DTC812: Recession-Proof Your Marketing Copy

Good morning,

Here’s what you’ll find in today’s DTC:

✏️ Crafting Recession-Proof Copy
Why brands are shifting to ‘treat yourself’ messaging.

🛒 Upgrade Your Checkout Page
Learn why BNPL is a must right now.

📦 Daily Tariff Update
The latest breaking news.

💸 Email Screw up = Sales Opp
How Wuffes’ mistake created a revenue spike.

You’re reading this newsletter along with new subscribers from: Illume Fertility, HiPP Organic, and Coolibar. 👋

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✏️ Caraway Shifts To Recession-Proof Messaging  

We are seeing DTC brands change their messaging due to growing anxieties around a 2025 recession.

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The trend?

Instead of emphasizing price, DTC brands are focusing on emotion.

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Caraway recently sent out this mailer to their subscribers:

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Rather than focusing on the price of their cookware, they emphasize ‘treat yourself’ messaging to mitigate price sensitivity and cleverly tie this back to tax refund season.

When customers click on the link, it takes them to a landing page with similar ‘treat yourself’ messaging and a wide assortment of products at various price points.

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Why this tactic works:

During periods of economic uncertainty, customers cut down on spending when it comes to big purchases like vacations, but they still indulge in small luxuries.

By emphasizing your product’s value, it feels more like an essential.

A CTA like ‘treat yourself’ focuses on how customers deserve to indulge, and the landing page tagline ‘A smarter way to splurge: non-toxic kitchen essentials’ does a great job assuring customers they are making a smart purchase.

Caraway also reduces any friction when purchasing by promoting free shipping and returns, plus flexible payment options like BNPL with ShopPay at the bottom of the mailer.

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The takeaway?

In an economic downturn, customers will continue to spend only on items they perceive as valuable and essential.

Test out different messaging, like treat yourself, to see what resonates the most with your audience, and improve those conversion rates!

📈 Stop Leaving Profit On The Table… Maximize Your UGC Campaign Results. Here’s How

Did you know 79% of people say UGC influences their purchasing decisions? 🛍️

Now, what if you could supercharge your UGC campaigns? 🦸

🎁 Your influencer gifting campaigns are generating high-quality, authentic UGC, but having the right strategy is essential for driving higher conversions and maximizing ROI.  

✅ Skeepers just released The Ultimate Gifting Checklist to show you exactly how to optimize every piece of content, from boosting engagement with Spark Ads to driving conversions on product pages.

Download it now and start making your UGC work harder! 💪

📦 Your Daily Tariff Check-In

Whether it’s a minor tweak or a major shift, we’ll keep you posted on the latest tariff changes—so you’re always in the know.

May 11, 2025 update:

• U.S. and China Report Progress in Talks That Could Ease Tariff Pressure
  • U.S. and Chinese officials say they’ve made substantial progress toward a trade deal.
  • A joint statement outlining next steps and specific terms is expected today (Monday, May 12th).

May 9, 2025 update:

• Trump Says an 80% Tariff on China 'Sounds Right'
  • Despite saying last week that he won't budge on his 145% tariff on China, President Trump is now floating the idea of an 80% tariff.
  • An 80% tariff would be a significant reduction, but still place a huge strain on U.S. businesses that rely on imported goods from China.
• The EU Plans Retaliatory Tariffs Against U.S.
  • The European Union has compiled a list of potential tariff targets which range from aircrafts to medical devices if negotiations with the U.S. fail.
  • If some or all U.S. tariffs remain after July (Trump's deadline for deals), the EU will consider striking back.

💡 BNPL: The Checkout Upgrade You Didn’t Know You Needed (But Your Customers Did)

Are your customers bailing at checkout because of sticker shock?

Turns out, a growing number of shoppers would’ve stuck around… if only they could split that payment.

Pilothouse is seeing Buy Now, Pay Later (BNPL) evolve from a “nice-to-have” into a can’t-afford-not-to-offer tool for DTC brands.

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Here are the BNPL stats:

• 93.3 million U.S. consumers were expected to use BNPL in 2024.
• During the 2023 holiday season, BNPL usage jumped 12.4% year-over-year, hitting $16.6B+ in spend.
• It now accounts for up to 20% of online holiday purchases.

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Why brands should pay attention:

Not offering BNPL? You might be bleeding conversions.

A PayPal study found 66% of BNPL users abandon carts if their preferred option isn’t available.

But with BNPL…

• Klarna reports 30–35% conversion lifts on average.
• Affirm sees up to 87% higher AOVs on BNPL purchases.
• Stripe found two-thirds of BNPL orders were net-new—not just a payment method swap.

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Who’s actually using it?

Gen Z and Millennials.

They’re not anti-spending—they’re anti-credit-card-debt.

BNPL gives them room to shop without the interest rates.

• 48% of Gen Z planned to use BNPL for holiday purchases.
• 34% of BNPL users say they wouldn’t have made the purchase without it.

👉 BNPL is less about luxury and more about liquidity.

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Using BNPL in an economic downturn:

Let’s get real: When folks start using buy now, pay later to cover groceries, we’ve officially moved past “fun payment perk” territory.

The latest BNPL data is telling:

• 25% of BNPL users are financing their food, up from 14% last year.
• 41% have missed a payment in the past 12 months.
• 60% of Americans think we’re already in a recession—and over half say BNPL is helping them get by.

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This isn’t about snagging sneakers before payday—it’s about making ends meet.

BNPL is shifting from a conversion tool to survival strategy.

As marketers, that’s a big flashing “use responsibly” sign.

Yes, flexible payments can open the door to new customers and higher AOVs.

But in a downturn? Your messaging matters more than ever.

Click here to learn how to create a messaging split test and raise conversions.

🌐 IN THE SOCIAL SPHERE

Wuffes made an email blunder.

Instead of sending this email to their team, they sent it to their full list. 😱

The message teased that a generous discount code was still live on the site.

The brand followed up with their subscribers and said they made a mistake but would honor the code anyways, proving you can turn an honest mistake into a major revenue driver.

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⚡ QUICK HITS

⛱️ Millions of shoppers turn to Walmart.com every summer for travel must-haves, outdoor essentials, and seasonal gear. If you’re not selling on Walmart Marketplace yet, now’s the time to join before summer demand heats up. Start selling today. *

❓ Answer: Google processes more than 5 trillion searches per year. (Source: Google)

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💸 MERGERS & ACQUISITIONS

• OpenAI is reportedly purchasing AI-powered coding assistant Windsurf for $3 billion.
• Arda Biomaterials raises $5.25 million for its plastic and alternative materials.
• Meal prep app Wonder raises $600 million, bringing its valuation to $7 billion.

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📅 EVENTS

The Lead Summit - Focused on the fashion, beauty, home, and consumer innovation ecosystem, connecting startups with enterprise leaders and investors.

📅 May 28-29, 📍 Brooklyn, NY 💰 Apply for Tickets

ShopTalk Europe - The Shoptalk Europe community is an online network for retail and consumer brand executives across Europe. This community provides access to exclusive content, networking opportunities, and insights into the latest trends and innovations in the retail industry.

📅 June 2-4, 📍 Barcelona, Spain 💰 Free

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📰 NEWS

• A Passport and Drive Research survey reveals how brands are expanding globally despite rising tariffs.
• President Trump suggests lowering tariffs on China to 80%.
• The EU unveils plans for retaliatory tariffs if negotiations with the U.S. fail.
• Shopify achieved a 27% revenue growth in Q1 despite tariffs.
• Meta teases new ad formats like Reels trending ads and Threads video ads.

📥 Got a B2B Biz?

Join dozens of B2B companies finding demand-gen success through our niche community of 150k brand leaders and founders this year. Talk to our team to learn more.

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Have you heard our latest podcasts?

• 🥛 Ad-venturous 1: A Peanut Butter Sandwich Could Lead to Disaster
• 🏆 TWBERP 32: Apple vs. Gmail Mail App Wars
• ⛳ How Pins and Aces Built a $25M Golf Brand with Limited Drops
• ⚡ AKNF 504: 6 Reasons Why Your Meta Ads Aren’t Scaling
• ⭐ TWBERP 31: Behind Frye’s Emails: Design and Strategy
• 🛍️ Inside Shein’s $30B Global Fashion Machine (Live from ShopTalk)

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Don’t forget to rate the DTC Podcast on Apple (⭐️⭐️⭐️⭐️⭐️)

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DTC Newsletter is written by Rebecca Knight and Frances Du. Edited by Eric Dyck.

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