Categories
Uncategorized

E-commerce Industry News – Week of July 25, 2022

Hi r/ecommerce – I'm Paul and I follow the e-commerce industry pretty closely for my Shopifreaks E-commerce Newsletter. Here's a summary recap of this week's stories, which I cover in depth in the newsletter:

  1. STAT OF THE WEEK: Brands lose on average $29 for every new customer acquired today, compared to $9 in 2013. Higher customer acquisition costs and rates of product returns account for the difference. — According to SimplicityDX.
  2. Amazon announced its plans to acquire One Medical, a US chain of primary care clinics, for $3.9B in an all cash transaction. One Medical operates 188 medical offices, mostly in large cities, and provides virtual medical services that patients access with a $199/year membership.
  3. YouTube and Shopify have teamed up to add live shopping tools that allow viewers to purchase products without leaving the video platform. The whole transaction occurs while a viewer is watching the video, meaning the user doesn’t have to leave YouTube and go to the brand’s website to make a purchase. Creators can link their stores, sync their inventory, and manage which products are included using the Shopping tab in YouTube Studio.
  4. Squarespace launched a new design platform called Fluid Engine that offers majorly improved drag-and-drop technology. This is the first big update to the company’s website builder in over ten years. The new features include fully customizable grids, full-bleed content, and a separate view that allows users to build custom mobile sites.
  5. FedEx is planning to scale back its Sunday delivery service in remote areas of the US now that the e-commerce surge sparked by the pandemic is cooling. The company’s Ground unit will reduce coverage in rural and lightly populated areas to about 80% of the population, from 95% currently.
  6. E-commerce is currently only responsible for around 20% of Target’s sales, with more than half of that coming from same-day services like curbside pickup and the rest from shipping to homes. However due to the cost of labor and transportation, these online sales are less profitable than when shoppers visit Target stores. However target is working to chip away at the costs of fulfilling online orders and grow the e-commerce sector of their business.
  7. Payment companies have been hit hard by the recent stock market correction, and the decline has put pressures on these companies to change course and/or seek profitability sooner. Companies are having to be more selective about how they allocate resources since there’s no longer an unlimited venture capital funding pool to swim in. American Banker took a look at some of the major fintechs, how their valuations have changed during the downturn, and their recent moves in response.
  8. With the rise of aggregators over the past few years who are ready and willing to purchase your e-commerce store or Amazon brand and run it through their portfolio, and the launch of marketplaces (including one from Shopify) specifically for buying and selling e-commerce stores, there’s never been more opportunity for brands and merchants to sell. DigitalCommerce360 published a report which you may find helpful if selling your store / brand is going to be your exit plan.
  9. Amazon is offering sellers a new “holistic” way to diagnose their account health so that they can quickly see if their account is in danger of suspension for policy violations. The new metric aggregates violations of Amazon policies into a single score that shows their overall account health status as Healthy, At-Risk, or Unhealthy.
  10. Anna Eskamani, who represents Florida’s House District 47, asked Shopify to ban Libs of TikTok from selling merch on its platform for using the word “groomer” as a promo code in their shop, which is a slur against the LGBTQ community. Shopify says Libs of TikTok isn’t violating its policy against gender and sexual orientation-based hate.
  11. Wayfair was the only company among the top 10 e-commerce retailers to report revenue and profit declines in 2021. The company reported that fiscal 2021 net revenue fell 3.1% YoY to $13.7B, while its US revenue fell 5.5% to $11.2B, widening its operating loss to $94M, while its net loss reached $131M.
  12. Etsy is placing their Chief Product Officer, Kruti Patel Goyal, as CEO of Depop, one year after acquiring the fashion resale marketplace. Depop’s current CEO, Maria Raga, is stepping down to pursue personal ventures
  13. TikTok extended a partnership agreement with Shopify that enables brands to create shoppable video ads to the Middle East. Brands in that region will now be able to access the core functions of TikTok For Business Ads Manager through the Shopify dashboard.
  14. Kwik, a last-mile delivery service in Africa, is expanding its offering with the launch of KwikStore, a free e-commerce storefront that allows African business owners and merchants to quickly create their own online stores from a smartphone. KwikStores owners can link to their social media accounts, automate the sale, fulfilment, inventory management, and delivery process, so that they can focus on marketing and sales.
  15. A court in India ordered the initiation of insolvency proceedings against Future Retail. Once India’s second-largest retail chain, the company fell apart financially after its recent court battle with Amazon India over its sale to Reliance Industries. The company filed an intervention request to halt the insolvency proceedings, which was rejected by the court.
  16. Amazon introduced a set of software tools to help developers more easily extend the capabilities of its Alexa voice assistant to new use cases. Third-party software features streamline the customer experience and make Alexa more competitive.
  17. Klarna is entering into physical retail with the launch of “Klarna Oasis”, a two-day pop-up store in West Hollywood that offers a mix of promoted products, celebrity appearances, and socially minded activities. Klarna has done other branded pop-up events in other countries, but this might be their last for the time being as the company works to restore its former standing after receiving taking an 85% valuation hit in their recent funding round.
  18. Splitit, US-based BNPL provider, named two new seats on its board — Nandan Sheth, their current CEO, and Dan Charron, who most recently served as chairman of global business solutions for Fiserv. The company also recently named three new hires to executive positions.
  19. T-Mobile introduced a new plan called Business Unlimited Ultimate+ that gives customers access to a phone plan with unlimited talk, text, and data with 200GB hotspot data coupled with Apple Business Essentials and AppleCare+. Everything is included for $50/mo on a contract with six or more lines.
  20. Amazon’s idea of offering one time passwords to receive expensive purchases backfired. Customers were providing the six-digit codes to their couriers to receive their orders, only to discover that not all the items were in the box. Amazon customer service saw the package as delivered and were unable to mark it as lost.
  21. Plus 10 seed rounds, IPOs, and acquisitions of interest including Whatnot's $260M Series D round. .

I hope you find this news recap helpful. See you next week!

-PAUL

submitted by /u/adventurepaul
[link] [comments]

Leave a Reply

Your email address will not be published. Required fields are marked *