PAYMENTS

Swipe Life

Two major delivery services—DoorDash and Instacart—are cashing in on pandemic success with plans to launch their own credit cards, sources tell the WSJ. 

Our angle: DoorDash’s card is particularly interesting, as it’s reportedly seeking restaurant and store partners to offer cardholders promotions, rewards, and discounts. Instacart’s, at least for now, is focused only on straight-up cash back.

• DoorDash also wants to provide cardholders premier access at events, “such as curated experiences with participating merchants.” 
• The company is currently fielding offers from 10+ banks and fintech companies, including JPMorgan Chase and Deserve. Instacart has reportedly already picked JPMorgan.  

A win-win: DoorDash’s card could drive more traffic to its partners, while encouraging customers to continue to use its service.  

• FWIW, both companies have recently expanded beyond grocer and restaurant partnerships, into segments like office supplies and apparel. 

Once this is all over

The credit cards are meant to help DoorDash and Instacart hold onto their newly expanded customer bases as the pandemic wanes and demand for delivery (most likely) softens.

A plurality of US adults (43%) plans to shop mostly in-person post-pandemic, according to our March 2021 Morning Brew-Harris Poll survey. And while respondents expressed some desire to continue using delivery apps and ordering groceries online, DoorDash and Instacart are likely bracing for some sort of backslide. 

Rewards-based cards that help defray the cost of delivery fees could resonate:

• 50% of US adults say they’re now more sensitive to the cost of items than they were pre-pandemic, per our survey. 
• A recent dunnhumby survey corroborates this: 80% of US shoppers are taking at least one action to seek more value when they grocery shop, deprioritizing speed.

Our read: These credit cards are just another sign of how entrenched the app-based delivery space has become over the last year. As the WSJ points out, JPMorgan doesn’t partner with just anyone. — KM

RESALE

EBay’s Authentication Roadshow

Brands investing in drive-thrus in response to pandemic trends: Taco Bell, Sweetgreen, and...eBay? 

You read that correctly. Starting today in Atlanta, eBay will host drive-up authentication sessions across five cities. Think of it like the Sonic experience, but for appraising Pokémon cards or Air Jordans.

• Sellers pull up and hand over their collectibles for category experts to evaluate.
• After watching the examination on a screen, sellers receive an appraisal price and instructions to list their items online. 

Click and collect: Charis Márquez, VP of fashion at eBay, told Retail Brew the events intend to build shoppers’ confidence in eBay’s “Authenticity Guarantee” services for top-tier collectibles. Authentication services are usually hidden behind a digital curtain. So if skeptics see authentication in action, they may be more likely to participate in the online market. 

About the timing...“Interest and enthusiasm in collectible sneakers, watches and trading cards is absolutely surging right now, as collectors look to translate their personal passions into investment opportunities,” Márquez said.  

• It’s not just eBay: Lego sets, trading cards, and other collectibles are booming alongside sneakers on StockX.

Looking ahead…Márquez didn’t say whether eBay will permanently move to IRL authentication. But “as the resale market for collectible goods continues to grow, you will continue to see us invest in expanding this offering.” — HL

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MARKETING

Identical Zoom Offices Ahead

For the second spring without Coachella, some influencers are pivoting to #spon for the great indoors.

West Elm this week opened The West Elm Collective, the retailer’s first ambassador program to turn creators into couch marketers. It’s more involved than dropping an affiliate link in bio.

• Two tiers of ambassadors, monthly “Tastemakers” and continual “Insiders,” will handpick items for personalized shops on West Elm’s website. They’ll earn an undisclosed commission for each sale. 
• Both sets of brand ambassadors will get to preview and test new items before they’re released.

Like to know it: Retail pros have long known attaching personalities to products boosts sales. But West Elm’s dedicated influencer shops signify an even deeper commitment to digital for parent company Williams-Sonoma.

• Williams-Sonoma called West Elm its “largest growth initiative” on its Q4 earnings call. The sibling brand’s revenue grew 25.2% YoY in the quarter. 

Zoom out: Home goods and improvement brands are borrowing from the beauty and apparel influencer playbook to extend their quarantine sales streak. Take Lowe’s, which tapped Peloton instructor Ally Love to curate a spring “staycation” assortment for its website. — HL

WHAT ELSE IS BREWING

• Nike and MSCHF reached a settlement over unauthorized “Satan Shoes.” 
• Skims, the shapewear brand founded by Kim Kardashian West, is now valued at $1.6 billion.
• McDonald’s is shuttering hundreds of locations inside Walmart stores.
• Boohoo acquired a warehouse that can increase its sales capacity to $5.5+ billion.
• Asos is “highly likely” to acquire more apparel brands, per Reuters. 

FROM THE CREW

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It’s a 2-for-1: We get a clearer picture of the 150,000+ retail pros on Retail Brew’s email list, and you retail pros get newsletters more tailored to your interests. Oh, and we’ll be choosing a few lucky respondents to win Brew apparel for completing the survey.

Head here to share your feedback.

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SWAPPING SKUS

Let’s be honest, most people don’t know anything about wine—no matter how confidently they pronounce the fancy names. But those who do know something came in clutch during Covid times. Today’s reads highlight how some brands capitalized on the lifeblood of Zoom happy hours. 

• Wine can spoil or bottles can break if not properly stored during delivery. FedEx and Otter Products came up with some solutions as DTC wine orders went through the roof. (USA Today)
• The Vivino app is more than 10 years old, but recently raised a $155 million Series D. Its CEO discusses what’s in store for the company’s future. (Modern Retail)

FRIEND OR FAUX?

Three stories below are true; one’s a case for the FBI’s counterfeit crimes unit. Can you spot the fake?

1. Starbucks stores can’t keep their fridges full of oat milk.
2. Vans released perforated slip-ons that some are calling Crocs knockoffs.
3. Tropicana is developing a CBD-laced orange juice. 
4. Jeni’s Splendid Ice Cream’s online store crashed from traffic to its Dolly Parton collab. 

Keep reading for the answer.

ICYMI

Catch up on the Retail Brew stories you may have missed.

• Legacy Retailers Follow Amazon’s Lead on Digital Ad Marketing
• Toms Rebrand: Yes to Sneakers, No to Shoe Donations
• Rental Services Gain Traction with State Reopenings

FRIEND OR FAUX? ANSWER

3. Nope, CBD hasn’t made its way into a massive OJ brand yet.