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Category: eCommNews

eCommNews

  • Walmart’s eCommerce is Booming, Sales Grow 33% in First Quarter

    Walmart’s eCommerce is Booming, Sales Grow 33% in First Quarter

    Walmart delivered on the online sales growth it hinted at after its less than stellar performance during the last holiday season. With its eCommerce sales seemingly ready to bounce back, the retail giant’s stocks traded higher on Thursday. Business analysts also believe that Walmart is in a position to take advantage of a cyclical boom that will hit discount retail in the next few years.

    Walmart recently reported its first quarter earnings and the numbers are positive. Earnings have reached $1.14 per share and on revenue of $122.69 billion. The numbers have exceeded estimates of $1.12 in EPS and $120.51 in profits. What’s more, profits are up 4.4 percent compared to last years. Same-store sales received a 2.1 percent boost, a bit ahead of Wall Street’s projection of 2 percent while WMT stock grew by almost 2 percent in pre-market trading on May 17.

    More importantly, online sales growth have increased to 33 percent this first quarter. It’s a massive improvement after falling 50 percent and 23 percent in the third and fourth quarter respectively. The numbers have undoubtedly caused investors to breathe a sigh of relief.

    Walmart’s Sam’s Club performed admirably in the first quarter, with the company reporting same-store sales boost of 3.8 percent and a commensurate 5.6 percent increase in traffic.

    International sales were also robust, rising up to 11.7 percent to $30.3 billion. It’s not so surprising though, as the company has been aggressively trying to stake claims on high-growth regions like China and India through acquisitions and partnerships. Just this month, Walmart revealed that it’s taking majority ownership of Flipkart, a leading eCommerce company in India.

    In a statement, Walmart CEO Doug McMillon said that the company has shown a solid start to the fiscal year and that they’re encouraged by the momentum Walmart has.

    “ We are changing from within to be faster and more digital, while shaping our portfolio of businesses for the future,” McMillon added.

    That’s clear from the improvements Walmart has been making. The company has recently revamped its website, acquired online brands like Bonobos and added known brands like Lord & Taylor. Walmart has also equipped more of its branches to handle grocery pickup for online orders and made changes to its app. The company is also using more sophisticated software to better manage their inventory. This has allowed Walmart to prevent stock shortages while also avoiding having a glut of merchandise in stores that could lead to a slow down of new stocks.

  • Square Acquires Weebly for $365 Million, Aims to Be a One-Stop Solution for eCommerce Businesses

    Square Acquires Weebly for $365 Million, Aims to Be a One-Stop Solution for eCommerce Businesses

    Digital payments company Square has announced plans to acquire Weebly for approximately $365 million in cash and stock. The purchase was in line with Square’s objective to provide a cohesive solution to entrepreneurs in running their businesses across all channels.

    Known for its payment software and hardware, Square has diversified its portfolio to include money transfer, business financing, and customer relationship management software. The company offers flexibility in selecting and integrating third-party solutions that include point of sale, accounting software, and other back-office applications. Weebly, on the other hand, provides an easy to use platform for building and hosting websites. Over the years, it has focused on catering to small businesses and online companies.  

    With the merger, a start-up company doesn’t have to shop around separately for applications, hardware, and platforms compatible with each other to have a presence online and offline. It is one of the challenges in setting up an eCommerce site, especially for those without the know-how to do so. In a statement, Square CEO Jack Dorsey pointed out that the strategic move aims “to bridge these channels, and we can go even further and faster together.”

    Square emphasizes the importance of an omnichannel experience in commerce. It simply means that sellers can reach out to potential customers through both digital and physical storefronts. From brand discovery and purchase to returns and exchanges, the seller can interact with the buyer in-store, online, or even in-app.

    “From managing orders, appointments, and payments to building a website, running a business is complex, and entrepreneurs around the world want powerful and intuitive tools,” Alyssa Henry of Square said. “Whether they’re an artist, a winemaker, or a hairdresser, with Square and Weebly sellers will have one cohesive solution to build their business.”

    David Rusenko, CEO of Weebly, agreed that entrepreneurs would benefit the most from the merger. He wrote, “Together, we will support you to build professional websites and powerful commerce experiences — whether online or in real life. This move reinforces our original mission: to help the world’s entrepreneurs succeed. As Square + Weebly, we’ll be able to help you in more powerful ways than ever before.”

    He also assured Weebly clients that no major changes are expected to happen. The transaction, however, will boost Square’s customer base and provide a steady revenue stream. With 40 percent of Weebly’s 625,000 paid subscribers based outside the US, the deal is set to expand Square’s global presence.  

    Until the deal is finalized in the second quarter of 2018 and cleared of regulatory hurdles, Weebly and Square will continue to operate separately.

    [Featured image via Weebly Twitter]

  • Amazon Now Delivers Right to Your Car Trunk, Covers Select US Cities

    Amazon Now Delivers Right to Your Car Trunk, Covers Select US Cities

    On Tuesday, Amazon launched another option for package delivery, not to your doorstep, but right to your car trunk. The latest feature is an iteration of its Amazon Key service that lets delivery drivers place parcels inside your home.  

    Similar to its in-home service, in-car delivery works by giving Amazon access to your vehicle via the Key app. Delivery people can now unlock your parked car and put the package in the trunk. With a few taps, the car can be locked again.

    This delivery service is less intrusive than the in-home option that received numerous complaints when it was introduced in November of last year. Shoppers feared that the service would let intruders into their homes, and others felt it was an infringement of their privacy. However, unlike deliveries made inside your home, in-car deliveries don’t require the installation of a camera and compatible smart lock, making it less secure. Customers will only get updates once the item is delivered and alerts when the car is unlocked and relocked through the Key app.

    Users might be wary of granting short, unrestricted access to their cars, but Amazon assures that the entire process is secure. There are several layers of verification, including an encrypted authentication process, before the car is unlocked. And to prevent unauthorized access, couriers are allowed to unlock vehicles only once for every delivery.

    On the day of delivery, customers get a four-hour window of time in which to receive their package. They have to park their cars within the two-block radius of the delivery address. In-car deliveries can only be made to stationary vehicles in open, street-level public spaces to locate them easily. Satellite signals are weaker in multi-level or underground parking garages and couriers can’t enter restricted gated spaces.  

    Few cars support door openings through an app or connected car services plan. For now, in-car delivery is limited to Chevrolet, Buick, GMC and Cadillac with active OnStar subscription, and Volvo with active On Call accounts. All vehicle models must 2015 or newer. But Amazon assured its members that the service will be expanded to include more car makes and models.

    In-car delivery is available for millions of items on the eCommerce platform. However, there are certain restrictions to this option, such as big boxes that won’t fit inside the trunk and high-value items that require a signature. And if your car gets damaged during delivery, Amazon will take care of it.  

    Amazon is currently delivering to 37 US cities but intends to cover more areas in the near future. According to Peter Larsen, Amazon’s delivery technology vice president, the Key service is “working as designed” and recorded fewer redeliveries of packages. Innovations like these, although controversial, are Amazon’s response to rising incidents of package theft as online shopping becomes increasingly popular.  

  • Walmart Competes Against Amazon for Flipkart Buy-In, $12 Billion Offered for Controlling Stake

    Walmart Competes Against Amazon for Flipkart Buy-In, $12 Billion Offered for Controlling Stake

    US companies Walmart and Amazon are competing to acquire a controlling stake in Flipkart, India’s leading eCommerce company. Walmart has completed an in-depth due diligence on its proposed majority ownership in the Indian firm. However, rival Amazon also wants to put in a bid and offers a ‘breakup fee’ of $1 billion to $2 billion, a penalty to be paid in case the deal fails to proceed.

    Unnamed sources revealed that Walmart is willing to pay $10 billion to $12 billion for a controlling stake of 51 percent or more, valuing Flipkart at roughly $20 billion. But the deal isn’t sealed yet because Amazon is reportedly interested as well.

    Insiders privy to the matter disclosed that Flipkart’s board recently discussed the competing proposals. They seem to agree that Walmart’s offer is better since the US retailer will face fewer regulatory hurdles. On the other hand, Amazon is considered as Flipkart’s primary competitor. It will face tighter scrutiny for possible monopoly since both companies control the majority of India’s online retail market.

    Founded by two former Amazon employees, Flipkart is taking on the eCommerce giant to have a piece of India’s expanding online retail market. According to Morgan Stanley estimates, eCommerce in the country is predicted to grow annually by 30 percent and will be worth $200 billion by 2026.

    Because of its vast potential, Amazon is investing heavily in the emerging market. The eCommerce giant has spent $5 billion for its India operations but is losing to homegrown startups like Flipkart that know the market well.

    Flipkart announced recent plans to construct a 4.5 million sq. ft. logistics facility in Southern India. This is significantly bigger than Amazon’s largest warehouse measuring 400,000-sq. ft. in the country. But the US online retailer also has 62 fulfillment centers and delivery stations located all over India.

    Walmart’s entry will give the startup its much-needed funds to compete head-on with Amazon. Flipkart will also benefit from the retailer’s unparalleled experience in logistics and supply chain management.

    The largest US retailer’s stake in Flipkart will depend on which of its shareholders are willing to sell. SoftBank, Tiger Global, and Naspers are just some of its largest investors. Insiders said that SoftBank prefers a deal with Amazon because of its success in online commerce. Tiger and Naspers will likely sell their holdings to Walmart for the right price, according to sources.

    As of writing, Walmart, Amazon, and Flipkart have declined to comment on the matter.

    [Featured image via Flipkart website]

  • Alibaba Acquires Food Delivery Service Ele.me for $9.5 Billion

    Alibaba Acquires Food Delivery Service Ele.me for $9.5 Billion

    Alibaba is set to gain full control of Ele.me as it revs up on its plan to have a stronger foothold in China’s burgeoning market for quick delivery services.

    A statement released by Alibaba hinted of an enterprise valuation for Ele.me pegged at $9.5 billion. However, the company has not given any exact figures on how much it’s paying for the startup. Alibaba Group Holding Ltd, its affiliate Ant Financial and Micro Financial Services Group Co. already have 43 percent of Ele.me’s voting shares. The online retail giant has reportedly paid for the deal in cash and has already acquired all of Baidu Inc.’s shares.

    Ele.me, which roughly translates to “hungry yet?” operates a multitude of delivery personnel on motorbikes all across the country. The company is known for its 30-minute delivery commitment to users. Ele.me is also fighting for top spot in the local delivery service industry against Meituan Dianping, a fellow startup backed by Tencent Holdings Ltd., a fierce rival of Alibaba.

    Delivery service is one of the fastest growing industries in China as more and more consumers are using their mobile devices to order food, purchase movie tickets, schedule beauty treatments or book hotel rooms. Capturing this market is also a strategic move for both Alibaba and Tencent as it also puts their payment services systems in the spotlight.

    The idea was mostly confirmed in an internal email sent by Daniel Zhang, Alibaba’s chief executive officer to his staff. In it, Zhang emphasized how “food delivery is the single most important entry point in the local services sector because its one of the most commonly used applications.”

    “We can already see that a vast, multi-dimensional local instant delivery network formed through a food delivery service will be an essential piece of the commerce infrastructure,” Zhang wrote.

    Alibaba’s acquisition of Ele.me is just the latest in a series of moves aimed to help the company deal with an increasingly competitive environment. The company is also taking over delivery partner Cainiao and has recently invested another $2 billion in the Lazada Group.

  • Walmart’s Got Robots Running Loose In Its Stores

    Walmart’s Got Robots Running Loose In Its Stores

    In a bid to improve its services, Walmart is currently testing automation in several of its stores across the country. The robots are designed to manage repetitive tasks and give the staff more time to focus on helping customers.

    The retail giant has deployed around 50 robots that scan shelves to check for mislabeled items, products with incorrect prices and out-of-stock goods. The collected data is then relayed to a cloud database. Workers can then check to see what products are running low and have to be restocked.

    The robots are developed and produced by Bossa Nova Robotics. Officials from the San Francisco-based company said it took them almost six years to develop the automated units’ shelf-scanning technology.

    According to Walmart’s management, the robots will free employees from repetitive and predictable tasks and give them more time to concentrate on giving their customers better service. Walmart says the project is still in its initial stages and the company is still gathering feedback from customers and colleagues on the robots’ performance and whether they get in the consumers’ way.

    The units are like self-driving vehicles and are typically used early in the morning. But the company is amenable to testing the robots at other times—like the midday and at night – when there are more customers in the store.

    The shelf-scanning robots are just the first in a series of changes Walmart appears to be considering. The company has already filed several patents on technology that they plan on using, including a wearable device that will track shoppers’ movements.

    Walmart isn’t the only company checking out what Bossa Nova Robotics’ machines can do. Three other major retailers have contracted the company to test its automation technology.

    The use of automation in retail has already been the topic of debates. Some consumers have raised questions on what the role of robots would be while others have concerns about how this will affect jobs. But there are also those who believe automation can make shopping trips easier.

    [Featured image via Walmart Canada]

  • Amazon Gets Patent for Delivery Drones with Gesture and Voice Recognition

    Amazon Gets Patent for Delivery Drones with Gesture and Voice Recognition

    Amazon has obtained approval on a new patent from the US Patent and Trademark Office for a delivery drone that can respond to human gestures and voices on Tuesday.

    The patent, filed in July 2016 and published recently, is in line with the company’s goal to maintain a fleet of unmanned aerial vehicles that will rapidly deliver packages in 30 minutes or less. Through visual cues, voice commands, and a person’s gestures, the drone can establish its flight path, release the package, or ask humans about the delivery.

    Patent illustration for Amazon drone

    The document included several illustrations of the design, one of which shows the delivery drone and a man outside his home. He was wildly flailing his arms in what Amazon called an “unwelcoming manner,” a gesture as if to shoo away the drone overhead. A blank voice bubble suggests possible voice commands for the drone.

    A diagram of the drone’s communication system includes speakers and microphones, as well as navigation components like depth sensors and cameras to detect visible, infrared, and ultraviolet light. Through its array of sensors, the delivery drone would recognize audible and visible gestures and react accordingly.

    The patent also detailed the steps a drone would take when it reads body language—thanks to its human gestures database—as it delivers the package. Once it’s clear to deliver, the drone releases the parcels from the air or lands on a certain spot to place the package. It would be able to verify the recipient’s identity via an app, speech recognition, or remote operator.

    Moreover, the delivery drone can add new movements to its database to improve the accuracy of its gesture-recognition system. “In some examples, when in the learning context, a human operator may interact with the UAV in order to ‘teach’ the UAV how to react given certain gestures, circumstances, and the like,” the patent stated.

    The eCommerce giant has declined to comment on the gesture-recognition concept, but this isn’t the first time that Amazon has applied for something this ambitious. Since announcing plans to design an air delivery service, the company filed patents for mobile flying warehouses by using airships and self-destructing drones.  

    [Featured image via Amazon]

  • eBay’s New AR Feature Makes Finding the Right Shipping Box a Lot Easier

    eBay’s New AR Feature Makes Finding the Right Shipping Box a Lot Easier

    eBay has now made it easier for sellers to ship their items by using augmented reality to pick the right USPS box, the company announced in a Monday press release.

    Using Google’s ARCore platform on Android, eBay leverages motion tracking and environmental recognition to help sellers superimpose virtual shipping boxes of various sizes over a physical product.

    Aside from accurate sizing, the new AR feature will help sellers quickly compute for actual shipping costs, as well as save time from having to test boxes at the post office.

    The new feature can be found in the “Selling” part of your eBay account. To try it, tap on “Will it Fit?” option on your smartphone. You’ll then have to place your item on a flat, non-reflective surface, say a wooden tabletop, for the AR to work.

    Next, tap on your item to place the virtual box over it, then aim the smartphone camera around it to map the surrounding area. You can move around the box and look from all angles to see if the product sticks out while adding room for padding. Once you’ve picked the box, you’re now ready to ship out the item.  

    Sellers on eBay ship billions of items annually, so any innovation that simplifies the shipping process will likely be well-received.

    “By coupling Google’s ARCore platform with premiere AR technology built at eBay, we are continuing to make the selling experience more seamless,” James Meeks, eBay mobile head, pointed out. “This technology is just one example of the types of innovation we’re working on to transform eBay. It demonstrates our continual innovation on behalf our sellers to help them save time and remove barriers.”

    However, the AR feature of the updated eBay app is currently only available on a few Android ARCore-compatible devices in the US. There are plans to eventually extend the feature to iOS devices, but no timetable has been set yet.

    [Featured image via eBay]

  • Google Introduces Shopping Actions to Help Online Retailers Take On Amazon

    Google Introduces Shopping Actions to Help Online Retailers Take On Amazon

    On Monday, Google announced a program called Shopping Actions to help retailers take on the eCommerce giant Amazon. Under the program, merchants are allowed to list their products across the search engine’s platforms—Google Search, Google Express shopping service, and Google Assistant on mobile devices and smart speakers like Google Home.

    The program gives consumers a universal shopping cart available on mobile, desktop, or voice-activated smart speakers. Features such as one-click re-ordering, personalized recommendations, and basket-building are expected to increase shopper loyalty and engagement. By linking your existing shopping account with Google, the feature will suggest other related products based on previous purchase history and browsing activities.

    Aside from a universal cart, customers can share their shopping list, or checkout instantly with saved payment credentials through the Google-hosted payment flow.

    In exchange for the sponsored listing and integration with loyalty programs, Google only gets a cut from every successful purchase, unlike its existing pay-per-click ads where businesses pay for exposure.

    Google’s move to help retailers compete against Amazon stemmed from the company’s observation of how millions of consumers sent image searches of products asking where to buy such items. In the last two years, this type of mobile searches surged by 85 percent. Daniel Alegre, Google’s president for retail and shopping, pointed out this trend in a recent interview with Reuters.

    And with most search results ending with an Amazon purchase, Google has found a way to help retail chains in keeping those customers.

    “We have taken a fundamentally different approach from the likes of Amazon because we see ourselves as an enabler of retail,” Alegre pointed out. “We see ourselves as part of a solution for retailers to be able to drive better transactions … and get closer to the consumer.”

    Based on early results of the Shopping Actions tool, merchants noticed that the average size of a customer’s shopping basket increased by 30 percent, pointing to a more convenient, seamless shopping experience. Ulta Beauty has seen its average order value jump by 35 percent after its partnership with Google. After partnering for six months, Target said that its Google Express baskets have expanded by almost 20 percent.

    Furthermore, retailers are eager to join the growing voice shopping market – the next step for eCommerce – currently dominated by Amazon’s Echo devices. Prior to Shopping Actions, retailers Target and Walmart have teamed up with the search giant to allow voice-based shopping through Google Assistant and integration with Google Express.

    Google has partnered with big retailers such as Target, Walmart, Costco, Ulta Beauty, and Home Depot for this program. Shopping Actions is available to any retailer in the US.

    [Featured image via Google]

  • Instagram Launches Shoppable Posts in 8 New Countries

    Instagram Launches Shoppable Posts in 8 New Countries

    Instagram is planning to increase its share in the eCommerce segment by expanding its shopping feature abroad. Previously available only in the US, the Facebook-owned photo and video sharing app now allows shoppable posts for businesses located in an additional eight countries.

    Instagram is expanding its shopping feature to other countries such as Australia, Brazil, Canada, Italy, France, Germany, Spain, and the United Kingdom. The feature was first tested in November of 2016 before it was introduced to US users of the app last year.

    Shoppable organic posts allow businesses to add eCommerce links to their social media posts. This makes it easier for brands to drive additional traffic to their eCommerce sites.

    The shopping feature acts as a shop window that allows users to explore products. Tapping on a post will display the product’s price as well as a link which brings Instagram users to the product page within the platform. The post shows additional product details as well as similar products and other items being offered by the brand. If the user is interested, they can then click on the “Shop Now” button which redirects them to the actual eCommerce site of the brand.

    The shopping feature’s international expansion can add more revenue to the app and increase the company’s share in the global eCommerce segment. Instagram noted an increase in eCommerce activity on the platform with more than 200 million users visiting at least one Instagram business profile daily. The feature was designed to entice users who love to shop as it noted that about half of its US-based active users follow a shopping business account.

    Given the feature’s popularity among Instagram users, many online stores could see a significant boost to their bottom line by adding it to their marketing strategy. According to Lulus Vice President of Marketing Noelle Sandler, their website traffic from the platform increased by 44 percent since shoppable organic posts were introduced last year.

    [Featured image via Pixabay]

  • Alibaba Invests Additional $2 Billion in Lazada, Seeks to Dominate SE Asia eCommerce Market

    Alibaba Invests Additional $2 Billion in Lazada, Seeks to Dominate SE Asia eCommerce Market

    Chinese eCommerce giant Alibaba announced Monday that it would be investing an extra $2 billion in Lazada as part of the company’s continued expansion in Southeast Asia.

    Alibaba gained control of the Singapore-based company way back in 2016 with an initial investment of $1 billion. Jack Ma’s company further strengthened its hold on the online retailer last year when it poured in another billion dollars of investment. With it, Alibaba’s stakes in Lazada increased from 51 percent to 83 percent.

    Taking into account the recent announcement, Alibaba has already invested a total of $4 billion on Lazada. The online retailer conducts operations in Indonesia, Malaysia, Singapore, Thailand, the Philippines, and Vietnam.

    Along with the investment came news of some major changes in Lazada’s organization. Lucy Peng, Lazada’s current chairwoman and Alibaba co-founder, will be taking over as CEO from current chief Maximilian Bittner. Meanwhile, Bittner will be taking on a senior advisory post to help in the transition. He will also be assisting in developing strategies for the company’s future international growth.

    Alibaba’s move is not surprising, as Southeast Asia is fast becoming a very profitable market for eCommerce businesses now that millions of Internet users have discovered the joys of online shopping.

    Peng knows this too well, saying in a statement that due to the “young population, high mobile penetration and just 3 percent of the region’s retail sales currently conducted online,” Alibaba is extremely confident in its decision to double down on the region.

    “Lazada is well-positioned for the next phase of development of Internet-enabled commerce in this region, and we are excited about the incredible opportunities for supercharged growth,” Peng added.

    The region’s online economy is expected to grow by as much as $200 billion by 2025, with this growth largely driven by eCommerce.

    Other companies are also trying to get a piece of the eCommerce pie. Last year, Amazon launched Prime Now in Singapore and introduced its same-day express delivery system to the country.

    [Featured image via Alibaba]

  • GDPR Takes Effect in May, Is Your Business Ready?

    GDPR Takes Effect in May, Is Your Business Ready?

    A major change is on the business horizon. The General Data Protection Regulation (GDPR) will be in effect on May 25, 2018, bringing with it major changes to data protection laws. The question now is whether your company is ready for it.

    How it Affects US-Based Businesses

    Europe’s GDPR is designed to consolidate and bolster data protection for people within the European Union (EU). It’s easy to assume that the new regulation will only affect EU-based businesses and multinational companies and not American companies that do not have any direct operations in the EU. However, that’s not the case. US companies with a web presence and which markets their services and products on the internet would have to comply with the rules of the GDPR.

    This is due to the geographic reach of GDPR. Article 3 of the new data protection law states that any company that collects behavioral data or personal information from any individual in an EU member country is mandated to follow the requirements of the GDPR. However, this doesn’t apply to EU citizens who are outside of the region when data was collected.

    The kind of marketing US businesses conduct will also be under a microscope. Generic marketing is safe. For instance, it’s not a violation when a German user comes across a US company’s English-language website. But when said company specifically collects data by marketing in that country’s native language and there are references to EU users, then GDPR rules apply.

    US companies would also have to adjust their interactions and online marketing forms in order to secure explicit consent from the consumer. According to the GDPR, user consent has to be “freely given, specific, informed, and unambiguous.”

    How Companies Can Get Ready for GDPR

    Despite the GDPR being ratified by the European Parliament in 2016, many companies are still unprepared for this new law. A Forrester report revealed that a mere 15 percent of B2B marketers are GDPR compliant while 18 percent are still at a loss on what to do.

    Luckily, there are things you can do to get your company ready to comply with the GDPR.

    • Get Familiar With Your Data Sources: You’ll be able to comply more easily with the new data protection rules if you know what kind of information you have and where to access it.
    • Make a Plan for Managing Old Data: Come up with a way to handle data that’s no longer relevant or required. Archiving is not a good idea because it will remain vulnerable to data breach. It should be purged via a secure method instead. Processes should also be put in place to prevent accumulation of out-of-date information.
    • Categorize Information: Not all data are created equal. Categorizing information based on its relevance and value will minimize the threat of security breaches.
    • Hire a Data Protection Officer: A company with more than 250 personnel should hire a data protection officer. He or she will be the key resource person for all activities and concerns revolving around data protection.
    • Train Your people: Have your personnel undergo training so that they understand what the new regulations are, the procedures and policies and how it will affect them and the company.

    Watch the video below to gain more insight.

  • Alibaba CEO Jack Ma Makes Multi-Million Dollar Investment in ‘Rent the Runway’ Fashion Business

    Alibaba CEO Jack Ma Makes Multi-Million Dollar Investment in ‘Rent the Runway’ Fashion Business

    It seems that Chinese billionaire investor Jack Ma is planning to expand his business interests to include women’s fashion. Mr. Ma and his Alibaba co-founder Joseph Tsai, are now eyeing a stake in Rent the Runway, a New York-based designer clothing rental for women.

    Jack Ma and Joe Tsai, through Blue Pool Capital, will inject $20 million in fresh capital into Rent the Runway based on details on a filing uncovered by research firm Lagniappe Labs. Blue Pool Capital is a multi-billion dollar fund tasked with investing the wealth of Ma, Tsai and other Alibaba executives.

    With the additional capital, Rent the Runway is now valued at a little under $800 million. During the company’s previous fundraising activity, it was valued at $750 million after it was able to secure $60 million in Series E investment led by Fidelity back in 2016. The latest deal with Blue Pool will carry the same terms as the Series E deal.

    Rent the Runway was established in 2019 by Harvard Business School students Jennifer Fleiss and Jennifer Hyman. It was previously a purely online-based service business that allowed women to rent designer dresses for special occasions rather than spending a substantial amount to buy them.

    The business idea became a hit and, veering from its pure eCommerce model, Rent the Runway soon opened up retail locations in major US cities like Chicago, Los Angeles, New York City, San Francisco and Washington DC. Now, the company rents other high-end accessories such as handbags and jewelry.

    Aside from rental earnings and such, Rent the Runway’s revenue is now boosted by sales in lingerie, cosmetics, shapewear, and tights. In addition, the company introduced a subscription model where clients can rent a rotating closet assuring a wider variety of clothing options even for everyday wear.

    It is still unclear if Ma and Tsai plan to eventually acquire Rent the Runway. According to Jennifer Hyman, Rent the Runway co-founder and CEO, the deal is “good for us whether we IPO, or we sell the business, or we stay private.”

    [Featured image via YouTube]

  • PayPal Files Patent That Could Expedite Cryptocurrency Transactions

    PayPal Files Patent That Could Expedite Cryptocurrency Transactions

    PayPal filed a patent last week that revealed that it is considering speeding up its cryptocurrency transactions. Based on the recently released application, the payments processing company came up with a new system for faster trades involving digital currencies like Bitcoin and Litecoin, among others.

    In PayPal’s filing with the US Patent and Trademark Office, the application was for an “expedited virtual currency transaction system.”

    Virtual currencies, such as Bitcoin, have dramatically transformed fund transfer and payment because of minimal processing fees, unlike exorbitant charges collected by financial institutions for international wire transfers.

    Without a central repository for these cryptocurrencies, transactions involving Bitcoin have to be confirmed first before being processed. Because of the time delay, users often select another payment method to proceed with the transaction instead. This has been a consistent problem that has plagued Bitcoin and other virtual currencies.

    In its March 1 filing, PayPal said, “In many transaction situations, a 10-minute wait time will be too long for payers and/or payees, and those payers and/or payees will instead choose to perform the transaction using traditional payment methods rather than virtual currency.”

    “Issues like this have slowed the adoption of virtual currencies despite their advantages. Thus, there is a need for an expedited virtual currency transaction system,” PayPal stated in its application.

    PayPal’s patent explains the creation of several secondary wallets with their respective private keys corresponding to “predefined amounts” transferred from the first user’s primary wallet. Fund transfer will be faster since the second user receives the secondary wallet’s private keys with the pre-set value equivalent to the transaction amount.

    PayPal has always been optimistic about cryptocurrencies. Two years ago, the global payments giant filed a patent for a platform that would accept the decentralized virtual currencies. In the February 2018 interview with The Wall Street Journal, PayPal’s CFO John Rainey remained upbeat on cryptocurrencies’ acceptability as a payment method.

    “The technology, there is real merit to it. I do think, though, it will be years down the road before we see the kind of ubiquity and acceptance that make it a form of currency that is used every day,” Rainey told WSJ.

    [Featured image via PayPal]

  • Amazon Reportedly Wants to Venture into Banking

    Amazon Reportedly Wants to Venture into Banking

    In its bid to strengthen its relationship with its millions of existing customers, eCommerce giant Amazon is carefully considering a foray into the highly regulated banking industry. While The Wall Street Journal reported the initial talks between Amazon and financial services firms that include JPMorgan Chase and Capital One, the online store remained mum on such speculations.

    A report by WSJ revealed that discussions are still in the early stages and mentioned that Amazon would be offering checking accounts to its wide customer base. This could prove to be a good move for the online shopping platform where millions of subscribers purchase a bevy of products, rivaling that of brick-and-mortar retailers. With the Amazon-labeled checking account, payment will be easier and more affordable, sans the bank processing fees.

    Experts, on the other hand, are unfazed by the news, citing Walmart as an example of how strict banking regulations foiled the retailer’s plan to establish its own bank. Obtaining a bank charter is no walk in the park—something that Walmart discovered early on as industry players opposed the retailer’s deposit-taking initiatives.

    Given Walmart’s experience, Amazon’s proposed partnership with financial firms to tap into the unbanked segment of its customer base barely spooked the markets. The market response, however, is a good indicator that the online retailer will likely work with large banks, instead of going head-on against them.

    It isn’t the first time that the online retailer teamed up with banks to roll out financial services for its customers and suppliers alike. Amazon had already launched a Visa-powered Prime rewards credit card in partnership with JPMorgan Chase. Moreover, the eCommerce platform has an Amazon.com Store card issued by Synchrony Bank, the financial services arm of General Electric divested in 2015.

    However, Amazon’s entry into financial services doesn’t end with its credit cards and checking accounts. According to a CNBC report, the eCommerce giant has been offering loans to its sellers through an invitation-only program to assist them in expanding their operations. A quick look at Amazon’s annual report filed on the SEC website revealed that sellers receivables amounted to $692 million as of end-2017, slightly higher than prior year’s $661 million.

    [Featured image via Amazon]

  • Top 5 KPIs That Will Keep Your eCommerce Business on Track for Success

    Top 5 KPIs That Will Keep Your eCommerce Business on Track for Success

    Running an eCommerce business is no walk in the park. Most of the time, things change so quickly that it’s difficult to keep track of what’s working for your business and what isn’t. What’s more, the tasks you have to do on a daily basis could make you lose sight of your long-term goals. This is why it’s important to have a few KPIs in place.

    Why KPIs Matter

    A KPI, or key performance indicator, is a determinable measure that a company uses to gauge how well it has met strategic and operational goals.

    Businesses use different KPIs based on their priorities and the performance criteria they set for themselves. The type of KPIs used depends on the company and its goals. Businesses can use as many KPIs as they deem necessary but most use four to ten KPIs. These are enough to provide them with the measurable data they need to assess their objectives, check their strategies, and make the necessary adjustments.

    KPIs are crucial to the success of a business. These indicators aid companies in focusing on their goals and ensuring these remain aligned within the business. Targeting these goals will help a company stay on track and work on projects and strategies that will aid them in hitting their targets faster.

    Top 5 KPIs for Your Business

    The challenge with KPIs is to determine which metric is best for your brand. For eCommerce businesses, the following are the ones that will give you a greater chance of success:

    1. Conversion Rate

    Conversion rate is simply the percentage of visitors to your site who made a purchase. This is determined by taking the total number of customers who bought something and divide it by the total number of guests on the site.

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    It’s easy to see why brands use this key KPI, as a good conversion indicates people are buying your product. In cases when conversion rates are poor, companies can take the necessary steps to correct it. For instance, they can improve how products are presented by using either visually appealing images or heartwarming text. Using videos and streamlining the checkout process also helps improve conversion rates.

    2. Average Order Value (AOV)

    As the name indicates, this is the average amount a client spends on an order. It’s calculated by taking the total amount of all purchases and dividing it by the number of orders.

    A high AOV means that you are making more profit per client. Of course, companies want to boost their AOV. They can do so by carefully examining their client’s shopping behavior and finding ways to push more products or offers that are relevant to them. A lot of brands are doing this by showing “related items” on the checkout page that are based on the shopper’s browsing or buying history.

    3. Repeat Customer Rate (RCR)

    RCR is the percent of customers who return to the site and make additional purchases. This is computed by taking the total number of customers in a given time frame (ex. March 2018) and dividing it by the number of clients who return and made another purchase within a specific duration (ex. 30 days).

    Companies love repeat customers and they encourage this by providing great customer service, doing email marketing campaigns and using loyalty programs.

    4. Cart Abandonment Rate

    This term refers to when visitors place items in their cart but then leaves the site without finishing the purchase. It’s vital for companies to track cart abandonment rate since it will enable them to understand what changes they can make to push customers to finally make a purchase.

    Image result for cart abandonment rate rate

    Brands can experiment with different ways to forestall cart abandonment. Some have streamlined the purchasing process to encourage people to complete their transaction. Others have changed the placement of security seals to prove to customers that their personal data is secured.

    5. Website Traffic

    This is probably one of the most important metrics used. It indicates all the visitors to your website. The type of traffic you get to your site is a good indication of how many new customers you have and how much sales you made. Website traffic is determined by simply adding all those who visited your site from every available source, whether it’s organic, social, direct or through referrals and email.

    Marketers have a number of ways of improving traffic, like content marketing, emailing existing customers, and word of mouth. Companies who are willing to invest can also boost traffic via paid campaigns like display ads and print ads.

    KPIs are crucial if you want to monitor how your business is performing and to see what improvements can still be made. However, make sure you spend the time to choose the right metrics to use.  

  • How Your Business Can Identify and Capitalize on Micro-Moments

    How Your Business Can Identify and Capitalize on Micro-Moments

    There’s no question that smartphones have become a ubiquitous part of our daily lives. Studies have shown that 46% of Americans reach for their phones first thing in the morning, while 91% of people automatically reach for a mobile device to check on something when doing a task.

    This reliance on smartphones has become so pervasive that many industries are putting more effort into targeting mobile users than those on conventional devices like a desktop. It’s a smart move since turning even a small segment of these users into customers can yield huge profits. An effective way for companies to profit from this group is to take advantage of “micro-moments.”

    What are Micro-Moments?

    Google coined the term “micro-moments” in 2015 to identify the exact points in time that lead to a consumer finally making a purchase. The company described these moments as “critical touch points within today’s customer journey, and when added together, they ultimately determine how a journey ends.”

    Essentially, these are the critical points where someone takes to their device (which is most often a smartphone) and takes steps regarding a need. It’s the intersection of what a customer wants and needs at the moment and what they know.

    Google has determined four key moments based on the consumer: “I want to do,” “I want to know,” “I want to buy” and “I want to go.” Most decisions made by shoppers can be traced to one of those four moments. For instance, a shopper who’s headed to Turkey would research on what to “do” in that country. A travel agency can come up with a promo that will arrange a trip to Istanbul’s famous Blue Mosque.

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    [Graphic via Think with Google]

    How to Capitalize on Micro-Moments

    Now that the importance of micro-moments have been established and their constant evolution noted, companies have to think about how they can use these instances to their advantage. Here are some things to consider if you want to catch that perfect micro-moment with a customer:

    1. Put Your Business Profile Out There

    It pays to ensure that your business profile is accurate and completely filled out on Google, particularly if you have a physical storefront. There has been an increase in “near me” or “right here” searches, as more users are looking for a place to go for a certain activity. Getting your business profile up will help with micro-moments where a customer wants to “do” something or “go” somewhere. Google’s Local Guides program assists users in verifying if your profile information is accurate.

    2. Flaunt Your Value With Original and Significant Content

    The need to know is one micro-moment that could hit you several times a day. This is why people are always looking for content on eCommerce sites. Having unique and relevant content is a great way to introduce your business to shoppers who are searching for information on either a particular product or on something that has captured their interest. Regardless of whether it’s a short how-to video or some DIY tips, make sure to flaunt your value by offering good content that appeals at the moment.

    3. Speed is of the Essence

    Speed is key if you want to use micro-moments to your advantage. When asked, almost half of customers admit that they will leave a website if it’s unresponsive or takes too long to load. People also don’t like having to go through different windows or steps just to get information. Optimizing your site for mobile devices and streamlining your buying process is a good way to entice consumers to go to your page and stay.

    4. Improve User Interface

    Another area that brands should focus on is how the user experiences their website and content. When a potential customer goes to your site or a specific page, what will they see? Will they be able to find what they’re looking for quickly or are they going to spend time wading through redundant information?

    Aside from ensuring that information is accessed quickly, transactions should also be simplified. Complicated checkout pages or a cart that requires several clicks in order to finish a purchase will turn consumers off. There should also be fewer distractions on the checkout pages, especially those on mobile devices, as these further cut down the odds of conversions. The goal is to make shopping quick, fun, and simple.

    Companies have to be ready to take advantage of micro-moments. This means that business has to do some forward thinking to anticipate what their customers would need. Changes may also need to be made to ensure that websites are optimized for mobile.  

    [Featured image via ThinkWithGoogle]

  • Walmart Builds Giant Private Cloud to Take on Amazon

    Walmart Builds Giant Private Cloud to Take on Amazon

    Walmart knows that to win big, it has to bet big as well. In its multibillion-dollar battle against online retailer rival Amazon, brick-and-mortar giant Walmart made a big bet in upgrading the technology behind is operations which include putting up with the world biggest private cloud. And it seems to be paying off.

    In order to effectively compete against Amazon on its turf, Walmart made multi-million dollar investments in cloud computing putting up six giant server farms which took nearly five years to complete, obviously mimicking its rival’s model. But the bold move worked. For the past three quarters, online sales have continued to surge. In fact, the company’s online revenue surged by 50 percent year-over-year during the third quarter of 2017, its strongest quarterly growth since 2009.

    Being the world’s largest brick and mortar retailer, Walmart is a relatively new entrant to the eCommerce segment. At the moment, its 3.6 percent market share of the U.S. eCommerce pie is significantly smaller than Amazon’s 43.5 percent share. Obviously, it has a lot of catching up to do and that includes in the cloud computing arena.

    “The battle between Walmart and Amazon has been playing out on all fronts and the cloud is the latest frontier,” Rubikloud Technologies CEO Kerry Liu explained. His firm specializes in artificial intelligence technology services to retailers.

    Walmart’s decision to build its own private cloud has helped it maintain its competitiveness against Amazon in terms of pricing. In addition, the tech upgrades also enabled the company to exert a tighter control on key functions such as inventory and even streamlining its services.

    “It has made a big difference to how fast we can grow our eCommerce business,” Walmart’s head of cloud operations Tim Kimmet confirmed. Of course, maintaining its own private cloud is critical to any company engaged in retail, an industry that is currently in a constant state of flux where data-based decisions are ever more important to take advantage of emerging shopping trends.

    The battle between the two titans is bound to get even more exciting in the future. While Walmart has utilized its private could to help grow its eCommerce business, odds are it may use it to do more.

    In fact, there are predictions that Walmart may have plans on going beyond retail. With a massive cloud infrastructure in place, does the brick-and-mortar retailer plan on directly challenging Amazon’s cloud computing business as well?

    [Featured image via Walmart]

  • eBay Plans to Add AR Features to Enhance Shopping Experience

    eBay Plans to Add AR Features to Enhance Shopping Experience

    eBay is on a quest to make shopping more interactive and enjoyable by incorporating augmented reality into the buying process. The company has even tapped the services of expert data scientist Jan Pedersen to ensure that they’re on the right track.

    In a bid to provide their clients with a better shopping experience, eBay is reportedly developing an augmented reality kit that will help customers see the product better and make shopping more dynamic. For instance, the AR kit can help drivers check how a particular tire design will look on their vehicles. It could also assist women to look at a dress or an appliance with a more critical eye. Shoppers can also use the kit to check what size box they will need for their purchases.

    eBay is currently on a roll, with a holiday quarter that saw a 10 percent increase in its merchandise volume of $24.4 billion. The season also saw around 170 million shoppers using the platform. The company wants to continue that success and is seeking to convince investors that they can also go up against a giant like Amazon. Jeff Bezos’ company is currently dominating the market with its same-day delivery system.

    Amazon might be the king of logistics, but as eBay CEO Devin Wenig told investors at a recent technology conference, it’s not the only thing that’s important. According to Wenig, price and inventory are also critical.

    eBay is known for offering one-of-a-kind products at affordable prices, but the company is also looking to improve its inventory. To that end, it is planning to add more clothing and home products to attract women and young consumers. At the moment, the retail giant’s base is geared towards older men.

    Mohan Patt, the company’s vice president of buyer experiences, revealed that eBay is pushing to maintain its growth and is looking to enhance its artificial intelligence to further improve what customers will be offered. The company aims to expand its reach beyond shoppers who already know what they’re looking for to people who are browsing the different product categories, seeking inspiration.

    This is where artificial intelligence and date will come in. According to Patt, this personalization will be the key to getting consumers to purchase items they didn’t know they wanted.

    To ensure that the company’s vision for customization and a more engaging shopping experience goes off without a hitch, eBay has engaged the services of Jan Pedersen. The renowned data scientist will be at the helm of the eCommerce leader’s AI endeavors.

    Wenig describes Pedersen as “a true pioneer” and said he joins the company at a crucial time when AI is “capable of transforming personalized, immersive shopping experiences.”

    Pedersen and his team will be responsible for developing eBay’s strategy and technology that will be used to better interact with customers.

    [Featured image via eBay]

  • Instacart Gets Ready to Take on Amazon, Grocery Delivery Service Raises $200M

    Instacart Gets Ready to Take on Amazon, Grocery Delivery Service Raises $200M

    A new player may soon challenge Amazon’s hold on the grocery delivery business. San Francisco-based Instacart has recently beefed up its war chest with another infusion of funds from its latest round of financing activity.

    Instacart reportedly raised $200 million in a fundraising campaign led by investment firms Coatue Management and Glade Brook Capital Partners. The company, which is known for its grocery delivery service, is now valued at $4.2 billion, a sharp rise from its March 2017 valuation of $3.4 billion.

    With the recent capital infusion, Instacart has now received a total of almost $900 million in funding from investors which include big names in the financial market such as Andreessen Horowitz and Sequoia Capital. However, one big investor that failed to participate in the company’s latest financing round is Whole Foods.

    Whole Foods is one of Instacart’s big shareholders and major partners. However, since it was acquired by Amazon in June of 2017, its relationship with Instacart can only be described as complex as they will now essentially be competitors in the same market.

    Just last week, Amazon commenced testing on a two-hour delivery service of groceries purchased from Whole Foods. The service will be available to Amazon Prime members and will initially be available in the Austin, Cincinnati, Dallas and Virginia Beach areas. However, the company plans to expand the service coverage for the entire continental U.S. before the end of 2018.

    Despite its relatively small size, Instacart is confident that it will be able to compete with Amazon by forming alliances with more grocery stores. In fact, co-founder and CEO Apoorva Mehta announced big plans for the raised capital, which includes expansion outside the U.S. and Canadian markets as well as the addition of new businesses beyond delivery.

    [Featured Image via Instacart]

  • How to Optimize Checkout Flow in Your eCommerce Store

    How to Optimize Checkout Flow in Your eCommerce Store

    It’s a sad truth that a lot of eCommerce stores don’t put too much thought or effort into their checkout page, leading to cart abandonment. However, making a few changes and optimizing the checkout flow can do wonders for your store.

    What’s the Deal With Checkout?

    Most online stores tend to focus on their home page and product pages. It’s easy to understand why since the goal is to catch and hold the customer’s attention. But what eCommerce businesses should remember is that the checkout process is also essential and has to be given proper consideration.

    Consider this—research firm Statista determined that at the end of 2017, nearly 70% of shopping carts worldwide were abandoned. What’s worrying is that the rate of shopping cart abandonment has remained relatively high for the past decade.

    The data also suggests that most established eCommerce businesses that garner over 100, 000 visitors per month would likely see and an astronomical boost in revenue if their conversion rate went up by even 1%.

    Online shopping cart abandonment rate worldwide from 2006 to 2017

    People who reached the checkout page are obviously motivated to buy something. The mystery here is what caused their desire to fizzle out. Retailers should also think about what they could do to optimize the checkout flow.

    3 Tips for Optimizing Checkout Flow

    Never Force a Customer into Making an Account

    Forcing a customer to create an account just to purchase a product is one of biggest reasons why shoppers abandon their cart. It’s easy to understand a business owner’s point of view on this matter. Aside from the desire to make a sale, they also want to get the customer’s data in order to market to them again.

    However, requiring customers to register or create an account before they can even finish their purchase slows down the transaction and leads to frustration. Remember that they’re on your site because they want to purchase something and they want to do so in a quick and efficient manner.

    A better solution would be to wait until the checkout process has been completed and the deal closed. At this juncture, you can simply ask the client if they want the information they provided to be saved for future purchases. A good transaction experience will likely prompt them to agree to have an account created. You can also take a page out of Speedo’s handbook and offer an incentive if the customer agrees to register.

    Image result for speedo checkout page

    Choose Forms That are Well-Designed and Easy to Fill Out

    Retailers should also pay attention to how their forms are designed. Aside from following the usual web form standards (ex. using asterisks for required fields), the field size should reflect the information that the user is expected to fill in.

    Asking the right kind of information is also essential. Do away with unnecessary data as it only makes the process longer and makes customers wary. For example, an Apple customer in one study complained about a form asking for their phone number and worried that they’ll be hounded by salespeople. Make sure that when you ask for a customer’s personal information, the reason is obvious to the customer or is explicitly explained (ex. for shipping purposes).

    Ask Credit Card Details Last and Provide Proof They’re Secure

    It’s a good idea to ask for the customer’s shipping information first and credit card details last. This is because the former is easy and the latter is harder to input. Follow the same principle in other forms. Start with easy information, like name and address, and end with hard details like the credit card number. The credit card form should also look secure. Put the SSL logo prominently, along with explanations about the security code and card expiry.

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    Security credentials should also be placed in highly visible places. Customers are understandably wary about giving their credit card details. A 2015 survey by Experian that included over 1000 participants, revealed that more than two-thirds of the surveyed group worried about being scammed while shopping online.

    It’s your job to reassure customers that their credit card details are safe. Use padlocks and https where needed or put security icons in the header, footer, and beside the “Checkout” or “Sign In” buttons. Adding Trust seals and SSL Certificates also go a long way in calming people’s fears. It can even increase conversions by as much as 30%. Conversely, one survey concluded that 61% of the respondents did not continue with their purchase because they didn’t see a Trust Seal.

    Always consider your customer’s feelings, even during checkout. Consider the kind of experience you want them to have at this all-too crucial junction. Make some changes and optimize your checkout flow. A quick and painless checkout process will reduce cart abandonment and result in happy customers.

    [Featured image via Pixabay]