This Week In Ecommerce

The Trust Reckoning: Platforms, Partnerships & the Cost of Playing It Safe

2026 has barely started and ecommerce is already flashing warning signs.

In the first episode of the year, Mal Chia and Alex Ross unpack a week of stories that perfectly capture the state of modern retail: trust under strain, platforms asserting power, partners disappearing overnight, and brands being forced to confront the true cost of growth-at-all-costs thinking.

What’s becoming clear is that many of the “easy wins” that fuelled the last decade of ecommerce are being rolled back. Free returns are being restricted. Advertising costs keep climbing. Scam stores are multiplying. And the risk of relying too heavily on any single platform, partner, or tactic is now painfully real.

This episode connects the dots between short-term decisions and long-term consequences — and why focus, authenticity, and discipline are emerging as the real competitive advantages in 2026.

⚡ Topics Covered

• Mecca selling expired makeup

  A rare operational slip from Mecca shows how quickly trust can be tested in a social-first outrage cycle.

• Bondi tragedy profiteering & fake ecommerce stores

  Scam retailers exploiting a national tragedy highlight the growing erosion of consumer trust online.

• ASOS introduces return visibility and caps free returns

  ASOS signals the end of free returns as a growth hack and a return to margin discipline.

• Wrangler, Lee & Riders pause Australian operations

  The quiet exit of mid-market denim brands reinforces how dangerous “middle-of-the-road” positioning has become.

• Meta locks 330,000 under-16 accounts

  Meta begins enforcing youth restrictions, adding volatility for advertisers reliant on scale.

• Sendle shuts down after PE fund freeze

  The sudden collapse of Sendle exposes the hidden platform and partner risk retailers often ignore.

• Rhode launches in Australia via Mecca

  Rhode shows how authenticity and pent-up demand can outperform rushed expansion.

• Focus vs discount dependency

  Brands like Costco and Levi Strauss & Co. prove that clarity beats constant discounting.

This wasn’t a normal year in retail. It was a stress test.

In this solo episode, Mal breaks down the five forces that quietly reshaped retail and ecommerce this year — and why so many brands struggled at the same time.

This isn’t a recap of headlines. It’s a post-mortem of business models that only worked when conditions were perfect.

Starting with the most visible consumer shifts and counting down to the most structural force underneath it all, Mal unpacks why weak retail models stopped being subsidised — and what actually separated the brands that survived from the ones that didn’t.

🔢 What’s covered in this episode:

#5 — Cheap China Reset Consumer Value

How platforms like Shein and Temu didn’t just steal share — they rewired how consumers think about price, value, and waiting.

#4 — AI Broke Trust Before It Created Advantage

The rise of scam stores, fake creatives, and chargebacks — and why AI punished brands without taste, judgment, or governance.

#3 — Retail Darwinism: Mosaic vs Labubu

Two very different failures, same lesson.

• Mosaic Brands: legacy retail collapsing under debt, malls, and irrelevance

• Labubu via Pop Mart: hype, virality, and scarcity with no durability

#2 — The Death of the DTC Fairytale

Why brands rushed into stores, marketplaces, and wholesale — not for growth, but for survival.

#1 — US Tariffs: The Real Story Beneath Everything

The invisible structural force that exposed fragile economics, crushed mid-market margins, and made everything feel harder at once.

Black Friday has officially become Australia’s retail Super Bowl — but is that actually a good thing? In Episode 118, Mal and Alex unpack Australia Post’s biggest day ever ($1.5 billion in a single hit), why activewear keeps winning the sales race, and what it means when demand gets squeezed into just a few frantic days a year. From supermarkets racing for last-mile convenience to Lululemon’s very public identity wobble, this episode is a sharp end-of-year reality check for Ecommerce brands heading into 2026. 

In this episode, we cover:

• Australia Post’s busiest day ever and what $1.5B in Black Friday spend signals for the market

• Why demand is concentrating into fewer days — and why that’s risky for cash flow

• Activewear’s continued rise (and why promotions are doing the heavy lifting)

• Woolworths, Coles and the battle for instant delivery via DoorDash and Uber Eats

• How convenience shopping is quietly reshaping consumer behaviour (and budgets)

• Lululemon’s CEO exit, founder criticism and the fight to stay culturally relevant

• Why “playing it safe” can slowly kill a once-iconic brand

• Australian fashion retailers slashing inventory by up to 60% — smart reset or overcorrection?

• Practical advice on stock forecasting, supplier negotiation and protecting cash flow

• Why 2026 could be a healthier year — if brands don’t forget how to take risks

Key takeaway:

Growth isn’t just about selling more during peak — it’s about staying relevant, managing cash wisely, and giving customers a reason to come back the other 360 days of the year.

This week, Mal and Alex break down the biggest stories shaping Australian ecommerce and retail. From AI slip-ups to collapsing kids’ brands, booming APAC Black Friday numbers, and a world-first social media ban, this episode covers the signals founders need to be watching as we head into 2026.

• Bunnings AI Illegal Advice — Their chatbot gave unsafe electrical guidance, highlighting the risks of AI deployments without proper guardrails.

• Step One Sales Slump — The underwear brand forecasts a 31–37% drop as overexpansion and category fatigue collide with cost-of-living pressure.

• Go-To Winds Down Gro-To — Zoë Foster Blake quietly closes the kids’ line to refocus resources and protect the core brand.

• Smiggle Struggles — Premier Retail flags weak sales as parents trade down on non-essential kids’ stationery.

• Loyalty Shift to Recognition — Points are losing power; emotional recognition, identity and belonging now drive true loyalty.

• BFCM 2025 Data — APAC sales surge, POS grows 54%, and Australia ranks #3 globally as Black Friday becomes an omnichannel event.

• Under-16 Social Media Ban — Age verification wipes out teen audiences on major platforms, reshaping youth marketing and influencer ecosystems.

Black Friday may be done and dusted, but the retail news machine definitely isn’t. This week, Mal and Alex unpack everything from the world’s first streetwear IPO to the grim reality of Aussies spending nearly half their income just keeping a roof over their heads. Add in fashion inflation, a Shein copying scandal, and the FDA doing something very questionable with cosmetic safety… and you’ve got yourself a spicy episode of This Week in Ecommerce.

• Human Made becomes the first streetwear brand to IPO — and investors go wild with a 12% opening-day surge. Can streetwear stay cool when shareholder value enters the chat?

• Surfstitch is relaunching with a focus on Aussie brands, but can they rebuild trust after years of brand damage and discount-driven decline?

• Fashion inflation hits 5.4% YoY, higher than total inflation. With costs rising across labour, materials and operations, retailers are facing the double-edged sword of higher prices and lower demand.

• Housing affordability crisis: Aussies are now spending a staggering 45% of household income on accommodation — and a terrifying 68% in Sydney. Mal and Alex break down what this means for discretionary spend, the rise of thrift and circular fashion, and how brands can adapt their assortment and value proposition.

• Shein accused of copying Last June within weeks: A new designer launches, and Shein allegedly pounces almost immediately. The duo unpack what this means for creativity, cultural value, IP protection, and why consumers need to care about originality.

• FDA withdraws mandatory asbestos testing for talc-based cosmetics: Yes, really. Mal and Alex explore the implications for global supply chains, safety standards, consumer trust, and why brands should expect increased scrutiny — even in markets like Australia.

This week, Mal and Alex wade into a very marketplace-heavy news cycle — from Princess Polly jumping into physical retail, to the quiet death of flash-sale platforms, to the Iconic proving you don’t need to spend more to grow more. Then we get into the big stuff: Kogan’s New Zealand headaches, Myer’s surprisingly strong marketplace success, and why Australia’s supermarket shelves are suffering from a chronic case of “innovation avoidance”. It’s packed, it’s punchy, and it’s peak 2025 retail chaos. 

Quickies

• Princess Polly goes IRL at Westfield Bondi Junction with flashy mirrors, LED screens, and 50 new weekly styles — continuing the shift from pure-play to omnichannel. 

• OzSale to shut down in 2026, signalling the slow death of flash-sale marketplaces and the brutal economics of discount-led models. 

• The Iconic rejigs its marketing budget, growing NMV 5.8% through smarter spend, AI, and better channel discipline — not bigger budgets. 

Deep Dives

• Kogan’s NZ marketplace (Mighty Ape) drags profitability, highlighting the risks of cross-border marketplace ownership, low margins, and crowded competition. 

• Myer Marketplace surges +41%, with strong online sales, high brand trust, and a major Mirakl partnership to onboard thousands more sellers by 2026. Retail media revenue incoming. 

• Why Australia’s CPG innovation sucks — supermarket duopoly, high costs, low risk tolerance, shrinking investment, and a culture of “incrementalism over invention”. Plus the consumer role in pushing innovation forward. 

Other Bits You’ll Hear About

• Black Friday chaos (or lack thereof) and early read-outs on trading performance.

• Whether Aussie shoppers are more loyal to price than brand.

• The slow decline of in-store sampling — and how that affects new product discovery.

• Why D2C CPG brands struggle with shipping, AOV, and margins.

Black Friday mayhem is in full swing, but Mal and Alex are keeping cool—and throwing the odd grenade—while the industry scrambles. In this episode, they unpack the week's biggest stories in ecommerce, from delivery duopolies to unexpected beauty wins.

In this episode:

• Menulog exits Australia – UberEats and DoorDash now dominate as Menulog bows out, raising monopoly concerns.

• AI image theft – A furniture brand’s photos were unknowingly used via AI, sparking copyright headaches.

• Mateship x ParcelPoint – New partnership unlocks free shipping through community parcel drops.

• Country Road’s pivot – CR plans a department store-style model by stocking third-party brands.

• Amazon, Temu & Shein takeover – The trio are on track to own a third of Aussie online retail.

• Retail award season – Adore Beauty wins hearts (and Tim Tam points); Ladd and York Street rise fast.

• Retail crime soars – A 20% spike in theft prompts tougher penalties and more in-store security.

• Black Friday buying habits – Skincare leads the haul as consumers shop smarter and earlier.

This week on This Week in Ecommerce, Mal and Alex wade into the mayhem of “Black Friday month” — from the ACCC crackdown and a $6.8B spending forecast, to Coles’ AI-powered ecommerce surge and Shein’s controversial Paris store opening. Plus, they unpack the women’s workwear boom and why it’s the next billion-dollar opportunity hiding in plain sight.

It’s a big week for Aussie retailers: consumers are tightening wallets, regulators are circling, and AI is reshaping the back office faster than anyone expected. The big question — how do you grow, stay ethical, and keep your margins intact during the busiest month of the year?

🗞️ Quick Hits

• Jessica Hatzis joins Betts Group — The Frank Body founder takes on a CMO/shareholder role to modernise a 133-year-old footwear brand. Expect a full repositioning, not just new ads.

• ACCC targets dodgy Black Friday discounts — The watchdog’s hunting fake “sitewide” sales and false strikethroughs. New penalties: up to 3× the ill-gotten gain.

• $6.8B in Black Friday spend forecast — ARA and Roy Morgan predict a 4% lift YoY, with 25% of spend now online. The margin war just got hotter.

• City Chic rebounds in ANZ — +10% revenue locally after aggressive restructuring; proof that focus beats expansion in tough markets.

💡 Deep Dives

• Coles Outpaces Woolies with 27.9% Ecommerce Growth

  Coles’ online sales now make up 13.3% of revenue, thanks to bigger fulfilment centres, smarter inventory, and a national rollout of ChatGPT Enterprise. Mal and Alex debate whether AI is creating efficiency — or quietly replacing people.

• The Women’s Workwear Revolution

  GreenHip and She Wear are rewriting the rulebook on fit and function, showing that “women are not small men.” From Good Design Awards to booming demand, this is a category masterclass in spotting underserved markets and building brand moats through empathy and design.

• Shein’s Paris Store Backlash & The Collapse of Cheap

  As Shein opens inside Paris’ luxury BHV and faces protests, Aussie discounters like The Reject Shop lose their “low-cost” crown to Shein and Temu. The duo dig into what “value” means now — and how Australian retailers can win on trust, speed, and sustainability instead of racing to the bottom.

In this episode, Mal and Alex dig into what the latest retail news really signals — from job cuts at Amazon and Puma to quiet operational mastery at JB Hi-Fi and Starbucks’ long-awaited turnaround. They unpack the balance between AI efficiency and human experience, and debate whether Lululemon’s NFL partnership is a bold brand play or a case of chasing relevance.

Key theme: The tension between focus and flash — doing the basics brilliantly versus chasing the next shiny thing.

⚡ Quick Hits

1. Amazon & Puma layoffs

• Amazon cuts 14,000 corporate roles; Puma drops 1,400 jobs.

• Mal coins the term “OrgZempic” — brands trimming for short-term health but risking long-term muscle.

• 🔍 “If your first instinct is to cut, you don’t really have a growth strategy.”

2. JB Hi-Fi steady growth

• +2.7% group sales to A$2.2B; online now 10% of total sales.

• Praised as the model of operational discipline and brand clarity.

• 🧠 “They just do the basics right — clarity, value, execution.”

3. Starbucks turnaround

• +2% global comp sales, +5% net revenue (US$9.1B) — first growth in 7 quarters.

• Loyalty up 11%, return to “third place” philosophy.

• ✍️ They’re even writing names by hand on cups again.

• 💬 “Turnarounds don’t come from innovation; they come from remembering what made you great.”

4. AusPost’s “Back Team Australia” campaign

• CEO warns Amazon, Temu & Shein could dominate in 4 years.

• Debate: can patriotism outweigh price and convenience?

• 💡 “If your factory sells the same product on Temu, you’ll lose — build what only you can.”

🧠 Deep Dive

1. Lululemon × NFL — smart expansion or brand drift?

• New collaboration with all 32 NFL teams; products on Lululemon.com, NFL Shop, and Fanatics.

• Mal questions whether it’s chasing dopamine (short-term hype) over long-term DNA.

• Alex highlights consumer response split — TikTok praise for quality, criticism for sameness.

• ⚔️ Provocation: Is Lulu trying to grow men’s share or just chasing headlines?

2. Gymshark × Dick’s Sporting Goods — DTC grows up

• Gymshark enters wholesale via 12 House of Sport stores in the U.S.

• Only two core collections stocked — a “controlled wholesale” model.

• Alex reframes: “It’s not betrayal; it’s a level-up.”

• 💥 Takeaway: DTC isn’t dead; it’s just maturing into an omnichannel play.

3. Amazon’s Andy Jassy says “AI will end brick-and-mortar”

• Jassy predicts a flip from 85% in-store to 85% online.

• Mal and Alex push back — AI will enhance, not eliminate, physical retail.

• Mal: “You still can’t try on ski boots online.”

• Alex: “If anything, it reinforces why experiences matter.”

• 🧩 Lesson: AI will automate discovery; human connection still converts.

  
  

🧩 Key Takeaways

1. Focus is the new growth strategy — JB Hi-Fi and Starbucks win by doing less, better.

2. AI is not the enemy — it’s a mirror showing what parts of your retail experience actually matter.

3. Don’t chase new audiences at the cost of identity — Lululemon, take note.

4. Retail nationalism won’t save you — differentiation will.

With Alex off the grid for the Tinny Rally, Mal takes the mic solo to unpack the week’s biggest retail headlines — from LSKD’s global retail rollout to Amazon’s rising fulfillment fees and what the latest Australia Post data says about online fashion’s surprise comeback.

In This Episode:

• Cyber Month begins: Why early “Black Friday-but-not-Black Friday” sales are flooding inboxes — and what it means for retailers.

• LSKD goes global: The Aussie activewear powerhouse plans 29 stores by 2026 across the US, NZ, Singapore and the UAE.

• Netflix × Mattel × Hasbro: KPop Demon Hunters becomes a merch juggernaut — what it says about streaming IP and licensing strategy.

• Target US cuts 1,000 jobs: Corporate consolidation or warning sign for global retail giants?

• Amazon raises fees again: Why Mal calls it “rent-seeking behaviour” — and what D2C brands must do to survive the Amazon tax.

• Australia Post fashion report: Online fashion sales up 13 % YoY — is discounting a drug the industry can’t quit?

• Regional retail opportunity: The fastest-growing online fashion buyers aren’t in Sydney or Melbourne.

Key Takeaways:

• Diversify your sales channels before you’re held hostage by marketplaces.

• Brand and differentiation remain the only real margin drivers.

• Black Friday should be short, sharp and strategic — not a month-long discount hangover.

• Regional Australia is ripe for growth — if you can reach those customers well.