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Category: Retail & eCommerce

eCommerce, Online Retail & Retail News

  • The Need For Buy Now Pay Later

    The Need For Buy Now Pay Later

    A recent 2022 study revealed that Americans prefer delayed payments for dental and veterinary visits and supplementary charges, a preference driven by payment concerns of many types. Concerned about the costs of healthcare expenses, 3 out of 4 Americans, between the ages of 43 and 57, cite this as a driving force and comprise the highest proportion of any other age group. 2 in 3 U.S. adults acquainted with buy now pay later systems. They count on it as a substitute for traditional cash, credit, and debit payment methods, the switch to delays draws them.

    The Case for BNPL

    BNPL answers concerns about payment due dates, upfront costs, and sacrificing expenditures unexpectedly. These systems also afford consumers flexibility. It appeals to budgeters, which allows them to allocate and reserve expenses for big buys over time. 69% of consumers abide by a budget according to plan, with 78% of pet owners following strict ones. 77% of pet parents are aware of buy now pay later payment methods and 56% have tried it for themselves with success. By integrating expenses into long-term spending habits, instead of forfeiting large sums out of pocket, buy now pay later caters to consumers by allowing them to pay at the convenience of their calendar.

    Buy now pay later methods offer other lesser-known, but perhaps more exciting perks. Ones that are much appreciated by parents of furry friends. 43% express gratitude for the temporal flexibility delayed pay offers. Not only in providing a larger window for payment but even in extending the set end date as needed. 30% are attracted to these systems for their capacity to steer clear of credit card fees and prices paid due to interest, keeping those unforeseen charges afar. 22% of pet owners commend buy now pay later’s fixed and unwavering or tiered rates. These give everyone the same fair grounds and expectations for payment, without being blindsided by fine print policies.

    What Buy Now Pay Later is Used to Pay

    Both veterinarian and dental expenses need time to be paid in full. 38% of American pet owners pay for vet visits with a credit card. For only 18% of them, pet insurance covers the costs of vet fees in full. In dentistry, 40% of U.S. adults take one month, at minimum, to pay the full cost of a dentist visit. Both pet and people patients need more effective tools to help them cover healthcare expenses on their own time.

    Interestingly, American East Coast residents express a higher preference for the implementation of buy now pay later. 55% report being very interested and more likely to use buy now pay later as opposed to 42% of West Coast dentist patients and pet parents who share the same sentiment.

    In Conclusion

    The results of a decisive study that gauged American adults’ holistic preference point to buying now and paying later over the ways we’ve always paid. 71% of U.S. dentistry patients cite a preference for BNPL. A whopping 86% of pet owners preferring this way of covering veterinarian costs. It’s time that healthcare professionals, practices, and institutions cater to the people’s preferred way to pay by offering more time. Also, they should offer convenience, as patients pay when the time is right.

    Buy Now, Pay Later
    Source: Opy.com
  • The Business of Energy Drinks

    The Business of Energy Drinks

    Energy drinks and pre-workout drinks are often used by athletes before a big game or before they start a heavy workout. The ingredients that are found in these drinks claim to help increase stamina and endurance, and even virtual athletes can benefit from these drinks. With such a large consumer base, do these ingredients actually do the things they claim? And why are these drinks growing in popularity so rapidly?

    The Science Behind Energy Drinks

    Athletes tend to reach for pre-workout drinks before any strenuous activity because the amino acids that are found in them can help increase energy, stamina, and help prevent damage to cells. 87% of pre workout drinks contain  beta-alanine, an amino acid that improves strength and endurance. 71% of these drinks also include citrulline, another amino acid that can help increase stamina and energy. Some of these drinks also include taurine which can help prevent cell damage that can occur during exercise. All of these amino acids working together along with caffeine can lead to an overall more intense workout with less fatigue. 

    Looking at athletes off the field, esports players also reach for energy drinks when it comes time to play in virtual tournaments. Many energy drink companies sponsor some of the biggest esports teams today, and gamers tend to use these drinks for the same reasons athletes on the field do. Energy drinks include some of the same ingredients as pre workout ingredients and offer similar benefits. Gamers use these drinks to increase focus, reaction time, and stamina which are all important in maximizing their overall gaming performance.

    Athletes both on and off the field are using energy drinks and pre-workout in order to improve their performance, but there are still people who oppose drinking these beverages. Long term use of pre-workout can increase muscle mass and strength, but using large doses in a short time can lead to adverse effects. It is important to remember to use energy drinks and pre-workout in a safe and healthy way in order to reduce the likelihood that these side effects will occur.  Opponents of energy drink use have also noted that these drinks are too caffeinated and too artificial. In fact, many pre-workout brands have many ingredients that aren’t even listed on the label! 

    What’s in an Energy Drink?

    In getting criticism about ingredient use and the amount of caffeine in their drinks, many energy drinks companies have started making changes to their recipes. Many brands are switching to using more plant-based energy ingredients such as guarana and green tea. This allows for less artificial caffeine ingredients to be used and leads to an overall healthier product for consumers to enjoy. Brands are also using nootropic elements that are used to increase focus, and are using overall better quality and organic ingredients. 

    In Conclusion

    With these changes being made to already popular products, it is expected that even more people will be using energy drinks and pre-workout to help in their daily routines or before exercise activity. With so many benefits now being packed into a healthier product, it’s no wonder athletes on the field and gamers on the virtual field are using energy drinks to boost their performance.

    Learn more about energy drinks and how they can help your workout in the infographic below:

  • Amazon Charging US Sellers 5% Fee For Inflation and Fuel

    Amazon Charging US Sellers 5% Fee For Inflation and Fuel

    Amazon is increasing its fees for US-based sellers, charging an additional 5% fee for inflation and fuel charges.

    Amazon is the world’s biggest e-commerce marketplace and is increasingly one of the largest shipping companies in the US. The company relies on third-party sellers for many of the products that populate its marketplace, but those sellers are about to get hit with additional fees, thanks to the increased cost of business Amazon is facing.

    According to CNBC, Amazon is notifying US sellers it will be charging them a 5% surcharge for inflation and fuel costs.

    “The surcharge will apply to all product types, such as non-apparel, apparel, dangerous goods, and Small and Light items,” the notice stated. “The surcharge will apply to all units shipped from fulfillment centers starting April 28.”

    The e-commerce giant says the costs are “subject to change.”

  • Apple Calls Out ‘Meta’s Hypocrisy’ Over High Content Creator Fees

    Apple Calls Out ‘Meta’s Hypocrisy’ Over High Content Creator Fees

    Apple is calling out “Meta’s hypocrisy” after the latter announced it would charge a 47.5% commission for creating content in the metaverse.

    Apple has been under fire for some time for charging developers a 30% App Store commission. Despite criticizing Apple’s practices, Meta has revealed its own commission, far exceeding what Apple charges. The Cupertino company isn’t passing up the opportunity to call Meta out.

    “Meta has repeatedly taken aim at Apple for charging developers a 30% commission for in-app purchases in the App Store — and have used small businesses and creators as a scapegoat at every turn,” Apple spokesman Fred Sainz told MarketWatch. “Now — Meta seeks to charge those same creators significantly more than any other platform. [Meta’s] announcement lays bare Meta’s hypocrisy. It goes to show that while they seek to use Apple’s platform for free, they happily take from the creators and small businesses that use their own.”

    So far, the response to Meta’s announcement has been almost universally critical over the whopping commission rate. Apple has simply come out and said exactly what many were already thinking.

  • GSMA: Mobile Money Transactions Top $1 Trillion in 2021

    GSMA: Mobile Money Transactions Top $1 Trillion in 2021

    The GSM Association (GSMA) has released its 10th annual ‘State of the Industry Report on Mobile Money,’ showing the industry processed $1 trillion in 2021.

    The mobile money industry has been experiencing significant growth, according to the GSMA, registering 18% more accounts in 2021 over 2020, bringing the total to 1.35 billion accounts globally. The number of person-to-person transactions reached 1.5 million an hour.

    Merchant payment transactions, in particular, were a driving factor, reaching an average of $5.5 billion per month.

    “2021 was the year mobile money started to really diversify to B2B services. Beyond traditional person-to-person transactions, such as transferring money to family or friends, the industry is now central in helping small businesses operate more efficiently, and serve their customers better” said Max Cuvellier, Head of Mobile for Development, GSMA.

    To learn more, the full 2022 State of the Industry Report on Mobile Money here.

  • ‘Reader Apps’ On the App Store Can Now Include Alternate Payment Links

    ‘Reader Apps’ On the App Store Can Now Include Alternate Payment Links

    Developers of “reader apps,” such as Netflix, Spotify, and Kindle, can now include a link to alternative payment methods.

    Apple and Google have been under increasing pressure to open up their app ecosystems to outside payment options. Apple, in particular, has fought against such efforts aggressively, but has lost some of its battles, including against the Japan Fair Trade Commission (JFTC). As part of its settlement with the JFTC, the company agreed to crack open its walled garden for reader apps, allowing them to include a link to alternate payment options.

    Apple has now implemented those changes, announcing the change on its Developer site.

    Last year, Apple announced an update coming to the App Store in early 2022 that would allow developers of “reader” apps to include an in-app link to their website for account creation and management purposes. Starting today, with the update of App Store Review guideline 3.1.3(a), developers of reader apps can now request access to the External Link Account Entitlement. This entitlement lets reader apps link to a website that is owned or maintained by the developer, so that users can create or manage their account outside of the app. Reader apps are apps that provide one or more of the following digital content types — magazines, newspapers, books, audio, music, or video — as the primary functionality of the app.

    Developers can learn more here.

  • Nvidia May Use Intel’s Foundry Services

    Nvidia May Use Intel’s Foundry Services

    Intel may score a major foundry customer in the form of Nvidia, one of the biggest semiconductor purchasers in the industry.

    Intel has been working overtime to reinvent itself under CEO Pat Gelsinger. Gelsinger is intent on bringing the company back to its roots as a chipmaker, first and foremost. In addition to its own chips, Intel is investing heavily in foundries aimed at manufacturing chips for other companies. Many of the biggest names in tech, including Apple, Qualcomm, Nvidia, and AMD, rely on outside companies to manufacture their semiconductors, making Intel one of the only companies that provides the entire range of services, from design to production.

    Nvidia may be interested in diversifying its manufacturing, instead of relying solely on TSMC and Samsung, according to Bloomberg.

    “We’re very open-minded to considering Intel,” Nvidia CEO Jensen Huang said. “Foundry discussions take a long time. It’s not just about desire. We’re not buying milk here.”

    At the same time, Huang cautioned that Intel had a challenging road ahead of it if it wants to successfully compete with the two Asian firms.

    “Being a foundry at the caliber of TSMC is not for the faint-hearted,” he added. “TSMC dances with the operations of 300 companies worldwide.”

    Gelsinger has made no secret of his desire to compete at that level, and all indications are that Intel is certainly headed in that direction. Nonetheless, given the company’s recent quality and supply chain issues in recent years, Intel will have to deliver on its promises if it wants to gain serious traction in the market.

  • Intel Announces Plans to Invest Up to $80 Billion in EU Chip-Making

    Intel Announces Plans to Invest Up to $80 Billion in EU Chip-Making

    Intel has announced its latest expansion effort, planning to spend up to $80 billion in chip-making in Europe.

    Intel has been expanding at a record pace, announcing new factories and foundries in multiple US locations. The company is now taking that expansion to Europe in an effort to help insulate the EU from chip shortages over the next decade.

    “Our planned investments are a major step both for Intel and for Europe,” said Pat Gelsinger, CEO of Intel. “The EU Chips Act will empower private companies and governments to work together to drastically advance Europe’s position in the semiconductor sector. This broad initiative will boost Europe’s R&D innovation and bring leading-edge manufacturing to the region for the benefit of our customers and partners around the world. We are committed to playing an essential role in shaping Europe’s digital future for decades to come.”

    The expansion will begin with a $19 billion (17 billion euro) investment that will include a “semiconductor fab mega-site in Germany, to create a new R&D and design hub in France, and to invest in R&D, manufacturing and foundry services in Ireland, Italy, Poland and Spain. “

    The initial investment will create 7,000 construction jobs and 3,000 permanent jobs at Intel. In addition, tens of thousands of jobs will be created from the supporting companies and industries that will spring up to support the new factories.

  • YouTube Offering Top Podcasters $50K to Make the Jump to Video

    YouTube Offering Top Podcasters $50K to Make the Jump to Video

    YouTube is working to entice its top podcasters to make the jump to video, offering $50,000 to sweeten the deal.

    YouTube has been building its base of content subscribers, paying out $30 billion over the last three years. The company even shut down its YouTube Originals, thanks in no small part to having more than two million creators in the YouTube Partner Program.

    In its latest push, Ars Technica is reporting YouTube is offering some of its most popular podcasters $50,000 to switch to video. The money is aimed at helping these creators invest in the equipment they need to produce high-quality videos.

    While the company is offering $50,000 to individuals, some podcasting networks are receiving $200,000 to $300,000.

  • Airbnb: The Newest Way to Send Relief Aid to Ukrainians

    Airbnb: The Newest Way to Send Relief Aid to Ukrainians

    The tech industry has been caught in the war between Russian and Ukraine, but Airbnb is emerging as a platform for humanitarian aid.

    Many tech companies have been pulling their services and products from Russia in response to its invasion of Ukraine, essentially imposing their own sanctions on the country. In the case of Airbnb, however, customers are making reservations in Ukraine despite having no plans of using them. The goal is merely to use Airbnb as a platform for sending money to those who may need it.

    According to Business Insider, one of the main motivations is concerns about charitable and humanitarian efforts that have been put in place. Many individuals are leery of such organizations, doubting whether their money will really make to those in need, or disappear into a quagmire of bureaucracy. With Airbnb, in contrast, a specified amount of the rental fee is guaranteed to make it to the intended recipient.

    “I see politics being played out and I understand why NATO cannot go in, but I feel very sad and heartbroken for the people … being slaughtered,” Yan Asmann, an associate professor at Mayo Clinic who booked three nights in Kiev, told Insider. “It’s very hard to watch day-by-day.”

    The innovative use of Airbnb is another demonstration of the democratizing effect tech platforms can have, even on something as basic as humanitarian aid.

  • Walmart Brings Virtual Fitting Rooms to Customers

    Walmart Brings Virtual Fitting Rooms to Customers

    Walmart has upped the ante in its battle with Amazon, rolling out virtual fitting rooms for customers.

    Walmart purchased virtual fitting room platform Zeekit last year. The e-commerce industry has experienced major growth over the last couple of years, driven in no small part by the pandemic. Being able to virtually “try on” clothes is one of last big hurdles for customers shopping for clothes online.

    “One of the most frustrating aspects of shopping for clothes online is understanding how an item will actually look on you,” writes Denise Incandela, EVP of Apparel and Private Brands. “With Zeekit, our goal is to deliver an inclusive, immersive and personalized digital experience that will better replicate physical shopping.”

    The platform features a Choose My Model option, giving customers the ability to select the model that best matches their appearance. The models range from XS – XXXL sizes, and 5’2” – 6’0” in height. This will help customers get a reasonable idea of how an outfit would look on them.

    The platform is launching with 50 models, but Walmart plans to introduce an additional 70 in the coming weeks.

    “We have already seen a strong customer response to our Choose My Model experience,” Incandela adds. “The extraordinary, positive customer feedback out of the gate underscores our opportunity and ability to solve a common online shopping problem and build a true, personal connection between Walmart and our customers.”

  • How to Save Your eCommerce Business Time and Money

    How to Save Your eCommerce Business Time and Money

    When it comes to running a retail brand, it is important to find ways to be as efficient as possible.

    Why? Well, when you’re spending too much time and money trying to accomplish the simple things necessary to get your product out to your customers, it really can eat into your profits and make it harder to grow for the long term.

    The good news is that there are certain steps you can take to eliminate waste and improve your processes. In fact, most are so simple that you might have even overlooked them. Here are eight ways to save your eCommerce business time and money.

    1. Make It Easy for Customers to Buy

    One of the easiest ways to streamline eCommerce business operations and improve your overall bottom line is to make it easy for customers to buy the products you’re selling.

    This means offering multiple payment options, such as credit card, Apple Pay, or Paypal. Some online sellers also opt for layaway plans through specific apps as a way to reach more buyers.

    In addition, you can revamp the user experience of your website to make the checkout process simpler. After all, the easier it is for someone to buy, the more sales you’ll start to see over time.

    2. Identify the Best Sales Channels for Your Target Market

    To streamline your eCommerce business, you should also take the time to identify the best sales channels for your target market. Again, this might sound simple enough, but it is something that a lot of brands overlook.

    Begin by thinking about where your target customer is generally looking for products. Is it an impulse buy on social media? Do they trust influencers and always buy when certain brands promote an item? Or are they dedicated to using Google search results?

    Make sure you’re considering other sales channels like Walmart, Amazon, and others as options, too.

    3. Hire 3PL Shipping Experts

    Simplifying the shipping and warehousing process is another way to save time and money for your eCommerce business. 3PL, or third-party logistics, refers to when you use a third party to store and manage the items you sell, and then fulfill and ship your orders as customers make purchases.

    Often, this is less expensive and more efficient than buying or renting a warehouse and paying employees to staff it. Furthermore, most 3PL companies get better shipping rates based on the volume of orders they process across multiple brands, which ensures you’re saving money getting those items out to customers.

    4. Use Coupons and Discounts Appropriately

    Another area where eCommerce brands can save money in their operations is by using coupons and discounts appropriately. What do we mean by this?

    Sometimes new brands think it is super important to always have a special offer or coupon going out to their new and existing customers. While this can be an excellent promotional tool, you still want to be smart about how you do it.

    For example, if you’re using an offer of free shipping, make sure you’re not accidentally costing your business more than your profit margin. The same goes for discount codes, which should always fall somewhere below your margin for expenses including shipping and warehousing.

    5. Find Ways to Incorporate Social Media

    Saving time starts with better brand recognition. After all, if your target market already knows who you are, you don’t have to work as hard to make that first sale.

    To accomplish this, always look for ways to incorporate social media into your brand. Essentially, the goal is to leverage these digital platforms as a way to boost your sales and save you time.

    For example, have a page that you constantly add new products to on Facebook or Instagram. You can also utilize digital marketing and paid advertising elements like Facebook ads, Instagram shopping profiles, use of influencers, etc.

    6. Know Your Strengths

    One really important aspect of saving your eCommerce business time and money is to know your strengths. Some newcomers to the industry try to do too much, which leaves them running around trying to do everything on their own.

    The best process is to handle what you can but work with an outside expert on certain things that you might not have the time or resources to fully accomplish.

    A good example of this? Warehousing and shipping. In many instances, eCommerce brands aren’t fully equipped to handle all that this entails, which equates to a lot of time and money waste.

    7. Negotiate Shipping Rates

    If you aren’t already using a 3PL company to handle your shipping, make an attempt to negotiate your shipping rates. Most of the major carriers offer discounts based on volume or can cut you a deal if you’re doing a fair amount of monthly sales.

    For big items, consider working with a shipping broker who has an understanding of the types of products you sell. This can often be a great way to still ensure you’re getting the best rates while still ensuring items get to the customer in a timely fashion.

    8. Look at Packaging Costs

    Another area to make simple changes is your packaging costs. Often, those boxes and mailers cost a lot more than you thought at the beginning. To help reduce waste and eliminate added fees, take a look at what you’re currently using and see if there’s a better alternative.

    Most box companies these days also offer custom solutions, which give you the option of adding your logo and creating shipping supplies that meet your specific needs more efficiently. In addition, you can even switch to green materials that are far better for the environment.

    Wrap Up: Saving Your eCommerce Business with Simple Changes

    While most of these ideas seem simple enough, it is easy for a lot of brands to overlook them—especially in the beginning. By making just a few changes and refinements, however, you can rest assured that your eCommerce business is running as smoothly, efficiently, and profitably as possible.

  • Inflation is Soaring: Can Real Estate Save You?

    Inflation in 2022, which can be compared to the one back in 1982, is affecting all parts of our lives.  Prices everywhere are skyrocketing, especially the cost of services and goods in the food, oil, and gas industries.  Although a 6.3% rise in food prices can cost a regular U.S. family more than $24 each month, how does inflation affect sectors such as real estate? 

    For investors, real estate usually allows them to combat inflation as rising property values result in a growing rental income.  Unfortunately, those who are looking to buy their own house do not benefit in a similar way.  Instead, inflation causes house prices to rise as less homes become available on the market.  Due to this, the seller’s market is doing better as 2020 and 2021 saw the highest levels of homes sold since 2006 with a Case Shiller U.S. Home Price Index showing an 18.6% increase in housing prices.

    The COVID-19 pandemic caused a supply and demand crisis that has led to shutdowns around the world and resulted in the nation’s housing inventory reaching a record low.  Home inventories before the pandemic were able to provide almost 6 months of sales but 2021 saw inventories only being able to sustain around 4 months of home sales.  A month’s worth of car inventory was also unavailable in the summer of 2021.  

    The rising prices associated with construction and the lack of supplies caused by inflation have also affected the housing and real estate industry.  As the cost of building materials like iron and steel increase, so does the total construction costs, making it more expensive to build new structures.  These rising costs are also affected by policy decisions such as putting tariffs on metals and failing to extend a softwood lumber agreement with Canada.  Additionally, the industry is experiencing a shortage of professionals, which is causing labor costs to grow. 

    The pandemic has led many to demand more goods instead of services, resulting in consumers spending 21.7% more on goods compared to before the start of the pandemic.  Consumer spending is also supported by COVID-19 stimulus checks.  The poorly balanced supply and demand within the country has resulted in high inflation rates with commodities reaching an inflation rate of 8.4% and services experiencing a 3.2% inflation rate as of October 2021. 

    The effects of inflation will most likely prevail throughout most of 2022 and possibly into 2023 due to how high it has gotten.  The future of America is heavily dependent on how quickly the impacts of the pandemic decline as the faster we can recover, the faster the demand for goods versus services can go back to normal and ease supply chain pressures while production can improve.  Nonetheless, housing inflation will still persist as demand and building costs are predicted to both remain high. 

    The housing market in 2022 will continue to display characteristics of a seller’s market with a predicted increase in both home sales and appreciation but with the caveats of small inventory numbers and struggling demand due to rising interest rates.  During this time, investing in real estate such as commercial real estate (CRE), real estate investment trusts (REITs), and even metaverse can be a good move due to real estate’s resilience to inflation by getting returns from income and appreciation. 

    As inflation continues to affect our economy in 2022, many might consider taking the next step in real estate. 

    real estate and inflation

    Via LuxurySoCalRealty

  • We Are a Marketplace That Sells Demand Generation, Says Grubhub CEO

    We Are a Marketplace That Sells Demand Generation, Says Grubhub CEO

    “We are a marketplace that sells demand generation,” says Grubhub CEO Matt Maloney. “We sell growth. That’s what our primary product is. We’re not a logistics company. We do logistics because we know that’s an end to get to restaurant growth and make money off our logistics. The gross margins on the logistics are not fabulous. The gross margins on the demand generation are fabulous which is why I differentiate between a logistics company and demand gen company. If you’re selling consumers, you’re selling growth, and you can charge a lot for that.”

    Matt Maloney, CEO of Grubhub, discusses with Jim Cramer on CNBC how Grubhub is in the business of driving growth for restaurants and is not just a logistics company:

    The American Public Has Just Adopted Digital Ordering

    This is our fifth anniversary of our IPO. The market now is ten times what I thought it was five years ago. It’s because the American public has just adopted digital ordering as their preferred way to engage with their local restaurants. We are not just marketing to Millennials. We are marketing on national television across all channels, all time zones, and hitting all segments. We just see that people realize that digitally ordering on their app or on their desktop is just easier.

    Of course, our ad campaign is working. I wouldn’t have it on TV if it wasn’t working. You think about it this way. You know your LTV, your lifetime value of your customer, once they start ordering we know that they’re lifers. They’re on forever. We can make that revenue model and then we know how much it cost to put the ad on there. So yes, over time, as people see the ad, more and more it becomes less and less effective. But we’re nowhere near our LTV.

    https://youtu.be/qpyVP-JhToc
    Grubhub National TV Commercial

    I have always been willing to be extremely aggressive investing in the future. Historically, I was bound by the amount of money I could invest. The reception of these communications just weren’t hitting the public and they weren’t working as well. Then around the third quarter of last year, we saw that we could spend way more than we had historically. I’m just talking about effectiveness. Spending it effectively. We came to the street on our third quarter earnings call and said we see opportunity and we are going long in the fourth quarter.

    Yum Made $200 million Investment – They Believe in Our Story

    People are going to say where’s the beef, the old Wendy’s commercial. They’re like show me the money. (We don’t have Wendy’s) but everyone talks to everyone in this industry. I think over time exclusivity is just not going to happen. (We have Yum) and Yum is the biggest restaurateur in the world. YUM is an incredible brand which includes Taco Bell, KFC, and Pizza Hut. They are very forward-thinking. They invest in technology a lot and they wanted to make a fundamental partnership and we wanted to understand what the brands needed from a partner.

    Yum made a $200 million investment because they believe in our story. We didn’t need the investment because we have a very healthy balance sheet. What it did it was really bringing the support of the young brand and the franchisees into Grub. As a tight partnership, we’re able to execute on technology and growth for them in a way that nobody else in the industry is doing right now. I totally disagree (that we aren’t making money from this partnership).

    We Are a Marketplace That Sells Demand Generation

    We are a marketplace that sells demand generation. We sell growth. That’s what our primary product is. We’re not a logistics company. We do logistics because we know that’s an end to get to restaurant growth and make money off our logistics. The gross margins on the logistics are not fabulous. The gross margins on the demand generation are fabulous which is why I differentiate between a logistics company and demand gen company.

    If you’re selling consumers, you’re selling growth and you can charge a lot for that. That’s the profitable side. Everyone else in my industry is a logistics company which has razor thin margins. One of my competitors said they’re the next FedEx. Do you really want to be the next FedEx? There’s the multiple that we can get as marketplaces and there’s the multiple that logistics companies can get.

    Everyone Would Prefer to Order Digitally

    I think that everyone in the country would prefer to order digitally than order on the phone. That’s why we acquired Tapingo. It’s an incredible acquisition because it gives us further scale on campuses. Tapingo is a pickup focused product. So here’s what you need to think about. We sell growth, we sell orders. I don’t care if that’s a pickup order, a delivery order, a self-delivery order, or a catering order.

    Everyone else in my industry only does delivery facilitated by that platform. Because we partner with the restaurants (which means) the restaurants are subsidizing part of our transaction fee, we are always cheaper. That’s what people don’t understand. There’s a lot of bait and switch pricing going on (from competitors).

    We Are a Marketplace That Sells Demand Generation, Says Grubhub CEO


  • Predictive Forecasting For Ecommerce In 2022

    Predictive Forecasting For Ecommerce In 2022

    Ecommerce has been growing at a faster pace than traditional shopping, and there’s no sign of it slowing down.

    Research indicates that eCommerce sales will account for 16% of the total retail market in 2022– a figure far higher than the previous year’s eCommerce retail market share (13% in 2021). By 2022, eCommerce sales are expected to reach $5.4 trillion.

    An enormous amount of data is generated each second, which companies are using worldwide for several purposes like web log analysis, traffic analysis, and customer profiling.

    The exponential increase in big data presents tremendous possibilities for businesses.

    Benefits of Using Predictive Forecasting for Ecommerce

    Predictive forecasting can be used to forecast expected sales for eCommerce businesses with confidence.

    This means that businesses are better equipped to make smart decisions, like how many items they should stock or whether they can afford to lower prices without sacrificing profits.

    Additionally, this would help businesses effectively allocate their resources and adjust their business strategies accordingly.

    Predictive forecasting data suggests that a number of key drivers and technological shifts will shape the future of eCommerce in 2022 and beyond.

    Here are the top predictive forecasting trends for 2022:

    Competitive Website Homepages: The first is that retail websites must become more competitive on their homepages for both new and returning visitors. This will require new technologies and site improvements, such as improved personalization and localization, the ability to add products dynamically throughout the sales funnel, and an increased focus on the shopping experience.

    Demand for Content Marketing and SEO: The second driver that will be shaping retail websites is the increasing importance of content marketing and personalization for SEO. In 2017, Google began using machine learning technology to process user experiences on eCommerce sites and present them more prominently in search results. This trend is likely to continue growing, which will increase the importance of sites’ content marketing efforts and user experience. Leading eCommerce agencies such as Bing Digital leverage data to upscale their client’s revenue using a combination of marketing analysis techniques. In the future, eCommerce marketing companies that will use data will always have an upper hand as compared to their competitors.

    Automated Recommendations: A third driver will be the increasing use of automated recommendations based on previous shopping cart activity or searching behavior. These technologies would suggest items like: “People who bought this also bought these items,” “Customers who viewed this item also viewed these items,” or even more advanced solutions, such as “Most popular products recommended based on past purchases.”

    Rise of Mobile Devices: The shift from a PC to a mobile device world is perhaps one of the most significant in recent times. In 2014, mobile surpassed PC Internet usage in the UK, and in 2016, search from a mobile device surpassed that from a PC for the first time. This shift will continue to grow as more consumers purchase smartphones and tablets. Consequently, retailers must design their websites to accommodate smaller screens and optimize speed. Mobile page load speeds have been an increasing concern for both consumers and search engines, so this is an area that many retailers must focus on improving.

    Voice Assistants: Predictive data shows that consumers are becoming more comfortable with voice assistants such as Amazon’s Alexa, Google Home, and Apple’s Siri when shopping online. Therefore, retailers will be challenged to accommodate these new technology preferences in the future. While the technology is still in its infancy, approximately 40% of US consumers already own a smart speaker and more say they are likely to purchase one soon. The growth of voice assistants will impact how consumers search for products and consider purchases. This new technology will influence their purchasing behavior by providing product recommendations based on previous online searches and product purchases.

    Machine Learning and AI: Another important technological shift is the continued growth of machine learning and artificial intelligence. For example, it is predicted that in 2022, AI will create more jobs than it will destroy. This suggests an increased need for employees with digital skills to manage these technologies in eCommerce stores to increase their online effectiveness.

    One-day Delivery: One final key factor shaping eCommerce is the growth of one-day delivery. This is the result of several factors, including consumer demand for ever-faster shipping speeds and improvements in logistics technology that allow retailers to fulfill such orders. One-day delivery is already available in certain cities and regions worldwide and will become more common as eCommerce gathers pace.

    Examples of Predictive Forecasting

    1. In 2014, Google analyzed over 100 of the most popular Android apps and uncovered some interesting stats about how they use data. For example, Google found that most apps determine a user’s location almost instantaneously when the app is opened but then stay in the background for the rest of the day, gathering data on other habits. They also found that apps pull out personal information more often than you might think – even if it’s only done to provide a more personalized experience.

    2. In 2015, Facebook implemented an artificial intelligence software called “DeepText” to analyze and understand all of its users’ posts in real-time, as well as who those posts were being shared with. This was used to help prevent the spread of violence or terrorist propaganda on their website by detecting any dangerous language.

    3. In 2015, Google introduced “RankBrain” to its machine learning program to help it understand search result intent better. The idea was that if RankBrain could detect one user’s intention by recognizing their pattern of previous searches, it would be able to make accurate predictions on future searches. This proved effective for Google over the next few years, and the program has since become one of the most important parts of their business.

    4. In 2016, Netflix launched a new feature called “Suggested TV,” which provides recommended TV shows based on your viewing habits. This is done through predictive forecasting by tracking your recent searches to get an idea of what kind of shows you’re watching and what you might be interested in.

    5. In 2017, Google released a video talking about how they use predictive forecasting to better predict people’s flow on their website. For example, suppose a user is looking for information on a local restaurant. In that case, Google will analyze data from previous searches to determine where this person is located and show results for nearby restaurants. This allows Google to display relevant and timely information, which is important for businesses.

    The above examples of predictive forecasting in the eCommerce world have been used over the years to improve website rankings, recommendations from streaming services, product development decisions, advertisement relevance, and more. There are many other examples that can be used to show how predictive forecasting has been used to improve businesses across all industries.

    Challenges in Using Predictive Forecasting for eCommerce

    The biggest challenge for companies using predictive analytics is to figure out which data they should be collecting and how it should be used. The type of information that would be useful for a specific company depends on their interests and what they hope to achieve through forecasted data.

    Another challenge is dealing with large amounts of data. It takes a lot of planning and time before you even start gathering the data required for effective predictive forecasts. Once you have everything you need, you have to put it all together and use special software to make sense of it all. This is especially necessary if your business has a lot of customers or a high number of different products to keep track of.

    Conclusion

    In 2022, predictive forecasting for eCommerce will have many different applications within all areas of business operations. Combining the information from customer searches with historical data from previous purchases and other variables will help companies make better decisions about their inventory and what products they should develop next.

  • 8 Key eCommerce Conversion Rate Benchmarks

    8 Key eCommerce Conversion Rate Benchmarks

    What would you say is the most important metric for a business? Is it profit? Revenue? Customers served per day? The answer may surprise you. In fact, according to eCommerce conversion rate experts, the number one metric for any business should be its conversion rate.

    Conversion rates indicate how effectively your marketing strategy attracts visitors and converts them into customers. To help you get started on improving your conversion rates, we’ve laid out some of the most critical benchmarks in this blog post.

    1 – eCommerce Conversion Rate 

    This is currently around 6%. Though the average conversion rate may vary by industry, this is a good eCommerce benchmark to aim for. As per the SimilarWeb eCommerce benchmarks report, the average conversion rate for eCommerce sites in 2021 was around 6.6%. If your conversion rate is below this number, there’s room for improvement. If it’s above this number, you’re doing well but could still stand to make some tweaks.

    Also, it’s important to note that the average conversion rate varies significantly based on traffic source. Paid search and email campaigns typically have higher conversion rates than organic search.

    2 – Mobile eCommerce Conversion Rate 

    This is typically 1.3% for mobile. While desktop conversion rates are still higher, the gap is narrowing, as more and more people shop on their mobile devices. If your site isn’t optimized for mobile, you’re missing out on potential business.

    The good news is that there are many simple things you can do to improve your mobile conversion rate, such as ensuring your site is easy to navigate and has a responsive design.

    3 – Social Media eCommerce Conversion Rate

    This is about 0.35%. Yes, that’s a tiny number, but it’s multiplying as people shop on Facebook or Pinterest. According to research from Monetate, social media conversion rates have doubled over the past year. One-third of all online purchases now come from social media.

    So, if you’re not yet using social media to drive conversions, it’s time to start. The best way to do this is by creating targeted ads and optimizing your site for social sharing. Social media also strongly influences SEO and should be optimized accordingly.

    4 – Cart Abandonment Conversion Rate

    This is typically around 68% – the percentage of people who add items to their cart but never complete the purchase. If you want to improve your conversion rate, you need to address this issue.

    There are some ways to reduce cart abandonment, including providing incentives for customers to finish their purchase, such as free shipping or discounts, and providing detailed product information and images.

    Also, cart abandonment rates vary by industry, so you need to benchmark your rates before making any optimizations. The average cart abandonment rate for health and beauty products, for example, is much higher than the average for digital downloads.

    A bigger percentage of online shoppers abandoned their shopping carts because of poor page layout and design. The shopping cart abandonment rate is now the leading indicator for eCommerce website performance, as it can rise to as high as 97% before a site is abandoned. That means if your site shopping cart abandonment rate hovers around 70%, you’d better know why.

    5 – Checkout Process Time

    This typically takes customers around 3 minutes. Once a customer has decided to purchase something from your site, you want to make the checkout process as quick and easy as possible. If you ask customers to fill out lengthy forms or provide too much information, they will abandon their carts.

    The good news is that you can do several simple things to improve your checkout process, starting with only asking for the information you need and providing detailed product descriptions. The checkout screen is notorious for being the abandonment focal point, so improving the UX and design of the page will lower your abandonment rate.

    No need to reinvent the wheel here. Website builders devoted numerous man hours to create checkout pages based on best practices. In their most recent product release, Elementor, the leading WordPress website builder, put a special focus on improving their WooCommerce checkout widget, for this reason exactly.

    Just keep in mind, checkout process length varies by industry, so benchmark your site before you make any optimizations. 

    6 – B2B eCommerce Conversion Rate

    B2B companies have lower average conversion rates than other industries, around 3%, especially eCommerce companies. B2B transactions typically involve a longer sales cycle and more complex buying decisions.

    Though the average B2B conversion rate is lower than that of other companies, there are some things you can do to improve it. One example is using content marketing to position yourself as an expert.

    Another is implementing a lead nurturing program that allows you to build trust with tips while identifying their specific pain points and needs. By providing value at every step, you’ll be able to close more deals in less time.

    7 – Average eCommerce Order

    The number varies significantly by industry, but it’s a good benchmark to use as $122 when setting your own goal for average order value. There are many ways to increase your average order value, including offering discounts for larger orders, providing free shipping on orders over a certain amount, and bundling products together.

    You can also improve your conversion rate by increasing the average sale amount of each customer. You can do this by providing more detailed product information, including images and videos, and using targeted marketing such as creating shoppable videos to increase the value of each purchase. The order value of eCommerce also varies by region, so make sure to benchmark your site before making any changes.

    8 – Conversion Rate for Paid Search

    This typically falls around 2.35%. Search engine optimization is still the best way to drive traffic to your site, but the paid search can be a valuable addition to your marketing mix. Paid search allows you to target specific customers who are already interested in what you offer. You can then bid on keywords related to your products or services and show ads to those customers.

    The average conversion rate for paid search varies by industry. The average conversion rate for the travel industry, for example, is much higher than the average for the legal industry.

    Conclusion

    The eCommerce landscape is constantly changing, and it’s more important than ever to stay up-to-date on the latest trends. By understanding these statistics, you can ensure your eCommerce site is performing at its best.

  • Dealers Beware: Ford Will Withhold Inventory From Those That Gauge Customers

    Dealers Beware: Ford Will Withhold Inventory From Those That Gauge Customers

    Ford CEO Jim Farley is laying down the law, warning dealers the company will withhold inventory from those that gouge customers.

    Automakers around the world are struggling with a shortage of semiconductors and components, leading to constrained inventory. Some dealerships have responded by trying to take advantage of the situation, charging customers exorbitant prices.

    The practice hasn’t gone unnoticed by the powers that be at Ford, according to Bloomberg. In fact, Farley is promising such behavior will cost those dealerships.

    “We have very good intelligence of who they are and their future allocation of product will be directly impacted because of that policy,” CEO Jim Farley said Thursday on a conference call with analysts. “We have about 10% of our dealers last year in the supply constrained environment that we’re in charging above MSRP to the best of our knowledge.”

    Any time there is constrained supply, there are always those who would take advantage of people. Hats off to Farley and Ford for cracking down on such behavior.

  • Right to Repair Moves to Farm Tractors

    Right to repair movements often target the tech industry, but a recent Senate bill puts the farm equipment industry squarely in its sights.

    As equipment of all types has become more complicated, the end user is often left paying for expensive repairs, with self-repair almost impossible. A number of laws and bills have been introduced to target this in the electronics industry, but the farm industry continues to suffer the same issues.

    “I visited with my local mechanic and asked which tractor he could fix, and it was a 1995 one,” Scott Potmesil, a fourth-generation farmer, told NBC News. “New equipment is getting so complicated and loaded with sensors. If one of them goes out, you can’t even start your tractor. You need a technician and software to identify the problem.”

    The Senate has introduced a bill designed to tackle this problem. Sponsor, Sen. Jon Tester, believes the bill will be a significant help to farmers, reducing costs and helping them stay operational.

    “We’ve got to figure out ways to empower farmers to make sure they can stay on the land. This is one of the ways to do it,” Tester said. “I think that the more we can empower farmers to be able to control their own destiny, which is what this bill does, the safer food chains are going to be.”

  • ’Sold by Amazon’ Shutting Down In Agreement With Washington AG

    ’Sold by Amazon’ Shutting Down In Agreement With Washington AG

    Amazon has agreed to shut down its “Sold by Amazon” program, and pay $2.25 million, in an agreement with the Washington Attorney General.

    Washington AG Bob Ferguson launched an investigation into Amazon’s “Sold by Amazon” program. The program effectively amounted to price-fixing, as Amazon and third-party sellers agreed to a specific price, rather than compete with each other.

    Amazon has agreed to shut the program down, and pay $2.25 million to the Attorney General’s office.

    “Consumers lose when corporate giants like Amazon fix prices to increase their profits,” Ferguson said. “Today’s action promotes product innovation and consumer choice, and makes the market more competitive for sellers in Washington state and across the country.”

    The investigation is not the only such legal challenge the company is facing. Washington DC AG Karl A. Racine filed a similar lawsuit against the company, accusing it of using its “most favored nation” (MFN) agreements to price-fix.

  • Position Imaging Working to Address Multi-Unit Package Delivery Logistics

    Position Imaging Working to Address Multi-Unit Package Delivery Logistics

    Position Imaging has announced its Smart Package Room Partner Program, designed to help multi-unit properties deal with package deliveries.

    The global pandemic has upended the retail market, with consumers relying on home deliveries more than ever. The increased number of deliveries has put a strain on multi-unit properties, requiring staff to manage the influx of packages and work to get them to the right residents.

    Position Imaging has developed a solution: the Smart Package Room. The solution is a computer-vision-driven system designed to allow package delivery services to drop packages off, and residents to pick them up at their convenience — 24/7 access combined with theft mitigation features.

    Position Imaging is making its solution available to its partners via a reseller and referral program.

    “The partnership program at Position Imaging gives our partners selling into the same space the ability to broaden the portfolio of products they offer their clients with the most advanced solutions on the market. We’re looking to work closely with our partners to create mutually beneficial relationships that grow together through innovation and delivering greater value together,” said Jacqueline Cournoyer, Director of Dealer Relations, Position Imaging.

    Companies interested in learning more or signing up can do so here.

  • It’s “Game On” for Buffalo Wild Wings New Brand Architecture, Says CMO

    It’s “Game On” for Buffalo Wild Wings New Brand Architecture, Says CMO

    “When I think of brand architecture it really gets to the essence of the brand,” says Buffalo Wild Wings CMO Seth Freeman. “The essence of the brand is around this idea of camaraderie and ritual and something that we like to call “game on.” It’s our ability to make sure that when folks come in to experience Buffalo Wild Wings that we have a game on mentality and that we bring them the very best of who we are.”

    Seth Freeman, Chief Marketing Officer of Buffalo Wild Wings, was recently interviewed on Adweek’s CMO Moves podcast with Nadine Dietz. Freeman discussed their new “game on” brand architecture that defines not just their new marketing strategy but really the heart of the business. “The purpose ultimately is really about inspiring legendary experiences between friends,” noted Freeman:

    Turning Good Times With Friends Into Great Times With Brothers

    When I think of brand architecture it really gets to the essence of the brand. There are three components to it in the way we framed it up.  They are the promise, the essence, and the purpose. We identified an insight out there that guys want to turn good times with friends into great times with brothers. More accurately, legendary experiences with brothers. That was the cultural insight that really framed our brand architecture.

    When we think about our purpose we defined our promise as the great American sports bar that turned game time into stories worth telling. It wasn’t just about inviting folks to watch a game. It was about translating that into an experience worth telling. That’s what folks are really looking for. That’s the promise that we deliver on every single day. That’s why we get up. That’s why folks are going out there and doing the job that they do and delivering a great experience.

    It’s “Game On” for Buffalo Wild Wings

    Our purpose ultimately is really about inspiring legendary experiences between friends. The essence of the brand is around this idea of camaraderie and ritual and something that we like to call “game on.” It’s our ability to make sure that when folks come in to experience Buffalo Wild Wings that we have a game on mentality and that we bring them the very best of who we are. We have 80,000 folks out there working across Buffalo Wild Wings and they bring it every single day.

    https://youtu.be/AkGZHYM-D90
    It’s Game Time at Buffalo Wild Wings!

    As we were talking to consumers, one of the things we learned was that some of the most impactful experiences that they talked about was with the bartenders and servers. They are influencing whether or not those folks come back. For instance, one of the most memorable experiences they talked about was the bartender remembering them when they came back.

    That is our brand architecture, but it also lends itself to things we have done in rolling out this purpose to the broader community through our Brand Champ Initiative. That really is a cultural movement that we are employing across our franchises and corporate stores. We have over 1,200 locations where folks are trained to make sure that the brand architecture is translating to a way that is meaningful to the consumers and also meaningful to the folks that are on the front lines every single day.

    It’s “Game On” for Buffalo Wild Wings New Brand Architecture