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Category: EcommerceTrends

EcommerceTrends

  • Digital Shopping Is Shaping Up To Become The New In-Store Retail Experience

    Digital Shopping Is Shaping Up To Become The New In-Store Retail Experience

    Despite stubbornly high inflation and aggressive interest rates biting into consumers’ disposable income, as prices remain elevated, new data suggests that shoppers are continuously looking for more seamless digital experiences in retail and department stores. 

    At the end of January, online grocery sales declined by 1.2% finishing off at $8.4 billion in the U.S. market. Demand for ship-to-home was also down, which includes the likes of FedEx, UPS, and USPS. 

    Experts suggest that the decline in these services was largely driven by the uptick in big-box retailers now offering direct-to-home delivery for shoppers, taking on logistical responsibilities themselves, instead of using third-party carriers. 

    Mass demand for online shopping during the height of the pandemic helped solidify the future of the online retail industry, and today shoppers can find nearly anything and everything they need online. 

    While this has created a massive opportunity for retailers, from all industries to transition their operations online, and present consumers with a more accessible channel – grocery retailers were slow to adapt, despite seeing steady growth during the pandemic era. 

    With many pandemic-related concerns now in the rearview, grocery chains and mass stores are creating a more digital in-store experience, as it hopes to draw in walking customers to their brick-and-mortar locations. 

    The drive to digital 

    Consumers have become accustomed to the convenience of online shopping, whether it’s for home goods, clothing, or even groceries. Everything they want and need can be found online, price-matched, and shipped straight to their door. 

    On top of this, shoppers can shop from any device they see fit. From computers to tablets, smartphones, and even mobile apps – it’s all accessible through a few clicks and swipes. 

    The rise of smartphone adoption among consumers in recent years has meant that retailers can create a multifaceted shopping experience. Research shows that around 82% of shoppers will consult their phone before making an in-store purchase. 

    With the internet so readily available, shoppers can now quickly compare prices from different retailers and stores, read reviews, or in this case, follow up on nutritional and dietary information relating to their grocery purchases. 

    What’s more, is that nearly every popular and big-box retailer now offers an online option. In the past, a few niche brands and businesses had a website, with a small online store – today, the picture is completely different. 

    A February report showed that around 7.8% of U.S. consumers purchase groceries online. That’s because big names such as Walmart, Amazon, Target, and Krogers, among others, all now offer online shopping and delivery services. 

    Even more, these stores are making use of their delivery teams to get items from stores and warehouses to consumers, in record time. 

    The competition for same-day delivery means that retailers are constantly looking at how they can deliver online purchases to shoppers quicker than their nearest contender. 

    That’s because consumers want convenience. They also want to see which retailer has the best deals or online benefits. The same February report showed that 62% of shoppers cite convenience as the reason for shopping online rather than in-store. A further 52% cited that online benefits and app-only deals led them to use online platforms for their grocery shopping. 

    In a similar vein, some have found that buying groceries online is often more affordable than having to go to a store. 

    A Travel Daily News article found that buying groceries online in the United Arab Emirates (UAE) can cost consumers less. The reason why consumers can save more money on their grocery bills is that they have more access to digital channels that allows them to compare prices, look for coupons, bundle deals, and even free at-home delivery. 

    There’s plenty to get excited about when a mass store or a household brand offers online deals – and now grocery chains are noticing that they need to step up their digital game if they want to continue playing with corporate contenders such as Walmart and Amazon. 

    The digital experience coming to a store near you 

    Digital needs are creeping into every known industry, and as the Internet of Things (IoT), Software as a Service (SaaS), and Artificial Intelligence (AI) become more mainstream, we could soon see technological innovations reach our favorite local grocery store.

    In this instance, the case may be true for a small handful of well-known grocery chains that have already started mapping the customer journey through digital and technological innovation. 

    Kroger has more than 2,800 stores nationwide across 35 states and operates other grocery retail stores including Ralphs, Dillion, Smith’s City Market, Jay C, Pay Less, and Bakers, among a list of others. 

    In the last couple of years, Kroger’s introduced digital product displays on shelves in some of its stores. Powered by Microsoft Azure, the digital sensors, or EDGE – Enhanced Display for Grocery Environment – can help process data generated by customer behavior, buying trends, and demand for certain products. 

    EDGE is connected to IoT sensors, which can deliver real-time data to stores, allowing them to monitor which products have low inventory levels, require restocking, and for customers display discounted prices. 

    Idaho-based grocery store, Albertsons, which has more than 2,500 stores, has steadily been experimenting with digital “smart” shopping carts in some of its stores. 

    Albertson’s “smart” shopping carts allow customers to ring up items as they place them in the cart, eliminating the need for them to go use checkout points. 

    This is similar to what we’ve seen Amazon has been trialing the last couple of years with its self-checkout stores, which the company heroically named Amazon Just Walk Out. 

    Research by McKinsey found that if a grocery store can properly implement tech-enabled self-checkout, it can help improve in-store productivity by 6% to 12%. This means that grocery stores will require less in-person labor at checkout counters during operational hours. 

    While it shows how technology can benefit grocery stores, not only in terms of physical in-store sales, customer experiences, and productivity, it’s still not able to compete on the same levels that eCommerce can offer consumers. 

    Final thoughts 

    While it’s hopeful that grocery stores will in the coming years adapt for the more digitally native consumer, it’s perhaps a race against time for some to ensure their longevity and ensure their long-term growth. 

    While eCommerce and online retail remain the triumphant winner, the introduction of digital can only further enhance an already well-known practice that has helped shaped the virtual shopping reality. Yet this time round, it’s up to grocery chains and big-box names to bring digital back to where it was once considered irrelevant. 

  • Shopify Evolving Into World’s First Retail Operating System

    Shopify Evolving Into World’s First Retail Operating System

    “Shopify is evolving into the world’s first retail operating system,” says Shopify COO Harley Finkelstein. “We think the future of retail is retail everywhere. A brand that’s going to be successful in 5, 10 or 15 years from now needs to sell across any platform and across any channel where they have customers. The idea is that it all feeds back in one centralized back-office, the retail operating system, which is Shopify.”

    Harley Finkelstein, COO of Shopify, discusses how COVID has dramatically sped up the timeline for commerce moving online and has also moved Shopify closer to its goal of becoming the world’s first retail operating system:

    Shopify Evolving Into World’s First Retail Operating System

    Most people assume that Shopify is an ecommerce provider. We have more than a million stores on Shopify. If you were to aggregate our stores in the US we’d be the second-largest online retailer in America. Of course, we’re not a retailer but we’re a platform. But we now have these great economies of scale that we’re using to level the playing field for entrepreneurs and small businesses. That being said, what really Shopify is evolving into is the world’s first retail operating system. 

    What we’re trying to figure out is what do brands and entrepreneurs and retailers need, not just now but in the future? We think the future of retail is retail everywhere. A brand that’s going to be successful in 5, 10 or 15 years from now needs to sell across any platform and across any channel where they have customers. This idea of enabling Shopify merchants to very easily push their products to the Amazon Marketplace or the eBay marketplace or now the Walmart marketplace, that gives them access to a new set of consumers. The idea is that it all feeds back in one centralized back-office, the retail operating system, which is Shopify. 

    Then we’ve gone ahead and asked what else can we do for these merchants? Can we do capital? We’ve now given out about a billion dollars worth of cash advances and loans to small businesses. We’re doing fulfillment and we’re doing shipping. We’re increasing the scope and the relationship that we have with the million stores on Shopify. This is allowing them to become category leaders.

    COVID Speeds Up The Ecommerce Revolution

    From our view, it seems like the commerce world that would have existed in the year 2030 has really been pulled into the year 2020 (as a result of the COVID crisis). We’ve seen ecommerce as a percent of total retail go from 15 percent to 25 percent in the last three months. That’s the same growth rate that we’ve seen over the last 10 years. What really has emerged here is sort of this tale of two retail worlds. On one side you have these resilient retailers that are doing great, they’re pivoting, and they’re expanding their businesses. On the other side, you have these resistant retailers who have not made it. In many ways, it’s probably the most exciting time for retail in a very long time. 

    We talk a lot about these direct to consumer brands that are becoming category leaders. The Allbirds and the Gymsharks who started on Shopify when they were very small and have grown to become the incumbents in their industry. Every 25 seconds a brand new entrepreneur makes his or her (products) for sale on Shopify. We talk a lot about those new startups, those new DTC brands. But actually, what we’re also seeing on Shopify are companies like Lindt Chocolate or Heinz ketchup or Chipotle. They are signing up for Shopify and basically from like five days from contract to launch they are completely changing their businesses. 

    This resiliency isn’t simply in the hands of just the smallest of brands. Big companies are also beginning to think a lot more about how to stay resilient in this time. They’re moving well beyond ecommerce or thinking about offline commerce now. They’re thinking about how do they sell across social media? How do they sell across different marketplaces? So no, I don’t think it’s too late (to enter ecommerce) but I do think they have to rethink their strategies.

    Shopify Evolving Into World’s First Retail Operating System Says Shopify COO Harley Finkelstein
  • Amazon Is Taking Half of Sellers’ Revenue

    Amazon Is Taking Half of Sellers’ Revenue

    Many e-commerce companies rely on Amazon for the bulk of their business, but it is a costly proposition with Amazon taking half of their revenue.

    According to research by Marketplace Pulse, Amazon has increased its fulfillment fees and mandatory advertising, increasing the percentage it takes from sellers. This has resulted in an increase in Amazon’s cut from 40% five years ago to 50% today.

    Interestingly, the base transaction fee has remained a steady 15%. Fulfillment fees, however, have grown to 20-35% and advertising can rack up another 15%. What’s more, the advertising is not optional, meaning sellers are going to pay for it whether they want it or not.

    Credit: Marketplace Pulse

    As the research firm highlights, this is leaving many companies making far less than they planned:

    Sellers are combating fee increases by either raising prices, diversifying from FBA, or diversifying from Amazon altogether. However, sometimes it’s only at the end of the tax year that they realize how little net profit they have left. A few sellers showed paying 60% and even 70% of their revenue to Amazon in fees. They still had to pay for inventory, freight, employees, and other expenses.

    To make matters worse, there are not many good options for companies that want to avoid Amazon’s fees. Walmart is cheaper for new sellers, but doesn’t have nearly the reach that Amazon does. Shopify and eBay, while significantly cheaper, also require the seller to handle more of their own logistics.

    With an economic downturn, only time will tell if Amazon is squeezing its sellers too much.

  • Amazon Reports First Unprofitable Year in Almost a Decade

    Amazon Reports First Unprofitable Year in Almost a Decade

    Amazon delivered its quarterly report and it was bad news as the company turned in its first unprofitable year in almost a decade.

    Amazon reported net sales for 2022 of $514.0 billion, an increase of 9% year-over-year. The company’s AWS cloud business came in at $80.1 billion for the year, an increase of 29%.

    Despite the increased sales, the company posted a net loss of $2.7 billion for the year, or $0.27 per share, its first since 2014. While a $2.7 billion loss is bad enough on its own, it’s even worse when compared to the $33.4 billion net income the company posted in 2021.

    Much of the company’s loss can be attributed to its investment in electric vehicle maker Rivian.

    2022 net loss includes a pre-tax valuation loss of $12.7 billion included in non-operating income (expense) from the common stock investment in Rivian Automotive, Inc., compared to a pre-tax valuation gain of $11.8 billion from the investment in 2021.

    “Our relentless focus on providing the broadest selection, exceptional value, and fast delivery drove customer demand in our Stores business during the fourth quarter that exceeded our expectations—and we’re appreciative of all our customers who turned to Amazon this past holiday season,” said Andy Jassy, Amazon CEO.

    Jassy also was optimistic about the future, especially given the cost-cutting measures the company has already taken.

    “We’re also encouraged by the continued progress we’re making in reducing our cost to serve in the operations part of our Stores business,” Jassy continued. “In the short term, we face an uncertain economy, but we remain quite optimistic about the long-term opportunities for Amazon. The vast majority of total market segment share in both Global Retail and IT still reside in physical stores and on-premises datacenters; and as this equation steadily flips, we believe our leading customer experiences in these areas along with the results of our continued hard work and invention to improve every day, will lead to significant growth in the coming years. When you also factor in our investments and innovation in several other broad customer experiences (e.g. streaming entertainment, customer-first healthcare, broadband satellite connectivity for more communities globally), there’s additional reason to feel optimistic about what the future holds.”

  • Developer Opens eBay Account, Gets Suspended Indefinitely

    Developer Opens eBay Account, Gets Suspended Indefinitely

    Rafael Conde, a developer for Sketch and Hand Mirror, created an eBay account, made his first purchase, and promptly got suspended indefinitely.

    eBay was once THE online destination for used, unique, and vintage items on the internet. In recent years, however, it has been eclipsed by a variety of other platforms. A recent Twitter thread by Conde illustrates an issue that could be a major factor in eBay’s decline.

    According to Conde, he set up an eBay account to look for and buy vintage items that aren’t easily found elsewhere. After his first purchase, however, he was notified that his account had been suspended. Talking with an online customer support representative didn’t yield any resolution, with the customer service rep saying the decision was final and nothing could be done.

    To matters even worse, the transaction for the item Conde bid on had already gone through. eBay’s solution was to tell him to contact his payment provider and dispute the charges.

    What’s more, in an unfathomable admission, the eBay rep seemed to indicate that this was a common and normal way of verifying new users.

    The Ask eBay Twitter account responded to Conde’s thread, reiterating that nothing could be done.

    The entire exchange is displayed below and is definitely not a good look for a company that needs to attract users…not alienate them.

  • 3 Ways Online Courses are Changing eCommerce & Digital Product Sales

    3 Ways Online Courses are Changing eCommerce & Digital Product Sales

    According to a recent study, in 2020 alone, nearly 5.4 million students took at least one class on the Internet. The practice has gotten so popular that about 10% of all postsecondary institutions now offer online courses of some kind, a trend that shows no signs of slowing down anytime soon.

    But the key thing to understand is that online courses aren’t solely changing the world of education, but are also having a major impact on business industries, like eCommerce and digital product sales. These Internet-driven educational opportunities are shaping the way digital products are sold thanks to the fact that they bring with them benefits to both businesses and consumers alike. This reigns true in a range of ways, all of which are worth a closer look.

    1.  Online Education is Making New Opportunities Accessible to All

    Thanks to online education, gone are the days when you had to attend one of a handful of specialized schools in order to pick up a particular or niche skill set. Now, it’s possible to get a robust education in practically anything if you know where to look, all from the comfort of your own home.

    Case in point: wholesale real estate investing. As individuals are now pursuing this real estate investing method at a higher rate, they need specialized knowledge and insight on top of their existing real estate education.

    Now, thanks to online courses including educational mentorship programs, leaders like Real Estate Skills are getting more people successfully into the wholesale mix. It has quickly ballooned into a popular investment strategy, particularly in the wake of the COVID-19 pandemic when record demand met low inventory and the types of low interest rates the market hadn’t seen in decades.

    2.  Preparing the Next Generation of Workers

    By far, one of the biggest ways that online courses are changing eCommerce and digital sales has to do with how they’re adequately preparing the next generation of workers for the shifts that are about to happen in these industries.

    The use of concepts like artificial intelligence and cloud computing were already present in eCommerce, but the COVID-19 pandemic acted as an accelerant that supercharged trends like these. They’re big, structural changes that are going to eliminate some jobs and create entirely new ones, the latter of which it has already started to do.

    This type of disruption always requires people to learn new skills, be it by way of up-skilling, re-skilling, or something else entirely. Online courses are already helping enormously to that end, teaching people how to coexist with things like automation and teaching them what they need to know to function in the more technical roles that have already started to appear.

    Another recent study indicated that in 2021 alone, more than 20 million new users registered for at least one online course from Coursera. That is equal to the growth in online education for the three full years prior to the pandemic. Reasons like this go a long way towards explaining “why”.

    3.  Online Courses are Leveling the Playing Field

    The rise of eCommerce giants left many smaller, often local businesses and suppliers at a disadvantage. Now, thanks to online courses and education, the pendulum is finally swinging back in the opposite direction. For a (relatively) low up-front cost, smaller businesses can pick up the skills they need to adequately compete with their larger counterparts. They don’t have to outspend them, but rather outthink them.

    With the right education it is possible for even individuals to generate 24/7/365 income, all without worrying about opening up a physical store in their area. Anyone can build a brand and sell to customers globally, while still pricing and shipping their products in a competitive way.

    But most importantly, online courses give people the opportunity to embrace one of the most important trends of the modern era: a truly personalized customer experience. No business is too small to offer the personalized level of care and attention-to-detail that the modern consumer demands. You just have to leverage the right technology and have the skills and education necessary to make it happen.

    That is perhaps the single biggest benefit that online courses provide to both consumers and entrepreneurs working in the world of eCommerce and digital product sales today.

    Online Courses are Changing the Way We Think About eCommerce

    In an overwhelming number of sectors and spaces, online courses are changing the way we think about eCommerce and digital product sales The education that you can pick up quickly and efficiently is invaluable, to the point where both businesses and individuals can leverage it to grow their sales and reach the largest possible audience at the exact same time.

  • The Growing Importance of Supply Chain Visibility (SCV) in Ecommerce

    The Growing Importance of Supply Chain Visibility (SCV) in Ecommerce

    Supply chain visibility (SCV) is the ability to track and monitor a product or shipment from its origin to its destination. This allows businesses to stay informed on their shipments’ progress, anticipate delays, and make adjustments if needed.

    With eCommerce growth continuing at an exponential rate, supply chain visibility has become increasingly important for companies looking to remain competitive in today’s digital marketplace. Not only do businesses need to meet customer demands for fast delivery times, but they also need to manage costs, minimize losses, and ensure security. 

    Be that as it may, only 65% of companies are able to report full visibility across their supply chains, and 43% of small businesses are not tracking inventory levels at all. With economic uncertainty on the horizon and customer expectations at an all-time high, now is the time to invest in supply chain visibility so you don’t find yourself falling behind while your competition sails away with their loyal customers.

    Benefits of Supply Chain Visibility for Ecommerce Businesses

    There are a multitude of benefits to be realized through the implementation of supply chain visibility in eCommerce. These include:

    Improved customer satisfaction and loyalty

    The more visibility you have into your own supply chain, the better equipped you are to anticipate customer needs and deliver products in a timely manner. With improved visibility, eCommerce businesses can increase customer satisfaction by reducing their response times, improving delivery accuracy, and providing customers with real-time updates about the status of their orders. This helps foster greater loyalty from customers, which in turn increases the likelihood of repeat business.

    Reduced costs associated with inventory management

    “Knowing inventory costs is extremely important because they affect the majority of decisions one makes as a retailer,” explains Abir Syed, co-founder of UpCounting, an eCommerce accounting firm.

    Unsurprisingly, inventory management is the single largest expense for eCommerce businesses. For every dollar a US retailer generates through revenue, they have $1.35 tied up in inventory. As such, being able to accurately track and monitor inventory levels is essential for minimizing losses and maximizing efficiency.

    By leveraging supply chain visibility technology, businesses can reduce the amount of inventory they need to keep in stock and their associated costs. This can be achieved through better forecasting and planning, more precise order fulfillment processes, and improved inventory accuracy.

    Increased efficiency and speed of delivery

    Knowing where products are throughout their journey allows businesses to better plan and adjust for delays, ensuring customers get their items as quickly as possible. Supply chain visibility also facilitates increased collaboration between all parties involved in the delivery process, allowing for a transparent and overall more efficient supply chain.

    Enhanced flexibility and scalability in supply chains

    As the demands of customers and markets shift, businesses need to be able to quickly adjust their supply chains accordingly. With supply chain visibility, businesses can quickly adapt to changing conditions, such as unexpected spikes in demand or supply disruptions. This increased flexibility and scalability of the supply chain is essential for businesses to remain competitive and responsive. This scalability also benefits businesses as they grow and expand into new markets. 

    Increased control over returns management 

    Returns are an unavoidable part of eCommerce and managing them can be difficult. Supply chain visibility gives businesses the ability to track a returned item as it moves through the supply chain and make adjustments to minimize losses. This includes tracking returned items on their journey back to the supplier, identifying potential issues and quickly resolving any discrepancies.

    Challenges of Implementing Supply Chain Visibility

    While the benefits of supply chain visibility are clear, there are still some challenges associated with its implementation. These include:

    Establishing and maintaining relationships with suppliers

    Before any supply chain visibility technology can be deployed, businesses need to build relationships with their suppliers. This requires open communication and collaboration between all parties involved, as well as a certain level of trust.

    “When it comes to choosing partners, it’s wise to do some research to ensure the best deal possible while emphasizing transparency and flexibility. This is invaluable during times of frequent supply chain disruption,” explains Roei Yellin, Co-Founder & Chief Revenue Officer of 8fig, a planning and funding platform for eCommerce companies. 

    “Sellers shouldn’t be afraid to negotiate for a better deal and they should make sure that communication is open and honest. This is true of suppliers, 3PLs (third-party logistics providers) and any other partners brought in to help manage the supply chain,” concludes Yellin.

    Complexity of the supply chain and data formats

    Securing buy-in from all parties and managing the data exchange between different organizations is challenging. Not only do various supply chain participants have differing needs and processes, they also use different systems. Unifying these systems and ensuring harmonious data exchange can be difficult.

    To overcome this, businesses need to create a single source of truth that all supply chain participants can work from. This means creating common protocols and standards that all parties are comfortable with and can adhere to, and potentially leveraging a third-party solution to manage the data exchange.

    Costs associated with technology and infrastructure

    The technology and infrastructure required for supply chain visibility can be costly. Businesses need to invest in the right hardware, software, and people to ensure that the system is secure and effective.

    Fortunately, there are solutions to this issue. RFID and code-based tracking solutions, in particular, are relatively inexpensive and easy to implement. Companies such as Scurri allow you to easily create a single bar code for all carriers, as well as a reporting dashboard that gives you full control over your operations with actionable insights. 

    Cybersecurity concerns

    Data is the lifeblood of supply chain visibility and ensuring its security is paramount. However, supply chains are coming under increasing attack from hackers and malicious actors, making them vulnerable to data theft and manipulation.

    In fact, 97% of organizations say they have experienced the negative consequences of a supply chain cyber breach within their operations, demonstrating just how prevalent these attacks have become.

    As such, businesses need to ensure that they have the appropriate protocols in place to protect their data from cyber-attacks. This includes using secure networks and encryption, as well as regularly auditing system access and usage. Multichannel cyber security solutions, such as VMware, can also be of great help in mitigating cyber risks.

    Conclusion

    Supply chain visibility is becoming increasingly important in today’s volatile and highly competitive marketplace. However, if businesses are to reap the full benefits of a visible supply chain, they must first overcome the various challenges associated with implementation.

    Ultimately, with careful planning, a comprehensive approach to risk management, and the right technology in place, businesses can ensure that their supply chain visibility efforts are successful and that they remain agile and competitive in the long run. 

  • 5 Best Tips To Improve eCommerce User Experience

    5 Best Tips To Improve eCommerce User Experience

    With the increasing competition in the eCommerce market, it has become challenging to keep the clients interested long enough to make the sale.

    Around two billion people purchase goods or services online. In fact, by 2025, world eCommerce sales are likely to exceed $7.3 trillion.

    Moreover, there are around 12-24 million online stores globally. However, only 6,50,000 generate annual sales over $1000.

    This shows that the market is huge, competition is high, and the number of eCommerce sites is increasing, but only a few are able to generate sales.

    Therefore, the best way to gain customer attention and drive sales is by improving user experience.

    Here are the reasons, why a seamless user experience is important to the success of your eCommerce business:

    ●  51% of customers switch to competitor brands if they have one negative experience.

    ●  68% of customers are ready to pay more for products and services from a brand that offers a good customer experience.

    ●  89% of consumers are more likely to make another purchase if they receive a positive customer experience.

    ●  Businesses can improve their revenue to 4% to 8% above their market by prioritizing better customer experience.

    But how will you improve the eCommerce user experience?

    Well, this guide explains the top five ways that you can use to offer a great customer experience.

    Let’s start!

    1- Provide Personalized Customer Experience   

    Around 80% of shoppers are more likely to purchase from an eCommerce business that offers a personalized experience.

    Here are the best personalization strategies that you can try:

    ●  Build personalized homepages: If you are collecting cookies on your eCommerce website, then you can use that information to understand your customers better. Use this information to remember your customer’s interests and preferences and create personalized homepages for them.

    ●  Offer personalized guide: Provide on-site assistance to your visitors with quizzes and size, style, and budget guides. This will help you to offer personalized product recommendations. 

    ●  Display recently viewed product: Create a recently viewed section that allows customers to see what products they checked the last time. Add strong call-to-action, such as ‘Pick up where you left off’ to remind your customers about the products from their last session.

    ●  Personalize product pages based on location: Customize your product page based on location. Provide options to your customers to choose their country. You can also use geo-targeting to display relevant campaigns based on the customer’s location.

    ●  Make more personal recommendations: 31% of eCommerce revenue is generated from personalized product recommendations. Suggest similar or complementary items on the product page to your customers. One of the best tactics is by using product recommendations on abandoned cart emails.

    You can also think of using third-party tools, such as Barilliance, Monetate, and Evergage to personalize your visitors’ shopping experience.

    2- Choose Faster Hosting Service Provider

    No doubts, slow websites kill conversions.

    Around 47% of customers expect websites to load in two seconds. In fact, 40% leave a website if it takes three or more seconds to load.

    A one-second delay in page load time can result into:

    ●  Decrease of 11% in page views

    ●  25% decrease in conversions rates

    One of the major factors that affect your site speed is hosting service and infrastructure. 

    Therefore, when you choose a hosting plan, check:

    ●  Memory or bandwidth limits for scaling and seasonal promotion.

    ●  Expected traffic and peak user load to avoid crashes from a sudden spike in visitors

    ●  Compare the top hosting providers based on starting cost, money back, load time, uptime, and customer support services. For instance, BlueHost offers an uptime of 99.96% while Siteground has an uptime of greater than 99.99%.

    3- Utilize Third-Party Online Ecommerce Platforms

    It is better to go for third-party online eCommerce platforms if you do not have the time or resources to build your own websites. They help you in setting up a website, offering pre-made templates, ensuring necessary security features, and scalability potential.

    The top three most popular hosting solutions are:

    ●  Shopify: It is quite easy to set up a store and start selling products on Shopify. Also, it is inexpensive to build your shop on Shopify. You can sell unlimited products and have unlimited bandwidth. However, you have to pay for features such as abandoned shopping cart recovery. Brands such as GE, Tesla, and Red Bull use Shopify as their online shop. The starting price at which Shopify offers its services is $14/month.

    ●  BigCommerce: It is another great option for small to midsize businesses. It offers inventory management tools, boosts SEO strategies with customizable URLs and robot.txt access, provides plug-in POS integrations to leading providers like Square and Clover, and sells more with channel integrations like Amazon, eBay, and Facebook. You can create your own store on BigCommerce at $29.95/month.

    ●  Magento: Magento is an open-source platform, which is great for those who want to develop a long-term professional eCommerce site. The basic features provided by Magento are product, category, and inventory management, client account, customer service, order management, different payment options, and promotional and marketing tools.

    4- Hire Skilled Customer Management Team

    Focus on improving your customer support service. One of the best ways is by hiring the right members. Select candidates with a master’s degree in business administration.

    Look for candidates who can grow customer loyalty, build a competitive edge in the market with their communication skills, and develop real brand ambassadors for your organization.

    To fast track the hiring process and get the skilled customer support team faster, you can use the following ways:

    ●  Tap into your professional networks, such as network referrals or staff referrals.

    ●  Search LinkedIn and LinkedIn groups.

    ●  Search in specialist customer support job boards, such as Support Driven Jobs, Slack at Work, Remote OK, We Work Remotely, and AngelList Jobs.

    5- Create an Omnichannel Experience for Your Users

    Customers are present across all channels on the internet. Therefore, it is crucial that you deliver an omnichannel customer experience.

    Using three or more channels in an automated and linked way leads to an engagement rate of 18.96%.

    Here are the ways to create an omnichannel experience for your users:

    ●  Develop your mobile capabilities. Create a website which is mobile-friendly. Consider having a mobile app

    ●  Incorporate live chat

    ●  Integrate social content into your website

    ●  Add your product listings into social media posts

    For example, Starbucks uses an effective omnichannel strategy. Customers can use their app for information and ordering. They also provide a newsletter to engage across touchpoints.

    Final Thoughts

    As the number of customers interacting with online businesses is increasing, eCommerce sites need to prioritize the customer experience to stay ahead in the competition. Ensure that your website is simple, responsive, user-friendly with clear images, videos, engaging content, and a smooth checkout process.

    Therefore, designing your eCommerce stores that match customers’ expectations makes it way easier for you to increase conversions and stand out.

  • How To Increase Sales and Traffic With eCommerce Mobile App Development

    How To Increase Sales and Traffic With eCommerce Mobile App Development

    There is no doubt that the popularity of online shopping keeps increasing year by year. Customers prefer to use their PCs or smartphones for making purchases of everything from drinks to apartments. That’s so simple, efficient, and profitable that no buyer can stay aside from such an attractive offer.

    As a result, the popularity of eCommerce apps has also grown. According to the latest statistics, more than 90% of the time mobile users spend on mobile software. And almost 80% of people have an experience with online shopping. So developing an app does really make sense. This is your opportunity to increase traffic, sales, and revenue in the end. 

    If you haven’t launched a mobile app for your project yet then hurry up to do it. While you doubt your rivals attract customers, sell their goods, and get insane profits. And if you have already developed mobile software for your company then take care of its promotion. Make people want to install and use your app. Try these tips to make your eCommerce mobile apps truly popular and efficient.  

    Follow the Requirements of ASO

    The basic principles of App Store Optimization are called to promote your application in the App Store and Google Play. By using proper keywords, adding informative descriptions, placing relevant screenshots, and so on you will allow users to find your software among thousands of other apps.  By increasing your recognition, you’ll notice a higher amount of downloads.

    In general, ASO is powerful enough to guarantee the following benefits:

    – increase retention rate. It demonstrates that the number of active users installing your app is much higher than the number of those customers who have uninstalled it;

    – scale the loyalty of users. Paid ads also boost your mobile app traffic but organic search forms a loyal community of people truly interested in using your software for a long time;

    – further app improvement. By getting feedback from your users you will be able to detect bugs and get rid of them efficiently. 

    Take Advantage of Email Marketing

    Newsletters and promotional emails aren’t dead in marketing meaning, as you may think. No matter new and original advertising tools, email marketing is still known as one of the most efficient and low-cost tools to reach desired goals. By sending regular emails and newsletters you are able to share with subscribers new information about your sales, promote special offers, gift them with personal discounts, and so on.

    Many companies use email marketing to announce the launch of their apps. You can propose users download the app and get special benefits, for instance, a coupon or early access to a new collection of your products. 

    Use a Landing Page

    A customized landing page is a great mobile eCommerce platform to promote your shopping offers. It helps in brand recognition so potential buyers can find out more about your company. In addition, powerful CTA elements will intrigue users and motivate them to try your software for a better shopping experience. 

    All you need is to create a one-page website with a detailed description of your app’s features and advantages. Don’t forget to add downloading links so the visitors of your landing page can easily reach your software. 

    Promote Your Apps on Social Media

    Depending on the type of your business, you may be interested in investing more funds in SMM marketing. It means you need to grow the number of subscribers and share with them viral content. Such an approach is powerful because an average user spends approximately 2 hours and 27 minutes on social media every day. 

    If you have a successful account on social media platforms you should definitely promote your app. There are many ideas on how to encourage your subscribers to do it. For instance, you can explain the beneficial eCommerce app features and customers’ benefits. Launch a relevant hashtag and let people share their opinions about your offer. Thanks to using the power of your social media accounts, you can make your app popular too.

    Launch Referral Marketing

    Have your friends ever shared with you any link, product, or app? This is an example of referral marketing. It means the recommendation of something to other people for a bonus. Person A only needs to have a unique affiliate link or code to share it with user B. After user B installs your app, user A will receive a reward. 

    As you can see, the mechanism of referral marketing is very simple. No need to invest funds in software ads – your users will be your ambassadors for free. As a result, you can reach your planned goals: increase the number of app installs, save money on advertising campaigns, scale your loyal community, etc. 

    Try to Work with Influencers 

    Influencer marketing isn’t a new thing. You can contact social media personalities with great bases of subscribers for cooperation. Such influencers may advertise your mobile eCommerce app without noticeable signs of traditional advertisement. That’s the point of native marketing: by working with influencers you’ll make your ads look like friendly recommendations. 

    As a result, online buyers will be much more excited to purchase your products using your mobile software. Once the social media personality shares a recommendation with them, they may rely on it and give your offer a chance. 

    Develop Your Business with a Mobile App

    A mobile app is a key to massive sales nowadays. It allows you to reach new target audiences, motivate your loyal customers to make orders, improve conversation rate, increase brand recognition, build better relationships with customers and, finally, reach your business goals. 

    It seems you can generate mobile app sales. It’s possible that your app isn’t good enough to bring you desired results. Then you must improve it to make its features and interface user-friendly. But if your software is great but traffic and sales leave much to be desired then rely on the listed above tips. Make a step forward in your eCommerce success now and your business will demonstrate better results soon.

  • FTC May Launch Antitrust Lawsuit Against Amazon

    FTC May Launch Antitrust Lawsuit Against Amazon

    The Federal Trade Commission is reportedly preparing an antitrust lawsuit against Amazon, the latest in regulators’ efforts to reign in Big Tech.

    Big Tech has been coming under increased scrutiny in recent years, with critics accusing companies of dominating their respective markets and unfairly using their size and influence to do so. FTC Chairwoman Lina Khan has been a vocal critic of Big Tech, and Amazon in particular, making a possible lawsuit against the company unsurprising.

    According to The Wall Street Journal, the FTC is looking at whether Amazon unfairly favors its own products and services, and whether it deals unfairly with third-party sellers. Regulators are also scrutinizing whether Amazon Prime unfairly bundles services to Amazon’s benefit.

    The Journal’s sources say it’s unclear whether the FTC will file a suit, and Amazon’s executives have not yet met with individual FTC commissioners to make their case. At this point, the FTC could decide either way on whether to pursue action.

  • Ecommerce, Search, Social… and Conversational Space?

    Ecommerce, Search, Social… and Conversational Space?

    “When I look at the conversational space I think it’s going to have as much impact as ecommerce or search or social,” says LivePerson CEO Rob Locascio. “The conversational space is going to be just as big. I think you’ll see one day that there will be a trillion dollar company in this space and I want it to be us. The things we’re investing in right now and setting up for will allow us to do that. That’s what’s important.”

    Rob Locascio, CEO of LivePerson, predicts that the AI-driven conversational space will ultimately have as much impact and be as big an industry as ecommerce, search, or social. Locascio was interviewed by Jim Cramer on CNBC:

    Ecommerce, Search, Social… and Conversational Space?

    When I look at the conversational space I think it’s going to have as much impact as ecommerce or search or social. The ability to talk to a machine and have a natural conversation, it’s in the collective consciousness of people. We all believe the Alexa type situation should happen with every company. 

    We do that with Delta and T-Mobile and all these big brands. What we’re looking at now is how do we take that to the world? LiveIntent is proprietary technology to look at the intent that a consumer is having with the brand. In terms of I want to buy something, we have a way to analyze that and then use machine learning algorithms to then scale those conversations. That’s what this is about. 

    Healthcare Companies Defending Themselves From Amazon Via AI

    In Q4 we signed a couple healthcare companies. They want to talk about defending themselves from Amazon because Amazon said they want to go into healthcare. The way they think they can do that is scaling the conversations they are having with their customers and creating a totally different experience. You go to a doctor, you have an experience with them, you capture that on a messaging platform and an AI will help you with whatever is wrong with you. You want to process a bill instead of calling and being put on hold, you do that through a conversational experience. 

    They want to game change it. The only way they’re going to defend themselves is to get into the conversational space. That’s what they see and we’re the company they’re trusting to scale their operations with the conversational platform.

    Conversational Space Is Going To Be As Big As Search and Social

    The conversational space is going to be as big as search and social. I think you’ll see one day that there will be a trillion dollar company in this space and I want it to be us. The things we’re investing in right now and setting up for will allow us to do that. That’s what’s important. The Amazon’s and the Facebook’s and Apple’s, they’re in the space. Jeff Bezos made a big bet obviously in Alexa to say this is the way it’s going to be. 

    It can’t just be Amazon and Alexa. It has to be other companies getting access to that technology and that’s what we are providing. Who else is providing it? We’re one of the largest companies in the world to do this. Even though we’re not big tech, we are large enough to go ahead and go after them. We are large enough to go ahead and define a space and win it.

  • Amazon Agrees to Major Business Changes in the EU to Head Off Probe

    Amazon Agrees to Major Business Changes in the EU to Head Off Probe

    Amazon has reached an agreement with the EU to make major changes to its business in exchange for heading off antitrust probes.

    Amazon was under fire for dealing unfairly with third-party sellers, preferring its own retail business over those of competitors, as well as for using its sellers’ non-public data to fine-tune its own services and gain an advantage.

    The EU Commission outlined its concerns in a statement:

    In July 2019, the Commission opened a formal investigation into Amazon’s use of non-public data of its marketplace sellers. On 10 November 2020, the Commission adopted a Statement of Objections in which it preliminarily found Amazon dominant on the French and German markets, for the provision of online marketplace services to third-party sellers. It also found that that Amazon’s reliance on marketplace sellers’ non-public business data to calibrate its retail decisions, distorted fair competition on its platform and prevented effective competition.

    In parallel, on 10 November 2020, the Commission opened a second investigation to assess whether the criteria that Amazon sets to select the winner of the Buy Box and to enable sellers to offer products under its Prime Programme, lead to preferential treatment of Amazon’s retail business or of the sellers that use Amazon’s logistics and delivery services.

    As part of the agreement, Amazon will no longer use non-public data from its sellers to improve its own products. The company will also make offers and products from competing sellers equally visible in its “Buy Box.” The terms of the deal will be enforced for seven years, but will only be in effect within the EU.

    “Today’s decision sets new rules for how Amazon operates its business in Europe,” said Margrethe Vestager, Executive Vice-President in charge of competition policy. “Amazon can no longer abuse its dual role and will have to change several business practices. They cover the use of data, the selection of sellers in the Buy Box and the conditions of access to the Amazon Prime Programme. Competing independent retailers and carriers as well as consumers will benefit from these changes opening up new opportunities and choice.

  • How to Start an Online Business Selling Digital Products

    How to Start an Online Business Selling Digital Products

    A digital product is a type of product that you can create, market, distribute, and sell digitally. This product only exists digitally, and you cannot touch it.

    Our lives are affected today by digital platforms and content taking over today. The demand for digital content keeps rising. For instance, the global digital content creation market size is expected to touch over $16 billion by 2025. This means a business that invests in digital products has a chance to thrive.

    There is a lot involved in making a hustle out of a digital product like eBooks, tickets, podcasts, manuals, or tutorials. It all begins by having the basic knowledge to run a successful online business. Here is a guide on starting an online business selling digital products.

    Register your Business

    The first step to starting an online business is registering it with the relevant authorities. You want to ensure your business is legitimate and recognized. You can register your business as an LLC and get the proper certification and copyright for your digital products.

    The cost of registering an LLC may vary depending on your state. For instance, in Delaware, it costs about $415. This cost includes a state filing fee, name reservation, and adding a registered agent. When you register your business as an LLC, you can reap the benefits of a partnership and a sole proprietorship.

    An LLC allows you to reduce personal liability to your business while gaining flexibility in operation and taxation. The process of registering an LLC is not that long compared to other types of business. You should also learn more about the benefits of an LLC for different types of business before deciding the best type of business to register.

    Define Your Image and Brand

    If you are selling digital products online, you will need a brand image that can sell your products and battle the stiff competition in the online market. Your brand is like an overall vibe of the business. It will need to be iconic enough in case you do expand enough to have more products or even a business delivery fleet.

    You want to ensure everything in your business, right from the business name to the design, conveys a consistent idea and visual image of your business.

    When working on your brand, you should focus on the logo, color scheme, page layout, typography, photos and graphics. These elements should work together in portraying your brand image out there.

    Build a Responsive Website

    A website is a must-have if you want to sell digital products. As soon as you’ve validated your business idea, you should proceed to build your website. A website is like your storefront for selling digital products.

    It is not that difficult to build a website nowadays. You can create your website in just hours without coding skills using any of the best website builders. You can also hire a website designer to design your website who will also help you choose the best host server that will keep you online round the clock.

    When designing a website to sell digital products like courses, written content, and podcasts, you should ensure it has all the required functionalities. Here is what you should do:

    • Incorporate forms so visitors can subscribe and join your list.
    • Build customized landing pages that can educate your audience to learn more about your products and services.
    • Design your website to accept payments so it is easy to sell online.
    • Optimize your website for mobile and make it responsive to most visitors who access your services using their smartphones and tablets.

    Build an Audience to Sell to

    For a physical store, this will sound like building a customer base. If you are selling digital products like a coding course, you want to first build an audience that needs your product. At this point, you want to make use of your greatest asset, the email list.

    Everyone on your email list is interested in your brand, which means they trust you. There is a high probability that they will buy from you if only you market your products and services. Add people to your email list and begin marketing your brand to them. Send emails with information on your products and services. This is called list building.

    You can give people freebies in exchange for their contact information. For instance, if you are selling a course, you can give a short coaching session to everyone that subscribes to your email list. Freebies can act as your lead magnet. It can attract leads to your business and help you grow your business.

    Optimize Your Website for Conversions

    You are already selling your digital products to your customers at this stage of the business. What remains is finding ways to increase your sales. If you want to increase your sales, you should optimize your site leveraging SEO to convert most visitors to customers.

    To optimize your website, you should look at the data on your site. What do the numbers say about your most trafficked pages? You should also identify the pages on your website that most people rarely visit, and once they do, they leave the page fast.

    You want to ensure you can hold your visitors for long so you can get the chance to convince them into buying your products and services. Focus on removing the things that don’t work on your site and improve those that work to optimize your website sales funnel.

    You should focus more on how you can sell your digital products on the website. Therefore, make it clear that your website aims to attract people willing and able to buy your products and services.

    Make sure you can send every visitor to your landing page, and you persuade them to buy. To achieve this, ensure you have a call to action on one very single page of your website. Go straight to the point and tell your visitors what you want them to do.

    You can then reward them accordingly for taking action you asked for.

    Final Thoughts                                     

    Suppose you are out to start a business selling digital products, now is the right time to start. Register your business and get a copyright for your products. Build a website, brand, and audience for your products and services.

    Start your business today by following the five steps listed here and turning your fantastic idea into an income-generating business.

  • Black Friday Online Sales Break Records Despite Inflation

    Black Friday Online Sales Break Records Despite Inflation

    The economy received a boost during Black Friday, with this year’s online spending breaking records despite inflation.

    Inflation has been rising at near record rates, prompting concerns of an impending recession. Despite the economic uncertainty, online sales reached a new record during this Black Friday, coming in at $9.12 billion, according to data from Adobe Analytics, via GeekWire. This was a 2.3% increase over the previous year.

    Electronic sales were especially robust, growing a whopping 221%. Similarly exercise equipment sales grew 218%, audio equipment sales were up 230%, smart home item sales grew 271%, and toys 285%. Meanwhile, mobile transactions reached a record 48% of online sales, up from 44% last year.

    Interestingly, Buy Now Pay Later orders increased 78% over the previous week. This is likely a result of the economic uncertainty, not to mention the layoffs many have experienced.

    Black Friday is likely not the end of the good news, with Adobe predicting Cyber Monday online sales will grow 5.1% over the previous year, to come in at $11.2 billion.

  • How the Ecommerce Theme You Choose Helps to Deliver the Best Brand Experience

    How the Ecommerce Theme You Choose Helps to Deliver the Best Brand Experience

    Ecommerce is a lucrative market for many businesses. By now, nearly every retail brand has either started or is working on launching an ecommerce store.

    Global ecommerce revenue is projected to reach 5.4 trillion US dollars by 2022. Therefore, more and more retailers have jumped into the ecommerce space to make more money. With increasing competition, however, it has become crucial for ecommerce businesses to deliver the best brand experience for improved customer retention and brand loyalty.

    The choice of your website’s ecommerce theme plays a vital role in preparing an UX-friendly digital destination that helps to acquire more customers.

    What is an ecommerce theme?

    An ecommerce theme is a pre-built design that you can select for your online store. It helps to deliver the best user experience to your customers.

    Why is the choice of your ecommerce theme significant?

    Around 40% of site visitors will stop interacting with your site if the layout is unattractive. Selecting the right ecommerce theme for your online store helps your customers to do business with you with ease.

    What features should you look for in your ecommerce theme?

    The features that you should have in your site depends on the kind of website that you are looking to build.

    That having been said, here are the top features you should look for in every ecommerce theme:

    Responsive Design

    A responsive website is mobile-friendly. Having a responsive site design ensures that your website’s look and functionality stays the same irrespective of the browsing device. It doesn’t matter whether the visitor is visiting your store using a mobile device or a desktop, they will be able to complete the purchase easily.

    A responsive design also has a positive impact on Google rankings, because Google and other search engines consider site design, user experience, and mobile browsing experience before ranking a website.

    Hence, a responsive website has more chances of ranking higher in the search results as compared to a non-responsive site. Besides, a responsive site is easy to maintain and cost-effective.

    Speed

    Faster loading websites naturally offer a more smooth user experience. Google and other search engines now consider site speed in their ranking algorithm.

    The recent Page Experience update from Google takes into account Core Web Vitals as a key ranking algorithm factor. Core Web Vitals comprises metrics such as LCP (Largest Contentful Paint), FCP (First Contentful Paint), and FID (First Input Delay), which collectively measure the real world user experience. Sites that pass the Core Web Vitals test have the best chances of being placed higher in the search results.

    You can use the Page Speed Insights tool to check the page speed score of a website. The higher the score, the better would be the UX and organic rankings.

    Therefore, before selecting a theme, you should conduct some research on the theme loading speed. Sometimes, fancy elements and design don’t matter much when compared to simple site design with a high speed.

    Ease of Use

    You should always select an ecommerce theme with a simple and easy to use navigation.

    For example, your theme should have a search bar, because often visitors are looking to search for a particular product to complete the purchase. If your site doesn’t have a visible search bar, then it might lead to poor conversions and a high bounce rate.

    Opt for a theme that has nicely designed “breadcrumb navigation” and prominent category and subcategory links. Besides, the CTAs should be large and clear. There are maximum chances of conversions when the CTAs are placed higher in the page leading to more clicks.

    Security

    Website security is crucial for a good user experience. Google takes website security very seriously. Make sure your ecommerce site offers good security.

    Opt for an SSL certificate and pick a trustworthy web host. Ensure, your ecommerce theme does not have any vulnerabilities that makes it easier for hackers to steal customer data.

    Support for integrations and widgets

    Most of the time, you will realize that it is much easier to install a widget or an app to add an additional feature to your online shop.

    You can find essential apps and plugins in the respective directories of your ecommerce platform. Plugins are powerful because they let you add beneficial functionalities to your store without the need to hire a developer. You can easily search and install a plugin of your choice to add different functionalities to improve UX and SEO.

    Hence, you should see whether your chosen theme is compatible with the plugins you plan to use. You should select an ecommerce theme that offers the support for maximum plugins, apps, and widgets.

    Final thoughts

    Building and managing your ecommerce business is challenging nowadays. The choice of your ecommerce theme decides the future of your online business.

    An SEO friendly store layout helps to acquire relevant organic traffic to your site. Besides, an UX-friendly theme keeps customers happy as it improves conversion and retention, which are significant to boost your online revenue.

    You should have a brilliant online marketing strategy, powered by a robust ecommerce theme to drive more qualified traffic to your site.

  • Customers Will Be Able to Use Venmo for Amazon Purchases

    Customers Will Be Able to Use Venmo for Amazon Purchases

    Amazon is prepping support for Venmo as a payment option, with plans to make it available in time for the holiday season.

    Venmo is a popular secure payment platform owned by PayPal. Amazon announced that it will begin supporting Venmo on Amazon.com, as well as within the Amazon app. Support will begin rolling out to select Amazon customers today, with full support in the US in time for Black Friday.

    “We want to offer customers payment options that are convenient, easy to use, and secure—and there’s no better time for that than the busy holiday season. Whether it’s paying with cash, buying now and paying later, or now paying via Venmo, our goal is to meet the needs and preferences of every Amazon customer,” said Max Bardon, vice president of Amazon Worldwide Payments. “We’re excited to continue to offer customers even more options when it comes to how and when they want to pay for their order.”

    Once support is added, customers will be able to set up their Venmo account as a payment option and select it when making a purchase.

    Credit: Amazon
    Credit: Amazon

    “We know that the Venmo community of nearly 90 million users value the safety, security, ease, and familiarity that paying with Venmo helps to bring to the checkout experience,” said Doug Bland, senior vice president and general manager, head of consumer, PayPal. “The ability to pay with Venmo on Amazon continues our ongoing commitment to offer the community more ways to spend, send, receive, and manage their money with Venmo.”

  • Amazon’s Fourth-Quarter Guidance Disappoints

    Amazon’s Fourth-Quarter Guidance Disappoints

    Amazon’s third-quarter results met expectations, but its fourth-quarter guidance disappointed Wall Street.

    Amazon reported $127.1 billion in net sales for the quarter, a 15% increase over the year-ago quarter. The company’s net income came in at $2.9 billion, or $0.28 per diluted share. While this was a decrease from the year-ago quarter, it still beat expectations.

    Despite the results, the stock took a hit on weak fourth-quarter guidance. While analysts were expecting estimates of $155 billion, the company’s guidance came in at $140 to $148 billion.

    CEO Andy Jassy emphasized the company’s focus on lowering costs and improved Prime Member deals.

    “In the past four months, employees across our consumer businesses have worked relentlessly to put together compelling Prime Member Deal Events with our eighth annual Prime Day and the brand new Prime Early Access Sale in early October. The customer response to both events was quite positive, and it’s clear that particularly during these uncertain economic times, customers appreciate Amazon’s continued focus on value and convenience,” said Jassy. “We’re also encouraged by the steady progress we’re making on lowering costs in our stores fulfillment network, and have a set of initiatives that we’re methodically working through that we believe will yield a stronger cost structure for the business moving forward. There is obviously a lot happening in the macroeconomic environment, and we’ll balance our investments to be more streamlined without compromising our key long-term, strategic bets. What won’t change is our maniacal focus on the customer experience, and we feel confident that we’re ready to deliver a great experience for customers this holiday shopping season.”

    Despite Jassy’s optimism, Amazon’s stock dropped almost 20% following the report.

    According to GeekWire, CFO Brian Olsavsky warned there may be more bad news to come.

    “We are preparing for what could be a slower growth period.”

  • TikTok Is Planning to Build US Fulfillment Centers

    TikTok Is Planning to Build US Fulfillment Centers

    TikTok appears to be moving forward with its e-commerce plans, with it reportedly looking to build US fulfillment centers.

    TikTok is reportedly planning to expand its e-commerce ambitions, with a possible launch of TikTok Shop in the US in time for the holidays. According to Axios, the company is now planning to build fulfillment centers in the US.

    The discovery comes from various TikTok job postings, more than a dozen total, that describe an escalation of e-commerce plans.

    “By providing warehousing, delivery, and customer service returns, our mission is to help sellers improve their operational capability and efficiency, provide buyers a satisfying shopping experience and ensure fast and sustainable growth of TikTok Shop,” reads one job listing.

    Another Seattle-area job listing describes building fulfillment centers “from scratch.”

    It’s clear that TikTok is looking to significantly grow its e-commerce ambitions, although it remains to be seen what regulatory hurdles the company may encounter. Lawmakers are already leery of the company as a result of its ties to Beijing and its absolutely horrible reputation for privacy. It’s a safe bet the US will not be thrilled with the company becoming more intertwined with users’ lives and data.

  • Amazon Facing $1 Billion UK Lawsuit for Unfairly Promoting Its Own Products

    Amazon Facing $1 Billion UK Lawsuit for Unfairly Promoting Its Own Products

    Amazon is facing a massive lawsuit in the UK over claims it unfairly favors and promotes its own products.

    Gatekeeper companies that sell their own products and services, while also providing a means for competitors to do the same, are coming under increased scrutiny. Apple and Amazon are two such companies that have both been accused of unfairly favoring their own products over those of the other companies that sell via their platforms.

    According to Reuters, Amazon is facing a $1 billion lawsuit in the UK over such accusations. The case is being brought by consumer rights advocate Julie Hunter.

    “Far from being a recommendation based on price or quality, the Buy Box favours products sold by Amazon itself, or by retailers who pay Amazon for handling their logistics,” Hunter said in a statement. “Other sellers, however good their offers might be, are effectively shut out.”

    Amazon has disputed the merits of the case:

    “This claim is without merit and we’re confident that will become clear through the legal process,” a company spokesperson said.

  • 6 Criteria to Choose The Right Payment Gateway For Your E-Commerce Business

    6 Criteria to Choose The Right Payment Gateway For Your E-Commerce Business

    It is just as crucial, if not more so, to choose the appropriate payment gateway for your online store as it is to design the site itself. Customers expect having a pleasant experience; thus, having a payment gateway that annoys them while they are trying to check out might cause a significant increase in the number of carts that are not completed.

    You aren’t sure how to choose the payment gateway, are you?

    How Does Payment Gateway Function?

    Payment gateways make it possible to make transactions even when a physical credit card is not available, which is why they are an essential component of any e-commerce platform. (Companies like Stripe, Square, and CardPointe are examples of those)

    When a customer enters their credit card information for online payments, the gateway immediately establishes a safe, encrypted connection with the card-issuing bank. After that, the bank does a verification check and verifies the purchase. The ideal situation is one in which customers simply see a straightforward checkout form.

    1. Security Capabilities of the Payment Gateway:

    Encryption of data occurs when a user’s web browser reads and displays the data. When this occurs, the transaction details are sent from the gateway to the payment processor that is used by the gaining bank for the seller. But the security dimension is critical for a payment gateway. Why you ask? Because it needs to fulfill all the steps below for a secure transaction.

    Responding To The Inquiry:

    The payment request that pertains to the merchant and the client is sent to the payment gateway for authorization by the processor. After the portal has received this answer, it will then send it to the site or interface that will handle the processing of the payment.

    Checking The Delivery Address:

    The payment gateways conduct a comparison between the delivery address provided at the payment gateway and the one listed in the database.

    Checks using the AVS system:

    These are carried out by the payment gateway in the event of transactions using virtual cards. Checks using the Address Verification Service (AVS) are used in the fight against online fraud. When a user’s billing address and bank address do not match, the Automatic Verification System (AVS) will not work properly.

    Analysis Of Velocity Patterns:

    It is a method for detecting fraudulent activity that is used by payment gateways. The recurring transaction patterns are reviewed within a set period as part of the Velocity pattern analysis. This is done to either prevent the same patterns from occurring again or, if they do, warn the card’s owner.

    Tracking Geolocation:

    It is another function of payment gateways that enables you to monitor locations of transactions and report any that seem to be erroneous.

    2. Payment Methods Accepted:

    Do you think it would be beneficial for your company to accept cryptocurrencies? What about currencies that are used all around the world? How many different types of credit and debit cards do you want your customers to use to pay for their purchases at your store? Do most of your clients use electronic checks as a method of payment? What about gift cards and certificates? If your company operates based on subscriptions, having reliable recurring billing capabilities is going to be very crucial to you.

    Finding out which kinds of payments are required can help you choose the payment gateway that is most suitable for your website.

    3. Technical Capabilities for Integrations

    Certain web platforms interface with certain payment gateways in a more frictionless manner than others. The vast majority of online merchants whose preferred platform is WordPress, for example, use WooCommerce as the foundation for their online shop. For the card processors that are conducting the transactions on your cards, WooCommerce enables an open source to be used. This gives you the ability to compete for the best prices on your online purchases by bidding with several merchants. It’s possible that your company already makes use of accounting software that may be easily integrated with a certain payment gateway.

    4. User Experience

    The majority of clients these days choose to use mobile applications rather than desktop software. Therefore, it is important to choose the e-commerce payment gateway that performs admirably across both the mobile and the online interfaces.

    5. Accepted Throughout The World:

    While countries capitalize on the benefits of the global market, you should make sure that the payment gateway you use is compatible with businesses in other countries. Your customers might come from any part of the world. Therefore, you ought to make universal payments possible.

    6. Costs:

    The fiscal repercussions of your decision should be given almost equal weight to its technical implications. Before making a final choice, it is important to investigate all the potential routes (multiple gateways and varied service plans provided by a single provider), as this will help you choose the best option.

    Check to see that there aren’t any hidden costs or limits to the plan that might require you to spend more than you intended. Commission or transaction fees are often charged by most online payment gateways. In addition to this, there is a possibility that some may want a set-up charge besides a monthly or yearly membership price.

    Conclusion:

    If you are familiar with the requirements of your company, selecting the payment gateway and putting it into action won’t be nearly as challenging or expensive as you would think. You can have an instant and excellent influence on your client’s knowledge, just as you can have an immediate and positive effect on your revenue and productivity if you do it properly. Before deciding on the best payment gateway, all you need to do is do thorough research and consider the factors that have already been covered.

  • We Finally Know When Amazon’s Second Prime Day Event Is

    We Finally Know When Amazon’s Second Prime Day Event Is

    Details have emerged about Amazon’s rumored secondary Prime Day event, called Prime Early Access Sale.

    Amazon has been rumored to be planning a second Prime Day event for months. The company reportedly sent out notices to retailers, asking them to submit promotional deals no later than September.

    According to The Verge, Amazon has finally revealed details about the event, calling it Prime Early Access Sale. The Verge linked to an Amazon page, but the link is currently dead. It’s unclear if Amazon accidentally leaked the details early or if there are still changes to be made.

    Before the page went down, there didn’t seem to be much different between the normal Amazon Prime Day and Prime Early Access Sale, other than the name. According to The Verge, the event will run from Tuesday, October 11th at 3AM ET / 12AM PT through Wednesday, October 12th.