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Category: Retail & eCommerce

eCommerce, Online Retail & Retail News

  • Amazon Prime’s Rapid Growth Could Soon Make Cable TV Obsolete

    Amazon Prime’s Rapid Growth Could Soon Make Cable TV Obsolete

    Cable TV is on the decline while the number of Amazon Prime subscribers has increased rapidly since last year. One estimate reveals that nearly a quarter of the U.S. population are Amazon Prime subscribers and the numbers are steadily on the rise.  However, can it make cable TV obsolete?

    The Rise of Amazon

    Amazon Prime had 66 million subscribers at the end of 2016 and a whopping 79 million subscribers to date. Meanwhile, the number of households subscribed to cable TV has decreased by nearly 5 million in the last seven years.

    The modest decrease in cable TV subscriptions coupled with the increase of Amazon Prime subscriptions paints a rather vivid picture of the future of home television viewing. If this trend continues, Amazon Prime will have more subscribers than cable or satellite TV by next year. The chance of this overhaul happening in the near future is high.

    In an attempt to be more accessible to everyone, Amazon is now coaxing lower-income American households with a discounted service. The company is offering monthly payment options to cater to those who are not willing to fork over $99 for the annual subscription.

    Main Reason for Subscribing

    Looking at the Amazon Prime’s impressive increase in memberships, it’s easy to conclude that the service will soon render cable TV obsolete. However, it is important to consider the reason behind Amazon Prime’s growing subscriber base.

    Business Insider reports that Amazon Prime’s video service isn’t the main reason why people are subscribing. The growth in subscriptions is mostly due to the company’s impressive delivery service which is relatively fast and reliable.

    That being said, cable TV isn’t directly threatened by a competitor in the same service field. It is likely that a household can subscribe to Amazon Prime while still enjoying the perks of having cable TV.

    Other Competition

    Although Amazon Prime’s main catch is not home entertainment, it doesn’t mean that they aren’t working on building a subscriber base using that platform in the near future. Currently, Amazon Prime isn’t directly battling with cable TV – or at least, not yet.

    Image result for amazon prime vs netflix statistics

    The service has to compete with other streaming services including Netflix and Hulu. A recent report suggests that Amazon Prime is gunning to become a major player in the streaming market and has already spent $4.5 billion on video this year.

  • Latest Chart Shows How Quickly Amazon is “Eating the Retail World”

    Latest Chart Shows How Quickly Amazon is “Eating the Retail World”

    CNBC is reporting that MKM Partners analyst Rob Sanderson’s latest chart shows a striking gap that has widened between Amazon and store-based retailers (Wal-Mart, Taraget, Costco, Home Depot, etc.) over the past year. While Amazon still only boasts a 5 percent share of total retail sales, excluding food, across the country, according to data from the U.S. Census Bureau, Sanderson’s chart shows Amazon, in the categories that the company serves, growing its market share, as brick-and-mortar retail sales are on the decline.

    The median growth for what MKM Partners calls the top-20 U.S. retailers was 2.4 percent in the fourth quarter of 2016, 0.8 percent during the first quarter of 2017, and is forecast to decline by 0.2 percent in the second quarter this year, the firm said.

    Notice how the gap completely shifted starting from 2013.

    The latest hike in Amazon’s share price is “becoming large enough to make an impact,” Sanderson wrote. “This [trend] does not end well for traditional retailers and many will go the way of Borders and Circuit City, leaders in the first two large categories disrupted by Amazon.com.”

    Sanderson states simply that Amazon is the “best long-term growth story available to investors today”

    With an Amazon-Whole Foods deal in the making, pressure is about to hit traditional grocers head-on, as an internet giant takes on the “high-frequency” fresh foods market, MKM Partners added. “[P]ressures on traditional retailers will only get worse.”

  • Will the New iPhone Come With Facial Recognition Technology?

    Will the New iPhone Come With Facial Recognition Technology?

    There are several ways to unlock and secure your mobile phone. When it comes to the iPhone, the fingerprint scanner is one of the most popular options available. However, this method has its limitations, which is why Apple has been considering facial recognition for more than a year now.

    This feature would not only be convenient but also more secure than the fingerprint scanner, possibly overshadowing it. The Apple facial scanner would be able to scan a face from a distance using a depth sensor, making it faster and safer to unlock the phone rather than using the fingerprint scanner, a pattern, or a number code.

    Apple is apparently testing out frontal 3D facial scanning, retinal scanning, and depth recognition. They are also focusing on a high level of speed and comprehensive accuracy with the new technology. The aim is to give the iPhone owner the ability to unlock the device, within a few milliseconds at the most, just by glancing at it. It could even work if the phone is lying flat on a table.

    The security of the face recognition feature would not only exceed that of the Touch ID sensor, but also the iris scanner found on the Samsung Galaxy S8. Upon release of the Galaxy S8, hackers were able to unlock the phone with an easy-to-execute tactic that involved holding a photo image of the iris in front of the phone’s sensor. Sensing depth, the 3D feature on the new iPhone would be able to collect more biometric data to reduce the possibility of being deceived by a photo. 

    An added bonus of the new feature is that your face will not only be able to unlock your phone, but also make payments, launch apps, log into social media accounts, and much more. It is not clear if the 3D scanner will replace the Touch ID as Apple’s representatives have yet to respond to the rumor.

  • eCommerce Getting Prepped for Amazon PrimeDay

    With the July 4th eTail and retail sales currently in high gear, many eCommerce sites and small businesses will continue riding the revenue wave into next week with the third annual Prime Day on Tuesday, July 11 with hundreds of thousands of deals exclusively for Prime members around the world.

    New this year, members can enjoy 30 hours of deal shopping starting at 6pm PT/9pm ET on Monday, July 10 – and new deals as often as every five minutes. Prime Day has expanded to 13 countries this year, and Amazon is bringing new and existing members in the U.S., U.K., Spain, Mexico, Japan, Italy, India, Germany, France, China, Canada, Belgium and Austria the best deals of the year. Members will find millions of items in stock, including deals from thousands of small businesses and entrepreneurs.

    “Our members love Prime Day and we have been thrilled by the response over the last two years. It is inspiring us to make it even better this year for Prime members,” said Greg Greeley, Vice President, Amazon Prime. “Every part of our business is working to deliver more deals for a record number of shoppers.
    Prime Day 2016 was another record-breaking success for small businesses and entrepreneurs worldwide participating in the event. Small businesses and entrepreneurs on Amazon offering deals to Prime members saw orders nearly triple year-over-year on Prime Day – both worldwide and in the U.S. And this year, there will be thousands of small businesses and entrepreneurs participating, representing nearly 40 percent of all Prime Day Lightning Deals. Feedback from small businesses and entrepreneurs includes:

    • “Prime Day provides young brands like ours the opportunity to reach new customers and gain greater exposure through deals and increased traffic,” said Caron Proschan, Simply Gum. “We are really excited to offer customers our best deals of the year and expect to see a huge sales lift that will help us prepare for the upcoming holiday season.”
    • “Prime Day last year was tremendous. We did 20 times our normal daily sales, it was simply amazing,” said Lawrence Bibi, Light Accents. “Prime Day gives us a peak sales day in the middle of the summer.”

    Here is a small glimpse into how Amazon is getting primed up for the big event:

  • Buying an eCommerce Website Vs. Starting One

    Buying an eCommerce Website Vs. Starting One

    Over the last few years, the eCommerce model has been giving brick-and-mortar retailers a run for their money. A recent forecast estimates the eCommerce market will surpass $2 trillion in revenue for 2017 and increase its worth to $6.7 trillion by 2020. The eCommerce market has gained such a massive following that companies from different industries can no longer ignore it. In fact, the total number of online shoppers in the US is projected to rise to 224 million in 2019. By 2020, around 168.7 million mobile users will have made at least one purchase from an online store.

    Number of digital shoppers in the United States from 2014 to 2019 (in millions)

    The great thing about the eCommerce platform is that it gives start-up entrepreneurs immediate entry into the global marketplace. At present, only 28% of small businesses in the U.S. are selling their products online. For a budding entrepreneur, there is still a wide window to get started and establish an online brand. Once you decide to give it a go, the only question left is, should you buy an existing eCommerce website or start from scratch? The following insights could help you come to a resolution.

    Buying an Existing eCommerce Business

    The Pros

    An established eCommerce site has already proven itself profitable. Buying one in your target niche lets you take over an operation that has already generated cash flow. Of course, you would have to assess their operation metrics and financial history first. But the good thing is that it has already overcome the challenges usually encountered by start-ups. You do not have to invest time and money into keyword research, advertising, site development, finding suppliers, SEO services, and others. With a proven business model, your customer base, supplier relationships, software codes, and traffic will already be organized.

    Acquiring an existing eCommerce site allows you to take advantage of opportunities the seller may have overlooked. This gives you a strategic edge in growing the business and increasing your profits. If you already own an eCommerce business, buying another site also increases your cross selling and cross promotion capabilities. You get to expand your reach by gaining access to additional traffic and customers.

    The Cons

    Buying an existing eCommerce business also has its downside. Let’s start with the operative word “buy,” which means you will likely need significant upfront capital. Convenience comes with a price, especially if you are eyeing a well-performing site. Next, finding the right online business to purchase that is reasonably successful may take some time. If you do find one, expect to inherit some errors made by the previous owner, such as lack of customer service, poor quality content and backlinks, soured relationships with suppliers, to name a few.

     

    Starting Your Own Online Business

    The Pros

    Image result for ecommerce website management

    One of the many things that attract entrepreneurs to starting their own eCommerce site is the low startup costs required. With the help of the internet, you can purchase a domain and obtain hosting for less than $100 per year. Outsourcing website development, web design, content creation, and basic SEO services can be achieved for under $300. A setup for a small business—with catalog and light traffic—through a popular eCommerce platform will only cost you around $2,000.

    Another advantage when it comes to setting up your own eCommerce site is you gain full control over your products and services. For instance, you can decide to avoid managing inventory or shipping through drop shipping. You choose which direction to take the business and handle SEO, monetization, and customer service using your own strategies. And if your site becomes a success, you can sell it for a lump sum.  

    The Cons

    A newly set up eCommerce business will start off with no traffic or customers. Marketing your brand and bringing traffic to your site can take a lot of work and money. You may need to invest in social media management and search engine marketing just to get the word out. You could spend several months building your eCommerce sites only to find that none of them end up being profitable. Another disadvantage is that it is a highly competitive market. It can be exhausting just to think of ways to stand out from the rest.

    New and experienced entrepreneurs should realize that neither option is better than the other, as both can provide significant returns on investment. In the end, your choice may depend on the time and attention you are willing to invest, how much money you are willing to risk, and the level of experience you have. The eCommerce market has the potential to become a huge boon for a business, given that every detail of the business is monitored closely.

  • Amazon May Block In-Store Price Comparisons With New Patented Technology

    Amazon May Block In-Store Price Comparisons With New Patented Technology

    A patent purchased by Amazon may pose potential privacy issues. Named, “Physical Store Online Shopping Control,” this technology has the capability to track shoppers within their brick-and-mortar stores.

    If shoppers connect through the store’s wifi networks, this new system can track their online activity and interfere with it. This prevents shoppers from what has been labeled as “mobile window shopping,” where customers use their smartphones to compare product prices as they walk around the store. The system is also able to track and monitor the shopper’s network and detect their location within the establishment.

    If a shopper decides to search online for similar products, an algorithm would detect the traffic and attempt to override the results. One of the following could be executed: it could block access to a competitor’s websites, which prevents customers from viewing similar products; redirect customers back to Amazon’s own website or other Amazon-approved websites; send a notification to a salesperson to approach the customer; or it could send customers’ smartphones a text message or other notifications designed to entice them back.

    This new patent becomes even more significant when you consider that Amazon has been expanding its physical presence. With over half a dozen brick-and-mortar bookstores and their recent purchase of supermarket chain Whole Foods, the company will eventually end up controlling over 470 retail establishments. This gives Amazon enormous incentive in ensuring that their customers won’t be looking elsewhere while inside their stores.

     

    Jeffrey Chester, executive director of the Center for Digital Democracy, said that regulators should be on the lookout for potentially anti-competitive behavior. “Amazon has created a largely stealth Big Data digital apparatus that has not gotten the scrutiny it requires,” he added.

    Amazon has not yet responded on whether they will implement this initiative. Holding a patent does not necessarily mean the company will use it. Some file for patents to reserve the right to use it later on, while others do so to prevent competitors from using it.

    However, if such a technology is implemented, companies will be able to direct and manipulate consumers’ purchasing behaviors, which causes privacy issues for the customers. The online retail giant has shown support for a free and open internet when they signed on for a July 12 protest against the FCC’s initiative to roll back rules regarding net neutrality.

    Product—and price—comparison was one of the main selling points for Amazon when it first launched in 1994. Mobile window shopping enables consumers to “get a feel” of physical products before purchasing them online. This new technology suggests that “the company’s new patent is aimed to protect it from just such behavior as it enters the storefront arena.”

    For now, it seems like one way to bypass this system is for consumers to use their own cellular data when browsing within Amazon-owned shops. According to Gizmodo, however, ” that’s a scenario that the average consumer would revolt against, for now. But it’s an example of how tricky a truly dominant corporation could be if it runs rampant.”

  • Facebook Uses AI as a Weapon Against Terrorism

    Facebook Uses AI as a Weapon Against Terrorism

    In the wake of recent terror attacks, Facebook has issued a statement through their newsroom on countering radicalization. The social media platform is immensely popular, with worldwide users reaching 1.94 billion each month. It also can’t be denied that even terrorist groups have easy access to their website. As a result, Facebook has been faced with criticisms over their lack of efforts to eradicate terrorist propaganda from their pages.

    Throughout the first half of 2017, there have been 571 terrorist attacks recorded, which resulted in 3,924 fatalities around the world. Infamous perpetrator groups involved in these separate attacks include Al-Qaeda, ISIS, Taliban, Boko Haram, PKK, and other unknown entities. Just last year, it was discovered that these terror groups have also invaded the web with their illegal activities. They were using Facebook to create closed groups to buy and sell weapons and make secure payment through Messenger.

    Facebook finally decided that they’ve had enough, deploying one of their best soldiers to stop terrorists from using their website—artificial intelligence. As explained by the team, the technology is similar to that used to block child pornography. The algorithm also aims to eradicate hate speech and the efforts of jihadist recruiters.

    Currently, the social media platform’s AI algorithms can counter-terrorism in the following ways:

    Trace Terrorist Content: Although it is still in the experimental stage, Facebook aims to perfect its “language understanding” algorithm. This can help identify terrorist content through text-based signals.

    Find Terrorist Clusters: The AI is designed to look for terrorism-associated pages, posts, groups, personal accounts, and other materials that support terrorism content. It can also determine whether an account that has been disabled for terrorism shares the same attributes with an active account.

    Image Matching: The algorithm also helps the social media site to recognize images or videos that have previously been flagged. Doing so will prevent the upload and sharing of any terrorist propaganda.

    Furthermore, Facebook is said to be currently developing another algorithm that will help them investigate terrorist activity across other platforms. WhatsApp and Instagram, which belong to the family of Facebook apps, are also popular among terrorists.

    To strengthen their defenses, the company has admitted to using human efforts as well. From academic experts on counterterrorism, former law enforcement agents and analysts, former prosecutors, to engineers, Facebook has employed a lot of these professionals to continue the fight against terrorism the best way they know how.

  • Don’t Overlook Voice Search in Your Online Marketing Campaign

    Don’t Overlook Voice Search in Your Online Marketing Campaign

    The popularity of voice-activated smart assistants is gaining traction, especially with Apple hopping on the bandwagon with its Siri speaker due to be released soon. This is why businesses should include voice search in their online marketing campaign, rather than focus solely on text-based searches.

    In fact, voice search marketing is described as the new norm, which would have been unheard of just five years ago. One major factor is the increasing efficiency of machine-learning technology in finding user patterns to anticipate their needs.

    For instance, Amazon’s Alexa is billed to be capable of performing over 12,000 tasks, which is why it’s still the undisputed king in this increasingly competitive industry.

    A Different Beast

    In the past six months, 40% of mobile users have tried voice commands in asking questions or searching for products and services. Analysts believe this number will only continue to rise until such time when people won’t even be able to imagine how they survived without voice-activated apps in the first place, similar to how they feel about mobile phones today.

    When it reaches this critical mass, Google will surely introduce an update to its algorithm that will take into account voice search in order to rank your page.

    Voice search use among smartphone users in the U.S., as of October 2015*

    For marketers, this would be an entirely different beast altogether. Whereas text-related keyword searches are much easier to document, recording how many people are looking for “best pulled pork sandwiches, Lexington, KY” using voice search will be a tall feat.

    This will really turn the search engine optimization dynamic—which is the direct result of years of honing and polishing—up on its head.

    Better Results

    Unlike text queries, voice search will yield more accurate results. It basically pulls down the curtains, allowing internet users to skip one step. Instead of searching for “pulled pork sandwiches,” they can just go ahead and order the food from the best restaurant based on customer and critic reviews.

    Instead of searching for a particular song you can’t get out of your head, it may be possible in the future to hum the lyrics and the smart speaker will play the whole song for you. This brings convenience to a whole new level, unlike in text searches where you have to choose and phrase your words in a specific manner to get the most relevant results—and still having to go to that particular website to order food.

    Here are some quick tips to cope with the changes from text to voice search marketing:

    Mobile Optimization –  As voice search apps are gradually perfected, mobile optimization will become even more crucial. Website built with Flash will need to be redesigned and all websites will need to be responsive. Marketers will need to advise their clients of this major shift from traditional search to voice search. Another way to optimize the mobile experience is to make sure that their sites load fast. There’s no faster way to lose customers than a website that takes forever to display.

    Snippets – In voice searches, snippets are short descriptions about the company or the brand. This gives the users a little bit of information before they move along or move forward. Using traditional SEO techniques, you will need to optimize so you end up high on the search engine results page for snippets.

    Long-Tail Keywords – Voice search is different from text search in the sense that internet users will often talk normally as they would in a conversation, as opposed to using key phrases or keywords when they type on Google. This is where long-tail keywords are crucial because you can still reach your target market even with this major shift in the way people do their search.  

  • Google Announces Launch of Native Chrome Ad Blocker

    Google Announces Launch of Native Chrome Ad Blocker

    Search engine giant Google is flexing its muscles once again as it releases an ad blocker that could have far bigger ramifications than just getting rid of pop-up ads.

    Sridhar Ramaswamy, SVP for Ads and Commerce, announced the Google Chrome Ad Blocker on Thursday in a blog post. He mentioned that some people find pop-up ads annoying and intrusive, which leads them to block all ads, to the detriment of legitimate publishers or content creators out there who consider ads as their lifeblood.

    Google is an active member of Coalition for Better Ads, which recently issued a set of standards for the industry in order to improve ad content for consumers.

    The new update provides two new major additions:

    • First is the Ad Experience Report, which helps websites better understand the benchmarks set by the coalition. It also provides tips on how to get rid of the annoying ads.
    • Second is the Funding Choices, which allows marketers to reach out to visitors using the ad blocker to enable their own ads.

    As for Chrome, Google will employ the ads standard by default. “We plan to have Chrome stop showing ads (including those owned or served by Google) on websites that are not compliant with the Better Ads Standards starting in early 2018,” Ramaswamy wrote.

    The company is already dominating the online ad space, with 49% of the digital revenue. Facebook, meanwhile, cornered 40% of the market. The others are left to scour for scraps from the remaining 11%.

    This new tool will only make Google more powerful, since it will wean itself from third-party software like AdBlock Plus by adopting a built-in filtering tool. Ultimately, this will translate to more revenue for the company.

    Rich Sutton, chief revenue officer of Trusted Media Brands, said that the main purpose may be to help consumers control their ad consumption. This will pose an additional challenge for marketers to delve into the minds of consumers instead of relying on technological solutions.

    With Google’s eyes always trained on what the coalition thinks is a bad ad, Sutton said marketers are hard-pressed to come up with fresh ideas that will engage consumers in a more organic way.

    Tapad SVP for Product Preethy Vaidyanathan, meanwhile, said the ad blocker will give the power to dictate what ads consumers see back to Google. And because this tool will be installed by default, those who want to bypass the system will have to pay a premium.

  • 7 Tips in Choosing the Right Digital Marketing Agency

    7 Tips in Choosing the Right Digital Marketing Agency

    Digital marketing might have already passed its peak and is currently on the downslide. In the future, it’s likely that robots and machine-learning will dominate the advertising sphere, which would make human intervention almost irrelevant.

    Nevertheless, it appears as if its death is greatly exaggerated—in the near future at least. The rise of eCommerce, as brick and mortar stores are closing at a rapid pace, does highlight the need to hire a digital marketing agency to drive traffic to your site, and more importantly, convert this traffic into sales.

    You might say, “I can do this myself. How hard can that be?” This has to be one of the most common phrases uttered by businesses before quickly realizing their mistake when their self-initiated marketing strategy goes down in flames.

    If you do decide to hire a digital marketing agency, here are seven tips in choosing one:

    1. Narrow Down Your Goals  

    It’s going to be hard to craft a focused digital marketing campaign when you don’t know what your targets are. Do you have a specific amount of monthly traffic in mind? Do you want to land among the top results in search engine pages? Do you want a data report to determine where you are in your industry? It’s important that the digital marketing agency is able to provide you with all of these options.

    2. Don’t Get Too Hung Up on Price

    Sure, price is definitely going to be a factor when hiring somebody to handle your marketing campaign, especially if you are on a tight budget. But this should not be a deal-breaker. Avoid making the mistake of hiring somebody because they are the cheapest when they bring little value to the table.

    3. Look for Someone You Understand

     If you walk out more confused than when you walked in, it’s time to walk away and never look back. Be wary of
    agencies that can’t give you straight answers to simple questions, or try to regale you with technical terms and jargon without really explaining anything.

    4. Don’t Forget the Expert

    Executives like to talk to fellow execs, and that’s understandable. During meetings, you are likely going to talk to the top honchos of the digital marketing agency. But really, they are not going to be the ones who will do the heavy lifting. Try to find the one who will be assigned to your account and deal with that person directly.

    5. Vet, Vet, Vet

    Always take their word at face value. When you hire your employees, you always ask for their CVs and conduct extensive background checks. It’s the same with digital marketers who have to prove their capability to handle your account. Ask for references and talk to those clients personally. Would they recommend the company to you?

    6. Look Forward to the Future

     You have to grow with the digital marketing agency. Be straightforward with each other in the effort to boost your numbers. You need somebody who will think of your company as a showcase of their best practices, and not just a means to earn a profit. If the agency doesn’t return calls immediately, you could be down the totem pole in terms of their priority.

    7. Check Your Ego

     Some executives and supervisors are too proud to admit their ignorance. If you can’t understand what the digital marketing agency is saying, just ask. If you want something done but you’re not sure how to do it, collaborate.­ The success of the marketing campaign should not be the sole responsibility of the third-party provider. This is your business and you, more than anybody out there, has the biggest stake in the outcome.

  • Google Expands User Search With ‘Personal’ Tab

    Google Expands User Search With ‘Personal’ Tab

    Google has rolled out a new feature in their search engine portal, allowing users to track their own online footprints.

    Dubbed “Personal,” the new feature will expand the user’s search to include the whole Google portfolio. So if you have an account with Gmail, Google+, or saved a photo or video on the cloud, chances are you can find them by filtering your search further.

    Accessing Google Personal is quite straightforward. You just have to type your query in the search box like you ordinarily would. After the results are shown, you can scroll to the top right to find “More,” and click on the drop-down list where you can find “Personal.” You can then access your own online history.

    If you search for “Kentucky” for instance, any photos, clips, or references you have made using that word will turn up in the search results page. Even your email messages that contain that particular keyword are extracted and laid out for you.

    Of course, you need to be logged in to your account to do this. The message, “Only you can see these results,” is right there for you to read after accessing this feature.

    Google has not really formally announced the launch of this feature. But it seems like it’s going to a be a staple in the search box. However, it’s not available for Android or iOS, although analysts think that it’s only a matter of time before you can use the feature on mobile platforms. It also doesn’t support Google Drive for now.

    Google Personal is another way for the search engine company to data mine your personal information, which makes it easier for targeted ads to find you. This seems to be in line with the announcement of the company during the I/O conference for the Google Lens.

    The lens converts information search from text to visual. By training the camera on an object, the user will be able to find the species of an unknown insect, for instance. They can also read up on the reviews or menu of a restaurant when they focus their camera on the establishment before going in. It’s supposed to be equipped with machine-learning that allows you to translate menus written in a foreign language.

    In the same vein, Google Personal will allow users to relinquish more information about their search patterns, preferences, and biases. Again, privacy issues are being called to question, although the company seems to be simply testing the waters at this point.

  • 5 Trends That Are Dominating E-Commerce in 2017 So Far

    5 Trends That Are Dominating E-Commerce in 2017 So Far

    The U.S. currently has too many shopping malls. Studies have shown that the country has 24 feet of retail space per capita. However, it seems as if the retail bubble has burst and it’s now time for e-commerce to step forward and fill in the vacuum to satisfy the consumers’ compulsive need to shop.

    Below are just some of the e-commerce trends to look out for in 2017:

    1. The Rise of the (Chat)Bots

    With Facebook, Amazon, and Microsoft releasing new updates on their chatbots, other companies are sitting up and taking notice. Chatbots are slowly taking over the customer service aspect of these brands’ technical support. This year will see e-commerce fully embracing this innovation. Complaints, follow-up for orders, as well as real-time engagement, will make the shopping experience better for the consumer. Some chatbots do have avatars, which make them more fun and engaging, and may even take your order in real-time.

    2. Death Knell for Brick-and-Mortar Stores?

     The number of retail establishments and brick-and-mortar stores that have closed down since last year is staggering. According to a Credit Suisse report, more than 8,000 physical stores will cease operations in 2017 compared to just 2,000 in 2016.

    More and more people are shopping online as e-commerce stores slowly perfect their systems. Logistics and shipping costs are declining, which also provide added incentives for consumers to just click away. More often than not, shipping costs are offset by gas and parking costs anyway.

    3. Social Media As an Emerging Force

     Facebook has been branding itself as the all-in-one platform for e-commerce companies. The use of social media to drive traffic to e-commerce sites is not new, but Facebook is making it even easier for brands to sell their products on social media with the Facebook Shop. Customers can also purchase products directly through Shopify, so they don’t even have to leave Facebook. If you’re looking to show off your products to potential customers, Facebook Live is a good platform to do so.

    4. The Mad Scramble for Convenience

     The main reason customers shop online is for convenience. They can shop in the comforts of their home, they don’t have to dress up or drive to the mall through heavy traffic. However, as the competition becomes stiffer, convenience takes on even greater importance. This is the reason why e-commerce stores will really have to invest in the architecture of their websites.

    Lost revenue caused by incomplete transactions due to freezing websites reportedly amounted to $4 trillion. E-commerce sites need to cut the number of steps for their customers, from choosing the product, purchasing, and even delivery. There are just so many e-commerce stores out there who will gladly fill in the gap for businesses that fail to improve the convenience of their service.

    5. Fast Delivery

    Speaking of delivery, e-commerce sites now offer same-day shipping of their products as an added incentive to buy. In fact, you can add a surcharge and the customer won’t mind, at least according to this Forrester report, which states that customers are willing to pay more just so you can deliver the product on the same day they order it.

    E-commerce stores will really have to step up their game if they don’t want to be left behind by this ever-changing trend. During the early days of e-commerce, you could afford to be complacent due to the monopoly of transactions. Now, it’s the consumers who are dictating the direction of the industry and online stores have no choice but to keep up with the pace.

  • Google Lens Creates Buzz After Making Bold Promises at I/O Keynote

    Google Lens Creates Buzz After Making Bold Promises at I/O Keynote

    The Google Lens ended up overshadowing the recent I/O Keynote when it was first introduced by the American tech company.

    However, there’s a good reason why it stole the show, considering that the new update has huge potential in changing the present augmented reality landscape.

    According to the company, the technology utilizes machine-learning to classify objects in the real world that are viewed through the user’s phone camera. In addition, it also has the capability to analyze and interpret the objects with the end objective of anticipating what it is the user intends to do.

    Google Lens can even automatically connect to a Wi-Fi router using optical character recognition for the username and password. The user can also read reviews of the restaurant in a pinch with the use of this new feature.

    Google CEO Sunda Pichai said during the conference, “All of Google was built because we started understanding text and web pages. So the fact that computers can understand images and videos has profound implications for our core mission.”

    The Google Lens will become part of the update for Google Photos and for the Android smart assistant in the future. Unfortunately, it’s not yet available for commercial release.

    The potential of this new update should not be underestimated as it will change the way people use the search box and mobile devices. Instead of going to Google Search to type their queries, Google Lens will exploit visual media to narrow down the relevant results. It will also make use of the calendar, camera, and other native apps to provide info.

    Voice search allows the user to skip typing on the search box, but one of its problems has been accuracy. Google Lens, in theory, won’t have such issues. Using the camera will allow the user to identify the type of chair or its manufacturer, for example. Once the technology is perfected, the user can then ask Google Assistant to order the same product online.

    Google Lens will also have real-world applications that would be invaluable in bridging the language divide. Facebook is working on its machine-learning to hone its translator code in the platform, but Google’s AI may take it one step further.

    For instance, instead of copy-pasting the words or sentences that need to be translated, the user will just point the mobile phone’s camera toward the text, and if Google follows through with its promise, you should get the translation results in a snap.

  • Lyft Partners With Google’s Waymo to Challenge Uber

    Lyft Partners With Google’s Waymo to Challenge Uber

    Tesla is still the recognized leader in the autonomous vehicle concept on the strength of its Model S and Model X. But the new partnership between Google’s Waymo and Lyft aims to give Elon Musk a run for his money.

    The two Silicon Valley companies have agreed to unify their resources and expertise to commercialize self-driving cars.

    A spokesperson for Lyft said, “Waymo holds today’s best self-driving technology, and collaborating with them will accelerate our shared vision of improving lives with the world’s best transportation.”

    The partnership was also confirmed by a spokesperson for Waymo who remarked, “Lyft’s vision and commitment to improving the way cities move will help Waymo’s self-driving technology reach more people, in more places.”

    Waymo may possess the “best technology” since its self-driving cars are already averaging 5,000 miles without any human help, according to a report from the California DMV. In contrast, GM’s Cruise Automation is only averaging in the “hundreds of miles.”

    However, Waymo does not have the knowledge on transportation networking to really make the jump between the deployment of its automated cars and mass commercialization. This is where Lyft will come in.

    For those who are not familiar with Lyft, it’s similar to Uber but targets ordinary drivers looking to make some extra buck as partners. Customers also pay through the company’s app, but while the tip is already integrated into the final cost for Uber, Lyft asks users to add the tip through its app.

    By the end of the year, Lyft will be available in 300 key US cities.

    But this partnership will be beneficial not just for Google’s Waymo, but Lyft as well. It’s not an accident that people have not heard about Lyft because it comes a distant second to Uber. For instance, the company only has a $5 billion market valuation compared to Uber’s $68 billion.

    The problem with ride-sharing networks is their heavy dependence on their partner drivers in order to scale up their business. In fact, drivers—along with the vehicles and fuel—make up 85% of the cost. Uber has the money to invest on a grand scale to cut the difference, a luxury that Lyft does not possess.

    One solution is to cut the human drivers and go fully automated, the report said. Instead of sharing the revenues with their human partners, they can quickly recoup their investments by operating an automated fleet.

  • Echo Show Highlights Amazon’s Dominance in Home AI Technology

    Echo Show Highlights Amazon’s Dominance in Home AI Technology

    Amazon further distanced itself from Google with the launch of Echo Show, a voice-activated home smart assistant with a 7-inch touchscreen display.

    With the 7-inch screen, homeowners will be able to sing along through the lyrics on display, monitor security cameras, read shopping lists, keep up with the news, or view photos and videos. They can also make hands-free video calls with paired devices.

    Smart home devices are geared to become the next battleground for tech companies, with the industry estimated to hit almost $200 billion by 2021. But while Google, Apple, and the rest of the pack are still trying to catch up, Amazon has seemingly asserted its dominance with the announcement of its latest product.

    Google’s answer to Alexa, dubbed as Home, was released a full two years after Amazon introduced its smart home devices. Microsoft’s own version was only released this week, while Apple has no timetable for their release.

    Martin Utreras, vice president of forecasting at business digital data miner eMarketer, said that Alexa-powered Echo devices already corner 70% of the market compared to Google’s Home, which controls 23.8%. Amazon managed to do this by opening the ecosystem to third-party developers such as Ford, GE, and LG with their smart cars and appliances being able to link up with Alexa.

    “Consumers are becoming increasingly comfortable with the technology, which is driving engagement,” the forecaster said. “As prices decrease and functionality increases, consumers are finding more reasons to adopt these devices.”

    The Amazon Echo Show is seen to address previous gripes about its functionality. Pictures really do paint a thousand words, as users found it difficult to receive information provided by Alexa. Search results, for instance, are much easier to absorb when you read them instead of listening to each one being dictated to you.

    However, surveys have shown that customers are under no illusion about the capacity of the smart home AI assistants to replace PCs, tablets, or mobile phones. In fact, according to the survey, homeowners don’t really want to see a web browser in the Amazon Echo Show or any other similar devices with a touchscreen display.

    Instead, they want easy access to the clock, calendar, news headlines, weather, music, or entertainment, which only serves to affirm that homeowners want the innovation to enhance their experience in performing any voice-activated task.

    Amazon’s Echo Show will be released in the U.S. on June 28, 2017, with a price tag of $229.99. Shipping will be free.

  • How Facebook AI Chatbots Benefit E-Commerce Businesses

    How Facebook AI Chatbots Benefit E-Commerce Businesses

    Facebook continues to develop AI chatbots to aid e-commerce and retail companies grow their businesses at a minimum cost to tech innovations.

    Chatbots are certainly not new. People who dial 1-800 numbers have talked to these smart assistants at one point or another. However, innovations in this technology have made chatbots more interactive and responsive.

    Then Facebook came in and changed the layout of the land.

    David Marcus, Vice President of Messaging Products at Facebook, revealed that there are now 11,000 chatbots on Facebook reaching almost a billion users. Facebook M, the company’s text-based virtual assistant feature, has been modified to make the AI better.

    “M will make automated suggestions based on chat intent,” he wrote last month. “These suggestions will help you get more from your Messenger experience by shortening the distance between what you need to do and getting it done.”

    Facebook also introduced more changes to the Messenger which will further aid small businesses in improving customer experience and reaching their target clients. Among the changes are:

    • Smart Replies for Pages – This feature allows small businesses to interact with their customers even if they are too busy managing their day-to-day operations. They can also customize the API to ensure predetermined answers to the most frequently asked questions.
    • Hand-Over Protocol – This feature will allow businesses to manage and even expand their services. With the help of developers, they can create a bot that handles customer service, or another bot which handles orders.
    • Parametric Messenger Codes – This allows businesses to create quick response codes to compartmentalize services. In the future, this bot can be used to utilize the mobile phone camera instead of the price scanner.

    Meanwhile, the ability to accept bills payment without bouncing users to an external website has already been rolled out by Facebook last year.

    Facebook Messenger is free to use, along with the reach of the social media giant (with nearly 2 billion accounts), and that makes it a perfect option for e-commerce businesses. Mark Zuckerberg and the rest of the company are even making it easier for small businesses to embed the conversational tool into their websites.

    The potential for Facebook AI chatbots in e-commerce is huge. For instance, they can be customized to fit the goals of the particular business, whether it means promoting the brand, reaching targeted consumers, raising awareness during a product launch, or generating automatic replies to queries. All of these will hopefully influence the decision of the potential customer to order a product, thereby successfully affecting retail conversion.

    After the conversion, customer support can also be delegated to these smart assistants so businesses don’t have to hire new people to accept complaints, answer queries, or render post-purchase services.

    Facebook AI chatbots also extend beyond the business-customer dynamics. In forging partnerships with other businesses, for instance, these tools can serve as the “advanced party” and give the potential investor the necessary due diligence even before making initial contact.

    The success of Siri or Amazon Alexa to assist users in their daily tasks highlights the potentials of AI chatbots in e-commerce. And this will only grow as developers perfect the technology and more people recognize their importance. A study by Oracle last year revealed that 80% of the 800 businesses that participated in the survey believe that they will use AI chatbots by 2020.

    A similar study by Gartner, an IT research and advisory company, forecast that nearly 90% of interactions between customers and businesses in three years’ time will be handled by AI chatbots.

  • Etsy Fails to Hit Quarterly Revenue Target, CEO Gets the Boot

    Etsy Fails to Hit Quarterly Revenue Target, CEO Gets the Boot

    E-commerce site Etsy had to cut its workforce by 8% and fired its CEO, Chad Dickerson, after failing to hit its first quarter revenue targets.

    The statement on the first quarter earnings reported revenues of $96.9 million, just below the projected earnings of $98.4 million. A slowdown in consumer spending in February apparently dragged down the numbers, resulting in zero earnings per share for the first three months of 2017, which was below the 1% forecast.

    In the same release, Dickerson expressed optimism for the strong business model of Etsy, which he believes will pull it through the challenging times and “drive long-term growth for all stakeholders.”

    Dickerson, however, won’t get the opportunity to steer the company in the right direction as he was replaced by Josh Silverman, a former executive at eBay. John Allspaw, the chief technology officer, also left the company while 80 workers have been laid off in the company’s effort to streamline its personnel.

    Silverman won’t be coming in blind, as he’s familiar with what ails the company, being a member of the Board of Directors since November 2016. Dickerson will also remain as an adviser until the end of this month.

    Fred Wilson, who was named as the new chairperson of the Board of Directors, said appointing Silverman as the new CEO will make for an easy transition with the exit of Dickerson.

    The company did not provide details on why spending in February was down. The press should also not expect a financial forecast anytime soon due to the change in management. Etsy reported losses of $421,000 in the first three months of this year against a $1.2 million earning for the same period last year.

    Maxim Group analyst, Tom Forte, said Etsy’s decision to be cautious is “creating a level of uncertainty that the market’s uncomfortable with.” The CEO’s exit dragged down shares by 17% at closing.

    Another issue pointed out is the poor web infrastructure of Etsy, which made it difficult for consumers to maximize its local search engine. This concern was aired by black-and-white art, which claims to own 2% of the e-commerce site.

    The company said that as early as February, they have already instituted some measures to streamline their cost structure, while also looking for other ways to boost efficiency. “As a result of this process, we have identified savings that will be realized through a combination of headcount reductions and a reduction in internal program expenses,” the statement explained.

  • Milliseconds Are Critical for Online Retailers

    Milliseconds Are Critical for Online Retailers

    It goes without saying that website performance is crucial to online retailers for maintaining customer engagement and completing online transactions. Any delays of content delivery or slow load times will certainly impact online revenue. But as Akamia’s recent State of Online Retail Performance report shows, seconds…even milliseconds, matter.

    The data, gathered by SOASTA (now part of Akamai), represents one month’s worth of anonymous user data from top online retailers, equating to approximately 10 billion user visits. The team applied data analytics to generate insights into the intersection of IT, business, and user experience metrics.

    The report explores the “magic number” for page load times and the impact of one-second performance improvements – or slowdowns – on conversion and bounce rates, as well as impact of performance on session length.

    Findings include:

    A 100-millisecond delay in website load time can hurt conversion rates by 7 percent A two-second delay in web page load time increase bounce rates by 103 percent

    Half of consumers browse for products and services on their smartphones, while only one in five complete purchases using those phones.

    Bounce rates were highest for mobile phone shoppers, while tablet shoppers had the lowest bounce rate.

    “Results from our State of Online Retail Performance report have shown that user experience is critical to e-commerce success, and things aren’t getting any easier,” said Ash Kulkarni, senior vice president and general manager, Web Experience Division, Akamai. “Customers have extremely short attention spans, and degradations in website performance – no matter how small – can cause consumers to go elsewhere in an instant. Sharing our findings about performance gives online merchants the actionable data they need to stay competitive.”

  • Millennials and Affluent Prefer Mobile for Brand Connection After Purchase

    Registria has released results from a new study which found that younger and more affluent consumers would prefer to connect with brands through their mobile device, over email and paper literature, immediately after purchasing a new product.

    According to the study, 47% of consumers aged 18-34, and 47% of consumers who make $100,000 and above, say they would like to receive product setup instructions, tips, and service and warranty information directly to their mobile device.

    “Consumers want to connect with the brands they buy. Their reasons for wanting to do so not only provide value to them as customers, but they are also significant revenue-generators for manufacturers,” said Chris McDonald, CEO of Registria. “The process of product registration has evolved over the past 40 years, and mobile technology makes it even easier for brands to use product registration as an engaging way to onboard customers.”

    According to Registria, product registration has been the main vehicle for durable consumer brands to identify and understand their consumers. However, the traditional process of filling out paper or online registration information can be a barrier. In the study, 68% of all consumers say they never register their products, and of those:

    – 38% intend to, but forget or just never get around to it
    – 16% say it’s a hassle, and
    – 12% don’t want to share their personal information.

    56% of consumers say that receiving warranty and service plan information is the most important reason to register a product, while 25% cite safety and recall notifications as the most important reasons to register.

    These priorities shift among younger consumers aged 18-34, who think it is more important to register products in order to be notified of deals on accessories and complementary products. In addition, consumers with higher income of $100,000 and above say staying connected with a brand for loyalty and VIP programs is the most important reason to register.

  • Shopify Sees Future of eCommerce in Retail

    Shopify Sees Future of eCommerce in Retail

    “Retail is not the same. Shopify is enabling merchants to do everything, from anywhere.”
    – Lynsey Thorton, Shopify Director of User Experience Design at Unite 2017 Conference

    Shopify’s newest product announcement by Satish Kanwar, VP of Product, can be described as their certainty of eCommerce and retail becoming one. The Chip & Swipe Reader will boost in-person selling for the eCommerce platform’s over 375,000 partner shopping sites:

    “Our product philosophy has always been to provide what most merchants need most of the time, and really rely on our partners and our ecosystem for everything else,” Kanwar explained to Inc. “Over the years of POS growing [since 2013], it became obvious that the credit-card reader was something that everyone needed, all of the time, to get started in retail.” The new device will have no up-front cost, and is available exclusively to users who process transactions through Shopify Payments.

    “Looking forward, all small businesses are thinking multi-channel first. If someone is opening a store, whether online or retail, they’re fundamentally thinking about the combined strategy,” Kanwar said. “If I’m opening a retail store, I’m naturally now thinking about how I’m going to be promoting those products online. And if I’m opening an online store, I’m thinking about how I’m going to expand my business over time.”

    By contrast, Shopify envisions a future in which “retail” and “ecommerce” aren’t separate endeavors at all reports Inc. “Looking forward, all small businesses are thinking multi-channel first. If someone is opening a store, whether online or retail, they’re fundamentally thinking about the combined strategy,” Kanwar said. “If I’m opening a retail store, I’m naturally now thinking about how I’m going to be promoting those products online. And if I’m opening an online store, I’m thinking about how I’m going to expand my business over time.”

    He added, “We most certainly do see, and are excited to invite, businesses that are starting retail-first, because we believe they need an online strategy at the same time. And what Shopify does is give them both out of the box.”

    “One of the overall messages we’re trying to push is that Shopify is getting serious about hardware,” said Shopify Prduct Manager David Seal to BetaKit. “We’re bridging the gap from being just a software company to also doing hardware, and we’re very much becoming a technology company. If you look at Google and Apple, who specialize in hardware and software, that’s where we’re headed too.”

    Seal told BetaKit that part of the chip and card reader’s value add is that it deeply integrates with a merchant’s Shopify store, and supports over-the-air updates. Most brick-and-mortar merchants have ambitions to sell online eventually, and Shopify’s opportunity is in servicing both segments at a scale that other competitors may not reach. While merchants tend to think first about Square as a payment option, Shopify hopes that this will get more merchants identifying Shopify with payments.

    Shopify also sees the device as a way for Shopify Shop owners to easily do business on the go, including pop-stores, city and farmers markets, events, etc.

    All in all, it should be a great avenue for retailers and eTailers. Entrepreneurs are continaully looking to maximize every sales channel in today’s ever moving, omni-channel culture. And Shopify CEO Tobi Lütke told the Unite 2017 audience just prior to the product announcement that he’s definitely on it:

    The wireless, pocket sized Chip & Swipe Reader will begin shipping in June and can be tried out on a 14-day trial.

  • Digital Product Information is Driving Today’s Shopper

    Digital Product Information is Driving Today’s Shopper

    Today’s consumers have become so reliant on eCommerce for every stage of the buying process that shoppers are simply going to retail stores a lot less often. But when shoppers do find themselves in stores, their trusty mobile device is still helping to determine what they buy and how they buy in a big way.

    A recent MaiChimp Audience Panel study by Salsify asked 1,000 online shoppers what makes them choose which brands and retailers to shop and buy from. An eyebrow raising 77% of shoppers use a mobile device while shopping in-store and only 35% would even just 35 percent of shoppers would prefer to speak to a salesperson if they have questions about a product.

    “Consumers are increasingly turning to their mobile devices to answer product-related questions, like price and availability, while they shop,” said Jason Purcell, CEO and co-founder of Salsify. “This year’s research again demonstrates just how critical it is for every brand and retailer to have a systematized approach to maintain robust and relevant digital content to retain shopper attention and win sales.”

    The survey research also found that 87% of shoppers said that detailed product content was extremely or very important to their purchase decision. With so many turning to mobile while shopping in-store as well, the need for product content on every channel has never been more essential.

    It’s pretty clear from this survey that eCommerce brands must prioritize the mobile experience. The research indicates that consumers between the ages of 18 and 29 are most likely to use a mobile device when shopping online (84 percent), followed closely by the 30 to 44 group (78 percent).

    And good product content is crucial as 87% of shoppers said that detailed product content was extremely or very important to their purchase decision. In fact, bad product content means bad customer experiences and bad sales: 50% of online shoppers have returned a product if it did not match the product description and 54% are less likely to buy from an online retailer if they returned an item.

    As found in another other recent eCommerce shopping study cited here, shoppers need robust product content before buying. Cracking The Consumer Code research found that 70 percent of shoppers need to see at least three product images and 86 percent want to read at least three product reviews before purchasing a product.