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TikTok Sellers in Crisis: 40% Returns But GMV Still Up 70%

2025-07-28 11hotness

GoodsFox Daily News (July 28, 2025):AI Virtual Try-On Disrupts Fashion eCommerce as TikTok Sees Surge in Returns

 

  • Trump Suggests Foreign Investment Model to Lower U.S. Tariffs
  • Over 50% of Russian Consumers Rely on Digital Ad Recommendations
  • Google Upgrades AI Shopping with Virtual Try-On Features
  • TikTok U.S. Apparel Sellers Hit by High Return Rates.
  • Russia Launches AI Try-On Tech That Cuts Costs by 99%

 


1.Trump Suggests Foreign Investment Model to Lower U.S. Tariffs

President Trump recently proposed that countries could lower U.S. tariffs by following Japan’s model. During a visit to the new Federal Reserve construction site in Washington, Trump suggested allowing countries to “pay to reduce tariffs.”He cited Japan’s $550 billion investment in the U.S. as a “signing bonus.”Under the U.S.–Japan agreement, Japan’s auto tariff dropped from 25% to 15%, while also opening its markets widely. Trump stated that market access plus investment was key to sealing the deal. This proposal could shape future trade talks with other countries.

 

2.Over 50% of Russian Consumers Rely on Digital Ad Recommendations

A new survey shows that 64% of Russian consumers rely on advertising when making purchase decisions. Among ages 18–35, the rate rises to 75%, while it drops to 50% for those 56 and older. Online ads are seen as the most accurate (61%), far ahead of TV (44%) and outdoor ads (22%). Apparel (59%), home appliances (53%), and furniture (52%) have the highest ad conversion rates. Interestingly, 48% of users buy products at least once a month based on online recommendations. While social media influences only 20% of purchases, it’s key to brand loyalty for young users.

3.Google Upgrades AI Shopping with Virtual Try-On Features

Google has added generative AI to enhance its online shopping tools. The new "AI Mode" lets users create virtual outfit images from text prompts. For example, typing "a green flowy dress for a garden party" returns styled visuals plus similar real items. Google also launched a virtual try-on tool. Users can upload full-body images to preview how clothes would look on them. This tool is now live in the U.S. and supports Google Search, Shopping, and Images.

 

4.TikTok U.S. Apparel Sellers Hit by High Return Rates

TikTok fashion sellers in the U.S. face rising return issues. Impulse buying, often sparked by short videos, drives consumers to try, pose, then return. 43% of buyers reportedly shop with return intentions. Only 80% of returned items can be resold at original value, while sellers bear cost losses. Despite this, TikTok U.S. GMV in H1 2025 reached 70% of full-year 2024. The platform launched “Final Sale” (1-hour return window for specific cases) and review dispute tools to curb abuse. Women’s apparel, while risky, remains a traffic magnet.

5.Russia Launches AI Try-On Tech That Cuts Costs by 99%

Russian tech firm Tochka has introduced "24AI," a virtual try-on solution for fashion sellers. This tool reduces model image creation costs from 1000–1500 rubles per photo to just 15 rubles. Its AI places clothing on virtual models while retaining fabric texture and fit accuracy. Each image takes only 2 minutes to generate. Users can customize pose, face, and background. It targets fashion's 45% return rate by showing realistic on-body previews. The tech won “Best AI in eCommerce” at the Abu Dhabi AI World Championship. It’s now available to all sellers and becomes cheaper with scale.

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LinkedIn: https://www.linkedin.com/in/goodsfox-helper-365450282/

Tag: AI advertising tools E-commerce global trade Goodsfox Google TikTok Trump tariffs
Last updated:2025-07-28

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