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Category: Retail & eCommerce

eCommerce, Online Retail & Retail News

  • US House of Representatives Passes JOBS Act 3.0, Bill Aims to Help Small Businesses Get More Funding

    US House of Representatives Passes JOBS Act 3.0, Bill Aims to Help Small Businesses Get More Funding

    Small businesses won big on Tuesday night when the House of Representatives passed JOBS Act 3.0. The bill passed on a 406-4 vote, a surprisingly solid consensus from a chamber that has gained infamy due to its present bipartisan differences. But what is the JOBS Act 3.0 and what does it mean for small businesses in the US?

    Understanding JOBS Act 3.0 and Its Significance

    Originally known as the Jumpstart Our Business Startups Act of 2012, the legislation has been under discussion for several years as Congress tried to hammer out changes that both parties would be happy with.

    JOBS Act 3.0, or the JOBS and Investor Confidence Act of 2018, is an amalgamation of 20 distinct bills. These bills are all designed to encourage and boost entrepreneurship by making it easier for small businesses to gain access to capital markets.

    Under JOBS Act 3.0, new legislation will ease banking regulations, allowing startups to get the financial help they need. It will also stimulate venture capital and make it possible for initial public offering (IPO) to become more manageable and affordable.

    This move certainly garnered the approval of Tom Quaadman, the Executive Vice President of the US Chamber Center for Capital Markets Competitiveness. According to Quaadman, these pro-growth policies will not only help get new businesses off the ground, it will also improve the chances that these enterprises will grow, innovate, and boost the job market.

    “It is a win for entrepreneurs, businesses, and job creators across the country,” Quaadman said.

    Ways the JOBS Act Can Benefit Small Businesses

    There are numerous ways JOBS Act 3.0 will help small businesses. For one, it will remove barriers that hinder companies from raising capital.

    The US Chamber of Commerce revealed that three-fourths of the country’s business financing comes from capital markets. However, the sheer number of regulations makes it challenging to keep up with demand. This has resulted in a decline in the number of US startups in recent years. Now China is leading the IPO revolution, producing more than one-third of the world’s startups compared to the 11 percent by the US.

    New regulations would also permit a larger number of accredited investors to invest in startups and small businesses, thus improving their chances. For instance, people who earn more than $200,000 a year or those who have a net worth of $1 million or more could become accredited investors. This will boost the pool of investors and provide more capital funds.

    The Act will also clarify how businesspeople and angel investors can discuss their investments without running into trouble with securities laws. A clear understanding of these regulations would increase venture capital movement and make acquisitions by small businesses easier.

    What’s Next for the Bill

    The JOBS Act 3.0 has garnered a lot of support from numerous organizations and companies. The Biotechnology Innovation Organization (BIO) even praised it for being a “tremendous step forward for small, pre-revenue innovators.” However, the bill still has some ways to go.

    The legislation is now in the hands of the Senate, the chamber of Congress that has become known for not getting things done. Senate Majority Leader Mitch McConnell will now have the job of wrangling enough votes to get the bill in front of President Trump by fall.

    [Featured image via Pexels]

  • eBay’s Stock Takes Massive Tumble, Company Axes 300 Employees

    eBay’s Stock Takes Massive Tumble, Company Axes 300 Employees

    This is not a good week for eBay. The company’s stocks took a massive tumble a day after revealing that it was slashing about 300 jobs in the Bay Area.

    eBay informed the Employment Development Department of California of its move to cut about 300 jobs in the area by Friday, July 20. The affected employees were reportedly notified last month that they were being laid off.

    The retail giant later reported its second-quarter earnings to its investors. The company secured a net profit of 64 cents per share, which was above what analysts projected. However, its warning that the present quarter’s revenue would go down resulted in a selloff that saw eBay’s stocks fall by 10 percent, ending in $34.11 per share.

    eBay also reported that its expected full-year profit will be around $10.75 billion to $10.85 billion, down from its previous estimate of about $10.9 billion to $11.1 billion. The company also lowered its expectations regarding its third-quarter earnings per share to somewhere between $0.54 and $0.56.

    News of the layoffs and the drop in stock prices is typically something to be worried about. Conventional wisdom dictates that cutting jobs should lead to a boost in share prices. After all, reduced cost means better profits. eBay certainly looks at it that way, as the company stated that the savings it made the previous quarter will provide them with additional funds to spend on marketing.

    eBay has been relatively quiet the past few years, particularly when compared to rival Amazon. But despite losing its luster, the company has been performing steadily. Its stock prices even reached a high $36 per share last January. This capped a 139 percent gain of the past five years. Unfortunately, shares have dropped 27 percent since then.

    Some Wall Street analysts have said that this drop in shares is puzzling, as the company continues to make progress with its key initiatives. They noted that the company is still “losing market share at a time when eCommerce, in general, is thriving.” One analyst even said that this could be due to eBay customers not bringing in new buyers to the platform.

  • Amazon Sets Sales Record on Prime Day 2018, Reports 100 Million Products Sold

    Amazon Sets Sales Record on Prime Day 2018, Reports 100 Million Products Sold

    Amazon has concluded its record-setting online shopping event this year. Called Prime Day, the 36-hour shopping period that ran from July 16 to July 17 was said to have surpassed Cyber Monday, Black Friday, and last year’s event. In a recent press release highlighting its success, the company didn’t disclose sales growth or exact figures but reported that Prime members bought more than 100 million products during the sales event.

    According to CEO of Worldwide Consumer Jeff Wilke, Prime Day was an opportunity to reward its members with the best deals and exclusive access to Amazon’s new products. In fact, two of the bestsellers during the worldwide event included Amazon’s Fire TV Stick with Alexa Voice Remote and Echo Dot.

    Aside from Fire TV devices, other Amazon products that made a killing were Kindle e-readers and the kids’ versions of the Fire tablet and Echo Dot.

    Other than electronics, members also purchased millions of toys, beauty care, computer accessories, apparel, and kitchen products. Since it’s back-to-school season, buyers also stocked up on school supplies and household essentials, taking advantage of the convenience of buying online with low shipping rates. After all, Amazon Prime members enjoy same-day delivery and free shipping on millions of products.  

    Prime Day also put the spotlight on small and medium-sized businesses that sell on Amazon’s platform. During the event, total sales from these businesses surpassed $1 billion, which reportedly exceeded sellers’ expectations.

    Despite its successful run, Prime Day actually began with a glitch that prevented customers from checking out their purchases during the first few hours of the sale. Amazon recognized the problem but skirted disclosing the reason for it. Others pointed out that it was probably due to the unusually heavy traffic on Amazon’s site as the sale began.

    July is considered a slow month for retail, but with Prime Day, Amazon upped the ante and spurred shopping activity. Taking advantage of the bargain hunting hype, some of the larger retailers, like Walmart, eBay, and Macy’s, also ran their own sales campaigns and offered a few bargains online.  

    Target, for instance, had a couple of promotions on July 17, which generated this year’s highest single-day traffic and sale on its website, Target.com. The retailer even took a jab at Amazon Prime’s $119-membership fee, saying that buyers don’t have to pay to enjoy the site’s deals.

    With the upcoming holiday season, large retailers are bracing themselves for faster sales growth as more buyers turn to online shopping for convenience and experience. Until other retailers catch up with the online giant, Amazon will likely break its Prime Day 2018 record.   

    [Featured image via YouTube]

  • Walmart Joins Forces With Microsoft to Fend Off Amazon

    Walmart Joins Forces With Microsoft to Fend Off Amazon

    In its bid to overtake its largest rival, Walmart announced a strategic partnership with Microsoft on Tuesday. According to the biggest US retailer, the company inked a five-year deal with the tech giant to speed up its digital transformation for a faster shopping experience online. Walmart will be utilizing an array of Microsoft’s cloud solutions as its preferred provider.

    It’s no secret that Walmart and Microsoft are two of Amazon’s closest rivals in retail and cloud computing, respectively. In an interview with The Wall Street Journal, Microsoft CEO Satya Nadella said that the battle against Amazon was “absolutely core” to his company’s teamup with Walmart. He further stated, “How do we get more leverage as two organizations that have depth and breadth and investment to be able to outrun our respective competition?”

    Under the deal, Walmart will use Microsoft’s machine learning and AI technologies to optimize the retailer’s entire supply chain and improve its delivery system. With the Internet of Things platform on Microsoft’s Azure, the retailer can better manage which products should go on the shelves from the ones that go into the refrigeration units. This is one way to reduce costs in operating its physical stores.

    Utilizing technology to assess operations seems to be one of Amazon’s strong suits, one that Walmart appears to lack. Over the past few years, the online retailer has developed its cloud computing business, Amazon Web Services, to become the leading cloud service provider. Microsoft, however, remains second in terms of market share with Azure, but still a worthy alternative for other companies.   

    Although Walmart has developed its own cloud computing operation, it wasn’t as extensive as Amazon’s or Microsoft’s. The retailer only began using Azure recently when it acquired Jet.com, whose operations ran entirely on Microsoft’s cloud platform.  

    Walmart has been more open to the idea of working with tech firms to enhance its systems and improve shopping experience. Last year, it teamed up with Google by adding some of its Walmart.com products on Google Express to allow for voice-ordered purchases, directly competing with Amazon’s Alexa. And for its back-to-school offering, Walmart has also launched its app for faster location of items in-store.   

    Microsoft, on the other hand, has been teaming up with other brick-and-mortar retailers, such as Macy’s and Marks & Spencer, for better retail experience using artificial intelligence.

    Despite the strategic alliance, Walmart won’t be using the tech giant’s services for its planned cashierless stores – another area where Amazon has taken an early lead with its Amazon Go store in Seattle. Microsoft, however, is still keen on developing hardware and software solutions for automated grocery stores, even if it’s not for Walmart.

    [Featured image via Walmart.com]

  • Snapchat and Amazon Could Be Teaming Up on a New Visual Search Tool

    Snapchat and Amazon Could Be Teaming Up on a New Visual Search Tool

    Snapchat is seeking to expand its horizons and utilize its camera to go beyond social media with a new visual search feature. This novel search capability and a team-up with Amazon could open a new revenue stream for the company.

    According to reports, a new Snapchat version for Android smartphones includes a secret code for a new “Visual Search” feature. This new feature, dubbed Project Eagle, can allegedly utilize Snapchat’s camera to send a barcode or product image scans to Amazon. The retail powerhouse will then display the results of the product search.

    The secret code was reportedly discovered by Ishan Agarwal, an app researcher. Agarwal then tipped off TechCrunch about his discovery. On their end, the company was quick to spot a source code in Snapchat that had a pop-up text with the lines — “Press and hold to identify an object, song, barcode, and more! This works by sending data to Amazon, Shazam, and other partners.”

    The discovered code doesn’t really explain how the visual search feature will work. However, the application’s code enumerates the capacity to bring “reviews” and “sellers” to the surface, “Copy URL” of a specific product as well as “Send Product” or “Share” it with friends. These actions could be done through Snapchat Stories or simple Snap messages.

    Project Eagle will undoubtedly change the way people see Snapchat. Instead of being just a social media app, it could become a clever tool for navigating retail. It can also provide the company with a new revenue source if it works out an affiliate referrals deal with Amazon.

    This is something that Snapchat desperately needs at the moment. The company has suffered a loss of $385 million in the previous quarter, with its missing revenue pegged to be at $14 million. Snapchat’s stock also closed Monday at $13.65 per share, way below the $17 offering price.

    Amazon is so far keeping mum about Snapchat’s visual search feature. It should be pointed out that there’s no definitive proof to indicate that the retail giant is working with Snapchat or if it’s just the end destination of the search results. As for Snapchat, mother company Snap Inc. just issued a “no comment” when asked about the rumored visual search.

    One thing is certain though, a solid visual search feature could turn Snapchat into something more than a selfie aficionado’s favorite app. It could usher in a groundbreaking way for consumers to search for products to purchase.

    [Featured image via Pexels.com]

  • Google Rebrands AdWords, Introduces ‘Smart Campaigns’ for Small Businesses

    Google Rebrands AdWords, Introduces ‘Smart Campaigns’ for Small Businesses

    Google has revamped how its ad services and products are organized and sold in a bid to make its advertising system easier for brands to understand.

    After two decades, Google is retiring AdWords and DoubleClick names and rebranding them instead. They are also being reorganized in order to better showcase their capabilities and growth trajectory. DoubleClick products and the Google Analytics 360 Suite will now fall under the umbrella of Google Marketing Platform. DoubleClick Ad Exchange and DoubleClick for Publishers will be integrated into the Google Ad Manager while AdWords will now be called Google Ads.

    The newly introduced Google Marketing Platform is designed to assist clients in planning, buying, measuring and optimizing their digital media and customer experience. The decision to merge the DoubleClick and Analytics 360 Suite brands was the result of marketer feedback regarding the advantages of using analytics and ads technology to create improved customer understanding and bigger business results.

    Meanwhile, Google Ads will represent the extent of the company’s advertising capacity across its numerous properties, like Google Maps, Google Play, and YouTube. Google Ads will also roll out a new type of ad strategy called Smart Campaigns. This feature will be utilizing machine learning technology and focuses on small businesses. It will be the default experience of start-up companies.

    As for the Google Ad Manager, the unified programmatic system is developed to help partners to generate higher revenue in a more efficient manner.

    The three new brands are being hailed as a way to help all advertisers and publishers pick the right solutions for their business, regardless of the size. It also aims to make it easier for companies to provide consumers with trustworthy ads and an improved experience regardless of the channels and devices used.

    The restructuring of its ads business was announced on Tuesday by Sridhar Ramaswamy, the SVP of Ads at Google. According to Ramaswamy, the company’s extensive ad offerings is challenging for advertisers, ad agencies, and publishers to navigate. He also mentioned that while advertising opportunities have never been greater, it has also become more complicated.

    “It is harder for advertisers, publishers, and agencies that help them choose the right products for their business and know how to use them,” Ramaswamy said.

    Despite the changes, brands have nothing to worry about as Ramaswamy emphasized that Google’s “underlying products aren’t changing.” But while the rebranding is basically just a name change, there will be small changes in some ad interfaces that will streamline the different services that the company’s advertising and marketing products offer.

  • Shopify’s ‘Ping’ App Streamlines Customer Conversations for Merchants

    Shopify’s ‘Ping’ App Streamlines Customer Conversations for Merchants

    As an entrepreneur, time is your most valuable resource, especially when you’re in a highly competitive market. Shopify is now helping businesses maximize their time with a new app that manages customer conversations across multiple messaging platforms.

    The company recently rolled out ‘Ping,’ for iOS devices. The standalone app can streamline customer interactions from SMS, Facebook Messenger, or a company website.

    Shopify is putting more focus on mobile solutions for businesses as half of its estimated 600,000 retailers are already using its mobile application. Most of these merchants currently use the shopping platform to process their business needs and handle their payment system.

    Communicating with Ping

    The Ping app will enable retailers to communicate directly with clients and respond quickly to their requests. All conversations a company has with their clients on any messaging app can be accessed using Ping.

    The fast response time is a great way to assist companies in delivering excellent customer service and building better relationships with clients.

    Shopify explained in its blog that the company developed Ping as another means for online merchants to run their company. With the app, retailers “can spend less time shuffling between separate tools” and spend more time on essential things like serving clients and expanding their business.

    What Can Kit Do

    Ping comes with a built-in virtual assistant dubbed Kit. This little helper can help you conceptualize, develop, launch, and manage your marketing plans. Shopify explained that Kit is designed to run your Instagram and Facebook ads, manage your email marketing campaign, retarget clients, and more depending on the information collected from customer messages.

    Kit can also implement complicated workflows, like touching up product images and searching for new products to expand your inventory.

    The marketing bot was purchased by Shopify in 2016 and an upgraded Kit Skills API is slated to be released later this year. Some improvements expected to be introduced is a natural language processing system that will provide business owners with more insights and the capacity to represent their company in a chat environment. The built-in assistant will be able to respond to frequently asked questions and shipping inquiries. Of course, there will still be instances when human intervention is needed, like when dealing with a large order from a client.

    The Ping app and Kit will also be able to do other AI processes like flag conversations that could lead to big deals or alert the owner of a customer complaint regarding an order.

    Retailers big and small can now download Ping for free on iOS. However, it’s not clear just when the app will become available to Android users.

    [Featured image via Shopify]

  • States Can Now Collect Sales Tax From eCommerce Businesses, Supreme Court Gives Go-Ahead

    States Can Now Collect Sales Tax From eCommerce Businesses, Supreme Court Gives Go-Ahead

    Online shoppers will soon be shelling out more money for their purchases now that the US Supreme Court ruled that states can demand e-businesses collect sales taxes.

    The case, which will have a profound effect on the consumer economy, saw the country’s Supreme Court justices voting 5 to 4 that states have the right to impose taxes on online sales even if the retailer does not have a warehouse or a physical store in their jurisdiction.

    Brick-and-mortar shops have been blaming online stores and the apparent tax break they enjoy for slow sales. Meanwhile, eCommerce businesses have claimed that their success was because of the convenience they offer, not the sales tax (or lack thereof).

    Doing Away with Years Worth of Laws

    The surprising ruling ended years of legislative battles as it overturned a 1992 decision. It also answered the question of whether the law had fallen behind the digital economy. According to the Supreme Court ruling, the requirement that sales taxes are bound to retailers with a “physical presence” in a state was “unsound” and outdated.

    South Dakota is a clear winner in this ruling. The state had petitioned the court to uphold recently passed legislation imposing a sales tax on online retailers. Marty Jackley, the state’s attorney general, defended the law by claiming that South Dakota was “losing millions for education, healthcare and infrastructure” and that the unfair playing field was hurting its citizens.

    The ongoing issue that eCommerce businesses had an unfair advantage over brick-and-mortar shops was pushed to the forefront again when President Donald Trump tweeted in April that online retail giant Amazon was paying “little or no taxes to state & local governments.” It should be pointed out, though, that Amazon has been collecting sales taxes from customers in 45 states since April 2017.

    Impact of Supreme Court Ruling on eCommerce

    The decision to levy sales tax on online retailers had traditional retailers celebrating while the stocks of ecommerce companies took a dive.

    Wayfair, an online furnishings retailer, saw its shares drop 3.8 percent while Overstock.com and eBay fell 2.5 percent and 2 percent respectively.

    Amazon’s shares also took a hit, going down 1 percent. However, the retail giant’s situation is more complicated. While the company enjoyed the tax exemption for several years, a policy change in 2012 has seen it collecting tax on its own sales in the District of Columbia and 45 other states. But its third-party sellers haven’t been required to do so and thus will feel the impact of the court’s decision.

    President Trump has declared the Supreme Court ruling as a “big victory for fairness” in the US and a “great victory for consumers and retailers.” However, consumers would be paying more once this ruling is implemented.

    There’s no telling yet how the new ruling will affect the retail landscape as this will largely depend on how states choose to exercise their authority regarding online sales. Some experts have noted that the emphasis placed by the justices on South Dakota’s law provides small online businesses with some protection as only sellers that engage in transactions of 200 or more or those that deliver goods worth more than $100,000 will be taxed.

    However, the numbers could vary as $100,000 can be considered quite low from a company income tax perspective. But it’s safe to say that states will try to implement these tax sales, whether via existing or new legislation.

    [Featured image via Pexels.com]

  • Brex Raises $57 Million to Launch New Credit Card for Startups

    Brex Raises $57 Million to Launch New Credit Card for Startups

    American fintech company Brex has just launched a new corporate credit card designed specifically to assist startups.

    The news of this unique credit card also comes on the heels of Brex’s recently concluded Series B funding round. The company was able to raise $57 million courtesy of investors like PayPal co-founders Max Levchin and Peter Thiel, Facebook’s Yuri Milner, VC Ribbit Capital, and the Y Combinator Continuity.

    Brex is the brainchild of young engineers cum entrepreneurs Henrique Dubugras and Pedro Franchesci. The two are known for founding Pagar.me, a Brazilian payments processor, when they were still in their teens.

    Brex wants to rebuild B2B financial products, and one key step to doing that is to start with a corporate credit card service. The company provides tech startups and various companies with instant approval of credit cards. What’s more, these have higher than expected credit limits and users don’t require any kind of personal guarantees.

    The San Francisco-based company basically underwrites businesses and foregoes credit history in lieu of factors like its investors and the equity the company holds, its cash balance and spending habits. Brex offers the first five cards of the startup free of charge. Any additional cards after that will cost $5 monthly.

    Brex credit cards offer several distinct features, like the capacity to capture receipts using your smart device and matching them to the card holder’s credit statement. The card can also be integrated with accounting software like Expensify, NetSuite, and QuickBooks.

    Dubugras and Franchesci reportedly spent the previous year talking with customers about developing a product that could successfully navigate the regulatory and financial challenges that usually prevent early-stage startups from getting credit card approval.

    According to Brex CEO Dubugras, “startups that have raised millions and are poised for hyper-growth can’t get slowed down hassling with banks requiring personal guarantees and offering meager credit limits.”

    Unfortunately, traditional credit models look at how much a company can pay back annually based on revenue. This practice automatically disqualifies startups. But Brex has gotten around that problem by focusing on the cash that the investors have given the startup.

    [Featured image via Pixabay]

  • Microsoft Ventures Into Checkout-Free Retail, Takes on Amazon

    Microsoft Ventures Into Checkout-Free Retail, Takes on Amazon

    Microsoft is reportedly taking on Amazon, as the company ventures into retail territory. The company is said to be looking into checkout-free shopping, an innovation that Amazon has pioneered.

    Reuters reported that at least six people have talked to them about Microsoft developing technology that will give retail companies the option to have cashier and checkout-free shops. Microsoft is said to have partnered with fellow Redmond-based company AVA Retail. The company develops systems that can collate information about shoppers. This time around, it will be working with the renowned software company on innovations that could be used on brick-and-mortar stores.

    Interestingly, Microsoft will not be installing said technology in their own stores. According to the sources, it has instead reached out to Walmart about the possibility of a joint effort. If this pushes through, the two companies could give Amazon a run for its money.

    Microsoft is said to have around 10 to 15 employees working on researching and developing their new retail technology. There aren’t a lot of concrete details at the moment, but one report said the research team has explored using cameras attached to shopping carts as a means to track the customer’s purchases.

    If successful, this could potentially do away with the need for cashiers. It also means a store won’t need to put up hundreds of cameras the way that the Amazon Go pilot store did.

    This approach suggests that Microsoft is looking to offer retailers a more cost-effective system. Stepping into the checkout-free store arena would also pit the software company against retail giant Amazon. Heated competition between the two is nothing new. Microsoft’s Azure cloud service is second only to Amazon’s AWS.

    Walmart has declined to comment on the news and a Microsoft spokesman said the company “does not comment on rumors or speculations.”

    There’s no question that Amazon leads the way when it comes to changing the face of retail. If Microsoft or other businesses want to get ahead of the company, or at least be on the same standing as Amazon, they better get a move on.

    Amazon has already opened to the public its first cashier-less convenience store, Amazon Go, in Seattle early this year. Shoppers entering the store are required to swipe an app which enables computer-vision technology to monitor and track them and their purchases as they walk around the store. Once done with their shopping, consumers simply walk out and their purchases are charged via their Amazon app.

    [Featured image via Pixabay]

  • Small Businesses are Struggling to Find Workers Due to Low Unemployment Rate

    Small Businesses are Struggling to Find Workers Due to Low Unemployment Rate

    A recent LinkedIn employment report has revealed that the US job market is hale and hearty. The country’s unemployment rate is down across the board while hiring is 4.5% higher when compared to this same time last year. While the news certainly is encouraging, the report also underlines the challenges that small businesses are facing with regards to hiring and keeping the right people.

    Numbers Point to Good News

    Aside from the news that hiring rates are high and unemployment rates are down, the LinkedIn Workforce Report for June also revealed some interesting specifics. For instance, there’s a 12.4% increase in hiring in cities that rely heavily on the oil industry. Tech firms, financial and insurance services, architecture and engineering firms, and automotive and transportation companies are also hiring more people.

    Hiring in San Francisco Bay Area - June 2018

    However, there are also several cities where the demand for skilled workers is simply not being met. These cities include Austin, Washington DC, the San Francisco Bay Area, New York, Los Angeles, and Seattle. Conversely, Hartford, Miami-Ft. Lauderdale and West Palm Beach have thriving communities of skilled workers, making it easy for small and big businesses to fill their employment requirements.

    The LinkedIn study isn’t the only one touting these numbers. Reuters has also reported that job growth in the US went up in May while the unemployment rate dropped to 3.8 percent, an 18-year low for the country. Total payrolls rose to 223,000 and the average hourly earnings have increased by 0.3 percent month-to-month.

    Image result for 2018 us unemployment rates

    The report does paint a rosy outlook for American households. Tom Porcelli, Chief US Economist of RBC Capital Markets admits the news about unemployment rates “literally checks off all the right boxes.” He also said that they have been looking for any negatives about the findings but admits that so far, they haven’t found anything.

    What it Means for Small Businesses

    The LinkedIn report doesn’t mean everything’s smooth sailing though. One key takeaway from it is the fact that with more businesses hiring, the labor market has become a tight one. This means companies are fighting for a workforce that’s steadily growing smaller.

    The labor shortage means that the majority of businesses will have no other option but to increase wages in order to attract the workers they need and keep the ones they want. This is good news on the side of the employees, as it implies that salary growth is picking up.

    Unfortunately, not all small businesses can go head to head with bigger and more established companies who have better financial backing. This year’s Randstad US Salary Guide says that wages have risen by as much as 3% across different industries, a rate that not all small businesses can meet.

    Low unemployment rates also mean small companies will start to lose out on business. A Federal Reserve survey showed that in some states, restaurants struggle to find waiters and cooks while construction and manufacturing companies simply can’t find workers, regardless of whether they’re skilled or not. This lack of workers has translated to rising production costs, as well as canceled or delayed projects.

    So what can small businesses do to attract skilled workers? Aside from matching the going rate, they can offer an incentive program or a profit sharing option. Work from home options and extensive training can also be used to sweeten the deal. In short, small businesses would have to be more creative with their perks.

  • Instagram Just Added an eCommerce Feature to Stories

    Instagram Just Added an eCommerce Feature to Stories

    Instagram is allowing users to buy what they see on Stories without having to leave the app.

    The photo and video sharing platform recently announced that stickers with the shopping bag icon are headed to Instagram Stories. Tapping on the shoppable tags that caught your eye in a Story will reveal more details about the product.

    Instagram started testing out this feature in 2016 and offered it to about 20 select retail partners. It quickly proved to be a hit and has since expanded to include regular brand postings on the feed. Now the feature is all set to roll out, with retailers like Adidas, Aritzia, Louis Vuitton and The Kooples set to use it to tag and link straight to their products. While retailers who can use this feature is still limited, it’s expected to open to regular users in the future.

    In a press release, Instagram emphasized that they were a place of inspiration and a venue for action, which is why the company has added shopping to Stories. The company also pointed out that there are 300 million people on Instagram Stories daily, and most of them are on the look-out for new products from their favorite brands.

    The platform’s new shopping feature has vast potential for selling products, especially with Instagram’s reported vision to have its own longer-length video series. This means that in the future, users might be watching an Instagram show, see a celebrity using a certain product and just tap on the link to make a purchase.

    At the moment, the new Stories shopping feature is only available for businesses. These companies are also limited to selling only their own products, so third-party sellers will find no business here. The feature also does not permit audience targeting. This means that people who see the posts with shopping tags are those who are already following the retailer.

    [Featured image via Pexels]

  • The Death of Net Neutrality and What it Means for Consumers

    The Death of Net Neutrality and What it Means for Consumers

    It finally happened. The repeal of net neutrality laws by the Federal Communications Commission (FCC) took effect on Monday.

    According to the FCC, the repeal will put an end to the “unnecessary, heavy-handed regulations” implemented by the previous administration and move forward with “common-sense regulations that will promote investment and broadband deployment.”

    The net neutrality rules, which were passed in 2015 during the tenure of President Barack Obama, prevented internet providers from giving special treatment to specific websites or charging them more for particular content. However, current FCC Chairman Ajit Pai opposed these regulations as he believed they impeded innovation.

    What It Means for Consumers

    Most internet users and consumer advocates are rightly worried that the repeal of Title II, or the net neutrality bill, means that broadband providers would start to sell their services in bundles, much like how cable television is packaged. For instance, some providers might require users to pay for a social media premium bundle in order to access platforms like Instagram and Twitter.

    There are also concerns that without the protections of the neutrality law, internet providers can slow down their competitor’s traffic or any other site they want to slow down. Conversely, they can also create “fast lanes,” which companies with deep enough pockets can take advantage of in return for faster connectivity.

    This also means that the playing field could be biased against small companies or eCommerce startups that will have to fight harder for exposure. Freelancers and other remote workers might also have to shell out more money to work from home.

    Can Net Neutrality be Revived?

    While it’s understandable for consumers to be wary about the FCC repeal, it will reportedly be months before any changes are felt. In the meantime, several states have already taken steps to protect net neutrality. The governors of Montana, New York, and Washington have either signed a law or issued executive orders to counter federal rules regarding the internet.

    There’s also a motion in the lower House right now that could push Republicans to vote to reinstate the 2015 net neutrality rules. Voters still have a say on this as they can either force their state representative to take a stand or vote out and replace them with someone who supports their stand on a free internet.

    For their part, some internet providers have publicly pledged that they will not throttle or block sites even with the repeal of Title II. Their only argument against the bill was the fact that the FCC had so much control over their business and that the regulations made expansion difficult.

  • Amazon and Google are Starting to Look More and More Alike

    Amazon and Google are Starting to Look More and More Alike

    The eCommerce landscape is in constant flux, with Amazon becoming more like a search-ads platform aside from being an eCommerce venture while Google seems to be doing the opposite. That’s one of the key takeaways from Mary Meeker’s annual Internet Trends report.

    Meeker recently presented her report at Recode’s Code Conference. Among the highlights of the talk was her observation that Amazon and Google are starting to evolve and converge. 

    While this convergence might seem strange to some, it’s inevitable that companies evolve as eCommerce continues to grow steadily every year.

    Amazon the Search Engine

    There’s no question that Amazon is lording it over in online sales. The company had a 28% share in gross merchandise volume (GMV) in 2017, a big jump from its 20% share in 2013.

    The past few years has also seen Amazon becoming the start-off point for more product searches than Google. A reported 49% of shoppers begin their product search on Amazon while 36% opt for other search engines. What’s more, Amazon shoppers are a loyal group. A PricewaterhouseCooper’s survey revealed that 14% of shoppers use this site exclusively. The company is also perfectly suited to take advantage of these searches with key features like one-click purchasing, which allows customers to purchase from Amazon once they find the results they want.

    [Graphic via MediaPost]

    Amazon is also aggressively growing its advertising side. More marketers are investing in the company’s paid search products, with 82% of Amazon Marketing Services users purchasing sponsored products while 65% buy headline search and product display ads.

    Google as an eCommerce Platform

    Google and Facebook continue to dominate ad revenues; Amazon is currently in fifth place. But with Jeff Bezos nipping at their heels, the Alphabet group is not resting on its laurels and has started to develop ways to ensure shoppers remain onsite. The company’s new AdWords feature – Shopping Actions – will ensure that happens.

    Shopping Actions essentially turns Google Assistant and Google Search into marketplaces that retailers can tap into while also allowing users to make direct purchases. Shoppers can add what they find in their search to a common shopping cart and easily check out using payment data already filed with Google. What’s more, the program works across various devices. This can provide Google a major advantage, given the increasing popularity of voice search.

    Home Depot, Target, Ulta, and Walmart are just some of Google’s retail partners. However, these partner retailers would have to sacrifice some of their sales and control of their customer’s online shopping experience to Google, it’s a small price to pay for being able to utilize the company’s vast resources, technology, and millions of potential customers.

  • Walmart May Bring Customer Service Drones to Its Stores Soon, Retailer Files Patents

    Walmart May Bring Customer Service Drones to Its Stores Soon, Retailer Files Patents

    Walmart has always been known to push boundaries. The company is continuing this innovative culture with its recent filing of patents for keeping track of inventory, a store drone and other technologies aimed at changing how customers shops.

    Walmart is no stranger to filing patents. The company has reportedly filed 1,400 patents since 2009, all of which focused on technology that enhances their customers’ in-store experience. One of the newly filed patents pertains to a sensing device designed to make smart shopping carts that can communicate with a mobile device. This can make searching for grocery items go more smoothly.

    Meanwhile, several of the patents that were filed are geared towards sensing and managing inventory levels and one that can track customers via wearables.

    Walmart has also filed two patents for autonomous technology. One is for tech that can detect items or products in containers while the other can gather vehicle information, like size, temperature, pre- and post-delivery weight, using an intricate system of sensors, an interface, and a processor.

    One patent that could drastically change how things are done at Walmart is for a drone that could assist customers as they shop in the store. According to the patent outline, a customer can call the drone through a mobile device that’s either the customer’s own or one that’s been provided by the store. The drone can be used to navigate around the store or to verify product price.

    The patent detailed how the device can control the aerial drone to guide the user to the location of the item in the store. The drone could also give a visual projection to show the shopper what direction they should take or provide audio instructions.

    There’s also the possibility of Walmart utilizing a variety of drones to perform different tasks. Each drone will reportedly have its own distinct features based on its assigned job.

    While the patents appear promising, there’s no guarantee that they will be realized. Most of the time, the patents companies file are never realized.

    However, Walmart’s recent patent filing underlines just how serious the company is in its bid to compete against Amazon and other established retailers. It has already increased the prices of products bought online and has started producing and selling its very own meal kits. Walmart has also signed an exclusive deal with Rakuten, a Japanese e-commerce company, to sell Kobo e-readers.

    Featured image via Pixabay

  • Microsoft Surpasses Google’s Alphabet to Become World’s Third Biggest Company

    Microsoft Surpasses Google’s Alphabet to Become World’s Third Biggest Company

    Microsoft gained a lead over Google parent Alphabet for the first time in three years, becoming the third most valuable company following market close on Tuesday.

    Over the past 12 months, Microsoft’s stock price continued its rally and surged by 40 percent to $98 per share. Valued at $753 billion, it finally surpassed Alphabet’s $739 billion market capitalization. It is still behind online retailer Amazon’s market value of $782 billion and Apple’s $924 billion as the largest publicly traded US companies.

    More investors were willing to bet on Microsoft’s cloud-first strategy under current CEO Satya Nadella. When he assumed the top post in 2014, the tech company focused on cloud computing instead of manufacturing phones. Since then, its stock price has been on an uptrend but continued to trail Google’s after the latter’s restructuring in 2015.

    Microsoft and Google continue to be direct competitors in several technological advancements, such as artificial intelligence and cloud computing. Second only to Amazon Web Services, Microsoft’s public cloud business under the Azure platform and Office 365 subscription remains relatively bigger than Google’s.

    Although the tech giant has always been associated with the Windows operating system, Microsoft announced a reorganization of its legacy Windows and Devices Group back in March. This prompted the company to reallocate resources from Windows to its cloud infrastructure and artificial intelligence businesses.

    It looked like the gamble paid off as third-quarter revenue increased by 16 percent to $26.8 billion compared to prior year, largely driven by the Microsoft Cloud segment. Net income amounted to $7.4 billion, 35 percent higher than 2017’s third fiscal quarter.  

    Back in March, investment bank Morgan Stanley gave a bullish outlook on Microsoft’s growth forecasts, underscoring the increasing preference of several businesses for cloud computing over local network services. According to the analysts, the software company is on track to reach the $1 trillion market cap within a year’s time if it maintains its dominant position on the public cloud market. Furthermore, its stock price was expected to reach $130 from the previous forecast of $110.

  • PayPal Will Soon Integrate More Payment Options Into Google Services

    PayPal Will Soon Integrate More Payment Options Into Google Services

    Google’s rebranding of Google Pay this year was done to make twofold transactions go more smoothly. Now, the company is integrating PayPal into the mix. This will enable PayPal users to pay bills and make purchases without having to log in or out of Google services.

    The integration between Google and PayPal will go live later this year. It will cover any services and apps using Google Pay, like Gmail, the Google Store, and YouTube and will also work with peer-to-peer transfers.

    The two companies working together is not new. PayPal has already been a payment option for Google Play since 2014 and in online and in-store transactions that are handled by Google Pay since 2017. Google is also working with other payment partners like Braintree, Cybersource, Mastercard, Stripe, and Visa.

    The expanded relationship between Google and PayPal will undoubtedly benefit the two companies. For the former, it will mean a reduction of users leaving the site just to complete a transaction, a move that more often than not results in abandoned purchases. This will also give buyers more payment alternatives, ensuring that more sales are completed. As for PayPal, the union will also give its members an incentive to use its services to buy things, thereby leading to higher transaction revenue.

    This partnership also underlines the changes and challenges happening to online payments. A large number of consumers are already willing and ready to pay for services and items online. The problem is that with so many payment options and shops, it’s difficult to keep consumer interest. The challenge now for app publishers, shop owners and platform owners is how to keep people engaged in the product and not migrate to another site.

    The solution is to introduce services where payment transactions are already enabled at the point that they’re needed with minimum fuss. This means no jumping to another site or app, no logging in several times or taking additional steps just to finalize a payment. 

  • 5 Ways to Use FoMO in Your Online Marketing Strategy

    5 Ways to Use FoMO in Your Online Marketing Strategy

    It’s human nature to want to be “connected” or “in the know.” In the past, not knowing where new water and food sources are could result in death. The situation now isn’t as dire as it was before, but the Fear of Missing Out (FOMO) is causing people to become afraid of missing out on the latest trends, products, and ideas.

    Why FoMO Works as a Marketing Strategy

    While FoMO was only included in the Oxford dictionary in 2013, the idea has been around for a long time. Every generation, from Baby Boomers to Gen Xers, has always had the desire to be in the loop, but it could be argued that the rise of social media has taken this fear to new levels. According to a MyLife research, 56 percent of social media users are afraid that if they’re not active, they’ll miss out on the latest news, upgrades, events, and status updates.

    Marketers can, and have been, leveraging this fear and incorporating it into their strategies. This makes particular sense considering that studies have shown that 69% of millennials experience FoMO and more than half have made reactive purchases because of it. In short, these consumers have bought something just because they’re afraid of missing out.

    5 Ways to Use FoMO in Your Online Marketing Strategy

    Knowing how to utilize FoMO is an effective tactic for marketing your product or service. Luckily, there are several tried and tested techniques that can create a FoMO effect. Here are five examples:

    1. Have Flash Sales

    The flash sale is a very common FoMO marketing campaign. The idea of limited stocks and/or a limited time period naturally creates a sense of urgency. It also creates the feeling of scarcity when it comes to products. This leads to a major boost in conversions, as seen during Black Friday sales, end of season sales or anniversary offers.

    2. Organize Limited-Time Events

    Event organizers have also taken advantage of FoMO by limiting the number of seats or participants allowed in specific events. Some even offer exclusive seats and bank on the idea of a limited special offer to push people to purchase tickets. While this has been proven effective in music shows or conferences, a lot of businesses are now incorporating this idea to drum up excitement and interest in their podcasts or marketing webinars.

    3. Introduce Loyalty Reward Programs

    Loyalty programs are another sure-fire way to ensure long-term customer retention. By giving customers timely rewards and the odd special prizes, companies create a FoMo effect among those who are not customers or loyal members yet. This fear of missing out on special gifts and freebies will result in more people joining a company’s loyalty program scheme.

    4. Promote User Experience

    Letting your users or customers help is another good FoMO strategy. Some companies utilize user-generated content (UGC) to let site visitors and potential customers see and experience how “real people” use their products and services. This, in turn, leads to others wanting to experience and share their experiences too. Examples of these are marketing campaigns where consumers submit their photos or use certain hashtags.

    5. Give Rewards to Early Purchasers

    Giving away free products is undoubtedly a great way to attract customers. But you can make it even more compelling by limiting the freebies you give away. This is why some brick-and-mortar stores only offer a special discount or give a free gift to the first 200 customers. This then forces thousands of people to line up for the product.

    The fear of missing out runs deep in most consumers. However, the desire for instant gratification and the popularity of social media has given this fear an added dimension. No matter how you decide to use FoMO, you should incorporate it in some of your marketing campaigns in order to generate more sales and keep your brand relevant.

  • 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.

  • Microsoft Pay Streamlines Online Payment in Outlook

    Microsoft Pay Streamlines Online Payment in Outlook

    Microsoft is integrating its digital wallet service into Outlook, as announced during Build 2018 on Monday. Called Microsoft Pay, users can soon make payments on invoices and bills through emails without leaving Outlook and switching to another app or service. All it takes is a click on an Adaptive Card that details the invoice and payment action.

    According to Microsoft, fintech companies Stripe and Braintree will be some of the payment processors under the upcoming integration. Meanwhile, Zuora, FreshBooks, Intuit, Invoice2Go, Sage, Wave, and Xero will be tapped for billing and invoicing services for the new Outlook feature.

    The tech giant also revealed that the streamlined payment system will roll out in phases. For the first weeks, only a few Outlook.com users will have the capability in their email. Microsoft assured that more users will have access to the payment feature over the subsequent months.

    Microsoft emphasizes that Payments in Outlook is a solution developed for its users and not a service where it earns revenues. Instead, its partners earn commissions for every completed transaction. It is an opportunity for developers to monetize on several Microsoft platforms.

    For Microsoft, it isn’t about money but the convenience it offers to platform users. This integration is a way to make customers remain inside the ecosystem and use Microsoft services more often.  

    Microsoft may be a tad too late compared to its competitors, Android Pay and Apple Pay. However, the company’s broader shift to handy Adaptive Cards and integration-friendly developer mechanics has allowed the company to catch up. After all, Microsoft is known to have extensive capabilities in different aspects of computing.

    For businesses, this latest development lets them get paid faster by making the entire process simpler with a few clicks. Stripe agrees with this. “By removing the friction and time needed to complete a payment, Stripe and Microsoft can help businesses around the world reduce missed or late payments, ultimately increasing their revenue,” the company expressed in a statement.

  • 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]