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Category: EcommerceTrends

EcommerceTrends

  • Postscript Raises $4.5 Million to Turbocharge Shopify SMS Marketing

    Postscript Raises $4.5 Million to Turbocharge Shopify SMS Marketing

    Postscript announced it has raised $4.5 million in seed funding to help bring turbocharged SMS marketing to Shopify and e-commerce stores.

    Postscript specializes in SMS marketing for e-commerce. The company’s goal is to help bring SMS marketing mainstream, while at the same time doing it in a way that respects users’ inboxes.

    The company has now raised $4.5 million to help it reach that goal. The investors include Y Combinator, Accomplice, 1984vc, and Ali Capital. Postscript also has the backing of some of the biggest entrepreneurial names in the e-commerce industry.

    “At Postscript, we obsess about supporting independent brands & e-commerce merchants and will always put their needs first,” said CEO Adam Turner. “Our approach to text messaging emphasizes brands build meaningful relationships with their customers by respecting the SMS inbox and encouraging two way communication. So far our competitive advantage has been our people and our product, and this funding will help us continue along that path. By operating remotely, we’re able to hire in any region, resulting in an extremely talented team dedicated to delivering a top-tier product and customer experience.”

    Postscript already claims Native, Brooklinen, StackCommerce, Frey, Oars + Alps and Olivers among its clients. The company also boasts 26x ROI with clickthrough rates ranging between 7.5% and 40%. Somewhat unique to the industry, Postscript guarantees a 4x ROI or they will refund a client’s investment — something they have not yet had to do.

    “The Postscript team has taken a product-first approach to a gigantic, fast-growing market, and the growth speaks for itself,” said angel investor Paul English, founder of Kayak. “They have outstanding founder/product/market fit, and I believe what they’re building will be an essential part of any e-commerce company’s marketing stack. I’m proud to support them in this round.”

  • Blockchain App Factory Develops Futuristic DeFi Exchange Platform

    Blockchain App Factory Develops Futuristic DeFi Exchange Platform

    Blockchain App Factory announced that it developed a deFi exchange platform that offers security, speed, and transparency for every exchange with the power of distributed ledger technology.

    One of the trends in the cryptocurrency and blockchain arena in 2021 has effectively shifted how all traditional financial services, including saving, trading, insurance, loans, and exchanges work is Decentralized Finance, providing services globally in a permissionless system built on the Blockchain infrastructure. One of the projects within this DeFi landscape is Decentralized Exchange platforms (DEX).

    Built with Smart Contracts and integrated with Cryptocurrency wallets, DeFi DEXs automatically match buyers and sellers and provide fast and safe transactions for the users. This accessible and straightforward approach to managing funds was well accepted among users and is drawing more crypto enthusiasts to such platforms.

    The product offers futuristic Defi exchange services like binance supported wallet, web3 browser extensions, coin swap protocol, tradability, and so on. The entire DeFi exchange is transparent, and the blocks allow to track every transaction. The unlimited trade option enables you to set the value for your purchase and alert you with a notification once the price hits the value. The trading view offers technical analysis to have a successful trading experience. Also, the user has the freedom to track successful trade wallets and the wallet of your interest.

    Customized Tokens are generated from each exchange that allows the user to stake and invest through yield farming protocols for revenue generation. The interchangeable tokens will enable the user to swap tokens across any platform for a low cost. The product reaches the market cap of $97,333,797, which is fully diluted in the pool with a volume of $6,669,128.

    The product’s liquidity pool supports a binance network, which allows for seamless trade options and stake tokens in the liquidity pool. The top exchanges are MXC.COM, Hoo, Uniswap (V2), Biloxi, and Hotbit. The protocol’s unique liquidity engine offers rewards to liquidity providers, and it is integrated with uniswap exchange. This product allows you to integrate third-party wallets of your interest.

  • SoftBank Announces Settlement With WeWork Founder Adam Neumann

    SoftBank Announces Settlement With WeWork Founder Adam Neumann

    SoftBank Group Corp. (“SoftBank”) today announced that it has entered into a settlement agreement with the Special Committee of the Board of Directors of WeWork Inc. (formerly referred to as The We Company) (“the Special Committee”) and WeWork’s founder, Adam Neumann. The terms of the settlement are confidential. When completed, the settlement agreement would resolve all claims brought in a lawsuit in the Delaware Court of Chancery, and is in the best interests of all parties.

    “This agreement is the result of all parties coming to the table for the sake of doing what is best for the future of WeWork. SoftBank and WeWork have spent the past year transforming the WeWork business and executing on our plan towards profitability. With this litigation behind us, we are fully focused on our mission to reimagine the workplace and continue to meet the growing demand for flexible space around the world.” — Marcelo Claure, Executive Chairman of WeWork, CEO of SoftBank Group International, and Corporate Officer, Executive Vice President and COO of SoftBank.

    The Wall Street Journal previously outlined the likely settlement:

    WeWork co-founder and former Chief Executive Adam Neumann is set to reap an extra $50 million windfall and other benefits as part of an agreement that would settle a bitter dispute he and other early investors in the shared-office-space provider have waged with SoftBank Group Corp., according to people familiar with the matter.

    As The Wall Street Journal reported earlier this week, the parties are closing in on a deal in which SoftBank, WeWork’s majority shareholder, would buy about $1.5 billion of stock from other investors, including nearly $500 million from Mr. Neumann. That is about half as much as it previously planned to buy.

    But part of the deal not previously reported sets Mr. Neumann apart from other shareholders. It calls for SoftBank to give the 41-year-old the $50 million special payout and extend by five years a $430 million loan it made to him in late 2019, the people said. SoftBank is also slated to pay $50 million for Mr. Neumann’s legal fees. It isn’t clear how much it is paying for the other shareholders’ legal fees.

  • Best Buy Lays Off 5,000 Employees, Will Shutter More Stores

    Best Buy Lays Off 5,000 Employees, Will Shutter More Stores

    Best Buy has laid off some 5,000 employees and plans to close additional stores as customers turn to online shopping.

    American customers have increasingly been turning to Amazon and online stores for their electronics needs, putting pressure on traditional, brick and mortar stores. With the pandemic further changing consumers’ shopping habits, traditional stores have been under even more pressure. Fry’s Electronics announced it was closing Wednesday, illustrating the growing challenges traditional businesses are facing.

    Best Buy, in contrast, has fared relatively well during the pandemic. Much of this is due to the company’s online sales. According to CNN Business, the company expects 40% of its sales to come from online purchases in 2021, as opposed to 19% two years ago. The company has also been relatively successful with its physical stores, although it expects in-store business to slow this year.

    As a result, Best Buy has laid off 5,000 staff, mostly full-time employees. The company is also raising the bar for evaluating whether to renew store leases. The company already closed 20 stores a year for the past couple of years, and expects that number to go up this year.

  • Five-Star Review? Maybe Not as Amazon Grapples With Fake Reviews Industry

    Five-Star Review? Maybe Not as Amazon Grapples With Fake Reviews Industry

    Amazon is grappling with an entire industry aimed at providing fake reviews and gaming the system, according to new research.

    Which? is a UK-based company that reviews products and services and helps consumers make educated choices. The company has investigated the state of Amazon reviews and found that fake reviews are being sold in bulk.

    Customers rely on Amazon reviews to make decisions about their purchases. Even when customers ultimately end up purchasing elsewhere, Amazon product reviews often still impact customers’ decisions. Unfortunately, many of those reviews may be fake, according to Which?.

    “More people are shopping online than ever before due to the coronavirus crisis – yet our latest research shows that Amazon is facing an uphill struggle against a relentless and widespread fake reviews industry geared towards misleading consumers,” Natalie Hitchins, Head of Home Products and Services at Which?, said.

    Some companies charge as little as £5 per review, while others charge more, up to £8,000 for 1,000 reviews. Many of the companies provided incentives and rewards programs, along with guidelines to help their armies of reviews avoid detection by Amazon.

    All the sites Which? signed up to gave advice for how to write reviews so as not to arouse Amazon’s suspicion, and in many cases had criteria for reviewers to meet to qualify for rewards. These included leaving reviews that were at least two sentences long, posting an accompanying image or video and not posting reviews until at least four days after receiving a product. Some sites also had no return policies – as returned products are monitored by Amazon and high return rates can affect the chance of an Amazon’s Choice endorsement.

    Which? is calling on regulators to take action against these kind of schemes, in the interest of protecting customers that rely on such reviews to make informed decisions. The company is also calling on tech firms, such as Google and Facebook, to crack down on these companies, as many of them use search and social media platforms to gain reviewers.

    “The regulator must crack down on bad actors and hold sites to account if they fail to keep their users safe. If it is unable to do so, the government must urgently strengthen online consumer protections,” Hitchins added.

    “Amazon, and other online platforms, must do more to proactively prevent fake reviews infiltrating their sites so that consumers can trust the integrity of their reviews.”

    It remains to be seen what, if any, action will be taken. in the meantime, savvy purchasers would do well to take Amazon’s reviews with a grain of salt.

  • Investors Urging Amazon to Stop Pressuring Workers On Unionization

    Investors Urging Amazon to Stop Pressuring Workers On Unionization

    Investors are reportedly urging Amazon to stop pressuring workers amid the first-ever vote on unionization by the company’s workers.

    Amazon is notoriously anti-union, even going so far as to hire Pinkerton detectives to monitor and impede unionization efforts. The company has also been accused of illegally firing individuals who supported organizing. Most recently, Amazon has made waves with employees, pressuring workers in Bessemer, Alabama to vote against unionization.

    According to The Financial Times, via Bloomberg, some of Amazon’s investors have had enough, urging the company to stop interfering with unionization efforts. The group is made up of more than 70 investors, collectively holding some $20 billion of the company’s shares. The comptrollers for the state of New York and New York City, BMO Global Asset Management, Sweden-based Folksam and Ohman Fonder, as well as the Church of England Pensions Board are just a few of the investors in question.

    “As these workers seek to organize with [the union] for health, safety, and protection, Amazon’s investors are watching,” New York City comptroller Scott Stringer said, according to the FT. “There is power in their unity and power in labour, and they have my full support as they fight for a safe, fair workplace.”

    The investor backlash is just the latest setback Amazon has faced, due to its dealings with employees. The company recently settled a case with the FTC over stealing some $62 million in tips from its Flex drivers. If the company doesn’t make some major changes, it will likely continue to face fallout and backlash from employees, lawmakers and investors alike.

  • Video: Amazon’s New Electric Vans Quietly Delivering

    Video: Amazon’s New Electric Vans Quietly Delivering

    Amazon has just launched their first electric Rivian delivery vans on the road in Los Angeles. Customers will begin seeing the custom electric delivery vehicles in up to 15 additional cities in 2021. The company plans to have a 10,000 electric delivery fleet operating on the road in the United States and Europe by 2022.

    “We’re loving the enthusiasm from customers so far—from the photos we see online to the car fans who stop our drivers for a first-hand look at the vehicle,” said Ross Rachey, Director of Amazon’s Global Fleet and Products. “From what we’ve seen, this is one of the fastest modern commercial electrification programs, and we’re incredibly proud of that.”

    Ross Rachey, Director of Amazon’s Global Fleet, outlines the company’s electric delivery plans:

    “We are reimagining sustainable delivery,” says Ross Rachey, Director of Amazon’s Global Fleet. “Climate change doesn’t allow us to sit back and be passive. We can’t wait. This vehicle went from sketch, to design, to on-road testing with customer deliveries in just over a year. And we’ll build on that momentum heading into full-scale production.”

    “Amazon made a commitment to be net-zero carbon by 2040,” notes Rachey. “Electrifying our fleet is going to help us get there. We’ve relied on Rivian’s automotive expertise. We’ve listened to our drivers. We’ve created something that’s at the leading edge of safety technology, that’s better for our drivers, better for the planet, and unlike anything that’s out on the road today. We’ve reset expectations for electric delivery vehicles. And we’re just getting started.”

    Amazon partnered with Rivian, leveraging its customizable skateboard platform to create a first-of-its-kind all-electric delivery vehicle. “Rivian’s purpose is to deliver products that the world didn’t already have, to redefine expectations through the application of technology and innovation,” said RJ Scaringe, Rivian Founder and CEO. “This milestone is one example of how Rivian and Amazon are working toward the world of 2040, and we hope it inspires other companies to fundamentally change the way that they operate.”

    The current fleet of vehicles was built at Rivian’s studio in Plymouth, Michigan, and can drive up to 150 miles on a single charge according to the company. Amazon has installed thousands of electric vehicle charging stations at its delivery stations across North America and Europe.

    Amazon explains it’s ambitious goals:

    Along with custom electric delivery vehicles, Amazon is exploring new technologies, alternative fuels, and delivery methods that deliver packages to customers in a more sustainable way. Amazon currently operates thousands of electric vehicles worldwide and is redesigning its delivery stations to service electric vehicles—ranging from the electrical design to the physical layout. Last year, Amazon delivered more than 20 million packages to customers in electric delivery vehicles across North America and Europe and will continue building on that momentum in 2021.

  • Amazon Goes Full-Court Press Against Alabama Warehouse Union Efforts

    Amazon Goes Full-Court Press Against Alabama Warehouse Union Efforts

    Amazon is pulling out all the stops in its efforts to dissuade Alabama warehouse workers from unionizing, even campaigning in the restroom.

    Workers at Amazon’s Bessemer, Alabama warehouse made headlines several weeks ago when the National Labor Relations Board (NLRB) scheduled a vote for workers to decide on unionization. Amazon is notoriously anti-union, even hiring Pinkerton detectives to monitor and thwart efforts. The company has been accused of illegally firing individuals who advocated for better working conditions and supported organizing.

    Amazon is not letting up its anti-union efforts, according to The Washington Post, putting so much pressure on employees ahead of the vote that some feel they’re being harassed. The company is even putting fliers on the inside of bathroom stall doors with the message: “Where will your dues go?”

    “They got right in your face when you’re using the stall,” said Darryl Richardson, a pro-union worker. Another pro-union worker, who remained anonymous due to fear of retaliation, said: “I feel like I’m getting harassed.”

    Amazon is already on thin ice when it comes to employee relations. The company just settled for nearly $62 million for stealing tips from Flex drivers. It’s not hard to imaging the company’s full-court press in Bessemer backfiring, driving more employees to vote in favor of unionization. Should the vote pass, it will likely be the first of many, serving as a template for workers around the country.

  • Jeff Bezos Stepping Down As CEO, Will Transition to Executive Chair

    Jeff Bezos Stepping Down As CEO, Will Transition to Executive Chair

    In a surprise announcement, Amazon has said CEO Jeff Bezos is stepping down and transitioning to the role of Executive Chair in Q3 ‘21.

    Jeff Bezos is the founder of Amazon and has been inextricably linked with the company ever since. He’s guided it from an online bookstore to the e-commerce and cloud computing behemoth it currently is. In turn, the company has helped drive Bezos’ personal worth, making him one of the richest people in the world, only eclipsed by Tesla’s Elon Musk in January 2021.

    After nearly three decades at the helm of Amazon, Bezos is taking a step back.

    “Amazon is what it is because of invention. We do crazy things together and then make them normal. We pioneered customer reviews, 1-Click, personalized recommendations, Prime’s insanely-fast shipping, Just Walk Out shopping, the Climate Pledge, Kindle, Alexa, marketplace, infrastructure cloud computing, Career Choice, and much more,” said Jeff Bezos, Amazon founder and CEO. “If you do it right, a few years after a surprising invention, the new thing has become normal. People yawn. That yawn is the greatest compliment an inventor can receive. When you look at our financial results, what you’re actually seeing are the long-run cumulative results of invention. Right now I see Amazon at its most inventive ever, making it an optimal time for this transition.”

    The company says Andy Jassy will become the new Chief Executive Officer.

    Given that Bezos owns aerospace company Blue Origin, as well as The Washington Post, he certainly has enough to keep him busy outside of Amazon. However, given his statement’s emphasis on surprising inventions, one can’t help but wonder if he will focus on his other businesses, or if he plans on a second act.

  • Amazon Stiffs Drivers $62 Million in Tips

    Amazon Stiffs Drivers $62 Million in Tips

    The Federal Trade Commission (FTC) has announced Amazon is settling to the tune of $61.7 million for tips it withheld from drivers.

    As part fo the Amazon Flex program, drivers were promised $18–25 per hour for making deliveries. In addition, ads recruiting Flex drivers routinely said: “You will receive 100% of the tips you earn while delivering with Amazon Flex.”

    Amazon also assured customers that any tips they gave would go straight to drivers. There’s only one problem: Amazon didn’t pay its drivers the tips from customers, pocketing nearly $62 million.

    “Rather than passing along 100 percent of customers’ tips to drivers, as it had promised to do, Amazon used the money itself,” said Daniel Kaufman, Acting Director of the FTC’s Bureau of Consumer Protection. “Our action today returns to drivers the tens of millions of dollars in tips that Amazon misappropriated, and requires Amazon to get drivers’ permission before changing its treatment of tips in the future.”

    “This theft did not go unnoticed by Amazon’s drivers, many of whom expressed anger and confusion to the company,” said FTC Commissioner Rohit Chopra. “But, rather than coming clean, Amazon took elaborate steps to mislead its drivers and conceal its theft, sending them canned responses that repeated the company’s lies. The complaint charges that Amazon executives chose not to alter the practice, instead viewing drivers’ complaints as a ‘PR risk,’ which they sought to contain through deception.”

    To make matters worse, in 2016, Amazon lowered the hourly rate they were paying drivers without notifying them. Instead, Amazon used the tips it had been withholding as a fund to maintain the $18-25 per hour rate, making drivers think they were receiving the same hourly rate.

    In essence, Amazon was ‘robbing Peter to pay Paul,’ stealing from drivers tips to cover for the fact that it had lowered drivers hourly rates without telling them. Amazon only stopped this behavior after it became aware of the FTC’s investigation in 2019.

    The $61.7 million settlement will be used by the FTC to compensate those drivers who were impacted. Amazon is also “prohibited from making any changes to how a driver’s tips are used as compensation without first obtaining the driver’s express informed consent.”

    For a company already accused of illegally firing workers for trying to organize unions, and using Pinkerton detectives to monitor workers and thwart unionization efforts, it’s little wonder that Amazon employees continue working to unionize.

    Amazon’s behavior in this matter is reprehensible, and represents a new low for corporate/worker relations.

  • Amazon Offers Support For President Biden’s Vaccination Plans

    Amazon Offers Support For President Biden’s Vaccination Plans

    Amazon has congratulated President Biden and Vice President Harris on their inauguration and offered its support in ramping up the vaccine rollout.

    One of President Biden’s biggest challenges will be significantly increase the pace of the country’s vaccination efforts. In an open letter, Amazon’s Dave Clark, CEO, Worldwide Consumer, made it clear the company is ready to assist.

    We have an agreement in place with a licensed third-party occupational health care provider to administer vaccines on-site at our Amazon facilities. We are prepared to move quickly once vaccines are available. Additionally, we are prepared to leverage our operations, information technology, and communications capabilities and expertise to assist your administration’s vaccination efforts. Our scale allows us to make a meaningful impact immediately in the fight against COVID-19, and we stand ready to assist you in this effort.

    Clark also makes the case that Amazon’s workers, many of whom are considered essential workers, should be among the first vaccinated.

    There is no word yet on whether the new administration will take Clack up on the offer, but it’s a safe bet no options are off the table.

  • Amazon Warehouse Workers Voting On Unionization

    Amazon Warehouse Workers Voting On Unionization

    Amazon warehouse workers are preparing to vote on whether to form the company’s first union.

    Amazon is famously opposed to its employees unionizing. The company has gone to extreme measures, even hiring Pinkerton detectives to monitor efforts. The National Labor Relations Board (NLRB) accused Amazon of threatening, suspending and terminating employees for trying to organize.

    It appears Amazon’s efforts have not been successful, however, as employees at the company’s warehouse in Bessemer, Alabama are moving forward with plans to vote on unionization. The NLRB has scheduled the vote for February 8 through March 29, and will involve approximately 6,000 employees.

    It remains to be seen if the vote will pass. If it does, however, it would be a big step forward for unionization efforts within one of the biggest companies in the US.

  • Consumer Groups Take Amazon to Task Over Prime Cancellation Process

    Consumer Groups Take Amazon to Task Over Prime Cancellation Process

    Amazon is coming under fire from consumer groups for how it handles Prime cancellation.

    Amazon Prime is a wildly popular service the online giant offers, providing expedited shipping, steaming services, ebooks, groceries, gaming and more. Given everything the service offers, it’s $119 per year fee is a good deal, especially compared to other streaming services.

    When customers do want to cancel, however, Amazon doesn’t make it easy, running them through multiple prompts and warnings. This has caught the attention of consumer groups in both the US and the EU, according to The Seattle Times.

    A Norwegian customer rights group has filed a legal complaint against Amazon, citing the company’s cancellation policy.

    “It should be as easy to end a subscription as it was to subscribe in the first place,” said Finn Lützow-Holm Myrstad, director of digital policy for the Norwegian Consumer Council. “This practice not only betrays the expectations and trust of consumers but breaches European law.”

    Groups in other EU countries have expressed support, sharing similar concerns. Even in the US, the Public Citizen consumer group has asked the Federal Trade Commission to investigate Amazon’s policy.

    “Amazon should treat customers with respect instead of trying to undermine their autonomy and fight their decisions,” said Burcu Kilic, Public Citizen’s director of digital rights program.

    It remains to be seen if regulators will do anything about Amazon’s Prime cancellation, but the scrutiny is further evidence of the increased pressure Big Tech is under.

  • Walmart, Target and Amazon Using AI to Dictate Return Policy

    Walmart, Target and Amazon Using AI to Dictate Return Policy

    Some of the biggest retailers are using artificial intelligence (AI) to help dictate their return policies.

    For many consumers, once they return an item they never give it another thought. For retailers, however, returns can represent a significant loss. There are a number of factors that can make it even worse, such as the size of item, shipping and shelf life.

    Walmart, Target and Amazon are turning to AI to help them optimize their return process. According to The Wall Street Journal, the retailers are using AI to determine when it is worth processing a return, versus letting the customer keep the product and issuing them a refund instead.

    Lorie Anderson of Vancouver, WA, tried to return makeup to Target, as well as batteries to Walmart. In both cases, the retailers told her to keep the items and still issued a refund.

    “They were inexpensive, and it wouldn’t make much financial sense to return them by mail,” Ms. Anderson, 38 years old, said. “It’s a hassle to pack up the box and drop it at the post office or UPS. This was one less thing I had to worry about.”

    Target even encourages customers to donate items they receive a refund for.

    AI has been making its way into a wide range of industries. This is merely the latest example of how it can be used to help companies make better decisions.

  • Amazon Delivers 1.5 Billion Products During Holiday Season

    Amazon Delivers 1.5 Billion Products During Holiday Season

    Amazon has reported a record-breaking holiday season, shipping some 1.5 billion products.

    Consumer purchasing has underwent major transformation as a result of the pandemic. Record numbers of individuals turned to online shopping to avoid crowds and practice social distancing.

    Amazon was one of the biggest beneficiaries of this transformation, as customers turned in droves to the online giant. The company delivered some 1.5 billion electronics, toys, home products, beauty and personal care products during the holidays.

    In addition, third-party sellers saw a 50% growth in sales, compared to 2019. Small and medium-sized businesses sold almost 1 billion products via Amazon.

    The company’s growth also resulted in hundreds of thousands of new jobs, with the company adding some 400,000 full and part-time jobs in 2020. The company also spent over “$2.5 billion in bonus pay to front-line workers,” as well as donated millions of items during the holiday season.

    “Amazonians around the world have truly shown what it means to be customer-centric and support our communities this year,” said Jeff Wilke, CEO Worldwide Consumer at Amazon. “When our customers—including healthcare workers on the front lines—most needed essential supplies, our teams and partners went above and beyond to stock and deliver those items. When it became clear that COVID-19 testing was going to be important, Amazonians across the company moved quickly to build our own testing capacity so we could help protect employees and deliver products to customers. And when customers needed a little extra holiday cheer, millions of employees and partners worked together to deliver more savings and holiday gifts than ever before. We couldn’t be prouder of, or more thankful for, our teams around the world.”

    Given the success of online shopping this year, and especially this holiday season, it’s a safe bet shopping is forever changed.

  • Kroger CEO: Customers That Engage Digitally Spend Twice As Much

    Kroger CEO: Customers That Engage Digitally Spend Twice As Much

    “Customers that engage with us from a digital standpoint also continue to enjoy coming into the store,” says Kroger CEO Rodney McMullen. “They also spend about twice as much with us. When you look at those things together I really feel optimistic about the future. We’re continuing to make progress on the things that matter on a seamless experience… digital, fresh, and friendly.”

    Rodney McMullen, CEO of Kroger, says that customers who engage digitally come in more often and spend twice as much on average as non-digital customers:

    Seamless Experience of Digital, Fresh, and Friendly

    Every day our associates are taking care of our customers. We’re continuing to make progress on the things that matter on a seamless experience… digital, fresh, and friendly. When you look at the things behind the numbers continuing strong trends. If you look at the things that we’re doing it sets us up well for the fourth quarter and sets us to continue to gain share in 2021 as well.

    One of the things that our customers are telling us is they’ve learned how to cook, they enjoy cooking, and they enjoy the time together as a family. Also, I think the economy continually will continue to be a little bit soft which will cause people to eat at home more as well. Both of those things will continue to provide support (for increased sales).

    Customers That Engage Digitally Spend Twice As Much

    Obviously, we’re anxious for the vaccine to get here and to get widespread use of it just like everyone else is. We were making great progress in gaining share even before COVID 19 started and we expect once things get back to normal we’ll be able to continue to gain share as well. We can’t wait until a vaccine gets out there and it gets widespread usage.

    I really believe our teams will continue to take care of our customers and the seamless experience will tie it all together. What we find are customers that engage with us from a digital standpoint also continue to enjoy coming into the store. They also spend about twice as much with us. When you look at those things together I really feel optimistic about the future.

    Kroger CEO Rodney McMullen: Customers That Engage Digitally Spend Twice As Much
  • Lookout Amazon: Walmart Using Stores to Speed Up Online Shipping

    Lookout Amazon: Walmart Using Stores to Speed Up Online Shipping

    Walmart is taking aim at one of Amazon’s biggest benefits, fast shipping, by using its stores to speed up delivery.

    Amazon Prime is one of the biggest advantages Amazon has, providing free two-day shipping on many products. Many of its competitors have struggled to match its ability to get products in customers’ hands so quickly.

    Walmart is preparing to just do that, however, with plans to use its stores to speed up delivery for online shoppers. The company’s decision comes amid one of the most unique holiday seasons, as many shoppers turn to online shopping as a result of COVID-19.

    The overall experience should be relatively seamless for most customers, while shipping times may be reduced to as little as same day.

    “While our customers won’t see a change in the app or a new service they need to select, they will notice that they aren’t finding themselves checking for shipping updates or sweating arrival times of gifts,” writes Tom Ward, Senior Vice President, Customer Product. “They simply notice their orders are arriving super-fast, even the same day, and maybe in a Walmart bag from a store rather than a Walmart box from Walmart.com.”

  • Amazon Using Pinkertons to Combat Unions, Spy on Workers

    Amazon Using Pinkertons to Combat Unions, Spy on Workers

    Amazon has a complicated relationship with its employees and the latest reports are not likely to help the situation.

    With an employee base closing in on 1.2 million, Amazon has been a source of reliable employment for many during the pandemic. At the same time, the company has often been criticized for its climate policies and for not doing enough to protect its workers from COVID.

    Now employees have another reason to be angry at the company, as a report from Motherboard shows the company has used Pinkerton detectives to counter unionization efforts, as well as monitor environmental and social groups.

    The documents show Amazon analysts closely monitor the labor and union-organizing activity of their workers throughout Europe, as well as environmentalist and social justice groups on Facebook and Instagram. They also indicate, and an Amazon spokesperson confirmed, that Amazon has hired Pinkerton operatives—from the notorious spy agency known for its union-busting activities—to gather intelligence on warehouse workers.

    At a time when Amazon is already under scrutiny, this latest revelation is not likely to do the company any favors.

  • Chipotle Set to Open Digital Kitchen, First Digital-Only Restaurant

    Chipotle Set to Open Digital Kitchen, First Digital-Only Restaurant

    Chipotle has announced its first digital-only restaurant, potentially disrupting the restaurant industry during one of its most challenging periods.

    One of the more controversial COVID mitigation measures has been curtailing restaurants and bars. Around the world, customers and establishments have protested, and in some cases defied, closure orders. In spite of the unpopularity of such moves, however, experts have continued to warn of the dangers of dining in. In fact, a new study by MIT Technology Review has labeled restaurants “covid hot spots.”

    Although not necessarily the focus, Chipotle seems to have the answer to COVID challenges as it prepares to debut Digital Kitchen, its first digital-only restaurant. The new concept will not have a dining room, or a front service line. Instead, guests will place their order in advance using the Chipotle app, Chipotle.com or third-party delivery options. Orders can be picked up via the restaurant lobby.

    “The Digital Kitchen incorporates innovative features that will complement our rapidly growing digital business, while delivering a convenient and frictionless experience for our guests,” said Curt Garner, Chief Technology Officer of Chipotle. “With digital sales tripling year over year last quarter, consumers are demanding more digital access than ever before so we’re constantly exploring new ways to enhance the experience for our guests.”

    Chipotle’s new restaurants will likely be a big hit and help the company expand in locations where full-sized restaurants are not feasible. In addition, it should help the company weather any future COVID crackdowns.

  • Google Brings Free Retail Listings to Google Search

    Google Brings Free Retail Listings to Google Search

    Google has announced that it is bringing free retail listings to the main Google Search results page.

    The move follows Google’s decision to primarily include free listings on the Google Shopping tab. According to Bill Ready President of Commerce, that move resulted in a significant uptick in engagement between customers and merchants. This would seem to indicate that people are having better success finding what they’re looking for.

    “Sellers of all sizes are benefitting from this incremental traffic, particularly small and medium-sized businesses,” writes Ready. “And we already see that these changes will help generate billions of dollars in sales for retailers and brands in the U.S., on an annual basis.

    “Now, we’re bringing free listings to the main Google Search results page in the U.S., helping shoppers choose the products and sellers that will serve them best, from the widest variety of options.”

    Given the impact the pandemic has had on the retail industry, this move will certainly help small and medium-sized businesses connect with more customers online.

  • Digital, Drive-Through, Delivery Powering McDonald’s

    Digital, Drive-Through, Delivery Powering McDonald’s

    “I know everyone wants to focus on the Travis Scott Meal and Spicy Chicken McNuggets which definitely contributed to the fantastic September that we had,” says McDonald’s USA President Joe Erlinger. “But the setup for this great quarter actually started much earlier in the year. Our drive-throughs have been getting faster at McDonald’s. We’ve made a lot of investments in digital and drive-through and delivery as well.”

    https://youtu.be/8K0lnarZ0oQ

    Joe Erlinger, President of McDonald’s USA, says that the Travis Scott Meal promotion is helping but their latest earnings results are actually powered by improvements in digital, drive-through, and delivery:

    Digital, Drive-Through and Delivery Powering McDonald’s

    I know everyone wants to focus on the Travis Scott Meal and Spicy Chicken McNuggets which definitely contributed to the fantastic September that we had. But the setup for this great quarter actually started much earlier in the year. Our drive-throughs have been getting faster at McDonald’s. We’ve made a lot of investments in digital and drive-through and delivery as well.

    Then really we made a lot of changes to our business model as the pandemic set upon us including over 50 changes in operations. We limited our menu and we’ve made our restaurants easier to run. At the same time, we conserved some of our marketing funds. We began to unleash those marketing funds in the third quarter. That’s what set up this great result of 4.6% double-digit comps in September.

    Breakfast Is BACK At McDonalds

    When we entered the pandemic we had reversed what was a long-term trend of negative guest counts. It’s been lost in the results of what happened in the epidemic. But in January and February, we actually had positive comps at breakfast and positive guest counts. It goes without saying that we don’t sell the Spicy McNuggets or the Travis Scott orders at breakfast and we’ve obviously seen positive comps across all dayparts.

    So we are actually very optimistic about the daypart. We’re excited about the bakery launch that’ll take place later this month. We’ve got a real built-in advantage on this because of our drive-throughs and just because of our overall convenience factor. I like the characterization that yes, breakfast is back at McDonald’s.

    Mood Amongst Franchisees Is Strong

    Franchisees did come into this in a position of absolute strength. In fact, 2019 was the highest cash flow year ever for our franchisees. Some of the steps that we took through the pandemic both to support them in terms of their liquidity but also to make the operations of the restaurant easier (helped significantly). We actually improved margins at the restaurant level as well.

    They’re actually coming out of the worst of the pandemic in a very good position and in a very strong financial position. The mood amongst our franchisees is strong. I was in restaurants uh in Washington state a few weeks ago. Last week I was actually in Washington DC. There’s a lot of optimism confidence as we enter the fourth quarter.

    Digital, Drive-Through, Delivery Powering McDonald’s