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Category: Retail & eCommerce

eCommerce, Online Retail & Retail News

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

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

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

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

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

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

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

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

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

    [Featured image via YouTube]

  • Ghostery Goes Open Source, Reveals Two Proposed Revenue Streams

    Ghostery Goes Open Source, Reveals Two Proposed Revenue Streams

    Ad-blocker Ghostery published its entire programming code on Thursday. By going open source, the company aims to clear the air on its old business model and invite others to contribute to its continuing development.

    “As a privacy product, especially one designed to give users a look behind the scenes at what data companies are collecting and doing with it, we thought it was important to give our users a look under the hood,” Ghostery’s product manager Jeffrey Tillman said.

    This unprecedented move was Ghostery’s response to conspiracy theories hounding the company. Before its acquisition by web browser Cliqz last year, previous owner Evidon earned money for Ghostery by selling users’ data. Software users chose to disclose information on ad trackers they encountered, but the compiled information was sold to eCommerce sites to help them discover why loading times slowed down.

    Ghostery’s old business model was contradictory—a privacy-focused tool selling user data—and confused its users. “It was never a really great fit for Ghostery the consumer product,” Tillman admitted.

    Recently, Ghostery announced two revenue streams as its new business model. First is Ghostery Insights, a paid analytics service for researchers to gather more data about the tracker ecosystem. Likewise, the analytics tool will aid web developers in quantifying the effect of trackers on site performance, such as loading speeds.

    Meanwhile, Ghostery Rewards is an affiliate marketing program designed for its users. They can choose to sign up for the service wherein users will receive relevant promotional offers, a tamer version of aggressive web ads. There will still be advertisements, but only those worthwhile and interesting to Ghostery users.

    Of course, affiliate programs are nothing new as many publications and bloggers already use them to generate revenue. However, Ghostery’s decided to make its program distinctly different from that of its main rival Adblock Plus. Unlike Ghostery Rewards, Adblock has an “acceptable ads program” that shows ads that may not be relevant to the user. As long as advertisers meet certain criteria and agree to split some of their ad revenue, Adblock lets them through.

    Exposing Ghostery’s code to the public makes it more vulnerable for software developers to sidestep the ad blocker’s system. But Tillman isn’t losing sleep over it.

    “There will always be a cat-and-mouse game with advertisers that are trying to find new ways to evade our technology but, if anything, going open-source should empower our community of contributors to help keep Ghostery ahead of the curve,” Tillman pointed out.

    [Featured image via YouTube]

  • PayPal Files Patent That Could Expedite Cryptocurrency Transactions

    PayPal Files Patent That Could Expedite Cryptocurrency Transactions

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

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

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

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

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

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

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

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

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

    [Featured image via PayPal]

  • Amazon Reportedly Wants to Venture into Banking

    Amazon Reportedly Wants to Venture into Banking

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

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

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

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

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

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

    [Featured image via Amazon]

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

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

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

    Why KPIs Matter

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

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

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

    Top 5 KPIs for Your Business

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

    1. Conversion Rate

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

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

    2. Average Order Value (AOV)

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

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

    3. Repeat Customer Rate (RCR)

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

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

    4. Cart Abandonment Rate

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

    Image result for cart abandonment rate rate

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

    5. Website Traffic

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

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

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

  • ZenBusiness Wants to Make it Easier for One Million Small Businesses to Get Started by 2023

    ZenBusiness Wants to Make it Easier for One Million Small Businesses to Get Started by 2023

    Austin-based company ZenBusiness has secured $4.5 million in seed money, thanks to numerous angel investors. The startup is also embarking on the lofty goal of assisting one million businesses get started.

    ZenBusiness, which began operations in 2015, helps small business get off on the right foot by assisting with legal documents. The company will inform clients of each and every form required by the state and the reports that have to be filed yearly. This will undoubtedly be a big boon to first-time business owners and entrepreneurs, as the process and requirements of launching a small business differ per state.

    The corporate creation and management company is offering a fast, easy and affordable alternative to the complicated process of filing legal and business documents. ZenBusiness will provide clients a set of questions to answer that will determine the business they want to start. The business platform then creates and files all the needed documents for free, except for the state-mandated fees. What’s more, this is all accomplished in as little as 48 hours.

    Company owners can also avail of the $10 monthly package that lets ZenBusiness become the business’ registered agent and allows them to handle “annual filings, franchise tax, all of the red tape around an entity.” The company is also open to paying any potential fines in the event that they have been remiss with any of the documents. The payment will be taken from the $4.5 million seed money from investors Lerer Hippeau, Greycroft, Slow Ventures, Founders Fund, and Revolution’s Rise of the Rest.

    ZenBusiness founder Ross Buhrdorf explains that their platform and affordable pricing ensures that every small business owner has the “resources and protection they need to turn their business dreams and ideas into reality.” Burhdorf has also set a very lofty goal for the company, that of helping develop one million small businesses by the year 2023. This roughly translates to 2.5 million new jobs for Americans and over $100 billion in income for workers.

    [Featured image via Pexels]

  • Will Trump Tax Cuts Benefit Your Small Business?

    Will Trump Tax Cuts Benefit Your Small Business?

    Small businesses are feeling very optimistic these days, with a record number believing it’s the perfect time to expand. The positive outlook has reportedly been fueled by the changes instituted by the Trump administration’s tax-reform package.

    Survey Says It’s a Good Time for Small Businesses

    According to a survey released by the CNBC and Survey Monkey, the Small Business Confidence Index for Q1 saw numbers rise from 57 to 62. The five-point increase is the largest move per quarter that the index has seen since the two companies started measuring in 2017.

    The CNBC/SurveyMonkey Survey also highlighted several key takeaways. For instance, 47 percent of small businesses stated that on the whole, business conditions are good. Only 44 percent believed that last quarter. The survey also revealed that 32 percent of small business owners are planning to add more full-time workers in 2018.

    How the New Tax Law Affects Small Businesses

    It should be pointed out that the Q1 survey is the first done since President Donald Trump enacted the Tax Cuts and Jobs Act (TCJA) on December 22, 2017. The rise in optimism and confidence is quite the surprise, considering that in the Q4 2017 survey, small-business owners were split in the middle regarding the effect the tax law would have on their business. Now it seems that 46 percent of those surveyed believe Trump’s tax policy will have a positive impact; an impressive jump from the 38 percent of last quarter.

    What kind of impact will the new tax law have on SMBs? The final iteration of the bill allow pass-throughs of as much as 20 percent of the income. However, these deductions depend on the type of business.

    In personal service businesses, like lawyers, architects, and brokers, the 20 percent deduction is only permitted for married partners that filed joint incomes of as much as $315,000. Meanwhile, the deduction is allowed for single taxpayers with incomes of up to $157,000.

    For businesses that are employee intensive, like manufacturers and restaurants, the deductions depend on the payroll. The 20 percent deduction is actually confined to 50 percent of the payroll. So companies with a lot of workers get a big break. The new tax law basically gives these businesses a good reason to expand and hire new people.

    Last December, Adam Looney of the Tax Policy Center was interviewed on PBS’s News Hour where he explained how the ‘pass-throughs’ would work for small business.

    Benefits of Tax Cuts to Small and Medium Sized Businesses

    The TCJA appears to have a trickle-down effect on consumers and small businesses. The higher take-home pay and bonuses resulting from the new tax law have given consumers more spending confidence. This was clearly seen during last year’s holiday season.

    This consumer confidence is a good sign for small and medium-sized business. With increased spending, these companies can generate more revenue that they can use to either improve the business or pay off creditors. For instance, savvy business owners can take steps to improve their credit rating, like paying their bills immediately.

    Companies with improved credit ratings have access to more capital. This can be beneficial to owners thinking of expanding operations, improving an office, buying new equipment, or refinancing a debt.

    More importantly, a positive credit score makes it possible for entrepreneurs to apply for small business funding with banks. These traditional lenders typically look more closely at credit scores. They can also offer small businesses better terms and rates. For example, instead of paying 20 percent interest on a credit card, a businessman can get capital at 8 percent interest which can be used to pay off debt and place the company in a healthier space, finance wise.

    Small businesses certainly have a lot to look forward to now that the TCJA is in effect. However, the changes introduced in this new law can be challenging to navigate. Some of the new rules are just so complicated that tax experts might have trouble processing them. So it’s a good idea for small businesses to invest in reliable tax advisers this year.  

    [Featured image via YouTube]

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

    How Your Business Can Identify and Capitalize on Micro-Moments

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

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

    What are Micro-Moments?

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

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

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

    Image result for micro moments

    [Graphic via Think with Google]

    How to Capitalize on Micro-Moments

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

    1. Put Your Business Profile Out There

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

    2. Flaunt Your Value With Original and Significant Content

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

    3. Speed is of the Essence

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

    4. Improve User Interface

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

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

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

    [Featured image via ThinkWithGoogle]

  • Walmart Builds Giant Private Cloud to Take on Amazon

    Walmart Builds Giant Private Cloud to Take on Amazon

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

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

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

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

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

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

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

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

    [Featured image via Walmart]

  • Amazon is Now Worth More Than Microsoft, Becomes the World’s Third Most Valuable Company

    Amazon is Now Worth More Than Microsoft, Becomes the World’s Third Most Valuable Company

    The race in becoming the first company to reach the trillion dollar mark in terms of market capitalization is still ongoing. However, Amazon is a strong contender as its long-running market rally continues unabated. Thanks to a sharp rise in its company’s shares on Wednesday, Amazon became the world’s third most valuable company, overtaking Microsoft for the first time.

    Amazon shares surged by 2.6 percent on Wednesday—an increase of $36.54 a share in just a single day of trading. Closing at $1,451.05 per share, the online retail giant is now valued at $702.5 billion. Its market value went up by $17.69 from the previous day’s close.

    While Microsoft managed to post some gains on the same day, it was not enough to offset Amazon’s increase. The software giant’s stock rose by 1.6 percent or $1.40 per share, translating to an increase in total market cap by $10.78 billion. The company is now valued at $699.22 billion on Wednesday’s close.

    At the moment, only two companies are worth more the Amazon. Gadget maker Apple is still number one with a market valuation of $849.2 billion. Meanwhile, Google’s parent firm Alphabet is in the second spot currently valued at $746 billion.

    Amazon continues to dazzle investors and has managed to post a 73 percent increase in the past year. As a result, CEO Jeff Bezos overtook Microsoft co-founder Bill Gates as the world’s richest person. Microsoft’s 41 percent increase in the past 12 months was not enough to offset the online retailer’s meteoric rise.

    [Featured image via Amazon]

  • Google Tests ‘Smart Reply,’ Sends Contextual Replies to All Your Favorite Chat Apps

    Google Tests ‘Smart Reply,’ Sends Contextual Replies to All Your Favorite Chat Apps

    Replying to common messages received via your Android device will soon be a lot easier. Google is developing an app that will give you a selection of preformatted responses allowing you to reply with just one click of a button.

    The new project is aptly named “Reply,” which can be viewed as the mobile version of Google’s Smart Reply feature that is available in Gmail and Allo. The upcoming app, which will be initially available to Android users, will use artificial intelligence to automatically create response suggestions to inbound messages.

    The “Reply” app aims to enable users to make faster responses to simple questions instead of typing out the entirety of their replies. For instance, users will be given the reply options “Yes,” “No,” or “I am here” when they receive questions such as “Are you at the restaurant?” or “When can you be home?” The AI-powered app will also take into account your current location when crafting an appropriate response.

    [Image via Android Police]

    The app is currently in development by Google’s Area 120 team. However, the company does not plan on limiting the useful feature only to its messaging apps. The team announced that the plan is for the upcoming app to work with other mainstream messaging apps.

    In fact, it’s not necessary to change apps to enjoy the convenience of the upcoming “Reply” app at all. The Area 120 team is aiming for the app to have support among major messaging apps such as Hangouts, Allo, Whatsapp, Facebook Messenger, Android Messages, Skype, Twitter DMs, and Slack.

    Aside from offering reply suggestions, the “Reply” app will also introduce other smart features. It comes with a Do Not Disturb mode which can be particularly useful when you are driving as it will silence your smartphone and automatically send a responses message saying that you can’t chat at the moment. 

    At the moment, Team 120 is not disclosing any launch date estimate.

    [Featured image via Pixabay]

  • eBay Plans to Add AR Features to Enhance Shopping Experience

    eBay Plans to Add AR Features to Enhance Shopping Experience

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

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

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

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

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

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

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

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

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

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

    [Featured image via eBay]

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

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

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

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

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

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

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

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

    [Featured Image via Instacart]

  • 4 Accounting Software to Consider Using for Your Small Business in 2018

    4 Accounting Software to Consider Using for Your Small Business in 2018

    Small business owners understand how crucial it is to have a handle on their finances. Unfortunately, most small businesses can’t afford to hire a full-time accountant. However, a good accounting software makes it easier to monitor business accounts. It can also track expenses and bills, creates invoices, manages inventory and generates reports that help evaluate how a business is doing.

    There are several factors that one should consider when choosing accounting software. An interface that’s easy to navigate and understand is one such factor. Small business owners should also consider its features and how they can help in running operations. It should also be compatible with other tools that the business uses. Lastly, brands should consider how much money they have to shell out. Do they want the basic or are they willing to spend more to get an accounting software with extra features?

    Top 4 Accounting Software for Small Businesses

    Intuit Quickbooks Online

    Image result for Intuit Quickbooks Online 250x250

    Quickbooks Online is one of the more popular accounting software out on the market today. It can easily cater to the needs of small businesses and as well as major enterprises. Small companies would find that its interface is easy to master, so new accountants or those without an accounting background can easily navigate their way around.

    The software syncs automatically to a single dashboard. This allows various users to view the company’s accounts, create billing statements and invoices and generate over 40 different reports. Quickbooks can also be integrated with other Intuit tools like GoPayment and Quickbooks Online Payroll.

    Kashoo

    Image result for kashoo 250x250

    Freelancers and small businesses simply love Kashoo’s improved interface and clean navigation tools. The software offers basic accounting capabilities, like pre-formatted reports, templates for products, customers and suppliers, and forms for invoice, bills, and payroll. Users can also track project costs and create sales tax rates with this software. Kashoo also provides its clients with free chat, email, and phone support.

    Wave

    Image result for wave accounting 250x250

    Wave is the best online accounting software for consultants, freelancers, and companies that have less than 10 employees. The program can handle simple financial reports and everyday office processes like invoicing and receipts, managing a balance sheet and generating profit-loss reports. It can also manage payroll and direct deposits. However, the software cannot track payments and bills and has no cash flow report capability. It should be emphasized that Wave only offers very basic accounting processes and won’t be able to handle complex cash transactions.

    Zoho Books

    Image result for zoho accounting 250x250

    This is the perfect software for micro-businesses. It boasts an extensive range of essential accounting tools. It also has features like automated workflows, inventory management, invoice tracking and time tracking. It can even provide automatic payment, and bank feeds notifications. The software can be integrated into more than 25 business and productivity Zoho apps. Users can also avail of the company’s robust support network, whether it’s online or by phone. Its well-designed video tutorial also makes it a breeze to learn how to maximize it for your small business need.

    [Featured image via Pixabay]

  • PayPal Here Launches Two New Card Readers, Giving Small Businesses More Ways to Accept Payments

    PayPal Here Launches Two New Card Readers, Giving Small Businesses More Ways to Accept Payments

    Every customer wants a swift and smooth payment transaction, with little fuss. This holds true regardless of whether they’re buying from a major enterprise or a small business. That goal is certainly possible with PayPal Here’s two new payment card readers.

    PayPal recently launched a Chip and Swipe reader and a Chip and Tap reader, both of which will help users and small companies easily conduct credit card transactions anywhere.

    The Chip and Swipe reader is an improved version of the company’s previous swipe-style reader. It now comes with support for debit and credit cards with EMV chip technology. Meanwhile, the Chip and Tap reader can process contactless payment options from NFC-supported devices and also accepts EMV-supported cards. The device also comes with a portable charging stand.

    Image result for paypal chip and swipe card reader

    Both payment readers can easily process transaction choices like Apple Pay, Samsung Pay, and Google Pay.

    PayPal’s new readers have been designed with portability in mind. The two devices are about the size of a deck of cards, making it possible for small retailers and entrepreneurs to do business in any location—a country fair, the neighborhood cafe—without worrying about wires or having to carry bulky hardware. They can easily connect to any mobile device using Bluetooth technology. The readers also have a user-friendly interface and can now be used for extended periods, thanks to their rechargeable lithium-ion battery.

    PayPal is offering the Chip and Swipe reader for $24.99 and the Chip and Tap reader for $59.99. Both devices will work seamlessly with the PayPal Here. The app is available via the Apple App Store and Google Play.

    In a statement, PayPal In-Store’s Chief Chris Gardner stated that the company understands the “challenges small businesses face—including protection from fraudulent transactions and the costs of equipment to run their business—and constantly work to develop products and services that allow them to thrive in an increasingly competitive environment.” Their new and affordable card payment readers are their newest endeavor to help small business.

    Gardner also pointed out that small and medium businesses also look for a “one-stop shop” for all their commerce and payment services. After all, these companies don’t have the time to deal with various vendors to manage all these financial activities. PayPal is determined to be the company to handle these demands. Merchants can use PayPal for their online transactions, PayPal Here for their physical processes, and PayPal Working Capital to help finance their expansion.

    [Featured image via PayPal]

  • Is Amazon Go the Future of Grocery Stores? Maybe Not

    Is Amazon Go the Future of Grocery Stores? Maybe Not

    With the grand opening of the Amazon Go mini-mart in Seattle on January 22nd, the world was introduced to what the eCommerce titan sees as the future of retail grocery shopping. As complicated and competitive the grocery industry has become, both online and on the street, Amazon’s premise is very simple: Speed and Convenience.

    “Amazon Go is a new kind of store with no checkout required. We created the world’s most advanced shopping technology so you never have to wait in line. With our Just Walk Out Shopping experience, simply use the Amazon Go app to enter the store, take the products you want, and go! No lines, no checkout. (No, seriously.)”

    At first sight, Amazon Go seems like a sure bet to help retail catch up to the fast paced lifestyles of both today and of the future. The core of Amazon Go’s proposition lies in the customer app that is tied to your Amazon account. The shopper scans a QR code at turnstiles placed near the entrance of the store. Any item picked up is added to a virtual cart while any item put back upon the shelf is deleted from the cart. Once you’re done shopping, you can waltz right out of the store and avoid any lines or the exchanging of pleasantries with a cashier. Your Amazon account is billed before you step back into the hustle and bustle from which you came.

    Pretty straightforward and not too complicated except, of course, that is not the case. As Harvard Business Review points out, Amazon will be facing a grocery industry that is paved with innovative technologies that failed to be of real benefit to both customers and stores. Radio-Frequency Identification (RFID), Self-Checkout, Electronic Shelf Labels, and Mobile Payments have all fallen short of meeting the customer/retail mutually beneficial criteria.

    Even more, there are socioeconomic issues tied to this technology including the potential net job loss and people with low incomes not having the required resources such as credit cards, Amazon accounts, smart phones, etc. And will food stamps (SNAP) be included in the near future?

    And then there is the big question of security and privacy that is always a concern with these new lifestyle technologies.

    While it seems to be like it could be another successful venture for Amazon that will reshape the retail grocery industry and how we purchase, there are still plenty of everyday issues that Amazon Go will need to address.

  • Snapchat’s Q4 Shows Better Than Expected Revenue and User Growth

    Snapchat’s Q4 Shows Better Than Expected Revenue and User Growth

    In a surprising, but welcomed, development, Snapchat finally pulled out of its slump to post a boost in revenue and new user growth. The increase beat investor expectations and invigorated the company, with stocks going up by as much as 25 percent.

    Snap’s mother company, Snap Inc., reported on Tuesday a revenue of $285.7 million for Q4. It also indicated that it also had a 13 cents loss per share in the same quarter. That was a marked improvement to what analysts had previously predicted—revenue around $252.9 million and a loss of 16 cents per share.

    Snapchat also defied expectations regarding its user numbers. The photo-sharing company saw a surge of 9 million new users, pushing its daily users to 187 million. Wall Street analysts had pegged Snapchat to add at most just 6 million new users during the last quarter of 2017.

    This led to a major demand for the company’s shares during after-hours trading. Stocks of Snap Inc. went up 25 percent to around $17.60 per share, which was more than its IPO price.

    The new development has certainly given investors and Snap’s stakeholders room to breathe. The company has been laboring with uninspired sales and slow user growth in the past three quarters since it went public. But now it seems Snapchat has bounced back.

    The question now is whether the company can sustain this growth. Snap has already made massive changes since its initial public offering. Its software was fixed and updated, and a new auction-based advertising scheme was launched. Snapchat’s design has also been revamped in a bid to make it more user-friendly and to appeal to older users. At the moment, the app is more popular among the teenage crowd and millennials.

    Snapchat’s new look is currently being tested in Australia and the UK. However, reviews about its new design have been less than enthusiastic. The new and improved Snapchat is expected to be released globally by the end of this year’s first quarter.

    [Featured image via Snapchat] 

  • How to Optimize Checkout Flow in Your eCommerce Store

    How to Optimize Checkout Flow in Your eCommerce Store

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

    What’s the Deal With Checkout?

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

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

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

    Online shopping cart abandonment rate worldwide from 2006 to 2017

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

    3 Tips for Optimizing Checkout Flow

    Never Force a Customer into Making an Account

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

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

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

    Image result for speedo checkout page

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

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

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

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

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

    Related image

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

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

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

    [Featured image via Pixabay]

  • Simple UX Tips to Keep Your eCommerce Store from Losing Money

    Simple UX Tips to Keep Your eCommerce Store from Losing Money

    Shopping cart abandonment is a big problem that can lead to huge loses in revenue for your eCommerce business. However, there are various reasons why shoppers abandon their carts. Some customers might just want to browse your store items while others are simply not interested in what you have to offer. While some reasons for shopping cart abandonment are out of your control, improving the user experience of your online store will get more customers pass the checkout. 

    Understanding the Importance of UX

    User experience, or UX for short, pertains to the overall feeling a customer has when interacting with your eCommerce store. How positive the UX is usually depends on how enjoyable and easy it was for the visitor to navigate the store, find what they were looking for, and place an order. Conversely, issues like unclear pricing, site errors, and insufficient payment methods can cause people to abandon their carts.

    Companies might argue that loyal customers will put up with slight inconveniences. But these days, shoppers have numerous options for buying products and services online. Shopify.com alone has more than 500,000 merchants in about 175 countries. Regardless of how good your product or service is, there are competitors that offer something similar. And if they also provide a better user experience, well, it’s not hard to imagine where the customers would go.

    Ways to Improve UX in Your eCommerce Store

    A good UX can help attract new customers. More importantly, it helps online retailers retain existing customers and boost customer returns. If you want your clients to remain loyal and keep coming back, then you should look for ways to improve your store’s UX. Here are some suggestions:

    1. Enhance Search Results

    About 30 percent of your site’s visitors will be using the search tool. These guests know what they want and are very motivated to purchase it. So you should make it easier for these shoppers to find the product they want by enhancing your site’s search feature.

    Consider where your search bar is located. Place it in a prominent location, like the page’s header. Look at how Amazon positioned theirs—at the top center of the page. Make sure your website’s search feature can be found on every page. This consistency will make your product catalog more accessible and browsing go more smoothly.

    2. Use Good Photos and Improve Product Description

    One disadvantage to online stores is that you can’t hold the product, and customers want to see and touch things they plan on buying. One way to counter this dilemma is to provide clear and captivating images of the product.

    Online sellers have to make sure that they capture key product details in the photograph. Brands should ensure they display large product images and complement them with several alternative pictures and zoomed-in images. Don’t forget the product description. Add key information like available colors, size guides, weight, and other important specifications.

    3. Improve the Checkout Process

    A long and complicated checkout process is one of the main reasons for shopping cart abandonment. Luckily, there are some things you can do to make checking out go more smoothly. First, get rid of all unnecessary fields on the checkout form, like Gender or Birthday. Just stick to the information you really need.

    It’s also a good idea to optimize your site for mobile checkout by using big fonts, larger input fields, and a clear call-to-action (CTA) button. There should also be an indication to the user that their order is being processed. The “loading spinner” can be useful at this point, and it’s something that users would expect to see.

    4. Provide Good Customer Service and Positive Customer Interaction

    There are a number of small, and often neglected, things that can lead to positive customer interaction. Ensuring that banners, CTA buttons, and photos link to the right product is one. Using area maps to link to a specific product when there’s more than one being shown in a photo is another. You don’t want to get your customer’s frustrated. Help them find what they’re looking for and give them a positive experience to remember.

    Image result for live chat

    [Graphic via Wix.com]

    Pay attention to customer reviews, comments, and emails. Make sure you respond to all your users on your different social media outlets. A live chat system is useful since it gives users the chance to contact you immediately, like when they’re about to order but have some questions before making a purchase.

    A positive customer experience will do wonders for your store. Take advantage of the numerous tools and suggestions open to you on how to improve your site’s UX. But make sure you test it thoroughly.

    [Featured image via Pixel.com]

  • Amazon Exceeds Analyst Predictions, Posts its Highest Q4 Profits Ever

    Amazon Exceeds Analyst Predictions, Posts its Highest Q4 Profits Ever

    Buoyed by strong holiday sales and the robust performance of its cloud computing division, Amazon exceeded previous expectations set by analysts for its fourth quarter performance. The eCommerce giant posted a staggering $60.5 billion in revenue, surpassing Wall Street estimates which projected its revenues for the period to only reach $59.83 billion.

    For the fourth quarter last year, Amazon posted a net profit of $1.9 billion, which is a record for the company. By comparison, the 2017 Q4 profit is more than double its net profit for the same period the previous year.

    However, Amazon’s profits got a big boost from a tax benefit. The company received a provisional $789 million boost from a new tax law passed in December.

    In addition, the strong performance of its cloud computing business Amazon Web Services (AWS) is also a contributory factor to its record performance. AWS’s $5.11 billion revenue for the same period likewise defied analysts’ expectations, which was only anticipated to reach $4.97 billion.

    The biggest factor to Amazon’s stratospheric Q4 performance still comes from holiday shopping especially during the period starting on the Thanksgiving holiday until New Year. Pushed by the holiday shopping rush, Amazon’s sales rose to $60.5 billion or a 38 percent increase from the year-ago level.

    According to Amazon CEO Jeff Bezos, the company’s success is, in large part, a result of its AI-powered digital assistant Alexa. In fact, there are indications that Amazon could be investing more in the technology given its initial success.

    “Our 2017 projections for Alexa were very optimistic, and we far exceeded them. We don’t see positive surprises of this magnitude very often—expect us to double down,” Bezos said in a statement.

    For its 2017 full year performance, Amazon posted a 31 percent rise in sales with its 2017 full year revenue of $177.9 billion, as compared to its 2016 sales of only $136 billion. However, its operating profit is only $4.1 billion, a 2 percent decrease from the previous year due to reinvestments.

    Wall Street still remains overwhelmingly positive on Amazon’s future prospects. Recently, its stock rose by 70 percent which resulted in Jeff Bezos overthrowing Bill Gates as the world’s richest man.

  • Snapchat is Now Selling Merch with Launch of New Snap Store

    Snapchat is Now Selling Merch with Launch of New Snap Store

    Is Snapchat trying its hand at eCommerce? That just might be in the works with its launch of a new feature that would essentially enable the company to sell merchandise through the messaging app.

    Snapchat Inc. just opened up the Snap Store today, a new feature that lets users buy merchandise. Currently, it appears that the company is still testing the waters as the online store does not yet offer a lot of items for sale. For now, you will be able to purchase a Dancing Hot Dog Plushie that costs $20 and  Dog Lens T-Shirt costing $30 among others

    The new store can be accessed on the messaging app’s media section, which is called Discover. Before the store’s arrival, the section was reserved solely for video and articles of channels run by media companies such as BuzzFeed, Conde Nast, Hearst, and Vice. Channels for the National Football League, NBC, and ESPN can also be found in the Discover section.

    It is not Snapchat’s first time selling merchandise under its own brand. Previously, the company sold branded items via Amazon such as the Spectacles, a video-recording pair of sunglasses. However, with the introduction of the Snap Store, it would be its first time selling items inside its own app.

    But Snapchat is not really expected to make serious money from selling these items. An unnamed spokesperson for the company confirmed that it did not open the store to see some serious revenue stream but rather it is something it did for the Snap community. It’s mainly a strategy to drive loyalty to the brand and get some free marketing courtesy of the people wearing the branded merchandise.

    But of course, the company could just be testing out the eCommerce potential of the app. A more serious revenue stream could be coming its way if the idea catches up and it could start charging other brands for selling their stuff through the app as well.

    [Featured image via Snap Store]