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Clients paid upfront fees ranging from $35,000 to more than $100,000 to have their stores run by Wealth Assistants. AdvertisementThe complaint also alleges that Carroll — who was Wealth Assistants' founder and CEO — and the Days violated securities laws because the business opportunity they sold through Wealth Assistants could be considered unregistered securities. Related stories"Plaintiffs' evidence shows that each of the Individual Defendants made intentional misrepresentations in connection with Wealth Assistants' services," the order reads. It follows another lawsuit that was brought against Wealth Assistants in California Superior Court in San Bernardino County in January. Wealth Assistants claimed that the digital bank froze its accounts without warning or explanation in October and is still withholding its funds.
Persons: , — Ryan Carroll, Max K, Michael Day —, Max O, Carroll —, Judge Wesley Hsu, Carroll, Nico Banks Organizations: Service, Court, Central, Central District of, Wealth, Business, Washington, Banks Law Office, Bank Locations: Central District, Central District of California, DC, California, San Bernardino County, Tennessee, mstone@insider.com
The price hike comes a year after Shopify raised prices for its base subscription plan. Many have shrugged off the most recent price increase. Shopify frequently touts its third-party app ecosystem as an advantage for merchants looking to grow their business efficiently. Many of the most popular Shopify apps have also raised prices recently. It's possible that some lower-volume Plus merchants will downgrade to more basic subscription options due to cost.
Persons: , Shopify, Andy Cloyd, Stephen Watson, Cloyd, ” Erman Küplü, Küplü, ” Watson, Jeff Hoffmeister, Hoffmeister Organizations: Service, Merchants, Business, Elysian Solutions, BI Locations: GMV, North America, mstone@insider.com
Lawyers representing Wealth Assistants' former clients are seeking to freeze assets belonging to Carroll, Max K. Day, Max O. When Wealth Assistants informed its clients in October that it planned to shut down, it provided a list of alternative providers clients could work with to manage their stores if they promised not to sue Wealth Assistants. According to the lawsuit, some former Wealth Assistants clients later started receiving emails from Wholesale Universe saying that Wealth Assistants had purchased an inventory package for them to use with Wholesale Universe. Advertisement"Wealth Assistants and Wholesale Universe made that transfer for the purpose of preventing Wealth Assistants' current and future creditors, including Plaintiffs, from accessing Wealth Assistants' assets," the complaint reads. Wealth Assistants claimed that the digital bank froze its accounts without warning or explanation in October and is still withholding its funds.
Persons: , Ryan Carroll, Max K, Max O, Carroll, Yax, Daddy Jules, Max Day, Troy Marchand, Bonnie Nichols, Marchand, Nichols Organizations: Service, Business, Amazon, Amazon . Business, Court, Lamborghini, Trading, Oak Properties, MKD Investment, Private Management Company, Max, HouTex Farm Equity Partners, Business Financial Solutions, Evo Maxx, Management, Wholesale, Tennessee, Bank, Wealth, Bank of America Locations: California, San Bernardino County, Oak, mstone@insider.com
The other bill, from Sen. Bill Cassidy and Sen. Tammy Baldwin, would ban de minimis shipments from China. The provision is more likely to change — a prospect that both Shein and Temu have said they support. Jennifer Ortakales Dawkins/InsiderShipping consultancy ShipMatrix estimates that Shein and Temu each ship more than a million packages to the US daily. It added that almost 50% of all de minimis shipments to the US come from China. Related stories"Changes to the exemption could create a paradigm shift for retailers like Temu and Shein," Bank of America analysts wrote in the note.
Persons: minimis, Earl Blumenauer, Russia —, Bill Cassidy, Sen, Tammy Baldwin, Cassidy, Baldwin, Jay Sole, It's, Jennifer Ortakales Dawkins, Shein's, Temu, Shein, Donald Tang, SHEIN, de minimis, they've, Steve Story, Sole, Satish Jindel, ShipMatrix, Jindel Organizations: Business, Customs, Rep, Bank of America, US Chamber of Commerce, Express, UBS, Pinduoduo Holdings, Goods, Shipping, Chinese Communist Party, China . Shipping, Wired, Shein, American Apparel and Footwear Association, Apex Logistics International, Walmart Locations: Xinjiang, China, Russia, Sen, Singapore, Boston, minimis, United States, mstone@insider.com
The complaint against Thread Bank lists five accounts that Wealth Assistants held with the bank, saying that CEO Ryan Carroll first noticed the accounts had been frozen on October 11. Carroll and Thread Bank did not return a request for comment from Business Insider on the suit. The timing detailed in the complaint aligns with Wealth Assistants' collapse. However, the lawsuit filed in early January describes Wealth Assistants as a "thriving business." Wealth Assistants filed a similar lawsuit against Bank of America in January 2023, claiming that accounts with more than $3.78 million in them had been closed without explanation.
Persons: Ryan Carroll, Carroll Organizations: Business, Bank, Court, Southern, Southern District of, Houston Division, Carroll, Thread Bank, Forbes , LA Wire, Bank of America Locations: Tennessee, Southern District, Southern District of Texas, Forbes ,, mstone@insider.com
Shopify has been doubling down on software to make it easier for its engineers to build software. CEO Tobi Lütke said during the investor day presentation that the goal was to bring "product thinking to everything in the business." Shopify executives showed several screenshots of GSD during the investor day presentation. "We build software. We spend a lot of our time building software to build software."
Persons: Shopify, Tobi Lütke, Lütke, Kaz Nejatian, Glen Coates, Nejatian, Tesla Organizations: Business
Wealth Assistants also said that if clients didn't break even in the first year, they would get their money back. BI spoke with 16 people who invested between $35,000 and $100,000 each to work with Wealth Assistants and said they lost their money. Ten days later, Wealth Assistants said it laid off its roughly 75 employees and planned to shut down by December 1. Selling customers on the entrepreneur lifestyleMany Wealth Assistants clients said they were drawn by the opportunity to generate passive income. Cart.com sent Wealth Assistants a formal notice of termination in the fall after Wealth Assistants stopped paying its invoices earlier in the year, the representative said.
Persons: Mike Wimmer, Wimmer, they're, I'm, Ryan Carroll, Max K, Max O, , Carroll, Carroll didn't, we're, Tina Luk, breakeven, Seth Hamilton, Andrew Pou, Suzy Arriola, Saheb Sabharwal, Cart.com, Moe O'Neil, weren't, Max, you've, it's, they've, We've, we've, Madeline Stone, Jack Newsham Organizations: Business, ., Federal Trade Commission, Amazon, Products, Nobu Dallas, Lamborghini, Facebook, Wealth, BI, FTC, DK Automation Locations: China, Texas, Nobu, California, Houston, Pennsylvania, mstone@insider.com
Like on the app, shoppers using the new site can search for and purchase products from across Shopify's merchant base. Shop Cash can only be redeemed on Shop. The app and website also display special offers from merchants where shoppers' Shop Cash rewards are multiplied. Shopify's web app and Shop app before it are as much marketplaces as Amazon," Juozas Kaziukėnas, CEO of e-commerce intelligence firm Marketplace Pulse, told Insider. We're not disclosing just yet, but the Shop app is becoming much more popular," company president Harley Finkelstein said in response.
Persons: Shopify, Rick Watson, Watson, they've, Siti Panigrahi, Harley Finkelstein Organizations: Google, RMW Commerce Consulting, Cash, Shopify, Shoppers, Shop, Mizuho Securities, LTV, Amazon
Faire, the wholesale marketplace company, laid off about 250 employees on Wednesday. This is the second time in just over a year that the company has laid off workers, although this second restructuring appears to be bigger. Faire is an online marketplace that connects independent brands with retailers that can stock their products in their stores. Faire recently announced a partnership with Shopify that established Faire as the preferred wholesale marketplace for Shopify merchants. Shopify also became a shareholder in Faire as part of the deal, which Insider first reported on in July.
Persons: Shopify, We're, who've, Layoffs.fyi Organizations: Dragoneer Investment, Sequoia Capital, Founders Fund, Forerunner Ventures, Tech Locations: mstone@insider.com
She ended up starting two businesses, one of which is ImagineCreate AI, an AI imaging tool that officially launches Tuesday with an undisclosed amount of pre-seed funding from Precursor Ventures. ImagineCreate AI was directly inspired by a brand Yusuf started shortly after leaving Shopify. ImagineCreate AI is launching as a web app that can be integrated into Shopify merchants' admin. Before-and-after images show how ImagineCreate AI generates custom backgrounds. Launching ImagineCreate AI on the Shopify App Store brings Yusuf's entrepreneurial journey full circle.
Persons: Fatima Yusuf, Yusuf, ChatGPT, Shopify, Madeline Stone Organizations: Precursor Ventures Locations: Shopify, mstone@insider.com
Former Deliverr and Shopify employees told Insider last week's layoffs at Flexport capped the end of a multiyear rollercoaster marked by multiple complicated acquisitions and integrations, compensation issues, and culture clashes. The integration of the Shopify Logistics team into Flexport had been rocky, five employees said. When Shopify completed its acquisition of Deliverr in July 2022, employees' equity converted to Shopify stock on a one-to-one basis. This person added that the conversion from public stock to RSUs meant that the value of their Flexport equity was less than they expected. The structure allows Shopify employees to decide the percentage of their compensation they want to be made up of cash and how much of stock.
Persons: Flexport, Shopify, vesting, Severance, Ryan Petersen, Constant, Dave Clark, Petersen, Clark, Madeline Stone Organizations: Flexport, Shopify Logistics, Deliverr, Employees, US, Shopify Locations: Flexport's, Shopify, Deliverr, Flexport, reorgs, Amazon, mstone@insider.com
TikTok is working with Entrupy, a maker of product-authentication technology, to offer handbag-authentication services on its new e-commerce platform, TikTok Shop , Entrupy announced Wednesday. The partnership reflects a growing effort to build trust in TikTok Shop as the social-media company looks to establish itself as a shopping destination. It expanded to TikTok Shop in response to a growing demand for its services on the platform. TikTok and Entrupy have worked together since TikTok Shop launched in beta earlier this year. Resellers must use a third-party authentication service — either Entrupy or Real Authentication — to resell luxury handbags on TikTok Shop, according to the policies.
Persons: TikTok, Entrupy, Chanel, Prada, Vidyuth Srinivasan, Srinivasan, it's Organizations: Burberry, TikTok, eBay Locations: Entrupy, mstone@insider.com
Flexport employees are bracing for layoffs they believe could come as soon as Friday. Meanwhile on Slack, Flexport CEO and founder Ryan Petersen told employees "Get back to work people!" The comment, which was viewed by Insider, came in response to a set of questions an employee posed about executives' tips for success. Insider first reported that Flexport was planning layoffs on September 7, the day after its former CEO Dave Clark departed. The next day, Petersen hinted at more changes through a series of posts on X, formerly known as Twitter, saying, "Strategic Plan, Day 1: Make better decisions!"
Persons: Slack, Flexport, Ryan Petersen, " Petersen, Dave Clark, Petersen, Clark, Madeline Stone Organizations: Employees, Street, Amazon, Shopify Logistics Locations: Amazon, Flexport, mstone@insider.com
Shopify's head of customer support, Clovis Cuqui, is departing after more than eight years at the e-commerce company. Cuqui's departure comes amid a period of change for the division , which troubleshoots issues for the millions of merchants using the e-commerce platform. "I look forward to continuing this work in lock step with our incredible crew of 1000s of Support Advisors and team members." The division is also working on a new, enterprise level of support as more large merchants have joined Shopify. Shopify also has been hiring outsourced customer-support representatives through the company TaskUs, many of which are in the Philippines, Insider previously reported.
Persons: Clovis, Glen Worthington, Kaz Nejatian, Worthington, Cuqui, Shopify, Bobby Morrison Organizations: LinkedIn, Support Advisors, Bobby Morrison . Company Locations: Philippines, mstone@insider.com
SoftBank-backed gifting startup Sendoso laid off an undisclosed number of employees in its latest round of job cuts on Tuesday. This is the fourth time in the last 16 months that Sendoso has axed its headcount: the marketing startup in June 2022 laid off around 100 employees from its then 700-employee workforce, Insider previously reported . Sendoso most recently raised $100 million in a Series C funding round led by SoftBank Vision Fund. Better, which went public in August via a long-delayed SPAC deal, conducted another round of layoffs last month . Do you have information about job cuts at tech startups?
Persons: Sendoso, SoftBank, it's, , Samantha Stokes, Madeline Stone Organizations: LinkedIn, U.S, Sendoso, SoftBank Vision, Greensill, Stock Locations: Ireland, sstokes@insider.com, mstone@insider.com
Shopify on Thursday released additional internal guidance around employee side hustles, one day after a company-wide memo from CEO Tobi Lütke caused confusion among workers. Lütke continued: "You should run a Shopify store to learn our product. Shopify's guidance on Thursday clarified the company's stance. And when it comes to starting a Shopify store, we encourage it. Shopify employees can use the company's software to launch their own stores for free.
Persons: Tobi Lütke, Lütke, I've, Shopify, We're, you'll Organizations: Employees Locations: mstone@insider.com
Shopify CEO Tobi Lütke wrote a company-wide memo Wednesday discouraging employees from having side hustles. "This surprises me because it directly contradicts the countless times I've said Shopify is like a professional sports team that requires our unshared attention." The Vault is a set of internal web pages where Shopify employees can access information about company policies. "He was someone who could devote his full attention and time to that quest," Finkelstein wrote. Lütke said Wednesday that employees should start their own Shopify stores because it helps them to stay familiar with the platform.
Persons: Tobi Lütke, Lütke, I've, Shopify, Harley Finkelstein, David Segal, Finkelstein, Segal, Jess Hertz, Read, Jess, Tia, Truman Locations: Shopify, mstone@insider.com
TikTok is in an all-out blitz to make its e-commerce marketplace Shop take off. But as it races to drive up sales, it's letting prohibited products slip through the cracks. TikTok Shop has over 200,000 sellers, according to the company, which has been a challenge as it tries to keep out banned goods at scale. TikTok isn't alone in failing to keep its e-commerce marketplace cleanTikTok isn't the only e-commerce player to struggle with marketplace quality. It's early days for TikTok Shop in the US, and the company is still finding its footing.
Persons: TikTok, TikTok isn't, Etsy, it's, Madeline Stone, Dan Whateley Organizations: TikTok Locations: mstone@insider.com, dwhateley@insider.com
Amazon announced new supply-chain services Tuesday that expand its fulfillment and logistics operations for sales outside of Amazon.com. Amazon has spent billions on its global fulfillment operations, Fulfillment by Amazon, or FBA. "A seller doesn't want to have two sets of supply-chain services, one that's for Amazon and one that's for someone else. For example, it offers multi-channel fulfillment, which enables sellers to use Amazon's services to fulfill customers' orders even if the sale took place off of Amazon. Mehta said that he expects Buy with Prime to "naturally benefit" from Amazon's continued investment in supply chain tools.
Persons: Dharmesh Mehta, They've, Mehta, " Mehta Organizations: Amazon, Shoppers Locations: mstone@insider.com
The exodus came before former CEO Dave Clark announced his departure on Wednesday. Flexport was experiencing an exodus of executives before former CEO Dave Clark announced his sudden resignation on Wednesday. Clark, who was Amazon's worldwide consumer CEO before joining Flexport last September, announced his departure on X, formerly known as Twitter, on Wednesday. In his post, Clark cited the desire of Flexport founder and former CEO Ryan Petersen to return to his role leading the company. During a company town hall on Thursday, Flexport executives told employees that cost-cutting measures were on the way , possibly including job cuts, multiple sources said.
Persons: Flexport, Dave Clark, — Artur Rivilis, Flynn Fishman, Stephanie New —, Rivilis, Fishman, Slack, Shopify, Clark, Ryan Petersen, Freightwaves, Petersen, Tobi Lütke Organizations: Flexport, Shopify Logistics Locations: Deliverr, ,, Flexport, San Francisco , Los Angeles, Dallas, New York, Amazon, mstone@insider.com
Shopify is working on a customer support offering for enterprise merchants. In June, Shopify announced that its one-click checkout Shop Pay would be made available to non-Shopify enterprise merchants through Commerce Components. The 2023 version of the report evaluated Shopify Plus and ranked the platform at the top of its peers in terms of execution. Merchant success managers are Shopify employees who consult with Plus merchants about launching and running their online stores. They're often touted as a benefit that can help merchants "get the most value out of Shopify Plus."
Persons: Shopify, Staff Glen Worthington, Ken Wong, Oppenheimer, Wong, Harley Finkelstein, Kaz Nejatian Organizations: Staff, Mattel, Merchant, Shopify Locations: Canadian, Commerce
About 16,000 Shopify Plus merchants will lose access to the company's merchant success managers. Merchants success managers are a key perk of the Shopify Plus subscription. Shopify plans to tell about 16,000 of its Plus merchants that they will no longer have direct access to merchant success managers, a key perk of the higher-priced subscription. Merchant success managers are Shopify employees who consult with Plus merchants about launching and running their online stores. They're often touted as a benefit that can help merchants "get the most value out of Shopify Plus."
Persons: Biss, Shopify Organizations: Merchant, Shopify
As Shopify's app ecosystem matures, it's becoming a make-or-break moment for some developers and partners. If they succeed in the public markets, it's a positive sign for the Shopify ecosystem. Upcoming IPOs will be a testSome Shopify ecosystem companies are eying the public markets, even in a year when IPO activity has been slow. That will make it even more important for Shopify's app partners to ensure their solution is differentiated from competitors. "This shared focus is why we're committed to ensuring a healthy Shopify ecosystem that fosters innovation, scale, and speed."
Persons: Shopify, it's, it'll, Amit Jhawar, Ben Parr, Parr, lockdowns, Sid Murlidhar, we're, Chris Wattie, Jhawar, Glen Coates, It'll, Chris Grouchy, Convictional, Roger Kirkness, Rick Watson Organizations: Shopify, Reuters, Shopify Ventures, Global, RMW Commerce Consulting Locations: Klaviyo, Ottawa , Ontario, Canada, Shopify
Temu's sister company Pinduoduo may have a "9127" culture, Bernstein analysts wrote. This is a play on "996" work culture, which encourages work from 9 a.m. to 9 p.m., six days a week. Temu sister company Pinduoduo is known for having an exceptionally intense workplace culture, Bernstein analysts wrote in a note published this week. "996" is a reference to a work culture that encourages tech employees to work from 9 a.m. to 9 p.m., six days a week. While Shein remains ahead of Temu in terms of buyer awareness, Temu sees high buyer retention rates, the Bernstein analysts noted.
Persons: Temu's, Bernstein, Temu, Jack Ma, Richard Liu Qiangdong, Robin Zhu, Pinduoduo, Shein Organizations: Morning, PDD Holdings, Pinduoduo, Representatives, Local Locations: China, Shanghai
Shopify paid $450 million for 6 River Systems in 2019. The 6 River Systems sale was part of a major pivot away from logistics by Shopify. UK grocery giant Ocado paid just $12.7 million to acquire 6 River Systems from Shopify in May, according to Ocado's mid-year financial report released July 18. Ocado ultimately paid less than 3% of what Shopify paid for 6 River Systems less than four years ago. The companies did not disclose the financial details of the 6 River Systems deal at the time of the announcement.
Persons: Ocado, Shopify, Ocado's, Chuck, Deliverr didn't, Tobi Lütke, Lütke Organizations: Systems, Shopify, Amazon Locations: Shopify, Massachusetts
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