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Category: Retail & eCommerce

eCommerce, Online Retail & Retail News

  • 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.  

  • Microsoft Warns of Rising Tech Support Scams, Calls for Industry-Wide Cooperation

    Microsoft Warns of Rising Tech Support Scams, Calls for Industry-Wide Cooperation

    Incidents of tech support scams targeting susceptible PC users are increasing, Microsoft warned. The company received 153,000 reported complaints from consumers in 2017, 24 percent higher than the prior year, according to its detailed security report released on Friday.

    Tech support scams reported to Microsoft

    Image via Microsoft cloud blog

    Reported incidents came from 183 countries, suggesting a widespread global problem. Of those who fell prey to the scam, roughly 15 percent lost money averaging between $200 and $400. There were cases of victims paying significantly more. In December 2017, Microsoft was notified of a tech support fraud in the Netherlands that resulted in the financial loss of €189,000, or about $109,000.

    Called social engineering attacks, scammers use a variety of ways to initiate the fraud. Cybercriminals send phishing emails, display strategic online ads or full-screen error messages, install malware, or place unsolicited phone calls to convince victims that their systems or devices have been compromised.

    Once victims contact the call center for help, a fake technical support specialist instructs them to install remote administration tools (RATs). This allows fraudsters to have complete control over the device and unrestricted access to sensitive information. They make changes inside the device and point out system errors to convince victims of the ‘problem’. This then prompts unsuspecting consumers to pay for the removal of fake or nonexistent malware.

    According to Microsoft, the widespread problem is not limited to its platform but has affected users of MacOS, iOS, and Android systems as well. The FBI received 11,000 tech support fraud complaints in 2017 from 85 countries. Of these, claimed losses amounted to approximately $15 million, representing an 86 percent increase compared to prior year.  

    The FBI also noticed an emerging trend: re-targeting past victims of tech support fraud. Scammers pose as government officials or law enforcement and offer assistance in recovering losses in exchange for fees. Other fraudsters act as collection services and threaten the victim with legal action for nonpayment of outstanding tech support fees. Some criminals use obtained personal information to commit additional fraud, such as unauthorized bank transfers or opening of new accounts for unlawful payments.  

    Microsoft expressed concern over tech support scams that bypass secure platforms like Windows 10 easily and coerce users into giving unrestricted access to their devices. Because the problem is far-reaching, the company called for industry-wide collaboration and law enforcement partnership. Microsoft continues to form partnerships with web hosting providers, telecom networks, browser developers, antivirus solutions, and financial networks in detecting tech support scammers.  

    The graphic below shows how the scam usual works.

    Image via Microsoft cloud blog

    Customers, on the other hand, can protect and empower themselves through education. Be wary of error or warning messages with phone numbers or emails with malicious attachments. Shut down your device once you receive a pop-up message or locked screen. If you have been a victim, notify your bank to reverse the charges and change all your passwords. Uninstall any application used during the tech support and run a virus scan for remaining malware.

    [Featured image via Pixabay]

  • Kabbage Teams Up with Ingo Money to Disburse SMB Loans Within Minutes

    Kabbage Teams Up with Ingo Money to Disburse SMB Loans Within Minutes

    Mobile lender Kabbage has partnered with push payments innovator Ingo Money to speed up disbursement of loans to small and medium-sized businesses (SMBs) accounts in real-time. The team-up, slated for a summer launch, is welcome news to SMBs that need fast loan payouts for their additional working capital.

    By leveraging Ingo Money’s “push payments in a box” platform, Kabbage can make the funds available to business debit cards or wallet accounts immediately. Whereas loan application and approval from financial institutions take weeks, online lenders like Kabbage has reduced the entire process to mere minutes.  

    According to PYMNTS website, Kabbage President Kathryn Petralia addressed the necessity of SMBs having quick access to funding and pointed out that customers often resort to using PayPal to withdraw loan payouts. With Ingo Money, clients now have more available options in moving money within the Kabbage platform.

    According to Lisa McFarland, chief product officer at Ingo Money, the push payments functionality means that Kabbage doesn’t need loan originating banks to handle the money transfer transaction to its customers. Apart from the technology, Ingo will also facilitate the SMB authentication and account verification of Kabbage customers prior to real-time funds transfer.

    Innovations like mobile lending have become crucial in keeping up with fast-paced technology and the changing business landscape. Small business owners have become more digitally savvy and increasingly depend on mobile platforms for conducting business. With available data online on business activity, sales, shipping, and accounting information, Kabbage can get a comprehensive snapshot of an applicant’s performance right away.   

    In a study done by Kabbage, about 17 percent of small business loans were made through a mobile device. Following this trend, mobile lending may account for 20 percent of SMB lending by the end of 2018. Kabbage even increased its available credit line up to $250,000 for businesses with larger and expanding operations. As of December 2017, the mobile lender has extended over $4 billion in loans to over 130,000 SMBs in the US.

    The mobile lender’s investors include SoftBank Group Corp., BlueRun Ventures, and Mohr Davidow Ventures, as of writing.

    [Featured image via Kabbage]

  • How EMVs Made Credit Card Processing More Secure

    How EMVs Made Credit Card Processing More Secure

    Due to rising incidents of fraud and data theft, credit card issuers and merchants switched to using EMV technology to authenticate transactions. Taking its name from Europay, Mastercard, and Visa, EMV was developed as far back as the mid-1990s, but the technology was only widely adopted in the US with the advent of the liability shift in October 2015. This shift meant that the least EMV-compliant party in a payment process would be the one held liable for fraudulent transactions. 

    The use of cards with magnetic strips slowly gave way to the use of the newer more secure EMV cards.

    EMV uses small chips or microprocessor to store information, perform processing, and generate dynamic data for every transaction. This makes it nearly impossible to replicate transaction code and create counterfeit cards. Meanwhile, mag stripe cards store unchanging data on sensitive cardholder information that are easy to duplicate.

    Because of its security features, EMV-enabled cards significantly reduced fraud-related incidents. According to Visa, merchants accepting ‘chip cards’ reported a drop in counterfeit fraud losses by 58 percent in December 2016 when compared to December of the previous year. Similarly, Mastercard fraud data also saw a 54 percent decline in counterfeit fraud from April 2015 to April 2016.

    The migration to chip technology may be slow but looks encouraging. During the recent Secure Technology Alliance Payments Summit, keynote speaker Stephanie Ericksen of Visa revealed that 96 percent of the company’s payment volume at point-of-sale (POS) use EMV cards. In addition, 59 percent of POS terminals in the US accept chip cards—an impressive growth since the liability shift.

    Fraud reduction is the biggest benefit for merchants upon shifting to EMV technology. Compliance with the standard also limits the financial liability of business owners if they process a fraudulent transaction. Customers also seem to prefer using EMV-enabled terminals that offer more security. In fact, a 2016 survey by NerdWallet revealed that 43 percent of respondents prefer using chip cards for in-store purchases.

    Chip technology helped combat fraud in face-to-face settings, like grocery stores checkout lanes, that use counterfeit cards. But it did not completely eliminate data theft and other types of fraud. Fraudsters have shifted their focus to card-not-present (CNP) fraud on transactions done via phone or online. The threat becomes even more significant as the eCommerce in the US grows at an exponential pace.    

    According to Brett McDowell of the FIDO Alliance, 50 percent of reported fraudulent transactions are attributed to CNP fraud. The majority of data breaches in 2016 were due to weak or stolen passwords. This indicates the need for stronger authentication and identity verification processes to better secure the overall payments system, including the EMV ecosystem.  

    Despite the achievements and progress in EMV migration of the payments industry, business leaders acknowledge that there is more work to be done. They are also upbeat on the next step in the chip card transition—contactless payments.

    Dual-interface EMV cards can also have contactless card reading or near field communication (NFC) features. Consumers only have to tap their card on the terminal scanner for faster checkout. However, there are several hurdles to this technology, such as lack of acceptance, confusion among users, and few companies issuing NFC-capable cards.

    There is more to the future of payments, including embedding biometric readers on cards to verify a cardholder’s identity. Industry leaders are also looking at cryptocurrencies, artificial intelligence, and blockchain as other forms of payment technologies. 

    [Featured image via creditcards.com YouTube]

  • 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]

  • PayPal Ventures Into Banking, Targets Customers Who Don’t Have Bank Accounts

    PayPal Ventures Into Banking, Targets Customers Who Don’t Have Bank Accounts

    PayPal is venturing into new territory. The online payments company is reportedly set to offer traditional banking services to their consumers. Features like debit cards, direct deposit paychecks, FDIC insurance, and other financial services are expected to be introduced in the first half of 2018.

    What makes PayPal’s move more interesting is the fact that the company does not have a US banking license. However, the San Jose-based company has gotten around that little detail by collaborating with small banks that can handle those services. For instance, a Delaware bank will be managing debit cards while a Utah bank can offer loans to small businesses and other PayPal customers.

    At the moment, PayPal Holdings Inc. is only offering these features to a select group of clients. The company won’t be requiring a minimum balance nor will it charge any monthly fees. However, users will have to pay ATM fees if they use machines that are not included in PayPal’s MoneyPass system. They will also be charged one percent of any checks deposited via the smartphone camera system.

    Bill Ready, PayPal’s Chief Operating Officer, said the company’s new services are not intended to replace conventional banking system. He further explained that what the company wants is to offer banking choices to customers that have difficulty accessing them, which is something PayPal believes is vital as the world moves towards a more digital ecosystem.

    “We’re trying to bring more of those people into the digital economy,” Ready said. “For folks who don’t have bank accounts, for folks who don’t have credit and debit cards, we want to give them something so they’re not turning to prepaid cards, check cashiers and payday lenders.”

    PayPal’s COO also noted that there are around 30 million people in the US without bank accounts and that they spend about nine percent of their pay on fees and interests from alternative monetary services. With PayPal’s new banking features, these people will hopefully be given access to the digital economy.

  • Stripe’s New Subscription-Billing Service is Making it Even Easier for Online Businesses to Get Paid

    Stripe’s New Subscription-Billing Service is Making it Even Easier for Online Businesses to Get Paid

    A lot of transactions and payment services are now being done online—from subscribing to streaming services like Netflix, to ordering food or buying clothes. This has led to a need for tools that will let companies, particularly small businesses, get paid.

    Stripe is stepping up to meet these demands with Stripe Billing. This subscription-billing service was developed to help both starting and established businesses get paid on time and without any problems.

    The company is known for supplying developers with the means to charge customers and conduct transactions in a simpler way. But now they’re taking it further by rolling out a billing product geared for online businesses.

    Stripe Billing reportedly uses machine-learning technology to help curb late or missed customer payments. The system can handle tasks like invoicing and subscription recurring revenue. It’s easier and faster to use than other payment systems. What’s more, it uses predictive technology that pinpoints the optimal time to retry collecting on a missed payment with the goal of reaching the client.

    Stripe has also coordinated with major credit-card providers like American Express, Discover, Mastercard, and Visa to allow customers to receive their updated or new credit card numbers without having them re-enter their personal information.

    Stripe Billing also supports ACH payments and wire transfers, a feature that will undoubtedly help corporations and companies with larger accounts.

    Tara Seshan, PM on Stripe’s billing product, explained that even large companies with enough resources to develop in-house billing would lament on how challenging the process is. This prompted them take a step back and think about how to devise billing tools that are accessible to everybody.

    “That meant something really flexible and really easy to implement,” Seshan said. She also added that even if you’re a small business, you should have “the same subscription tools as Spotify.” Stripe Billing can be considered the “building blocks” that a company can use to have a fast and flexible payment service.

    [Featured image via Stripe]

  • 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.

  • Donald Trump Attacks Amazon on Twitter for Not Paying Enough Taxes

    Donald Trump Attacks Amazon on Twitter for Not Paying Enough Taxes

    Donald Trump once again used social media to attack Amazon. This time, Trump accused the online retailer of being a threat to small businesses as well as “paying little or no taxes.”

    By now, everyone is probably aware that Trump is not really friends with Amazon as well as its CEO Jeff Bezos. So, it came as no surprise when the president decided to tweet his concern against the eCommerce giant last Thursday. Aside from accusing the company of not paying enough taxes, Trump also asserted that the government actually suffered losses due to Amazon’s use of the US Postal Service in its deliveries.

    However, Trump’s statement about Amazon’s tax practice is a bit misleading. While the retailer previously collected sales taxes only in a few states, the company has since corrected its operations and is now collecting in 45 states or all states that impose the collection of sales taxes.

    Trump is a known critic of Amazon and its CEO, Jeff Bezos. In fact, Trump had attacked both Bezos and his company via Twitter more than a dozen times since 2015. Some of his vitriol no doubt comes from unfavorable stories printed about him by The Washington Post, which is also owned by Bezos.

    Regardless of his intentions, many business analysts agree with Trump’s view that Amazon’s size has strangled competitors, particularly the brick and mortar retailers. This concern first surfaced way back in the 90s when the company started out as an online bookstore. These days as a retailer of all things, Amazon’s has a far bigger presence in the world of eCommerce, accounting for a staggering 40 percent of all online sales.

    “The Trump administration should rein in giants like Amazon because they have an unfair stranglehold on the competition, not because the president has a personal feud with a company’s CEO,” Minnesota Representative Keith Ellison said in a statement, which echoed Trump’s concern.

    Of course, Amazon is aware that its ballooning size is bound to raise some antitrust issues soon. Eyeing the storm that is yet to come, the company wants its bases covered and has reportedly hired numerous antitrust consultants over the past year.

    Amazon’s tax history is not entirely blemish-free either. The company recently ran into problems in its international operations and settled a tax dispute with French authorities for an undisclosed amount. However, the EU ruled Amazon to have an “illegal tax advantage” and ordering the company to pay $294 million to Luxembourg.

  • 5 Ways Artificial Intelligence Benefits eCommerce Businesses

    5 Ways Artificial Intelligence Benefits eCommerce Businesses

    Over the past few years, more people have turned to online shopping instead of brick-and-mortar stores because of convenience. In 2017, eCommerce businesses accounted for 9.1 percent of US retail sales during the fourth quarter, higher than the 8.2 percent share of the previous year.

    Amidst online sales growth and positive prospects of eCommerce, nearly half of the industry’s revenue comes from Amazon. This prompted other online retailers to tap into artificial intelligence, or AI, in gaining an edge over the eCommerce giant through personalized shopping experience. In utilizing AI for their businesses, retailers gain critical analytical data on consumers, allowing them to improve customer experience.

    From effective marketing strategies to efficient sales process, here’s a look at how using AI will benefit online retailers.

    1. Easier Product Searching

    Most sales online begin with a search, and if the results displayed are not relevant, this can prompt customers to look somewhere else. Keyword-based search is the usual method for websites to return a list of items based on entered words and description. However, this might not be the most accurate way to generate relevant results.

    To address this, a visual search engine powered by AI allows customers to send an image instead and discover similar products on your website. High-end retailer Neiman Marcus first announced said feature on its mobile app in 2015, recognizing the customer’s need to find related results based on photos.  

    Related image

    Image via Neiman Marcus website

    2. Better Customer Understanding

    Feedback, whether posted on social media or review sites, allows businesses to quickly gain valuable insights about their products. Although 40 percent of sales and marketing leaders acknowledge that word of mouth is crucial to a brand’s success on social media, less than half of these companies use this information for their customer analytics.

    By using AI and natural language processing (NLP), retailers can sift through every online feedback, be it positive, negative, or neutral, to learn more about customer expectations and respond accordingly.   

    3. Personalized Marketing Strategy

    AI-powered recommendation engines filter relevant information from numerous data about a buyer’s interest, preference, and behaviors on the site. Based on timely insights gathered, an online merchant suggests items uniquely patterned after your recent activity and past purchases on the site.

    This shopping experience mimicking the personal feel of brick-and-mortar stores translates to customer satisfaction and spending. In fact, retailers with personalized strategies have observed sales growth of 6-10 percent, two to three times faster than others that don’t, according to Boston Consulting Group study.

    4. Immediate Customer Service

    Chatbots and virtual shopping assistants, powered by AI, provide direct and quick customer engagement. For eCommerce businesses, chatbots can be used to automate customer service messages, send order-related information, resolve issues, and interact with clients in real-time. By using NLP to understand meaning and context of your customers’ messages, these virtual assistants can take on your brand’s personality and voice in creating human-like interaction.

    Image result for chatbot customer service

    Image via livingactor.com

    In a survey done by Oracle on 800 sales and marketing leaders, about 80% want to use chatbots in their businesses by 2020 as a way to automate some processes and improve customer experience.

    5. Systematic Sales Process

    Prior to social media, sales strategies include cold-calling and ad placements in the hopes of targeting the right market. These days, AI is used to gather patterns and numbers to help businesses convert queries to actual sales through data-driven feedback.

    Nowadays, people turn to social media platforms like Facebook and Instagram for shopping inspiration—a trove of data for AI companies like Yotpo to utilize in developing digital marketing tools. With proper use of user-generated content, customers discover products in a subtler, more natural way.  

    “Artificial intelligence programs can scan through millions of events to find patterns and correlations that we just would not notice on a day to day basis. So it might notice a correlation between sending a specific pitch deck to prospective clients before calling them results in better conversions,” Uzi Shmilovici, chief executive officer of Base CRM, explained.

    Digitally native retailers have recognized the importance of creating personalized shopping experience through the use of AI as a way to give them an edge over others offering the same products. By leveraging AI-driven innovations, smaller eCommerce businesses, as well as bigger retailers like Amazon, get the leg up in attracting and retaining their customers. 

  • Walmart is Using Acquisitions to Reign in Millennials, eCommerce Head Marc Lore Reveals Strategy at ShopTalk 2018

    Walmart is Using Acquisitions to Reign in Millennials, eCommerce Head Marc Lore Reveals Strategy at ShopTalk 2018

    Walmart will continue its buying spree of digital brands in 2018 as it aims to build and differentiate its online inventory in competing against Amazon. Marc Lore, eCommerce head of the world’s largest retailer, revealed that there’s a bigger strategy involved with Walmart’s bullish acquisitions during the Shoptalk conference in Las Vegas on last Tuesday.

    “[We’re] trying to create a portfolio of these brands that give us proprietary content for a reason for [a] millennial to come shop inside the Walmart ecosystem,” Lore explained. “We’re not going out making billion-dollar acquisitions. We’re buying companies that can help accelerate us to the fundamentals.”

    The retailer’s acquisitions are targeted to expand its reach into new demographics—a younger and hipper clientele of millennials. Jet was acquired for more than $3 billion in 2016, while online startups ModCloth and Bonobos were purchased in 2017 for about $50-$75 million and $310 million, respectively.

    Lore said that Walmart is prepared to spend about $50 million to $300 million, or more, for future acquisitions. Since Jet appeals to affluent millennials in urban areas like New York and San Francisco, adding more digital brands to its roster makes it all the more attractive.

    “We’ll continue to push the assortment,” he pointed out. “We’re working on a lot of premium partnerships right now that will augment and uplift the assortment and of course add Bonobos, Allswell [Walmart’s new bedding and mattress brand] and ModCloth to Jet as well.”

    But having few digital brands with their own unique inventory is not enough for Walmart as they continue to be on the lookout for more startups. “We’re looking and talking to more companies now than we ever have,” Lore said. “We’re looking for the right opportunities.”

    While the aggressive acquisition of independent brands allows Walmart to learn about merchandise expertise in specific categories, these online startups will also benefit from the retailer’s supply chain infrastructure.

    “The concept is let’s cross pollinate talent. Let’s cross pollinate learnings and let’s have a common backbone and backend through Walmart’s supply chain infrastructure. This wasn’t about let’s figure out how to rip out costs. It’s about how to play offense,” Andy Dunn, founder of Bonobos and Walmart’s SVP of digital consumer brands, emphasized.

    Dunn joined Lore on stage to refute reports that his colleague was being ousted following Walmart’s disappointing online growth in the last quarter of 2017. Despite the holiday shopping season, online sales growth decelerated to 23 percent from previous quarter’s 50 percent. Moreover, Walmart’s fourth-quarter results missed Wall Street’s forecast earnings, causing shares to drop by more than 10 percent.

    But Lore isn’t worried about the lackluster results. “Basically that Q4 was largely planned. We attempted to create a healthier Q4. We told The Street we’d do $11.5 billion in the year, and that’s what we did. We also said we’d have 40-percent growth this year and we recently reiterated that growth.”

    He downplayed the speculations of an early exit as well, reiterating his commitment to staying for five years, and possibly more.

    [Featured image via YouTube]

  • 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]

  • Amazon is Now the World’s Second Largest Company, Surpasses Alphabet

    Amazon is Now the World’s Second Largest Company, Surpasses Alphabet

    Amazon became the second most valuable company as it overtook Google parent Alphabet for the first time amidst Tuesday’s trading.

    The eCommerce giant’s shares surged by 2.7 percent, pulling up its stock market value to $768 billion. Over the past 12 months, the online retailer has added around $350 billion to its market capitalization, surging by 85 percent. This was attributed to Amazon’s aggressive expansion into other markets, such as cloud computing and brick-and-mortar stores.

    More investors are betting on Amazon’s profitable and fast-growing cloud computing business, Amazon Web Services, to fund the company’s new ventures like original content, physical stores, and building data centers and warehouses.

    Amazon is still behind Apple, the largest publicly traded US company with market value of $889 billion. But analysts think the eCommerce giant can close the gap. “They could have Apple in their sights at some point,” Tim Ghriskey, chief investment strategist at Inverness Counsel in New York, said.

    On the other hand, Alphabet’s stock tumbled by 0.4 percent, trimming its market cap to $762 billion. The Wall Street ranking shake-up was traced to Monday’s tech sell-off following the political backlash over reports that a consulting firm leaked the personal data of 50 million Facebook users. Similar to the social media company, Alphabet also relies on obtaining massive amounts of personal data to target online advertising.

    Although Amazon also collects data from site users, some analysts believe that the online retailer will not be affected by concerns about the new regulation on online advertising, unlike Facebook and other tech companies.

    Fred Weiss, a managing director at CIBC Atlantic Trust, pointed out to Financial Times, “It is clearly companies that have proprietary personal data that they are able to market to advertisers. Those are the ones that are vulnerable, not so much Amazon. It does very little on advertising and is not being impacted the same as Google and Facebook.”

    [Featured image via Amazon blog]

  • 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.

  • Win the Amazon Buy Box and Watch Your Sales Soar in 2018

    Win the Amazon Buy Box and Watch Your Sales Soar in 2018

    Amazon is now one of the ten largest retailers in the world. A study by One Click Retail also determined that the online giant accounted for about 44 percent of all eCommerce sales in 2017. These two reasons alone should be enough to convince you about the importance of integrating Amazon into your sales strategy.

    However, simply creating an account and selling on Amazon is not enough. After all, there are millions of third-party sellers on the site, and a lot of them even offer the same merchandise as you. If you want more shoppers to see your product and boost your sales, you need to appear in Amazon’s vaunted Buy Box.

    What’s a Buy Box?

    The Amazon Buy Box is the golden ticket for e-retailers because winning it means high visibility and amazing sales numbers. This is the white box found on the right of the product detail page, where shoppers can add the items they plan on purchasing.

    When customers search for a product on Amazon, photos and details of the product appear, along with an “Add to Basket” or “Add to Cart” button. Once the customer clicks on the yellow button, the lucky seller who has the Buy Box at that particular moment will get the sale.

    Image result for amazon buy box

    Image via websitemagazine.com

    There’s another box underneath the Buy Box for the other sellers. However, 82 percent of shoppers tend to just click on the yellow button while 18 percent of customers really take the time to scroll through other sellers and compare prices, delivery methods, and seller feedback. So it’s easy to see why the Buy Box is a prime commodity among third-party sellers.

    Advantages of Winning the Buy Box

    Retailers who win the Buy Box have a huge advantage over their rivals, especially now that the majority of consumers are doing their shopping online and more often than not, they make their purchases on Amazon.

    Winning the box is also essential now that mobile shopping is growing rapidly. As a matter of fact, shopping on Amazon’s mobile app increased by 56 percent globally and is expected to continue growing. Unfortunately, while the “Add to Cart” button can still be seen under the product image and details in the app, shoppers can’t view other sellers easily. So if you want to secure more sales, it’s vital that you win the Buy Box.

    How to Win Amazon’s Buy Box

    In order to win the coveted Buy Box, you have to have the following key requirements.

    • Have a Professional Seller account: Retailers with a Professional Amazon Sellers account are the only ones who have a shot at winning the Buy Box. The company’s algorithm does not include Basic Seller or Individual accounts. So if you want that box, make sure to upgrade to a Professional account.
    • Be Buy Box Eligible: You should be Buy Box Eligible for a specific product if you’re planning to compete for Buy Box sales. This means you have to have been trading for a minimum of two to six months. You should also have a history of successful sales. Closing a large number of sales proves your consistency and trustworthiness. Good customer metrics and great customer service are also needed to be eligible. You can also improve your chances by fast-tracking your eligibility via the Fulfillment By Amazon (FBA).
    • Products Should be New: Only new products can win a place in the Buy Box as the company wants to ensure that only products of high-quality and in good condition are being promoted. If you’re selling pre-loved items, you can be eligible for the Used Buy Box, which is distinct from the main box.
    • Have Enough Items: Having available stocks will certainly boost your chances here. After all, you can’t sell something if you don’t have it on-hand. Amazon also wants to minimize incidents of customers being disappointed when they reach checkout only to discover the item is sold out. So it’s crucial that you have enough stock and that your inventory is updated. Otherwise, your seller metrics will go down and your chances of getting the Buy Box will dwindle.

    Winning Amazon’s Buy Box will undoubtedly help boost your sales and enhance your reputation as a successful seller. But you have to be ready for some strict competition if you’re planning to go for the box. Remember that there’s no solid way to beat your rivals and ensure you win the Buy Box. All you can do is monitor your metrics and focus on key factors like having Prime products, becoming an FBA seller, having excellent customer service and getting positive feedback from happy shoppers.

  • Salesforce Acquires CloudCraze, a B2B eCommerce Software Startup

    Salesforce Acquires CloudCraze, a B2B eCommerce Software Startup

    Salesforce has added another tool to their CRM applications with its upcoming acquisition of CloudCraze, a Chicago-based eCommerce platform.

    The news was announced on Monday by CloudCraze. While the terms of the deal with Salesforce was not disclosed, it was revealed that the two companies had already signed an agreement.

    CloudCraze president Ray Grady pointed out in the company’s announcement that the B2B industry is slated to grow to $1.2 trillion and that it’s crucial for businesses to grab this opportunity. He also added that “the addition of CloudCraze to the Salesforce Commerce Cloud, Salesforce and its customers can now take advantage of this shift to digital commerce, enabling business buyers to browse and purchase online as easily as consumers shop today.”

    The deal between the two companies is not surprising considering how intertwined CloudCraze and Salesforce are.  Salesforce built its B2B software on CloudCraze’s platform and its investment division also supported CloudCraze’s $20 million round in 2017. Insight Venture Partners also backed the Chicago startup during its latest funding run.

    Last year’s investor round gave CloudCraze the needed capital to scale its business and expand its team. The company’s software helps businesses produce online revenue and remain connected to their customers effortlessly. Companies that use the platform can instantly see all the relevant customer data and quickly share it across various channels. Companies like Coca-Cola, GE, Kellogg’s, and L’Oreal are all using CloudCraze.

    This is far from the first startup that Salesforce bought. About two years ago, the company purchased Demandware. It also absorbed Chicago startups Gravitytank AKTA, InStranet, and Model Metrics. The company also acquired SteelBrick in 2015 for $300 million.

    CloudCraze will be Salesforce’s second acquisition for the year, after taking a break from buying startups in 2017. The company acquired Attic Labs in January. It’s still unknown if Salesforce will be going on a buying spree again this year, although the company has been very open about its new revenue goals. Acquiring fast-growing startups is one sure way to hit their mark.

    [Featured image via Salesforce APAC YouTube]