Aloha. November is here. And, depending on which consultant you talk to, consumers are more than happy to spend their money this holiday season—or not.

Regardless of what they think, money is generally tight right now, and any purchasing decisions will be strongly influenced by many factors including discounts & bundling, BNPL schemes, and anything else that caters to value-based buying decisions.

Also, apparel brands—you should expect a lot of returns and exchanges this holiday season. Here’s Gorgias with some ways to reduce them. Every dollar is going to count.

By the way, I’m hosting a webinar showcasing how REP clients use AI to give their site conversions a boost. Their results actually blew me away and I can’t wait to share them with you.

You can sign up here—or click on the image below. Or you can just scan the QR code in the image to register.

If you can’t make it, no worries. The recording will be available.

Here’s today’s slate:

• Editorial: Ecosystems: eCommerce's Next Frontier

• The Latest: Google’s Big AI Updates For Small Business

• BX: Apple Shot Their October Event On iPhone: Why It Matters

• MX: A Copywriting Cheatsheet from DemandCurve

• UX: Emotional Copy Drives More Conversions

• CX: Cart Abandonment Syndrome (and how to solve it)

• EX: How To Avoid Search Marketing Burnout

• DX: 21 Cart Abandonment Statistics To Drive Your Strategy from Drip

Shall we get started?

Ecosystems: eCommerce's Next Frontier

The past few weeks, we discussed, in order:

• eCommerce’s Failed Potential

• The Rise of Relational Commerce

• The Business of Badassery

Each is part of a larger narrative combining macro trends, and the need for a more holistic approach to commercial activities because of market shifts and evolving technology.

Today, let’s talk about ecosystems, and why it’s necessary to form one around your core products.

Not just because it will strengthen your brand, or that it gives you some unfair advantage. Of course, it can do those things — when executed well.

No. It’s because the market demands more today than ever. And, because of technology, the demands and expectations will only increase and continue to get louder.

Because technology doesn’t just shape its generation’s culture, it can upend power structures as well.

New Power

In their 2018 book, New Power, Jeremy Heimans and Henry Timms make the case that technological advances have created new power structures.

New Power can be best defined as a form of power that is collective, participatory, and peer-driven. Toss in transparency as a bonus.

Some examples of this shift include:

Media and Entertainment:

• Old Power: Traditional broadcasting networks with scheduled programming. Gatekeepers to any air time.

• New Power: Streaming services offer on-demand content and platforms like YouTube give anyone the power to create and share their own content—like a one-person media channel.

Software and Technology:

• Old Power: Closed-source software developed and controlled by a single company.

• New Power: Open-source software projects like Linux and GitHub, where the community contributes to the development and improvement of the software.

Retail:

• Old Power: Brick-and-mortar stores with inventory controlled by the retailer.

• New Power: eCommerce platforms like Etsy or Shopify empower individual sellers and small businesses to reach a global market directly.

Hospitality:

• Old Power: Hotel chains with standardized rooms and services.

• New Power: Platforms like Airbnb enable people to rent out their private homes or rooms, providing a more personalized and varied experience.

Education:

• Old Power: Institutional education with a set curriculum delivered in person.

• New Power: Online learning platforms like Udemy and Skillshare offer flexible, self-directed learning from anywhere in the world. YouTube fits here as well.

New Power impacts every institution and industry. Also notice that all new power models are characterized by a shift towards decentralization, participation, and two or multiple-sided interactions.

Take a look:

Imagine new generations of young people growing up within a new power culture. How does that affect their mindset when it comes to life and work? Well, we can see how it’s already changing the workplace.

But more than that, consumer expectations will also affect how your brand delivers value in the near future.

From New Power to Ecosystems

The rise of New Power isn't just reshaping who holds the reins; it redefines how value is created and exchanged. In this new era, power flows through networks, communities, and collaborative efforts (remember: current, not currency). This is fertile ground for ecosystems to thrive.

Why Ecosystems? Because they’re a natural progression from the New Power model.

Take the principles of participation, collective action, and peer-driven exchange and apply them to the commercial realm and what do you get?

A robust ecosystem — where every participant, from the producer to the consumer, becomes an integral part of the value-creation process.

An Ecosystem Mindset

Adopting an ecosystem mindset means recognizing that your product is already a node within a larger network. Your brand's true potential only gets unlocked when it fosters connections, enables meaningful experiences, and builds community — around your existing products and services.

Remember the Sony Camera example? A camera by itself is just a tool, but when it's part of a value ecosystem that includes educational tutorials, editing software, online support communities, and accessories, it becomes more than a product — it becomes a gateway to creativity and expression.

Again, the ecosystem already exists. But who’s building it? Who’s controlling the flow of value? Who’s ensuring that the ecosystem thrives — by generating more value — versus just barely surviving?

That ‘who’ should be you.

Your brand must be more than a provider; it must be a connector, an enabler, a hub of badassery where customers don't just come to buy, but come to belong, grow, and contribute.

Ecosystem Examples

Let’s get into what this looks like. Here’s a look at some possibilities:

Fashion and Apparel:

• Ecosystem: A clothing brand that not only sells apparel but also offers style advice, virtual fitting rooms, and a community platform for fashion enthusiasts to share their outfits.

• Actionable Steps: Partner with fashion influencers to create content, offer a subscription box for personalized outfit selections, or develop an app that helps customers mix and match pieces from their wardrobe with new items.

Home Gardening:

• Ecosystem: A company selling gardening tools that also provides educational content on sustainable practices, a platform for gardeners to exchange tips, and a service that delivers seasonal plants or seeds.

• Actionable Steps: Create an online forum or app where customers can track their garden's progress, get reminders for plant care, and share their harvest stories with the community.

Fitness Equipment:

• Ecosystem: A fitness equipment retailer that offers workout plans, nutritional guides, and access to a network of personal trainers and health coaches.

• Actionable Steps: Integrate with health-tracking apps, organize virtual fitness challenges, partner with fitness YouTubers, or offer a subscription service for personalized workout and meal plans.

Gourmet Food Products:

• Ecosystem: A gourmet coffee brand that doesn't just sell coffee beans but also educates customers on brewing techniques, the origins of their beans, and the impact of fair trade practices.

• Actionable Steps: Host virtual coffee tastings, create a subscription service for coffee lovers, or partner with dessert brands or influencers to suggest pairings.

Beauty and Skincare:

• Ecosystem: A skincare brand that offers virtual skin consultations, a blog with skincare tips, and a recycling program for used containers.

• Actionable Steps: A mobile app where users can track their skin's progress, get product recommendations, and join live Q&A sessions with dermatologists.

Pet Care:

• Ecosystem: An online pet store that not only sells pet food and accessories but also provides pet care advice, a service for scheduling vet appointments, and a community for pet owners to connect.

• Actionable Steps: A platform for pet adoption services, pet sitter connections, or a line of pet-friendly travel accessories for customers who like to travel with their pets.

What’s next?

Standing still is the only wrong move. As the business world pivots towards more ecosystems of value — where every product, every service, and every customer interaction interlocks to form a greater whole — we must also begin to see our own business through this lens.

To kickstart that process, think about your business and ask yourself: what invisible ecosystem already exists around my products or business without my knowledge? How could I create an ecosystem that supports and nourishes my customers and market?

Think about:

• How does my product really make people better in the area that matters most to them?

• What services could enhance the product experience?

• What education or know-how makes my product more sticky, more useful?

• What other products or services naturally complement my product, or make it even better, or more unique?

• What cultural trends or social practices is my product a natural part of? Which niche or taste communities are using it?

Stay tuned as we dive into the practical steps that will empower your brand to not just participate in the market but to actively shape and influence it.

Next week, I’ll delve into the 'how' side of things — the practical steps to evolve your brand into a thriving ecosystem using a simple framework.

The Latest

Google’s AI Updates For Small Businesses

From The Verge:

Starting today, Google merchants in the US can label themselves with a new “small business” attribute that makes it easier for shoppers to identify mom-and-pop-style stores. Stores that carry this new attribute will be clearly labeled as a small business in Google Maps, and products sold by these merchants will feature a “small business” tag in Google Search.

They’re also rolling out Product Studio, an AI image generator that’s designed to get your ads more clicks. According to Google:

To top it off, they’ve upgraded their ads platform to a more natural language campaign builder, which makes creative ad production, particularly for those with limited resources, more accessible (read: simpler).

Key Takeaways:

• Generative AI for Ad Creation: Google's new tools can generate both text and images for ads, allowing for quick iterations and a more creative advertising process.

• Uniqueness Guaranteed: Google ensures that generated images are unique, preventing brand overlap in advertising imagery which could be vital for standing out in the market.

• Integration with Existing Tools: The AI ad tools will be integrated with Google’s Performance Max, offering a seamless experience for current users.

• Enhanced Editing Features: If you have a Pixel phone, then you’re familiar with Google’s AI blackmagic. Now changing backgrounds on ad creative can be done with just a few clicks. Major.

• Content Verification: AI-generated ad content will include SynthID metadata watermarks to identify anything that’s AI-generated, to help maintain transparency and trust in advertising.

The implications are profound. Maybe Google will finally democratize high-quality ad production, allowing smaller brands to produce standout creative work that engages customers more effectively—and competes with the much bigger players.

Thanks for reading (or skimming) today.

Until next week.

Paul