-commerce market, the FTC’s case could have profound repercussions for the entire industry. The fact that the main portion of the agency’s case remains intact means a court will ultimately decide the fate of the e-commerce industry.

The ongoing strike by more than 30,000 Boeing machinists has now entered its second week, with no resolution in sight. The dispute centers on wages, benefits, and working conditions, and despite mediation efforts, both sides appear entrenched in their positions. With Boeing facing significant production halts, particularly of its best-selling 737 MAX aircraft, and machinists holding firm on the picket lines, the stakes continue to rise for both the aerospace giant and its workers.

Union Machinists: “We Deserve Fair Compensation”

The machinists’ union, the International Association of Machinists and Aerospace Workers (IAM) District 751, has been clear about its demands. After a nearly unanimous 96% vote to strike, workers are calling for wage increases closer to 40%, better healthcare provisions, and the restoration of pensions that were cut over a decade ago. According to union president Jon Holden, “We’re standing on principle. We’re trying to address very specific things that need to be addressed. Over the last ten years, our members’ wages have stagnated, there’s a massive cost shift of healthcare onto our members, and we lost our defined benefit pension plan.”

For machinists like Cory Hall, who has been with Boeing for years, the frustration is palpable. “With health insurance, our wages – we didn’t feel like it was a fair contract,” he explained. The union leadership has been preparing members for the possibility of a strike for months, and the nearly unanimous vote indicates the depth of their dissatisfaction.

Bridget Baker, another striking Boeing employee, reflected on the overwhelming support for the strike, “The 96% vote shows that people are super committed to making improvements. I think we’re going to stand strong.” Many workers on the picket lines have saved money in anticipation of the strike and are willing to make personal sacrifices to see it through. One worker mentioned that he had prepared by paying off several months of his mortgage in advance, stating, “I can last as long as it takes.”

Boeing’s Perspective: Navigating Financial Challenges

For Boeing, the strike comes at a critical juncture. The company has been struggling to regain its footing after a series of crises, including the pandemic-related downturn in air travel and the lingering effects of the 737 MAX safety issues. According to Kelly Ortberg, Boeing’s newly appointed CEO, the company is committed to finding a resolution but is also facing mounting financial pressure. “With production paused across many key programs in the Pacific Northwest, our business faces substantial challenges. We must take difficult steps to preserve cash and ensure Boeing can successfully recover.”

Ortberg has already implemented temporary furloughs for tens of thousands of Boeing employees, a move aimed at mitigating the financial impact of the strike. He expressed disappointment with the pace of the negotiations, noting in a memo, “While we are disappointed the discussions didn’t lead to more progress, we remain very committed to reaching an agreement as soon as possible that recognizes the hard work of our employees.”

The financial implications for Boeing are severe. According to estimates from Bank of America analyst Ron Epstein, the strike is costing the company approximately $50 million per day. Boeing, which has not turned an annual profit since 2018, is already $60 billion in debt. Prolonged disruptions could further strain its finances and risk a credit rating downgrade. However, some analysts believe that the company is prepared to endure a lengthy strike, even as the pressure mounts from both investors and suppliers.

Mediation Efforts Fall Flat

Efforts to mediate the dispute have so far been unsuccessful. The Federal Mediation and Conciliation Service (FMCS) has facilitated two days of talks between Boeing and the union, but both sides have reported little progress. According to Holden, “We had two days of mediated talks, and there were no fruitful discussions during those talks.” Despite the lack of headway, Holden remains confident that the union’s demands are reasonable and just, adding, “Our members are on the right side of this. They are fighting for reasonable things.”

Boeing has expressed a similar desire to continue negotiations but has indicated that meeting the union’s demands may not be feasible without further harming the company’s already fragile financial state. A Boeing spokesperson noted, “We continue to prioritize the issues you defined in the most recent survey, but we are deeply concerned that the company has not addressed your top concerns.”

A Broader Labor Movement

The Boeing machinists’ strike is part of a broader wave of labor unrest across the U.S. in 2024. Workers in industries ranging from auto manufacturing to healthcare have gone on strike or threatened to do so, pushing for better wages and working conditions in a tight labor market. Many workers have expressed frustration that while corporate profits have rebounded since the pandemic, wage growth for employees has not kept pace with inflation or rising costs of living.

Boeing machinists, who work primarily in the Seattle area, have been particularly hard-hit by the region’s soaring housing costs. According to the state’s Office of Financial Management, the median home price in Washington has increased by more than 140% over the past decade, making it increasingly difficult for workers to afford housing. Jake Meyer, a Boeing mechanic, lamented, “We can’t afford [to own] a home. I’ve been saving for months, cutting back on things like going out to eat. It’s tough, but we’re prepared to fight for what we deserve.”

The machinists’ demands for wage increases and pension restoration come at a time when Boeing is trying to regain its competitive edge in a global aerospace market. Some analysts, like Epstein, believe that Boeing may eventually need to make significant concessions to retain its skilled workforce. “You’re in an environment where skilled, technical labor is hard to get right now, particularly in aerospace and defense. So what do you do to not only retain them but attract them? If they really want a pension, maybe that gives you a competitive advantage over others.”

Prolonged Battle Likely

With both sides deeply entrenched, there is no clear end in sight for the Boeing strike. For the machinists, this is a fight about fairness and securing better compensation for their work. As Brian Bryant, the IAM’s international president, put it, “They are ready to fight this as long as they have to, to get the contract that they deserve.”

For Boeing, the strike represents a significant financial challenge at a time when the company is already grappling with production delays, debt, and increased competition. Boeing’s leadership, including Ortberg, has expressed a desire to reach an agreement quickly, but the reality is that any settlement may take weeks or even months.

As the strike continues, the ripple effects are being felt across the aerospace industry, from Boeing’s suppliers to its customers. With both sides preparing for a prolonged battle, the only certainty is that the fight for a fair contract is far from over.

Gary Friedman, Chairman and CEO of RH (formerly known as Restoration Hardware), has long been known for his bold, risk-taking approach to leadership. Speaking recently on CNBC’s Mad Money with Jim Cramer, Friedman provided insights into how innovation and calculated risks have powered RH’s impressive sales growth, even in challenging market conditions.

Betting Big on Innovation and Design

In the world of luxury retail, Friedman is not shy about making bold moves. “There is no big reward without big risk,” Friedman told Cramer, reflecting on RH’s willingness to invest during economic downturns. While others in the industry may have scaled back during tough times, RH doubled down, continuing to expand its product lines and physical presence. “We’ve been working on this product transformation and platform expansion unveiling, and it’s been a big investment,” he explained. The company’s forward-thinking strategy is paying off, as RH recently reported a 25% increase in sales.

Friedman attributed much of RH’s success to its commitment to innovation. “If you want to be the best in the world, you can’t be a follower; you have to be a leader,” Friedman emphasized. For him, leading means investing deeply in unique, immersive experiences for RH’s customers. One such innovation is the introduction of massive galleries that double as luxury showrooms and lifestyle spaces, complete with restaurants and wine bars. “History proves all of these bets are highly incremental and profitable,” he said, indicating that these expansions have been central to RH’s growth.

Taking Risks in a Challenging Housing Market

The housing market has seen its share of challenges in recent years, and Friedman acknowledges that this has made the environment more difficult. “This is the most challenging housing market in three decades,” he said, yet RH has continued to buy back stock, signaling the company’s confidence in its future. Friedman shared that RH has repurchased $3.75 billion worth of its own stock since 2017, further showcasing the company’s belief in its strategic vision.

Cramer noted that RH’s approach to weathering downturns by maintaining investment in design and innovation stands out in the industry. “You kept spending during the downturn, so when it turned up, you had the right merchandise and therefore the right profits,” he remarked. Friedman responded by saying, “We don’t make investments of that size without a lot of thought or confidence.”

Immersive Galleries: Redefining Retail Experience

One of RH’s most striking innovations is the development of expansive, immersive galleries. RH has redefined the retail experience by creating spaces that go far beyond a traditional showroom. “You have to think until it hurts so you can see what others can’t see, so you can do what others can’t do,” Friedman said. These galleries, some as large as 90,000 square feet, offer more than just furniture shopping—they provide a fully curated lifestyle experience, complete with restaurants, wine bars, and breathtaking views.

One example is RH’s Newport Beach location, which Cramer marveled at during their conversation. “You have a 90,000-square-foot property in Newport Beach, overlooking the ocean, with bars and restaurants. What is it?” Cramer asked. Friedman responded that there is no simple analogy for what RH is creating. These galleries are designed to inspire customers and provide a unique, high-end shopping experience that can’t be replicated online.

Global Expansion: The European Market Awaits

As RH continues to expand its physical presence, Europe is a key market for the company. Although RH already has some brand recognition among European designers and luxury consumers, Friedman knows that building the brand in Europe will take time. “The time to really focus on Europe is when we open London, Paris, and Milan,” Friedman explained. These flagship galleries are set to open in the next two years and are expected to play a crucial role in scaling RH’s presence on the continent.

The European galleries will follow RH’s successful U.S. model, integrating restaurants, wine bars, and other immersive elements. “We opened in the English countryside, a 17th-century estate on 73 acres, but that was more for conversation than commerce,” Friedman said, hinting that the major European cities will provide a more robust commercial opportunity for the brand.

Authenticity in a Digital Age

Friedman also shared his perspective on marketing in the age of social media, a space where RH has taken a unique stance. “We don’t have a marketing department, we have a truth group,” he said. Unlike many brands that focus heavily on influencers and social media campaigns, RH has chosen to focus on creating authentic connections with its customers through the quality of its products and experiences. “Let’s do inspiring work and let the world talk about us,” he added, explaining that RH doesn’t rely on paid influencers or flashy online campaigns.

Instead, RH prioritizes its investment in product development and gallery expansion, believing that these are the true drivers of customer engagement and brand loyalty. “You can’t be a leader if you follow the crowd,” Friedman asserted, underscoring RH’s commitment to innovation over imitation.

Overcoming Global Challenges

In a conversation that touched on global economic issues, Friedman also discussed tariffs and supply chain challenges. Despite these hurdles, RH has been able to adapt quickly, moving parts of its manufacturing back to the U.S. when necessary. “When the tariffs went up, we moved a significant part of our upholstery business back to America,” Friedman explained, highlighting RH’s flexibility and ability to pivot in the face of global challenges.

Leadership and Vision

Throughout his conversation with Cramer, Friedman returned time and again to the themes of leadership, vision, and perseverance. “We do what we love with people that we love, for people that love what we do,” he said. For Friedman, success comes from deeply understanding the market, taking risks, and never compromising on the brand’s core values.

In an industry where trends can change quickly and competition is fierce, RH’s focus on long-term growth through innovation, design, and immersive customer experiences has set it apart. As RH continues to expand globally and push the boundaries of luxury retail, Gary Friedman’s bold leadership is proving that risk, when backed by deep thought and data, can indeed lead to great reward.

Amazon has just unveiled its latest generative AI tool, Project Amelia, an innovation designed to transform how merchants operate within its ecosystem. The new AI assistant promises to streamline the daily operations of third-party sellers, offering personalized insights, inventory management tools, and creative assistance to boost sales. This move is part of Amazon’s broader strategy to strengthen its suite of AI-powered services, especially as it faces growing competition from rivals like Google and OpenAI.

A New Era for Amazon Merchants

Launched as part of Amazon’s continued expansion into artificial intelligence, Project Amelia is built using Amazon Bedrock, a generative AI platform designed to provide scalable access to cutting-edge foundation models. The AI assistant is positioned as a powerful business companion for Amazon’s vast network of third-party sellers, helping them optimize everything from product listings to sales strategy.

According to Matt Garman, CEO of Amazon Web Services (AWS), “Project Amelia is saving people time so they can focus on what matters most.” Garman emphasized that the AI tool is aimed at making the business of selling on Amazon more efficient, empowering sellers to analyze sales data, identify business opportunities, and provide strategic recommendations.

“Amelia is built to handle complex operational tasks,” Garman said. “Now a seller can rely on Amelia to gather and analyze sales data while offering valuable insights—all with just a few clicks.”

How Amelia Works

Project Amelia goes beyond basic data crunching; it brings a comprehensive, AI-powered approach to managing a seller’s business. Sellers can interact with the AI tool by asking a wide range of questions, from straightforward inventory updates to more strategic inquiries about market trends. For example, a seller might ask, “What are the top things I need to do to prepare for the holiday season?” Amelia will not only provide an answer but deliver personalized insights based on the seller’s business profile.

Swami Sivasubramanian, Amazon’s VP of AI and Data, highlighted Amelia’s ability to not just answer questions but to anticipate sellers’ needs. “Amelia is not just reactive; it’s proactive,” he explained. “It can provide real-time updates on metrics like sales and traffic, and it even compares current performance with historical data to offer valuable context.”

The assistant also taps into Amazon’s broader data ecosystem to generate creative content. From writing product listings to creating promotional videos, Amelia leverages generative AI to automate tasks that previously required significant manual effort.

Olivia Ma, Senior Manager of Product Management at Amazon, praised the potential of Amelia to transform how merchants approach their sales strategies. “The Amazon Seller mobile app, equipped with Amelia, is evolving into a more intelligent business companion,” she said. “We’ve listened to seller feedback, and this tool reflects their needs by integrating powerful, easy-to-use solutions that were previously labor-intensive.”

A Response to Competitive Pressures

The launch of Amelia comes at a time when Amazon faces increasing competition in the AI space. With companies like Google and OpenAI advancing their generative AI capabilities, Amazon has ramped up its AI efforts, introducing new tools like Rufus, an AI-powered shopping assistant, and Bedrock, a service for cloud customers. However, Amelia stands out for its laser focus on supporting Amazon’s merchant community.

Retail analyst James Callan noted that Amazon’s expansion into generative AI tools is not just about staying competitive but about enhancing the experience for both sellers and buyers. “Amazon has recognized that merchants, especially smaller ones, need more support to thrive in a highly competitive marketplace,” Callan said. “Tools like Amelia not only level the playing field but also create a more dynamic and efficient ecosystem for sellers.”

Reducing Complexity for Sellers

Running a business on Amazon involves managing numerous operational complexities—from ensuring proper inventory levels to optimizing marketing strategies and complying with regulations. Amelia simplifies these processes by offering personalized advice that reflects the unique needs of each seller.

According to Mary Beth Westmoreland, Amazon’s Vice President of Worldwide Selling Partner Experience, “Amelia acts as a personal AI assistant, always ready to help sellers manage their business more effectively and focus on growth.” She added that the assistant is capable of providing critical data updates and even resolving issues, like inventory discrepancies, in real-time.

For instance, if a seller notices a discrepancy in inventory data, they can ask, “I have 300 units on the way but don’t see them in the report. Can someone look into this?” Amelia can then not only investigate the issue but soon will offer to resolve it on the seller’s behalf.

What’s Next for Amelia?

Currently in beta, Amelia is only available to select U.S.-based sellers, but Amazon plans to expand access to more sellers globally in the coming months. This phased rollout will include additional language support and more advanced features.

“We’re just getting started,” Sivasubramanian said. “As sellers engage with Amelia, the AI will learn and evolve, becoming even more adept at meeting their needs.”

The potential of Amelia to revolutionize how sellers operate on Amazon has drawn praise from various industry insiders. Garman believes the tool will significantly reduce the time and effort merchants invest in daily operations, freeing them up to innovate and grow. “The goal is to make running a business on Amazon as seamless as possible, and Amelia is a huge step toward achieving that vision,” he said.

In the rapidly evolving world of e-commerce, where efficiency and personalization are paramount, Project Amelia could represent the next big leap for Amazon’s seller ecosystem, offering an invaluable assistant to help merchants succeed in a complex marketplace.

Donahoe’s departure comes at a critical time for Nike. While his leadership saw the company navigate the challenges of the COVID-19 pandemic, his tenure was also marred by falling revenues and a backlash from both consumers and partners. Nike’s decision to cut ties with key retailers such as Foot Locker and shift towards a direct-to-consumer (DTC) model alienated some loyal customers and sparked concerns among investors.

Listen to our conversation on Nike’s CEO moves. Former execs positive on Elliott Hill:

“John Donahoe’s approach, while well-intentioned, wasn’t what Nike needed in this evolving market,” said a former Nike executive. “The move towards DTC at the expense of wholesale partners created friction and caused us to lose touch with some of the core consumers that made Nike a dominant force.”

Shifting Strategy, Lingering Challenges

Donahoe, who came from a tech and consulting background, was seen as an unconventional choice for Nike’s CEO role when he took over in 2020. His strategy focused heavily on streamlining the company’s operations, cutting costs, and investing in digital transformation. However, critics argue that this approach diminished Nike’s reputation as a leader in fashion and innovation, which had been carefully cultivated over decades.

A key part of Donahoe’s strategy was emphasizing e-commerce and the company’s own digital platforms, a move that some insiders believed was out of step with Nike’s historical strength in brick-and-mortar retail and brand partnerships. His decision to sever ties with Foot Locker, a long-standing retail partner, was met with considerable criticism. As a result, Nike saw its same-store sales slump by 2.9% in the first quarter of 2024.

“E-commerce is crucial, but we lost sight of what made Nike unique,” said one former executive. “Our strength has always been our ability to connect with consumers through partners and tell a compelling brand story. We shifted too far away from that.”

The Return of a Veteran: Elliott Hill

The decision to bring back Elliott Hill, a seasoned Nike executive who retired in 2020, is widely seen as an effort to restore Nike’s standing. Hill, who spent over three decades at the company in various leadership roles, is highly regarded for his deep knowledge of Nike’s culture, its products, and its relationships with partners. As the former President of Consumer and Marketplace, Hill was instrumental in driving growth across Nike and Jordan Brand during his tenure.

“I am excited to welcome Elliott back to Nike,” said Mark Parker, Nike’s executive chairman and former CEO, in a statement. “Given our needs for the future, the past performance of the business, and after conducting a thoughtful succession process, the Board concluded it was clear that Elliott’s global expertise, leadership style, and deep understanding of our industry make him the right person to lead Nike’s next stage of growth.”

Hill’s return is expected to signal a shift back to Nike’s core values—focusing on innovative products, storytelling, and leveraging key partnerships. Hill himself is optimistic about the road ahead. “Nike has always been a core part of who I am, and I’m ready to help lead it to an even brighter future,” Hill said in a statement. “Together with our talented teams, I look forward to delivering bold, innovative products that captivate consumers for years to come.”

A Time for Reflection and Rebuilding

Under Donahoe’s leadership, Nike faced criticism not only from within but also from outside analysts. Simeon Siegel, an analyst at BMO Capital Markets, noted, “Donahoe’s strategy to prioritize the DTC model over its wholesale partners was an ambitious but ultimately flawed approach. Nike’s core competitive advantage has always been its ability to excite consumers with innovative products and strong partnerships. The pivot was too drastic, too fast.”

The return of Hill brings renewed hope that Nike can regain its footing in a rapidly changing retail environment. Industry observers believe that Hill’s leadership will focus on balancing innovation with operational efficiency, ensuring that Nike continues to deliver high-quality products while nurturing its relationships with key partners.

“Nike lost the plot when it stopped listening to the athletes and its partners,” said Matt Halfhill, founder of Nice Kicks. “Elliott Hill understands Nike’s DNA better than most. His years working with athletes, retailers, and consumers put him in a prime position to bring Nike back to its core values.”

What Lies Ahead for Nike

While Hill’s return has been greeted with optimism, Nike still faces significant challenges. The company’s stock has been under pressure, and its innovation pipeline has been criticized for relying too heavily on legacy products. Moreover, Nike is grappling with how to remain relevant in a fast-evolving market where digital experiences and sustainability are increasingly important to consumers.

Hill’s leadership will be put to the test as he seeks to navigate these challenges while restoring confidence among Nike’s investors and partners. One critical area of focus will be product innovation—creating new lines that resonate with consumers and reinforce Nike’s position as a trendsetter in sports and fashion. Additionally, Hill will need to rebuild the company’s wholesale relationships while maintaining the growth of its e-commerce platforms.

As Donahoe prepares to exit the company, he leaves behind a mixed legacy. “It’s been an honor and privilege to be part of this incredible company, and I’ll always value my time at Nike,” Donahoe said in a statement. “It became clear now was the time to make a leadership change, and Elliott is the right person.”

With Hill at the helm, Nike hopes to return to its roots while adapting to the new realities of the global retail landscape. As Hill takes on this challenge, the sports world—and Wall Street—will be watching closely.

Darden Restaurants, Olive Garden’s parent company, announced a two-year exclusive delivery partnership with Uber Technologies, a move that marks a significant departure from its long-standing opposition to third-party delivery. This decision is not only a response to Olive Garden’s recent financial performance—where same-store sales dropped 2.9% in the first quarter of 2024—but also a strategic attempt to regain traction in a challenging economic environment where consumer spending at sit-down restaurants has been slowing.

Listen to our deep dive into the world of unlimited breadsticks and Uber Eats delivery!

The partnership with Uber Eats will roll out in a limited capacity later this year and, if successful, will expand to Olive Garden’s more than 900 locations nationwide by May 2025. Notably, customers will be able to order their meals directly through Olive Garden’s website and app, while Uber Eats will handle the logistics of delivery. However, Olive Garden will not be available through the Uber Eats app itself, a decision that allows the chain to retain valuable customer data—a crucial asset in today’s competitive digital landscape.

A Surprising Turn for Olive Garden

For a long time, Olive Garden was a vocal holdout against third-party delivery services, even as competitors like Applebee’s and Chili’s embraced the trend. During the pandemic, when many restaurants were leaning into delivery to stay afloat, Olive Garden maintained its stance. Former Darden CEO Gene Lee famously said in 2019, “I don’t think we’re missing out on anything,” referring to third-party delivery.

The rationale behind this resistance was simple: Darden executives believed that third-party delivery would erode margins and diminish the customer experience. Darden’s current CEO, Rick Cardenas, echoed these concerns in December 2023, stating that adding third-party delivery hadn’t made a significant difference in the performance of its other concepts, such as LongHorn Steakhouse.

However, Cardenas has since shifted his perspective. “Guests have been asking us for home delivery options, and they continue to show they are willing to pay for the convenience,” Cardenas said in a statement. “As we continued to evaluate delivery, it was important for us to find a way to address this guest need state without disrupting the team member or guest experience and without compromising our competitive advantages and simple operating model.”

The Uber Advantage

One of the key reasons Darden chose to partner with Uber Eats is the company’s willingness to create a custom integration tailored specifically to Olive Garden’s needs. Cardenas highlighted Uber’s commitment to efficiency and speed at a national scale, as well as the seamless experience the integration will provide for both the restaurant and its customers.

“[Uber’s] investment in a custom integration, commitment to Olive Garden’s first-party delivery growth, and efficiency and speed at a national scale, made this exclusive partnership a clear choice,” Cardenas explained.

Sarfraz Maredia, Uber Eats’ vice president of delivery and head of Americas, added that delivery has become “a core expectation for consumers.” He noted that people expect the same quality experience whether they are dining in or receiving a meal at home. “We’re confident our teams can deliver on that promise together and continue to grow first-party delivery as a channel,” Maredia said.

Timing Is Everything

Olive Garden’s decision to embrace delivery comes as the company grapples with a difficult macroeconomic environment. Like many casual-dining chains, Olive Garden has been hit by a slowdown in customer traffic, particularly from lower-income consumers as inflation pressures continue to rise.

According to Black Box Intelligence, same-store traffic for casual-dining restaurants dropped 4.5% this year through early September, outpacing the broader restaurant industry’s decline of 3.3%. Darden’s same-store sales fell 1.1% across its portfolio, which includes brands like LongHorn Steakhouse and The Capital Grille, with Olive Garden seeing a steeper decline of 2.9%.

Darden’s response to this challenging market has been multifaceted. Last month, the company revived its iconic “Never-Ending Pasta Bowl” promotion, which offers all-you-can-eat pasta starting at $13.99. The promotion will run through November, a month longer than last year, as the company aims to bring customers back to its restaurants.

Despite these efforts, Cardenas has made it clear that the company will not resort to deep discounting or compromise its long-term financial health for short-term gains. “In this environment, we want to motivate guests to get back,” he said.

Positioned for Long-Term Success

With the partnership with Uber Eats, Olive Garden is positioning itself for long-term success in an increasingly delivery-focused market. Delivery orders will mirror in-store prices, with an average delivery fee of around $7 per order. Importantly, Darden expects profits on delivery orders to be comparable with its existing online carryout service, which has performed well in recent years.

The decision to move into delivery, while late compared to many of its peers, reflects a broader trend in the casual-dining sector where restaurants are being forced to adapt to changing consumer habits. As more customers prioritize convenience, Olive Garden’s move could help it win over new diners who prefer to enjoy their pasta and breadsticks from the comfort of home.

As the pilot rolls out later this year, all eyes will be on whether Olive Garden’s foray into delivery can turn the tide for the brand. If successful, the partnership with Uber could signal a new era for the iconic chain, one where breadsticks arrive not just at the table, but at your front door.

In a landmark decision, the European Union’s top court ruled that Booking.com’s restrictions preventing hotels from offering lower prices on their own websites or through rival platforms could hinder competition and damage the market for smaller players. The ruling, delivered on September 19, 2024, could have significant implications for the broader travel and hospitality industry, potentially reshaping the way online booking platforms negotiate terms with hotels.

The ruling focuses on so-called “parity clauses” that Booking.com inserted into its contracts with hotel partners. These clauses, which restricted hotels from offering lower prices on their own websites or through competing platforms, have been a longstanding practice in the online travel industry. While they were designed to maintain consistency in pricing across platforms, the European Court of Justice (CJEU) determined that they may actually reduce competition between reservation services and make it harder for smaller platforms to compete.

The court’s decision comes after a Dutch court sought guidance on whether these clauses violated EU competition laws. It has the potential to ripple through the online travel booking sector, as it raises questions about how other platforms operate under similar agreements.

A Blow to Booking.com’s Business Model

Booking.com, a subsidiary of Booking Holdings, expressed disappointment with the ruling. In a statement, the company argued that the parity clauses were both “necessary and proportionate” to ensure the relationship between hotels and its platform. “We maintain that parity clauses that historically existed in Germany were necessary and proportionate to the relationship between accommodation partners and Booking.com, and that Booking.com operates in a competitive market,” said a company spokesperson.

This ruling could have wide-reaching effects on Booking.com’s business model, as parity clauses have been a critical component of the platform’s ability to offer competitive pricing. Historically, such clauses ensured that customers using Booking.com would not find a better deal by going directly to a hotel’s website. But the EU court’s judgment calls into question whether these measures are necessary to the platform’s success, with the court concluding that there was no substantial proof that these clauses were essential to Booking.com’s operations.

The Impact on Competition

The ruling from the Luxembourg-based court is likely to make it harder for other online platforms across the travel industry to impose restrictions on suppliers, particularly smaller businesses and new entrants. According to the court, price parity clauses—whether wide (restricting hotels from offering lower prices on their own sites and other platforms) or narrow (restricting only the hotel’s own website)—were found to carry the risk of “ousting small platforms” from the market and limiting competition.

In its judgment, the court noted that while online hotel reservation platforms like Booking.com have had a neutral or positive effect on competition by providing consumers with more choice and easier price comparisons, the specific restrictions imposed by parity clauses could work against these competitive benefits. “It has not been established that price parity clauses, whether wide or narrow, are objectively necessary for the implementation of that main operation and are proportionate to the objective pursued by it,” the judges concluded.

The decision highlights a key concern for regulators across Europe: that large platforms could wield too much market power, limiting choices for consumers and squeezing smaller competitors out of the market. “These restrictions may reduce competition between various hotel reservation platforms, force out small platforms and new entrants, and do not appear to be necessary to ensure Booking.com’s economic viability,” the court said.

Regulatory Scrutiny Across Europe

This decision is the latest chapter in ongoing regulatory scrutiny of online travel booking platforms across Europe. Germany’s antitrust watchdog has already banned parity clauses, arguing that they limit competition and harm consumers. The European Union as a whole has taken a more cautious approach, allowing certain restrictions but prohibiting the most stringent forms of parity clauses.

The ruling also dovetails with the recently enacted Digital Markets Act (DMA), which came into force last year. The DMA aims to curb the market power of large online platforms like Booking.com, prohibiting practices such as wide and narrow parity clauses, which can stifle competition. The court’s ruling aligns with these broader regulatory efforts to ensure fair competition in digital markets.

The decision may also encourage other European regulators to take a harder stance on similar practices in different sectors of the digital economy. It could prompt investigations into other industries where large platforms impose restrictive clauses on suppliers, from e-commerce to digital services.

Broader Implications for Hotels and Consumers

For hotels, the ruling offers a new level of flexibility in how they price their rooms. Without parity clauses, hotels will have more freedom to offer discounts and special rates on their own websites, potentially improving their direct booking numbers. This could lead to a more competitive marketplace, where hotels are incentivized to offer better deals directly to consumers, bypassing the commission fees they pay to platforms like Booking.com.

Consumers may also see the benefits of increased competition. With more freedom to offer different prices across platforms, hotels could engage in more aggressive discounting, giving customers a wider range of price options. However, it remains to be seen how Booking.com and other platforms will adjust their business models in response to the ruling, and whether these changes will result in a significant shift in pricing behavior.

A Shifting Landscape in Online Travel

As the travel industry continues to recover from the impacts of the COVID-19 pandemic, this ruling could be a turning point in the evolution of online booking platforms. The court’s decision is likely to embolden smaller platforms and new entrants seeking to carve out a share of the market, while forcing larger players to rethink their strategies.

Booking.com’s pricing strategy has long been a defining feature of its business, allowing it to dominate the online travel market. But with increased regulatory scrutiny and mounting competition from smaller platforms, the company will need to find new ways to maintain its competitive edge. For now, the ruling represents a significant shift in the balance of power between online platforms and the hotels they serve, with the potential to reshape the future of the travel industry in Europe.

As Innocenzo Genna, a legal expert, observed on social media, “Hotels are now free to offer prices, direct to clients or through platforms, lower than those displayed on Booking. So says the EU court, according to which price parity clauses cannot be classified as ‘ancillary restraints’ for the purposes of EU competition law.”

With the ruling now in place, the real test will be how Booking.com and the broader industry adapt to the changing regulatory environment in the months and years ahead.

“Anyone who’s been paying attention saw this coming years ago,” McBride said in a series of posts on social media, pointing to a multi-phased strategy that Amazon has rolled out over time. According to McBride, the company’s approach was carefully designed, with the ultimate goal of reducing headcount while avoiding massive tax liabilities that could significantly affect profitability.

Listen to a podcast conversation on the ‘real’ reasons for Amazon’s return to the office:

A Multi-Phase Plan to Thin the Ranks

McBride, who left AWS in 2023 during what he referred to as “Phase 3” of Amazon’s plan, outlined the following five phases:

• Phase 1: Lay off over 30,000 employees across various sectors.
• Phase 2: Initiate a “Return to Office” mandate requiring employees to come in two to three days a week.
• Phase 3: Push employees to return to where their teams are physically located, often requiring relocation to Seattle.
• Phase 4: The so-called “Silent Sacking,” where remaining employees find themselves sidelined, without access to meaningful work or in-person meetings, making their work life “incredibly unsatisfying.”
• Phase 5: The “death of remote” work, forcing all employees to sit at a physical desk in the same office as their team.

McBride explained that while Amazon executives publicly framed these moves as necessary for “innovation” and “customer obsession,” the reality, in his view, is far less inspirational. “It’s all about reducing headcount and avoiding tax liabilities,” he asserted.

The Economics Behind the Decision

The most significant factor driving this return-to-office push appears to be the economics of headcount management. During the pandemic, Amazon—along with many other tech giants—dramatically expanded its workforce. “They didn’t really have any other option,” McBride noted, citing the unprecedented demand for AWS cloud services and the need to continue scaling as more companies embraced remote work.

I’m a former AWS employee: most of the hot takes on Amazon's new strict return-to-office policy are wrong.

Anyone who’s been paying attention saw this coming years ago. And ultimately, it comes down to taxes and economics.

Here's their plan:

Phase 1: layoff over 30k people.…

— John McBride (@johncodezzz) September 18, 2024

However, that growth came with significant costs. As McBride explained, AWS operates on “razor-thin margins,” despite being one of Amazon’s most profitable arms. “AWS offers incredible services at excellent usage cost pricing,” he said, pointing to the platform’s ability to enable small disruptors to enter the cloud market. This model has worked well for AWS, but in times of economic uncertainty, even small disruptions in customer spending can have outsize effects on profit margins.

Now, with the broader tech sector scaling back due to rising interest rates and shrinking corporate budgets, AWS’s profitability is being squeezed. “Anyone who leaves AWS or meaningfully reduces their cloud spend can impact AWS’s razor-thin profit margins,” McBride explained. This, he argued, has created intense pressure to cut costs, and for a company like Amazon, “the most expensive cost is headcount.”

Tax Breaks and the Role of Physical Offices

Yet headcount reduction is only one part of the equation. McBride pointed out that the return-to-office mandate is also deeply rooted in tax considerations. “Amazon gets massive tax breaks from cities and states where they have offices,” he said. These breaks are contingent on Amazon bringing jobs to specific locations, like Seattle or Denver. However, those incentives can disappear if offices remain underutilized.

“If Amazon continued to enable a remote workforce,” McBride explained, “the tax man would come knocking, and they’d be liable for hundreds of millions of dollars.” In other words, for Amazon, filling physical offices is not just about fostering collaboration—it’s about protecting its bottom line.

This aligns with the broader economic realities facing Amazon. In 2023, the company’s overall operating margin was a mere 4.7%, and while AWS’s margins are higher—recently reported as close to 40%—those numbers still reflect the company’s general approach of operating with very thin margins at scale. McBride pointed out that Amazon’s founder, Jeff Bezos, famously operated under the mantra “Your margin is my opportunity,” focusing on generating significant profits by operating with minimal margins across large-scale services.

But as AWS faces increasing competition and clients seek ways to reduce cloud spending, maintaining profit margins becomes more difficult. “Amazon has to keep profit up by reducing headcount,” McBride summarized. The return-to-office policy is a strategic move to ensure that they maximize tax incentives while minimizing staffing costs.

The “Silent Sacking” and Employee Fallout

For many employees, however, the return-to-office policy feels more like a veiled attempt to force them out. “Phase 4: the Silent Sacking,” McBride described, is particularly brutal. Employees who resist relocation or fail to comply with the return-to-office directives often find themselves marginalized within the company. “You’d be left out of in-person meetings, stiff-armed by management, and wouldn’t be given meaningful work,” McBride said, adding that this phase has led to a significant number of voluntary resignations.

Indeed, McBride himself left Amazon in 2023 rather than relocate to Seattle. “Many, many people left during this phase,” he noted, signaling that Amazon’s RTO policy is, in part, a way to indirectly thin its ranks without resorting to mass layoffs.

A Larger Trend in the Tech Industry?

Amazon is not alone in this shift back to in-office work. Other tech giants, such as Google and Meta, have also begun rolling back remote work privileges. However, McBride’s insights offer a unique perspective on how these decisions are not just about workplace culture or innovation but are also driven by complex financial and tax-related factors.

“It’s not about collaboration,” McBride reiterated. “It’s about maximizing profit margins, minimizing tax liabilities, and cutting the workforce in the most strategic way possible.”

As more companies grapple with economic uncertainty, this blend of financial strategy and workforce management could become a common theme in the tech sector. “In the end, it’s about survival,” McBride concluded, pointing to the macroeconomic pressures that are reshaping the industry.

For Amazon employees—both current and former—the message is clear: the future of work at the retail and cloud giant is firmly rooted in the physical office, whether they like it or not.

Listen to a podcast conversation on the Disney, DirecTV deal. Mickey is smiling!

The Deal: Flexibility and Streaming Bundles

The heart of the new agreement lies in its flexibility and broader scope, which reflect the shifting demands of today’s TV consumers. Under the deal, DirecTV subscribers will regain access to Disney’s entire portfolio of linear channels, including sports powerhouse ESPN and family-oriented programming from Disney Channel and National Geographic. What makes this agreement particularly groundbreaking, however, is its inclusion of Disney’s direct-to-consumer streaming services—Disney+, Hulu, and ESPN+—as part of select DirecTV packages.

“Through this first-of-its-kind collaboration, DirecTV and Disney are giving customers the ability to tailor their video experience through more flexible options,” said the companies in a joint statement. This innovative approach will allow customers to choose from genre-specific packages—sports, entertainment, and family programming—bundling both traditional channels and streaming services into one offering. For example, the much-anticipated ESPN streaming service, set to launch in 2025, will be available to DirecTV customers at no additional cost.

“Disney’s goal has always been to reach audiences across as many platforms as possible, and this agreement allows us to do just that,” said a Disney executive close to the negotiations. “Our content is in high demand, and this deal ensures it will continue to reach fans wherever they want to watch.”

A New Era of TV Bundling

The agreement between Disney and DirecTV reflects broader trends in the television industry as traditional cable and satellite providers grapple with the rise of streaming. Increasingly, consumers are moving away from bulky TV bundles, preferring instead to pay for the content they want without additional channels they rarely watch. The deal’s inclusion of streaming services as part of DirecTV’s offerings is an acknowledgment of this consumer shift.

Vince Torres, Chief Marketing Officer at DirecTV, emphasized how consumer behavior drove the negotiations: “We’re seeing a paradigm shift in how people watch television. Flexibility and choice are what today’s consumers demand, and this agreement allows us to deliver on that.”

For DirecTV, this deal provides a much-needed lifeline. The blackout led to widespread dissatisfaction, with some subscribers jumping ship to competitors like YouTube TV and Sling. “I saved over $100 per month by switching,” said Stephen Brammer, a former DirecTV customer. “The loss of ESPN was the last straw for me.” DirecTV, which has been losing subscribers at an alarming rate due to competition from streaming services, needed this agreement to prevent further hemorrhaging of customers. The partnership with Disney may help the company retain subscribers, at least in the short term, by offering access to must-watch content like live sports and exclusive Disney programming.

DirecTV’s Push for Genre-Specific Packages

One of the most significant components of the new deal is DirecTV’s ability to offer genre-specific programming packages, allowing subscribers to pay for only the content they want. This is a marked departure from the traditional TV model, where consumers are often forced to purchase large bundles of channels—many of which they never watch—to access the few they actually care about.

“We believe genre-specific packages are the future of TV,” said Torres. “Consumers want flexibility, and that’s what we’re giving them. If you’re a sports fan, you’ll be able to subscribe to a package that’s all about sports, without having to pay for kids’ shows or entertainment channels you don’t use.”

This marks a significant win for DirecTV, which has been advocating for more flexibility in how it packages content for consumers. By moving away from the traditional “fat bundles,” DirecTV can appeal to a broader range of customers who may have been frustrated by the rigid structure of legacy cable packages.

According to a media analyst at Goldman Sachs, this shift is essential for DirecTV’s survival. “The television landscape is changing rapidly. Companies that cling to the old models of bundling are likely to lose market share to streaming platforms that allow for a more customized viewing experience.”

The Impact on the Broader TV Landscape

The Disney-DirecTV deal highlights the increasing pressure on traditional TV providers to adapt to a streaming-first world. Cable and satellite TV are in decline, with U.S. pay-TV providers losing over 5 million subscribers in 2023 alone. By 2027, it’s expected that 80 million U.S. households will have “cut the cord,” moving entirely to streaming services.

Peter H.J. Auwerx, a digital media expert, pointed out the long-term ramifications of this deal: “The fact that DirecTV can now offer Disney+, Hulu, and ESPN+ alongside its traditional packages indicates where the industry is headed. We’re seeing a hybrid model emerge—traditional TV combined with streaming services. This is likely a transitional step as the entire industry eventually moves toward on-demand, customizable viewing experiences.”

Disney’s inclusion of its flagship streaming services in DirecTV packages also signals its understanding of consumer preferences. “Disney has seen massive success with Disney+, and this agreement with DirecTV is just another way for them to leverage their growing dominance in the streaming space,” said a Disney insider. “As streaming continues to rise, Disney is ensuring its content remains front and center, no matter what platform consumers choose.”

Challenges Ahead for DirecTV

While the new agreement with Disney is a positive step for DirecTV, challenges remain. The company is still losing subscribers to streaming-only platforms, and many are unlikely to return. DirecTV’s reputation also took a hit during the two-week blackout, particularly among sports fans who missed key games.

Adam Jacobson, a broadcast media analyst, noted that the blackout came at a particularly inopportune time: “DirecTV subscribers lost access to the U.S. Open, the first Monday Night Football game of the season, and the U.S. presidential debate. For a company already struggling with customer retention, this blackout was devastating.”

Moving forward, DirecTV will need to work hard to regain consumer trust and demonstrate the value of its new, more flexible offerings. “We appreciate our customers’ patience as we worked through this challenging situation,” said Torres. “The goal now is to deliver more choice, better content, and an improved viewing experience.”

The Future Unbundled: Navigating the New Era of TV

The recent agreement between Disney and DirecTV signals a pivotal shift in the television industry, one that underscores the rapid evolution of consumer preferences and the growing dominance of streaming services. For years, traditional TV providers have grappled with the rise of cord-cutting, as millions of households have opted to move away from expensive, bloated cable bundles in favor of leaner, more flexible streaming platforms. This deal between two media giants—Disney and DirecTV—represents a bold attempt to adapt to this new reality and could very well mark the beginning of a new chapter in the way content is delivered to viewers.

The deal’s core innovation lies in its flexibility and integration of streaming options. DirecTV now has the ability to offer genre-specific packages and bundle Disney’s popular direct-to-consumer streaming services—Disney+, Hulu, and ESPN+—alongside its traditional TV channels. Vince Torres, Chief Marketing Officer at DirecTV, emphasized how crucial this flexibility is in today’s media landscape: “The future of television isn’t in massive channel bundles that consumers don’t want. It’s about giving people the content they love, in the way they want to watch it. Our new agreement with Disney is a reflection of that reality.”

Cord-Cutting and the Decline of Traditional TV

This deal comes at a critical time for both companies, as the traditional TV model faces a steep decline. Over the past decade, more than 30 million U.S. households have “cut the cord,” opting for streaming services over expensive cable and satellite packages. According to market research firm eMarketer, by 2027, nearly 80 million U.S. households are expected to have abandoned traditional pay-TV altogether.

This trend poses a significant threat to companies like DirecTV, which has struggled to retain customers. “We’ve seen a fundamental shift in how consumers think about TV,” says Peter H.J. Auwerx, a digital media strategist. “People no longer want to pay for dozens of channels they don’t watch. Streaming services like Disney+ and Netflix have shown them that they can pay only for the content they care about, and that’s a powerful draw.”

The blackout of Disney-owned channels in September, which included fan favorites like ESPN and ABC, exacerbated these issues for DirecTV. “It was a nightmare for DirecTV,” says Adam Jacobson, a media analyst. “Losing ESPN during the U.S. Open and the NFL’s Monday Night Football alienated many loyal sports fans. People don’t just want to watch sports—they need to watch sports, and when they couldn’t, many of them started looking for alternatives.”

In fact, according to a survey conducted during the blackout, 21% of DirecTV subscribers considered switching to another provider, with many citing the loss of live sports as the primary reason. Stephen Brammer, a former DirecTV customer, noted that the loss of ESPN was what finally drove him to cancel his subscription after more than a decade. “I saved over $100 a month by switching to YouTube TV, and I’m getting the channels I actually watch,” Brammer says. “The blackout was the last straw for me. Competition is a wonderful thing.”

The Rise of Streaming and the Hybrid Model

As DirecTV and other traditional TV providers continue to lose subscribers, the role of streaming has become impossible to ignore. Consumers have grown accustomed to the convenience, flexibility, and personalized viewing experiences offered by platforms like Netflix, Amazon Prime, and Disney+. According to a Deloitte report, 60% of U.S. consumers now subscribe to at least two streaming services, with younger audiences leading the charge.

The new Disney-DirecTV agreement acknowledges this shift and seeks to blend the best of both worlds: the live programming that traditional TV provides and the on-demand, customized experiences that have made streaming so popular. “What we’re seeing is the emergence of a hybrid model,” says media consultant Julia Maier. “It’s no longer a question of streaming versus traditional TV. It’s about finding a way to integrate the two in a way that makes sense for consumers.”

The inclusion of Disney+, Hulu, and ESPN+ in select DirecTV packages is a direct response to this trend. “People want options,” says Torres. “If you’re a sports fan, you might want ESPN+ as part of your DirecTV package. If you have kids, maybe Disney+ is more important to you. What we’re offering is the ability to choose the content that matters most to you, without paying for everything else.”

This hybrid approach is likely to become more prevalent as traditional TV providers seek to stay competitive in an increasingly crowded market. “We’re going to see more of these kinds of deals in the future,” says Maier. “Providers like DirecTV will have to keep evolving if they want to remain relevant in a world where streaming dominates.”

Live Sports: The Last Bastion of Traditional TV?

Despite the rise of streaming, one area where traditional TV has managed to retain its dominance is live sports. For many consumers, especially those in older demographics, sports programming remains a key reason to maintain a pay-TV subscription. “Live sports is one of the few things that people are still willing to pay a premium for,” says Jacobson. “It’s appointment viewing—something you have to watch in real-time.”

This explains why ESPN, with its extensive portfolio of live sports programming, has been such a critical bargaining chip for Disney in negotiations with TV providers. “ESPN is the crown jewel,” says Auwerx. “It’s what keeps people tied to their cable subscriptions. That’s why Disney was able to command such high fees for ESPN in this new agreement.”

At the same time, even live sports are beginning to shift toward streaming. Disney has already announced plans to launch a stand-alone ESPN streaming service in 2025, which will be available at no extra cost to DirecTV customers. This is a clear acknowledgment of where the market is heading. “The future of sports is streaming,” says Maier. “We’re already seeing it with services like DAZN and Amazon’s streaming of NFL games. Disney’s decision to make ESPN available as a stand-alone service is the next logical step.”

The Future of TV: What Comes Next?

As the television industry continues to evolve, the Disney-DirecTV agreement offers a glimpse of what’s to come. The deal’s emphasis on flexibility, consumer choice, and integration of streaming services sets a new standard for how content can be delivered in the modern era. “We’re in the middle of a transformation,” says Auwerx. “The old models are breaking down, and what’s emerging is something much more personalized, much more on-demand.”

For traditional TV providers like DirecTV, the challenge moving forward will be to remain relevant in a world where consumers have more choices than ever before. “We’re not competing with just other cable providers anymore,” says Torres. “We’re competing with YouTube TV, Hulu, Netflix, and all these other platforms. We have to innovate, and we have to offer something unique that resonates with our customers.”

Disney, on the other hand, is positioning itself to dominate both sides of the equation: the linear TV market and the streaming landscape. “Disney is playing a long game here,” says Jacobson. “They’re making sure that, whether consumers want traditional TV or streaming, they have access to Disney content. It’s a smart move, and it puts them in a strong position as the industry continues to shift.”

The coming years will likely see more deals like the one between Disney and DirecTV, as providers adapt to the new reality of television consumption. “We’re just at the beginning of this transition,” says Maier. “But one thing is clear: the days of the traditional cable bundle are numbered. The future is all about choice, flexibility, and personalization.”

In this new chapter of TV, companies that can evolve with the times and offer consumers a seamless blend of live programming, on-demand content, and streaming options will be the ones that thrive. The Disney-DirecTV agreement is just the beginning of that journey.

Disrupting Asset-Intensive Industries

The hallmark of the sharing economy is its ability to transform industries that were once defined by heavy capital investment and asset ownership. “Companies like Airbnb and Uber have revolutionized the business landscape by showing that it’s possible to thrive without owning the assets that are core to your service offering,” says James Sullivan, an analyst at Bain & Company. “By leveraging technology to connect supply with demand, they have created new markets with unparalleled scalability.”

Airbnb, for example, has grown into a global hospitality giant without owning a single hotel. Instead, it relies on its platform to connect property owners with travelers, facilitating a transaction that bypasses traditional hotel chains entirely. Similarly, Uber has disrupted the taxi industry by enabling private car owners to offer rides through its app, undercutting traditional taxi services.

The key to these companies’ success isn’t just their ability to innovate with technology but their capacity to flip asset-heavy business models on their heads. “It’s not just about reducing costs—it’s about creating an entirely new business model that scales with minimal capital investment,” says Sarah Goodman, CEO of a logistics startup. “For entrepreneurs, this is a game-changer, offering opportunities to enter industries that were previously capital-intensive with far less financial risk.”

The Evolution of Private Air Travel: Uber for Planes?

The sharing economy is also making inroads into luxury markets, including private air travel. With companies like NetJets offering fractional ownership of private planes, the possibility of a more Uber-like model for private jets is on the horizon. “The demand for private air travel is growing, and while we haven’t reached the point where there’s an Uber for planes, it’s not entirely far-fetched,” says David Wilson, founder of an aviation consultancy firm. “As with ridesharing, the challenge is reducing the overhead costs associated with ownership while meeting consumer demand for convenience and flexibility.”

While the cost and logistics of private air travel make it a more complex market to disrupt, the underlying principle remains the same—enabling access without ownership. Entrepreneurs in this space are exploring how to scale these models, but the challenge lies in balancing exclusivity with broader access. As Wilson notes, “Technology will be the driver, but the key will be finding a way to make the economics work at scale.”

Ghost Kitchens and Virtual Brands: A New Frontier for Restaurants

One of the most notable examples of the sharing economy’s impact is in the restaurant industry, where ghost kitchens have gained significant traction. These kitchens operate without a traditional dine-in option, focusing solely on delivery orders facilitated by apps like Uber Eats and DoorDash. “The rise of ghost kitchens is a direct result of the sharing economy’s emphasis on efficiency and flexibility,” says Rachel Matthews, a restaurant industry consultant. “By cutting out the need for physical dining spaces, restaurants can reduce overhead while reaching a larger customer base.”

A high-profile example of this model is Mr. Beast Burgers, a virtual brand launched by YouTube sensation Mr. Beast. Operating through ghost kitchens, Mr. Beast Burgers leverages existing kitchen infrastructure to fulfill orders, allowing the brand to expand rapidly without investing in traditional restaurant locations. “It’s a brilliant strategy,” adds Matthews. “By using ghost kitchens, brands can focus on scaling quickly while minimizing the financial risk typically associated with opening new locations.”

For business executives, ghost kitchens represent an opportunity to rethink how assets are utilized and to capitalize on shifting consumer preferences for convenience. As Matthews points out, “This isn’t just about food—it’s about the future of retail. Ghost kitchens show how asset-light models can work across industries, creating new revenue streams with minimal investment.”

Mobility and Urban Transformation: From Electric Scooters to Robotaxis

In urban areas, the sharing economy has revolutionized transportation through services like electric scooters and bike-sharing programs. “The idea of owning a car or even a bike is becoming less relevant for many city dwellers,” says Mark Phillips, VP of Urban Mobility at a major transportation firm. “People want convenient, affordable access to transportation without the hassle of ownership.” Companies like Lime and Bird have capitalized on this trend, offering electric scooters as a short-distance transportation option in cities worldwide.

What’s fascinating about this business model is its reliance on heavy physical assets—the scooters themselves—while still adhering to the principles of the sharing economy. “It’s a blend of asset-light and asset-heavy models,” explains Phillips. “The companies own the scooters, but users rent them on-demand, creating a seamless, tech-driven experience that meets the needs of today’s consumers.”

Looking to the future, the rise of autonomous vehicles—particularly self-driving robotaxis—could take this concept even further. “Robotaxis represent the next frontier in urban mobility,” says a leading AI researcher. “They combine cutting-edge technology with the sharing economy’s ethos of access over ownership.” The implications for transportation, logistics, and even urban planning are profound, as cities rethink how people move and live in increasingly crowded spaces.

Manufacturing and Traditional Industries: Adapting to the New Normal

While the sharing economy is often associated with tech-driven startups, its principles are beginning to seep into more traditional sectors like manufacturing. “Manufacturing may seem like an unlikely candidate for disruption by the sharing economy, but we’re already seeing changes in how assets are utilized,” says John Carter, CEO of a mid-sized manufacturing firm. “Subscription-based models for equipment and the rise of contract manufacturing are examples of how manufacturers are adapting to this new reality.”

For business executives in traditional industries, the lesson is clear: flexibility and adaptability are essential. “The old model of capital-intensive, asset-heavy operations is being challenged,” adds Carter. “Manufacturers need to think about how they can leverage technology to reduce costs and improve efficiency while meeting the evolving needs of their customers.”

The Importance of Customer-Centricity and Sales Innovation

At the core of the sharing economy is the customer. “Consumers today expect convenience, speed, and personalization,” says Emily Larson, a customer experience expert. “They’re not just buying products or services—they’re buying experiences.” For businesses operating in the sharing economy, this means designing customer journeys that are frictionless and intuitive, from the first interaction to the final purchase.

This customer-centric approach extends to sales and marketing strategies as well. “In a crowded market, differentiation is key,” says Michael Jordan, CMO of a digital marketing firm. “Your value proposition needs to be crystal clear, and you have to engage customers in a way that builds loyalty.” For executives and entrepreneurs, this means investing in sophisticated sales and marketing techniques, including personalized email campaigns, social media engagement, and data-driven targeting.

Larson adds, “The companies that succeed in the sharing economy are the ones that invest in building relationships, not just transactions. It’s about creating long-term value for the customer.”

Redefining Business for the Sharing Economy Era

The sharing economy has unleashed a new wave of business transformation, challenging traditional asset-heavy models and introducing revolutionary concepts across various sectors. As businesses like Airbnb, Uber, and Turo have proven, companies no longer need to own massive physical assets to generate significant value. Instead, these platforms leverage technology to turn existing assets—whether homes, cars, or other resources—into economic opportunities for individuals and enterprises alike.

“Airbnb didn’t need to own hotels to disrupt the hospitality industry,” says a senior industry expert. “What they did was tap into the unused potential of homes and spaces globally. Similarly, Uber transformed transportation by making every car a potential taxi.” These shifts illustrate how innovative thinking, coupled with tech-driven platforms, can redefine business models across sectors​

As companies look to thrive in this new landscape, personalization and customer experience remain key. Many successful sharing economy models, such as those in transportation or short-term rentals, have capitalized on delivering tailored, seamless experiences that meet customers’ needs in real-time. Forward-thinking organizations will also need to embrace similar strategies—using data and AI to anticipate consumer desires and offer relevant products or services with precision.

The rise of the sharing economy is more than just a business trend; it marks a fundamental shift in how value is created, exchanged, and experienced in the modern world. For business executives and entrepreneurs, embracing this paradigm will be crucial to staying relevant and competitive in the rapidly evolving marketplace. Whether it’s through leveraging idle assets, rethinking traditional industries, or building innovative platforms, the future belongs to those who can harness the power of the sharing economy.

The Shift to Mobile-First D2C eCommerce

The way consumers shop has fundamentally changed. Customers are now beginning their purchase journey while commuting, at cafes, or even while browsing brick-and-mortar store aisles. This shift to mobile-first behaviors presents both an opportunity and a challenge for consumer products companies. Those who can tailor their eCommerce platforms to deliver a mobile-friendly, intuitive experience stand to reap substantial rewards.

Mohan Natarajan, Services Practice Leader at Klizer, highlights the importance of meeting customers where they are: “Consumers no longer want to wait until they’re at a desktop to browse or buy. They want to complete transactions instantly, wherever they are—on the bus, in a café, or even while window shopping. A mobile-first strategy is no longer optional; it’s essential.”

For companies entering the D2C space, this requires not just replicating their B2B processes but reimagining the customer journey from a mobile perspective. This involves intuitive design, fast loading speeds, and seamless integration of payment methods, all optimized for mobile devices.

Why Some Companies Succeed—and Others Fail

Despite the allure of D2C models, many companies falter in execution. One of the primary reasons for failure is the lack of a clear value proposition. Companies often rush into D2C without fully understanding what they bring to the table and how to communicate that to their target audience.

“To succeed in D2C, companies must clearly define why they’re going direct and what unique value they offer to consumers,” explains Amisha Arora, Head of eCommerce for East Asia at H&M. “It’s not enough to simply have a presence—you need to have a reason for consumers to come to your platform and stay engaged.”

Many successful D2C brands, including H&M, have made storytelling a central pillar of their eCommerce strategy. Through their platform, H&M builds emotional connections with consumers by sharing the stories behind their collaborations and product lines. This connection fosters loyalty and differentiates the brand from competitors.

Personalization: The Key to Customer Loyalty

One of the most powerful advantages of a D2C model is the ability to collect first-party data directly from customers. This data allows companies to personalize the shopping experience, making it more relevant and engaging for each individual customer. With the rise of artificial intelligence (AI) and machine learning, companies can now predict customer preferences and needs with greater accuracy, creating a shopping experience that feels tailor-made.

“Personalization is the future of D2C,” says Natarajan. “AI enables us to learn from customer behavior and deliver highly relevant product recommendations in real-time. This not only improves conversion rates but also deepens customer loyalty.”

An example of this is the ability to recommend products based on past purchases or browsing history. A customer who buys sportswear may later receive suggestions for complementary products such as shoes or fitness accessories. By delivering personalized recommendations, companies not only drive sales but also enhance customer satisfaction and retention.

Benefits of a Personalized, Mobile-First D2C Approach

The shift to a personalized, mobile-first D2C model offers a range of benefits beyond increased sales. Companies gain greater control over their brand messaging, ensuring consistency across all channels. Direct access to customer data allows for better decision-making and more targeted marketing efforts.

“By adopting a mobile-first D2C strategy, we’ve seen a significant increase in customer satisfaction and retention,” shares Arora. “We’re able to offer customers exactly what they need, when they need it, while maintaining full control over how we present our brand.”

This level of personalization can also foster stronger brand loyalty. As customers experience more tailored interactions, they’re more likely to return for future purchases, reducing the company’s reliance on third-party marketplaces and increasing long-term profitability.

The Role of AI in Enhancing D2C Success

AI is playing a transformative role in the way companies approach D2C eCommerce. From product recommendations to personalized marketing, AI helps brands create a more engaging and efficient shopping experience. Low-code and no-code AI solutions make it easier for companies to build and scale their D2C channels without requiring extensive development resources.

“AI has the potential to take D2C strategies to the next level,” says Arora. “From automating customer interactions to predicting which products will resonate with individual shoppers, AI enables us to be proactive in our approach rather than reactive.”

Overcoming the Challenges of Going Direct

Transitioning from a B2B to a D2C model is not without its challenges. Companies must re-evaluate their entire eCommerce infrastructure, ensuring it is equipped to handle high volumes of traffic and personalized customer experiences. Additionally, the shift requires companies to rethink their supply chains and logistics strategies, especially when fulfilling individual orders directly to consumers.

“Moving to D2C is a massive undertaking,” explains Natarajan. “It’s about more than just building an eCommerce site. Companies need to align their entire operation—from marketing and sales to logistics and customer service—around the D2C model.”

Successful companies address these challenges head-on by investing in the right technologies and partnerships. Many enterprises choose to collaborate with specialized eCommerce platforms or agencies to ensure their D2C operations are optimized for growth.

The Future of D2C eCommerce

As mobile shopping becomes increasingly dominant, the D2C model will continue to expand. Consumer products companies that embrace personalized, mobile-first strategies will be well-positioned to thrive in this evolving marketplace. However, success will depend on more than just adopting the latest technologies. Companies must remain laser-focused on delivering a seamless, intuitive customer experience that meets the needs of modern consumers.

In the words of Natarajan, “The brands that succeed in D2C will be the ones that listen to their customers, leverage data intelligently, and continually innovate their eCommerce experiences. It’s not just about selling a product—it’s about building lasting relationships.”

In 2024 and beyond, the D2C revolution will continue to shape the future of consumer products, with those willing to invest in personalization and mobile-first strategies reaping the most significant rewards.

Amishaa Arora, Head of eCommerce for East Asia at H&M, recently shared her insights into how the brand has become a leader in the digital retail space. From leveraging D2C channels to connect emotionally with customers to using marketplaces to expand their reach, H&M’s strategy offers valuable lessons for enterprise eCommerce executives.

The Power of Storytelling in D2C

H&M’s D2C strategy is deeply rooted in storytelling, which has become a cornerstone of its online success. Arora explains, “Our D2C channels are more than just transactional platforms—they are spaces where we build relationships with our customers. We use storytelling to create an emotional connection and inspire our customers through our campaigns and collections.”

This storytelling often takes the form of exclusive collaborations and designer drops, which have become signature elements of H&M’s eCommerce strategy. These limited-time offerings are not just about selling products; they are about creating excitement and urgency, drawing customers in with the allure of owning something special. “We collaborate with designers like the Korean designer Rokh, and through our D2C channels, we tell the story behind the collection—why the designer chose to collaborate with us, the inspiration behind the designs, and how it benefits both parties. This depth of storytelling helps create a richer experience for the customer,” Arora notes.

By weaving narratives around their products, H&M fosters a deeper sense of brand loyalty. It’s not just about offering fashion; it’s about selling an experience that customers want to be a part of. For enterprise eCommerce executives, this illustrates the importance of building brand equity through meaningful content and experiences, not just discounts and promotions.

Differentiating D2C and Marketplace Strategies

H&M has taken a thoughtful approach to balancing its D2C efforts with its presence on third-party marketplaces like Zalora. “Marketplaces help us reach a broader audience, especially those who may not be familiar with the brand or haven’t experienced it before,” says Arora. While the D2C platform focuses on nurturing existing customer relationships, marketplaces serve as a way to introduce H&M to new shoppers.

This differentiation is key to H&M’s success. The brand uses marketplaces to drive awareness, but it reserves its most immersive and personalized experiences for its own platform. “We ensure that no matter where the customer interacts with us, whether on Zalora or our D2C site, the essence of the brand is consistent. However, the way we present our collections might differ slightly depending on the platform,” Arora explains.

For example, while H&M might participate in a marketplace’s larger campaign, on its D2C platform, the brand has full control over the narrative, allowing it to highlight aspects that align more closely with its own storytelling goals. “On Zalora, we integrate into their overall campaigns, but on our D2C site, we maintain the integrity of our brand message while tailoring it slightly for our customers,” she adds.

This dual-channel strategy is a lesson for eCommerce executives in how to harness the strengths of different platforms while maintaining a unified brand identity. It’s about using each channel to its fullest potential while ensuring that the customer experience remains consistent.

Personalization: The Secret to Customer Loyalty

In today’s digital age, personalization is no longer a luxury—it’s an expectation. H&M understands this well and has invested heavily in personalized experiences on its D2C platform. By leveraging customer data, the brand is able to offer product recommendations, size suggestions, and tailored promotions that enhance the shopping experience.

“Personalization plays a big role in our D2C channels,” Arora explains. “For example, if we know a customer has purchased from a particular collection in the past, we can notify them when a similar or complementary product becomes available. We can also recommend sizes based on their previous purchases or suggest products based on their browsing history.”

This personalized approach extends beyond just product recommendations. H&M also tailors its communication based on where customers are in their life cycle with the brand. “We offer different loyalty benefits depending on how long a customer has been associated with us and where they are in their journey. It’s about delivering the right message at the right time,” says Arora.

For eCommerce executives, H&M’s personalization strategy is a powerful reminder of the importance of understanding your customer at every touchpoint. By using data effectively, brands can not only drive sales but also foster long-term loyalty.

Unified Brand Messaging Across Channels

Maintaining a unified brand message across multiple online touchpoints can be challenging, but H&M has managed to strike the right balance. Whether a customer is shopping on the brand’s D2C platform, browsing through a marketplace, or engaging with the brand on social media, the messaging remains consistent.

“Our brand assets—whether it’s campaign imagery, product descriptions, or videos—are shared across all platforms. The goal is to ensure that no matter where a customer interacts with us, they receive the same message,” explains Arora. This consistency is key to building trust and ensuring that the brand experience remains seamless, regardless of the platform.

However, H&M is also mindful of the need to adapt its messaging to the unique requirements of each platform. “While the core message remains the same, we do adapt it slightly based on the platform’s format. For example, the way we present a campaign on Zalora might differ slightly from how we present it on our D2C platform, but the essence remains intact,” she adds.

For enterprise eCommerce leaders, H&M’s approach underscores the importance of maintaining a consistent brand message across all customer touchpoints while being flexible enough to adapt to the nuances of each platform.

Building D2C Capabilities: Buy, Build, or Partner?

As H&M continues to grow its eCommerce presence, the brand faces the ongoing question of whether to buy, build, or partner to strengthen its D2C capabilities. Arora explains that the decision ultimately depends on the brand’s core strengths. “At H&M, our strength lies in our product, our brand, and our fashion. We focus on what we do best and, when needed, we bring in external partners to fill gaps in areas where we may not be as strong.”

H&M has been open to collaborating with partners when it makes sense, particularly in areas like technology or logistics, where external expertise can enhance the customer experience. “We’re always evaluating what will provide the best experience for our customers. If partnering with a third-party provider helps us achieve that, then we’re open to it,” she says.

This flexible approach allows H&M to focus on its core competencies while leveraging the expertise of others to stay ahead in a competitive market. For enterprise eCommerce executives, the takeaway is clear: understand where your strengths lie, and don’t be afraid to collaborate when it adds value to the customer experience.

The Future of H&M in eCommerce

H&M’s success in eCommerce is no accident. Through a combination of storytelling, personalization, and strategic channel management, the brand has been able to create a seamless and engaging shopping experience for customers around the world. By maintaining a consistent brand message across all platforms and continuously refining its approach to D2C, H&M has positioned itself as a leader in the digital retail space.

As Arora notes, “eCommerce is constantly evolving, and so are we. Our focus will always be on delivering the best possible experience for our customers, whether that’s through our own platform or through partnerships with others.”

For enterprise eCommerce executives looking to emulate H&M’s success, the key lies in balancing innovation with customer-centricity, using data to personalize the shopping experience, and ensuring that the brand’s core values shine through at every stage of the customer journey.

For enterprise ecommerce executives, the key to successful scaling lies in strategic alignment across departments, continuous investment in talent and training, and leveraging partnerships to optimize delivery. This deep-dive analysis will explore how enterprise brands can stay ahead by refining their approach to delivery practices in an increasingly competitive market.

Understanding the Complexity of Enterprise Clients

Scaling delivery for enterprise clients requires more than just increasing capacity—it demands an intricate understanding of the complexity that defines large organizations. Unlike smaller counterparts, enterprise clients have multi-layered approval processes, complex operational structures, and a higher demand for precision in project management.

“When you’re scaling up to the enterprise level, you’re dealing with stakeholders at multiple levels,” Hoagland explains. “Your main contact might be one person, but their decisions often need approval from several others—procurement, legal, and sometimes even executive leadership. It’s not just about delivering the product or service anymore; it’s about navigating these internal structures.”

The complexity of enterprise clients means delivery cycles are often extended, requiring project teams to account for delays in feedback and approvals. “We’ve seen situations where a simple design approval could take two weeks because it had to pass through six different teams,” says Hoagland. “Understanding this in advance helps you plan better, preventing bottlenecks that could derail the project timeline.”

Enterprise executives must anticipate these challenges, ensuring that their delivery teams are well-equipped to manage the expectations of various internal stakeholders. Building processes that accommodate extended feedback loops, ensuring flexibility in timelines, and managing resources across multiple functions are essential to maintain smooth operations.

Training Teams to Handle Enterprise Delivery

One of the most overlooked aspects of scaling is the importance of continuously training delivery teams to handle the intricacies of enterprise projects. As Hoagland emphasizes, “It’s one thing for your sales team to land a big enterprise client, but can your project managers and delivery teams actually execute at that level?”

For ecommerce executives, investing in platform-specific and client-specific training is critical. Hoagland stresses the need for deep training in the specific platforms enterprise clients use, such as Shopify Plus or BigCommerce. “Understanding how these platforms function on an enterprise scale is non-negotiable. Your teams need to know the ins and outs—where the platform shines and where its limitations lie. That’s the only way they can provide value to the client and avoid costly mistakes.”

Moreover, the training must be continuous, evolving with the needs of the market. Hoagland notes, “Training should not be an afterthought, nor should it be done sporadically. You need to embed it into your organization’s culture. For enterprise brands, allocating a portion of your budget to regular training ensures that your teams stay ahead of technological and operational changes.”

Yet, training at this scale often comes at the cost of billable hours, which presents a dilemma for many organizations. Hoagland advises executives to consider training as a long-term investment: “You might lose billable hours in the short term, but the knowledge gained will more than make up for it in the efficiency, quality, and customer satisfaction you’ll see down the line.”

Fostering Cross-Department Collaboration

One of the biggest challenges in scaling delivery practices is bridging the gap between sales and delivery teams. In many organizations, these teams operate in silos, leading to miscommunication, unrealistic promises, and ultimately, client dissatisfaction. “Enterprise deals are complex,” Hoagland observes. “Sales teams often make commitments that delivery teams struggle to meet, simply because the two departments aren’t aligned.”

To solve this, Hoagland recommends establishing a feedback loop between sales and delivery. “Sales needs to consult with delivery before closing the deal. They need to understand what’s feasible and what isn’t. At the same time, delivery teams need to understand the pressures sales are under, especially when it comes to timelines and budget constraints,” he explains.

Hoagland shares an example of a client who fostered collaboration by holding joint training sessions for both sales and delivery teams. “We had engineers sit in on sales meetings to learn how deals were pitched and why certain promises were made. Conversely, we brought salespeople into project management workshops to understand how long certain tasks take. The result was a smoother transition from sale to execution.”

For ecommerce executives, establishing such cross-departmental training can pay off immensely. Hoagland notes, “When sales and delivery teams are in sync, it creates a seamless customer experience, which is what enterprise clients expect. You can’t afford to have one team dropping the ball.”

Managing Client Expectations Through Transparent Communication

Enterprise clients expect transparency and efficiency. Given the larger stakes, they tend to have less flexibility when issues arise. Hoagland explains, “When you’re working with direct-to-consumer clients, small mistakes might be overlooked, but at the enterprise level, those small mistakes can become massive liabilities.”

Hoagland emphasizes the need for proactive communication as a way to manage expectations. “You need to be transparent from the beginning—about timelines, potential roadblocks, and how the process will unfold. Clients want to know that you’ve thought through every detail,” he says.

Managing expectations also means aligning with your client’s internal metrics and KPIs. “Enterprise clients often have rigid performance metrics they are judged on internally,” Hoagland points out. “It’s important that your project aligns with those metrics. If their key focus is on reducing time-to-market, your team needs to prioritize that over other goals.”

Another way to manage expectations is through continuous project retrospectives, a practice Hoagland strongly advocates. “Every project should end with a retrospective—what went well, what didn’t, and how we can improve. This is how you identify patterns of inefficiency or recurring problems. It’s also a great way to show clients that you’re committed to constant improvement.”

Leveraging Strategic Partnerships for Scalability

Scaling enterprise delivery also means knowing when to bring in external partners to fill gaps in expertise. “No agency or ecommerce brand can be an expert in everything,” Hoagland notes. “Enterprise clients expect you to know who the experts are—even if it’s not you.”

This is where strategic partnerships come in. By collaborating with external experts, ecommerce brands can offer a wider range of solutions without overburdening their internal teams. Hoagland elaborates, “If you’re managing a client’s entire ecommerce infrastructure and they need specialized email marketing, don’t force your project managers to become email experts overnight. Instead, bring in a partner who specializes in that.”

However, Hoagland emphasizes that these partnerships need to be seamless from the client’s perspective. “You need to present a unified front. The client doesn’t care if you’re outsourcing part of the project as long as it gets done efficiently and to a high standard,” he says.

For enterprise-level ecommerce executives, establishing a network of trusted partners is vital. “If you can act as a conduit between your client and your partners, you’re delivering more value. It positions you as the go-to expert who knows how to get the job done, even if you’re not doing every piece yourself.”

Quality Control: The Key to Enterprise-Level Success

The larger the enterprise client, the higher the expectations for quality control. While many ecommerce companies may be tempted to cut corners when budgets or timelines get tight, Hoagland warns that this is a dangerous strategy when dealing with enterprise clients. “At the enterprise level, there’s little room for error. These clients expect perfection because their own customers and stakeholders demand it,” he says.

Quality control needs to be embedded into every stage of the process, not just at the final stages. “You can’t tack on quality control as an afterthought. It needs to be an integral part of your workflow, especially when delivering complex solutions at scale,” Hoagland advises.

He shares an example of a project where the lack of early-stage quality checks led to costly delays. “We had a client where minor technical issues kept cropping up, but because quality control was left until the end, those small issues snowballed. We ended up needing a full rebuild, which delayed the project by weeks and cost the client significantly more than it should have.”

Hoagland suggests that ecommerce executives implement regular quality control checkpoints throughout the project lifecycle to avoid these pitfalls. “When you catch issues early, they’re easier and cheaper to fix. More importantly, you’re maintaining the level of quality that enterprise clients expect.”

Scaling Delivery for Long-Term Growth

Scaling delivery practices for enterprise-level ecommerce brands requires a strategic, multi-faceted approach. From cross-department collaboration to continuous training and leveraging external partners, the path to success is built on flexibility, communication, and a deep understanding of client needs.

As Hoagland sums it up, “Scaling isn’t just about doing more of the same—it’s about doing better at every level. Enterprise clients demand more, and if you can meet those demands, you’re not just scaling delivery—you’re scaling your business to new heights.”

For ecommerce executives, this means investing in the right people, processes, and partnerships to ensure that delivery is not just efficient but exceptional. The opportunities are vast, but only for those who are prepared to meet the challenges head-on.

Brook Hiddink, a successful entrepreneur who scaled his high-ticket dropshipping store to over $6 million in sales within two years, believes that the formula for success is clearer than ever. “People think building a million-dollar ecommerce business is rocket science, but it’s really about following a proven process. You’re one product away from life-changing success,” Hiddink explains.

In this in-depth guide, we will walk you through the steps to create a thriving ecommerce business in 2024, offering insights and real-world examples that will resonate with both budding and experienced entrepreneurs.

Step 1: Choosing the Right Product

Choosing the right product is arguably the most critical decision when starting an ecommerce business. For entrepreneurs looking to scale quickly, focusing on high-ticket items—products priced at $1,000 or more—can provide a faster path to profitability. The reasoning is simple: higher margins mean fewer sales are required to generate significant revenue.

“High-ticket products are the secret sauce,” says Hiddink. “It’s easier to hit a million dollars in revenue when each sale brings in $1,000 or more. Plus, you attract a different caliber of customer—someone who is more committed and less likely to ask for a refund.”

To find the right product, entrepreneurs need to be resourceful:

• AI-Driven Ideas: Leverage AI tools like ChatGPT to generate product ideas. “I often tell people to simply ask AI for a list of high-ticket items,” Hiddink advises. “It’s a fast way to brainstorm and get your creative juices flowing.”
• Observe Your Environment: Sometimes, inspiration strikes from everyday surroundings. “Keep your eyes open wherever you are. High-ticket items are everywhere—treadmills at the gym, electric fireplaces in home stores, or industrial equipment at parks. You just need to pay attention.”

Once you’ve narrowed down your product idea, it’s crucial to validate its potential demand using tools like Google Trends. “You need to make sure the market is growing,” Hiddink notes. “Look for steady or increasing demand over a five-year period. This ensures you’re not jumping into a declining market.”

Step 2: Sourcing Reliable Suppliers

The next critical step is sourcing dependable suppliers. Entrepreneurs must find suppliers who are reliable, offer quality products, and can support the high-ticket model. The importance of this relationship cannot be overstated. “You need suppliers who take your business as seriously as you do. This isn’t like dropshipping low-cost gadgets. Your suppliers must have credibility and stability,” says Hiddink.

To find suppliers, entrepreneurs can:

• Use Google Shopping: Search for your product category online and visit competitor sites. “Find ecommerce stores that specialize in your product and look for their supplier lists,” Hiddink recommends.
• Supplier Tools: Tools like Shop Hunter and Koala Inspector allow you to track competitor sales and supplier information. “You can see which suppliers your competitors are using and estimate their monthly sales. It’s a smart way to vet potential suppliers,” says Hiddink.

Once you’ve built a list of suppliers, it’s essential to develop a relationship with them. “Reach out directly to negotiate terms and ensure they can meet your standards. Don’t cut corners here—reliable suppliers will make or break your business,” he advises.

Step 3: Building a Professional, Conversion-Focused Website

While product and supplier selection are crucial, the next step is to build a high-converting website. In 2024, creating an aesthetically pleasing, user-friendly ecommerce store has never been easier, thanks to platforms like Shopify.

“Shopify is the go-to platform for most entrepreneurs because it’s so intuitive,” Hiddink explains. “You can use Shopify’s templates or tools like Replo to mirror successful million-dollar stores in a matter of hours. It’s important to remember, though, that speed is your friend—don’t spend months perfecting the site before you go live.”

He emphasizes the value of getting to market quickly: “The goal is to get the store live and start driving traffic as soon as possible. You can always optimize later based on how visitors interact with your site.” For continuous improvement, tools like Lucky Orange allow you to track user behavior on your site, providing insights on where potential customers are getting stuck and how to fix common usability issues.

“Entrepreneurs need to embrace optimization as an ongoing process,” Hiddink says. “Watch how people use your site, make adjustments, and keep refining until it converts as effectively as possible.”

Step 4: Driving High-Intent Traffic with Paid Ads

Once your store is live, the focus shifts to driving targeted traffic. For high-ticket ecommerce, the most effective way to reach ready-to-buy customers is through bottom-of-funnel (BOFU) paid advertising. Platforms like Google and Bing allow you to target customers based on their search queries, which means you can hone in on those who are closest to making a purchase decision.

“When you’re selling high-ticket items, it’s all about intent,” Hiddink explains. “If someone searches for ‘Alfresco 32-inch grill in black,’ they’re not browsing—they’re ready to buy. These high-intent keywords are where you’ll find your most profitable customers.”

Platforms like Facebook and TikTok also play a role, but Hiddink stresses the importance of search-based advertising for high-ticket items. “With Google Ads, you can target specific search terms, ensuring your ads appear when someone is ready to make a high-value purchase. This kind of precision targeting is critical when selling products that cost thousands of dollars,” he notes.

In addition to paid ads, entrepreneurs can employ cold outreach strategies. “If you’re targeting a niche audience, like gyms for massage chairs, find the decision-makers—CEOs, founders, marketing directors—and send them a targeted email or call them directly. Personalization can go a long way in closing high-ticket sales,” Hiddink advises.

Step 5: Scaling Your Business for Exponential Growth

Scaling a business from zero to one million dollars requires a focused effort on scaling what already works. There are two main ways to scale: vertically and horizontally.

• Vertical Scaling: “Vertical scaling is simple—you increase your ad spend on products that are already working. If you’re seeing a solid return on a particular product, double down on it. Spend more, and you’ll make more,” Hiddink explains.
• Horizontal Scaling: “Horizontal scaling means expanding your product offerings. For example, if you’re already selling massage chairs, you could start offering massage beds or complementary high-ticket items. The goal is to broaden your product catalog while maintaining quality and profitability.”

Hiddink stresses that scaling is about replicating success: “There’s a book called Predictable Revenue, and it’s a great resource for understanding how to scale. The basic principle is that scaling is about doing more of what already works—whether it’s sending more emails, making more calls, or increasing ad spend. If you’ve found something that works, just amplify it.”

As your business grows, processes become more complex, but the fundamentals remain the same. “Once you have a clear formula—whether it’s paid ads or cold outreach—it’s just a matter of scaling it up. The real challenge is managing growth, not finding growth,” he says.

Exit Strategies: Building Toward a Million-Dollar Sale

Many entrepreneurs are building ecommerce businesses with the intention of selling them, and the ecommerce exit market is booming. “Most ecommerce stores sell for a multiple of their yearly profit,” Hiddink explains. “If your store generates $250,000 in profit per year, you can typically sell it for around $1 million. That’s why hitting $25,000 in monthly profit is the magic number.”

For those planning to exit, the strategy is clear: focus on profitability and scalability. “If you’re making $1,000 profit per sale, you only need 25 sales a month to hit that $25,000 profit goal. Focus on high-ticket items, optimize your processes, and in a year or two, you could be looking at a life-changing exit.”

The Million Dollar Path for Entrepreneurs in 2024

Building a million-dollar ecommerce business may seem like a daunting task, but as Brook Hiddink has shown, it’s entirely possible with the right approach. By focusing on high-ticket products, sourcing reliable suppliers, building a conversion-optimized website, driving targeted traffic, and scaling effectively, entrepreneurs can turn their ecommerce dreams into reality.

“The key to success in 2024 is execution,” Hiddink concludes. “Anyone can come up with ideas, but it’s the people who take action and iterate quickly who will build million-dollar brands. There’s never been a better time to get started—so dive in, learn as you go, and scale your way to success.”

For entrepreneurs ready to take the leap, the opportunities in ecommerce have never been more plentiful. Now is the time to seize them.

In this in-depth look at the best Facebook Ads campaign structure for 2024, we break down the key strategies that successful businesses are using to stay competitive. From audience consolidation to Advantage+ targeting, we explore the tactics that will help marketers navigate the ever-changing landscape of paid social.

The Shift in Campaign Structure: Consolidation Is Key

One of the most significant shifts for Facebook advertisers in 2024 is the move toward consolidation. Meta has been advocating for fewer ad sets and a more streamlined approach to targeting, and the data backs up the benefits of this strategy.

“Meta has long been concerned with audience fragmentation,” explains Ben Heath, founder of Heath Media. “For years, advertisers were advised to create multiple ad sets with distinct targeting options, allowing them to test which segments performed best. But in 2024, this approach has become outdated. The rise of open targeting and tools like Advantage+ means that the traditional method of segmenting audiences across multiple ad sets is no longer necessary.”

With Meta’s algorithms becoming increasingly sophisticated, the manual effort of fine-tuning targeting is largely being replaced by machine learning. “Open targeting and Advantage+ allow Facebook to do the heavy lifting when it comes to finding the right people,” Heath notes. “You’re now better off consolidating your audience into one or two ad sets per campaign, letting the AI optimize delivery based on real-time data.”

This shift offers several advantages:

• Faster Learning: “When you split your budget across multiple ad sets, each set takes longer to exit the learning phase,” says Heath. “By consolidating your ad spend into fewer ad sets, Meta’s machine learning can gather data more quickly, which improves performance faster.”
• Reduced Auction Overlap: Audience overlap between ad sets can negatively impact performance. “If multiple ad sets are competing in the same auction, it drives up costs,” Heath explains. “Consolidating your ad sets minimizes this overlap, ensuring that your budget is used more efficiently.”
• Better Budget Utilization: “A $100 daily budget split across four ad sets gives each set only $25 to work with, which can dilute your results. By focusing that $100 on a single ad set, you’ll see better performance across the board,” Heath adds.

Cold vs. Warm Audiences: Structuring Campaigns for Direct Offers

While the trend is toward fewer ad sets, that doesn’t mean you should only have one campaign. Heath’s recommended structure for most advertisers is to split their efforts into two distinct campaigns: one for cold audiences and one for warm audiences.

Cold Audience Campaign:
For cold audiences—those who have not interacted with your brand—Heath recommends using open or hybrid targeting options. “We’re seeing the most success with either completely open targeting or using tools like Advantage+ Audience, which combine broad targeting with machine learning to find new potential customers,” Heath says.

This cold audience campaign typically consists of a single ad set, with Facebook’s algorithm handling the task of optimizing delivery. “By consolidating the targeting, you avoid audience fragmentation and let Facebook’s AI determine the best segments to target,” Heath advises.

Warm Audience Campaign:
For warm audiences—those who have previously engaged with your brand, such as past website visitors, email subscribers, or social media followers—Heath suggests a single ad set that encompasses all warm audiences. “You don’t need multiple ad sets to target different segments of your warm audience anymore. One well-structured ad set will suffice, and the algorithm will work to show your ads to the most relevant users,” Heath explains.

These two campaigns—cold and warm—provide the foundation for a simple yet highly effective Facebook Ads structure in 2024.

The Power of Omnipresent Content: Long-Term Relationship Building

While the two-campaign structure works for direct offers, Heath points out that there are other strategies that require a more complex setup. One such strategy is his Omnipresent Content Strategy, which is focused on building relationships with potential customers over an extended period of time.

“With the Omnipresent Content Strategy, you’re not just trying to get a single conversion,” Heath says. “You’re delivering multiple touchpoints, demonstrating value, sharing testimonials, and slowly moving prospects closer to making a purchase.”

This type of campaign structure may include eight to twelve ad sets, with each ad set targeting a slightly different group or using different content variations to keep the audience engaged. “You’ll get warnings from Meta about audience fragmentation, but in this case, it’s a strategic choice. You’re not trying to optimize for immediate conversions; you’re nurturing relationships over time,” Heath explains.

Testing New Creatives: Using Separate Campaigns for Better Results

A common frustration among Facebook advertisers is testing new creatives within a campaign that already has a winning ad. “Many advertisers add new ads to their existing campaigns, only to find that Meta won’t allocate any budget to the new ads,” Heath notes. “The algorithm prioritizes the winning ad and ignores the new creative.”

The solution? Set up a separate testing campaign. “By creating a new campaign specifically for testing new creative assets, you ensure that they get the budget and attention they deserve,” Heath says. “Once you’ve identified a new winner, you can move it into your main campaign.”

This approach allows advertisers to iterate more effectively and avoid the frustration of new ads being overlooked. “Testing is critical to long-term success on Facebook, but you have to structure your campaigns in a way that gives new creative room to breathe,” Heath adds.

How Many Ads Should Be in Each Ad Set?

In addition to streamlining ad sets, Meta has also updated its recommendations around the number of ads per ad set. “Meta now advises using six or fewer creatives per ad set,” Heath explains. “The goal is to avoid spreading your budget too thin across too many ads. By focusing on fewer ads, you give each one more data to optimize against.”

Heath agrees with Meta’s recommendation but adds a caveat: “The six-ad rule is budget-dependent. If you’re working with a smaller budget—say $20 per day—then even six ads might be too many. In those cases, I recommend starting with two or three ads and gradually testing more once you’ve identified top performers.”

For larger budgets, Heath suggests following Meta’s guidelines more closely. “If you’re spending thousands per day, six ads are perfectly fine. But for smaller advertisers, start small and focus on giving each ad enough data to succeed.”

Dynamic Creative and Advantage+ Shopping

Dynamic Creative ads, where you upload multiple creative assets and let Facebook dynamically serve different combinations, offer another layer of flexibility. “Dynamic Creative allows you to test up to 10 creative variations in a single ad, and the algorithm will automatically find the best-performing combination,” Heath explains.

Heath also emphasizes that the six-ad recommendation does not apply to Advantage+ Shopping campaigns, which often have far more variations due to the sheer number of products being advertised. “With Advantage+ Shopping, you may be advertising dozens or hundreds of products, so don’t feel constrained by the six-ad rule in that case,” Heath advises.

Optimizing for Success in 2024

The Facebook Ads space is evolving, and in 2024, the winning strategy is all about consolidation, smarter targeting, and efficient use of budget. “The days of splitting your budget across dozens of ad sets are over,” Heath concludes. “With Meta’s algorithm becoming more sophisticated, advertisers who embrace audience consolidation, optimize for faster learning, and use strategic testing campaigns will see the best results.”

By following these structural guidelines, retail executives and digital marketers can stay ahead of the competition, maximize their ROI, and ensure their ad spend is working as effectively as possible in 2024.