🚨 AI Agents Are Already Replacing Search — Are You Ready?

1. Supreme Court Strikes Down IEEPA Tariffs in Landmark 6-3 Ruling

On February 20, the Supreme Court ruled that IEEPA does not authorize the president to impose tariffs — declaring the "Liberation Day" tariffs and all reciprocal/fentanyl tariffs illegal. Chief Justice Roberts wrote that the power to tax, including tariffs, belongs to Congress under Article I of the Constitution.

What happens next: Within hours, President Trump imposed a 10% global tariff under Section 122 of the Trade Act of 1974, immediately raised to 15% (the statutory max). These expire in 150 days (July 24, 2026) unless Congress votes to extend. Importers who paid IEEPA tariffs may be entitled to up to $175 billion in refunds, though the mechanics remain unresolved.

What it means for sellers: The 15% Section 122 tariff is uniform (no country-specific rates), which simplifies pricing but eliminates deal-by-deal leverage. Section 232 tariffs on steel, aluminum, and autos remain. If you source goods internationally, review your landed cost calculations immediately. Consult your customs broker about potential IEEPA refund claims before the 180-day protest window closes.

2. eBay Acquires Depop from Etsy for $1.2 Billion

eBay announced it will acquire Depop, the Gen Z-dominant fashion resale marketplace, for approximately $1.2 billion in cash. Etsy originally bought Depop for $1.625 billion in 2021 but is now divesting to refocus on its core maker marketplace. The deal marks the end of Etsy's "House of Brands" strategy, having now sold every company it acquired.

Why it matters: eBay is buying an audience, not just a platform. With 90% of Depop's 7 million buyers under 34, eBay solves its longstanding demographic problem. Depop hit $1 billion in GMS in 2025 with nearly 60% YoY US growth. eBay plans to integrate its authentication, logistics, and payments infrastructure while preserving Depop's independent brand and culture. Etsy's stock surged 14% on the news; eBay jumped 8%.

Seller takeaway: Recommerce is no longer a niche — it's the battlefield. If you sell apparel, vintage goods, or secondhand items, the eBay-Depop-Vinted competition will drive better seller tools and wider buyer pools. Consider cross-listing on both platforms now to establish presence before integration.

3. Online Retail Jumps 13% Year-Over-Year as Shoppers Hunt Value

New PYMNTS Intelligence data reveals that 30% of consumers made an online retail purchase in the past 30 days — a 13% increase year-over-year — while in-store participation dropped six percentage points. Financial stress is reshaping how Americans shop, driving a pronounced shift from physical to digital channels.

Key signals: Digital wallet usage hit 15% for retail purchases (up from 11% in February), surging to 36% among Gen Z. Financially stressed consumers were more than twice as likely to rely on wallets for purchases. With 25% of millennials and Gen Z reporting sustained financial pressure, value positioning and flexible payment options are no longer optional — they're table stakes.

Action items: Audit your checkout for BNPL and digital wallet integration. Financially stressed consumers are migrating online — meet them with clear value messaging, transparent pricing (especially with tariff-driven price increases), and friction-free mobile checkout.

4. eBay Rolls Out Agentic AI Search to US Mobile Users

eBay has begun testing agentic AI-powered search on a subset of US mobile traffic, with plans to scale throughout 2026. The technology targets "enthusiast buyers" — collectors and hobbyists who need nuanced, knowledge-driven search — moving beyond simple keyword matching to conversational product discovery.

The bigger picture: This joins Amazon's Rufus, True Fit's new shopping agent (launching March 2026), and Metapack's AI-powered delivery prediction tools. Agentic commerce is moving from buzzword to production-grade tooling across platforms. If your product data isn't structured for machines, you risk becoming invisible in these new discovery channels.

5. Handmade Marketplace Goimagine Shutting Down in March

Goimagine, a handmade marketplace that positioned itself as a social-impact alternative to Etsy, is closing its virtual doors next month. Ecommerce consultant Cindy Baldassi noted the platform simply couldn't attract enough buyers — the classic chicken-and-egg problem that kills marketplace startups.

The lesson: Marketplace viability isn't about a better mission statement — it's about demand generation. Sellers on niche platforms should always maintain presence on high-traffic channels (Etsy, Amazon Handmade, Shopify) as a hedge. If you're a Goimagine seller, begin migrating your catalog and customer connections now before the March shutdown.

6. Amazon Launches Seller Expert Pilot — Taking a Page from eBay

Amazon's new Seller Expert Pilot Program mirrors eBay's volunteer "Mentors" model — experienced sellers volunteering to guide newer merchants on forums and community spaces. This is Amazon's latest move to improve seller retention and satisfaction amid growing marketplace competition.

Opportunity: If you're an established Amazon seller, this program could be a way to build authority and visibility. For newer sellers, peer-sourced advice often beats Seller Support for practical, real-world solutions. Keep an eye on the program rollout.

7. Etsy Shows Flat GMS Growth in Q4 — Now It's All-In on Core

Etsy reported consolidated GMS growth of just 2.4% in Q4 2025 year-over-year (1.3% FX-neutral). With Depop sold and Reverb excluded, Etsy is now purely focused on its maker-and-creator marketplace. Active buyers and GMS have been declining on the core platform throughout 2024 and 2025.

What to watch: Under CEO Kruti Patel Goyal, Etsy is betting that a leaner operation focused on handmade and creative goods will reignite growth. Tariff pressures and reduced consumer discretionary spending make this a challenging environment for Etsy sellers. Diversification across platforms remains critical.

8. The Agentic Commerce Wave: New Tools Reshaping Ecommerce

This week's new tool launches signal that AI-driven commerce infrastructure is maturing fast. True Fit launched a fit-and-fashion shopping agent powered by 20 years of purchase data (available March 2026). Metapack introduced AI tools that predict delivery failures before they affect customers. Worldline launched One Commerce for omnichannel payment integration across Europe.

Best practice: Start structuring your product data for AI consumption now — rich attributes, standardized sizing, clean descriptions. As shopping agents become a primary discovery channel, unstructured data means lost revenue before a buyer even reaches your site.

9. eBay Auto-Filling "China" as Country of Origin — Sellers Flagging Errors

eBay has started auto-populating the country-of-origin field in seller listings, and many sellers report that the platform is incorrectly setting "China" as the default. Some sellers say they cannot correct the errors, raising concerns about buyer trust, listing accuracy, and potential tariff implications.

Action required: If you sell on eBay, audit your active listings immediately for country-of-origin accuracy. Incorrect origin data could impact buyer purchasing decisions (especially amid tariff concerns) and potentially create customs compliance issues. Document errors and escalate through seller support.

10. Your Post-SCOTUS Tariff Playbook: 5 Best Practices for Q1

With the tariff landscape shifting under ecommerce merchants' feet, here are five actionable steps to navigate the next 150 days:

Mark Your Calendar