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4. This Week in M&A Issue #185

This Week in M&A Issue #185

Hey there,

Today’s trend of the week is “identifier apps”. 📱

Consumer spending on AI-powered identifier apps has skyrocketed, hitting $27 million last month alone. These niche apps, used to identify things like plants, coins, and rocks,  are quietly becoming some of the most profitable tools in the mobile space.

Yet not all categories are created equal. Plant identification apps, while only 23% of the total category, make up a staggering 78% of total revenue. Coin and rock identifiers also pull in significant earnings, with $3.5M and $1M+ respectively. Interestingly, multi-purpose identifier apps make up 26% of offerings but generate just 1.4% of revenue.

This trend presents a unique opportunity for entrepreneurs: tap into niche, AI-driven utility apps where user value is high and monetization is proven. But rather than entering the overcrowded plant ID space, the smarter play may be to identify the next big vertical before it peaks. The model is proven, now it’s about spotting the next hidden goldmine.

Today we have for you:

• Shopify kicks off 2025 with 109% increase in B2B sales
• Temporary tariff relief opens a profit window for eCommerce sellers

And:

• AI Overviews have doubled since March
• Audible unveils 100 AI-generated voices for audiobook production
• eBay’s grant program returns to help empower small businesses

Alright, let’s dive in.

Shopify

Strong Start for Shopify in Q1 as Merchant Success Drives Results

Shopify started 2025 strong, reporting a 109% increase in business-to-business (B2B) ecommerce sales in the first quarter compared to last year.

Overall, Shopify made $2.36 billion in revenue during Q1, 27% more than the same time last year, beating Wall Street expectations. The total value of products sold on the platform, gross merchandise volume (GMV), reached $74.8 billion, up 23% year over year. The company also earned $363 million in free cash flow, keeping a solid 15% profit margin.

This marks the seventh straight quarter Shopify has delivered double-digit free cash flow margins and the eighth quarter in a row with revenue growth of at least 25%.

Shopify President Harley Finkelstein noted that businesses using the platform are outpacing the broader market. High-profile brands like Dickies, JanSport, and Balenciaga have recently joined the Shopify platform, alongside major retailers like Follett Higher Education Group. In North America, 117 of the largest 2,000 online retailers now use Shopify, generating nearly $10 billion in sales last year.

International sales are also on the rise. Global GMV increased by 31%, with Europe leading the way at 36% growth. Shopify’s point-of-sale (POS) systems, used in physical stores, also saw 23% growth, especially among businesses with many retail locations.

Looking ahead, Shopify expects to grow revenue by around 25% in the second quarter and plans to keep investing in AI, global expansion, and enterprise services.

eCommerce

A new 90-day tariff truce between the U.S. and China is giving eCommerce sellers a short but critical opportunity to protect profits and restock more affordably.

From May 13 to August 11 2025, tariffs on many Chinese imports have been reduced from a crushing 145% down to 30%, giving sellers a chance to lower landed costs and boost margins, if they act fast.

This temporary deal doesn’t reinstate the “de minimis” duty exemption that once allowed low-value parcels under $800 to enter duty-free. Small parcels from China still face a 120%+ tariff, meaning direct-to-consumer drop shipping remains costly. But for sellers importing by sea in bulk, especially those using FBA or U.S. warehouses, this is a major window of opportunity.

Popular product categories like consumer electronics, machinery components, and industrial goods are all covered by the temporary tariff reduction. For private label and wholesale sellers hit hard by April’s tariff hikes, this relief could unlock savings on large shipments, more flexible pricing, and extra budget for PPC and promotions.

To make the most of the truce, sellers should audit their affected SKUs, reviewing HS codes, invoices, and landed cost details to identify where the savings lie. Focus on products with proven sales history, good margins, and steady sell-through.

If cash flow allows, prioritize profitable SKUs and expedite shipments. Faster freight or consolidated ocean containers may be worth the cost to land goods before August. It’s also a good time to renegotiate with suppliers on pricing, minimum order quantities, or even shared shipping fees.

However, experts advise that sellers don’t overextend. This policy could expire without warning. Avoid gambling on untested products or excessive stock. Stick to what sells.

Bottom line: this tariff cut is a short-term break, not a long-term solution. Sellers can use it to restock wisely, strengthen margins, and develop a more sustainable long-term plan before the trade winds shift again.

Google

Since Google’s March 2024 Core Update, AI Overviews in search results have more than doubled, according to data from Ahrefs Brand Radar.

Analyzing 25 million U.S. keywords from February to May, the study found a 116% increase in AI Overviews, with the sharpest rise (6.26%) occurring on March 13, the day the update began. Overall, the share of U.S. queries triggering AI Overviews rose from 7.6% to 16.48%, now accounting for 11.8% of total search volume, up from 6.2%.

This shift is already impacting website traffic. Ahrefs reports that AI Overviews reduce click-through rates (CTR) by 34.5%, meaning fewer users are visiting the source websites. Meanwhile, content sources cited by AI Overviews are changing. Reddit now appears in 5.5% of AI Overviews, up from sixth place before the update, while traditional sources like Wikipedia are seeing reduced visibility.

Google is expanding AI Overviews to more users, including teens, users without accounts, and regions like the EU. Google also appears to be testing AI Overviews in Turkey, Sweden, and the Netherlands. These early signs come just ahead of Google’s annual I/O conference, suggesting a broader international expansion could be officially announced soon.

So, with AI stealing clicks, how can websites earn a coveted mention in AI search engines?

New research from Rankscale.ai, analyzing 8,000 AI citations across 57 queries, reveals how different AI engines choose their sources and what brands can do to earn a mention.

• ChatGPT favors highly authoritative, non-commercial sources like Wikipedia and major news outlets, generally avoiding forums and vendor blogs.
• Gemini takes a more balanced approach, citing blogs, YouTube, news articles, and peer feedback.
• Perplexity emphasizes expert voices, professional reviews, and source variety depending on the topic.
• Google’s AI Overviews draw from the widest range, including blogs, forums like Reddit, social media, and vendor content.

Rankscale also found that query intent matters:

• B2C searches rely on consumer reviews, media, and forums.
• B2B queries prioritize vendor sites, industry publications, and LinkedIn.
• Mixed topics cite data-rich sources like research papers or government reports.

Surprisingly, well-written vendor blogs are increasingly cited, especially in under-covered niches. Brands that publish objective, in-depth comparison content have a better shot at AI visibility.

Ultimately, strong SEO fundamentals, like high authority, E-E-A-T, and diverse content, remain key to earning AI citations.

Podcasts

🎙️ We’re launching a brand-new podcast series designed for you – the buyers, sellers, and entrepreneurs who keep the online business world ticking.

Each episode will feature real questions from real people in the trenches:
– Thinking about buying an online business but unsure where to start?
– Running a business and wondering how to grow or prepare for exit?
– Curious about the state of the market, emerging trends, or up-and-coming business models?

This is your chance to get expert insights, personalized advice, and honest answers. Whether you’re deep in the deal flow or just exploring your options, we’d love to have you join us as a guest.

Interested in being featured? Apply here to submit your question and join us on the show. Spots are limited, so don’t wait!

Read All About It!

🚀 50 proven strategies to grow subscription revenue: free guide

🛑 Microsoft shuts off Bing Search APIs: recommends switching to AI

💰 How to invest in online SaaS businesses: a guide for investors

🤖 Create a ChatGPT agent for on-page SEO audits: streamline your SEO

Audiobooks

Audible, Amazon’s audiobook platform, is introducing AI tools to help publishers quickly and affordably turn more books into audiobooks. Select publishers will soon be able to access a new system that uses AI-generated voices to narrate books, offering over 100 lifelike voice options in English, Spanish, French, and Italian, each with different accents and dialects.

Publishers can choose between two options: a fully managed, end-to-end production service handled entirely by Audible, or a self-service platform that lets publishers control the process themselves. As the technology evolves, Audible promises continuous upgrades to voice quality and production tools.

To prepare for the launch, Audible previously invited some of its human narrators to create AI versions of their voices. These narrators can still participate in projects that use their digital voice clones by reviewing and fine-tuning the final product, ensuring accuracy and natural-sounding narration.

Later this year, Audible will also begin beta testing a new AI-powered translation tool designed to bring audiobooks to non-English-speaking audiences. Initially, it will translate from English into Spanish, French, Italian, and German. Publishers will be able to choose between text-to-text translation for future audiobook creation or speech-to-speech translation that preserves the original narrator’s voice and style in the new language.

Publishers will be able to review translations themselves or request professional linguist support through Audible. For KDP authors and publishers looking to expand their reach, these tools could significantly lower production costs, speed up audiobook creation, and open new markets.

ECommerce

eBay has launched its sixth annual Up & Running Grants program, pledging $500,000 in support of small businesses across the U.S.

The 2025 initiative will award 50 entrepreneurs with $10,000 each, plus a $500 eBay Refurbished credit and access to coaching, tools, and educational resources.

Since the program began in 2020, eBay has granted over $2.5 million to 250 sellers. The initiative aims to help small businesses strengthen their operations, grow their product lines, enhance digital tools, and even hire new employees. According to eBay, 90% of past recipients reported a significant boost in their confidence about the future of their businesses after receiving the grant.

The program is delivered in partnership with Hello Alice, a platform offering entrepreneurs guidance, mentorship, and access to a supportive business community. In addition to the financial boost, applicants benefit from tailored resources to help scale their ventures.

Applications are open now through June 6, 2025, at 6:00 p.m. EST. To qualify, applicants must be current eBay sellers who have had active listings within the past six months and hold a seller rating of either “Above Standard” or “Top Rated.”