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Lawsuits Hitting Sellers, Contribution Margin Case Study, AI Readiness for Shopify Store
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In this week's edition:  learn about the lawsuits targeting online stores, a case study in contribution margin, and how to prepare your Shopify store for AI.


If you need help with your ecommerce accounting, sales tax, inventory management, CFO, or other accounting related issues, let us know.

Top 3

1. [LISTEN] The Lawsuit Hitting Shopify Sellers Right Now (And How to Avoid It)

  • Privacy lawsuits demand $6,000–$20,000, exploiting cookie, tracking pixel, and live-chat consent gaps.
  • California, Florida, and Texas laws create growing exposure for ecommerce sellers controlling their storefront data.
  • Cookie-consent pop-ups, chat disclosures, and SMS opt-ins can significantly reduce lawsuit risk.

2. [READ] Contribution Margin Guides Ecommerce Growth

  • USPS holiday shipping rates rose 8%, squeezing contribution margins on every order.
  • In an example of with7% shipping costs, an 8% increase equates to more than 0.56% contribution margin loss
  • Consider contribution margin with discounts, acquisition costs, fulfillment options, and channel mix.

3. [LISTEN] Shopify's Head of Growth: How to Get Recommended by AI

How to optimize your Shopify store for AI according to Shopify's Head of Growth

  • AI-referred shoppers convert at more than 2x other referral channels.
  • AI commerce traffic is growing 2–4x year over year, though from a small base.
  • Shopify urges merchants to optimize product metadata and descriptions as AI increasingly drives product discovery.


In Other News

[READ] Double-Digit Ecommerce Growth Returns

  • U.S. ecommerce sales hit $340.2B in Q2, growing 12.2% year over year.
  • Ecommerce grew nearly twice as fast as total retail, increasing its share to 17.1%.
  • Category growth varied widely: general merchandise jumped 21.6%, while clothing grew just 3.8

[READ] Buy Now, Pay Later Research

  • 16% of U.S. adults used BNPL in 2025, signaling growing checkout demand.
  • Clothing led BNPL purchases at 49%, followed by electronics at 32%
  • 26% of BNPL user paid late with 11% triggering overdraft fees

[READ] Why more celebrity-led brands are shutting down

  • Messi’s Mas+ and Alex Cooper’s Unwell shut down despite massive audiences and strong retail distribution.
  • Celebrity awareness drives initial trials, but product-market fit, pricing, repeat purchases and execution determine profitability.
  • Strong distribution can secure shelf space, but weak retail velocity ultimately threatens long-term brand viability.

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