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Marketplace news
Walmart and Rakuten partner on grocery delivery in Japan, Kobo e-books and audiobooks in U.S. Walmart today announced a major expansion in terms of its global e-commerce presence: the retailer is entering a strategic partnership with Tokyo-based Rakuten, which will see the companies collaborating on the launch of a new online grocery service in Japan, and the sale of e-readers, audiobooks and e-books in the U.S., via Rakuten-owned Kobo. TechCrunch, Walmart
China’s JD Prepares to Take on Amazon on Its Home Turf. The $68 billion company, which said in December it’ll start online sales in the U.S. by the second half of 2018, is now seeking funds to bankroll a logistics build-up to support an international expansion. JD is in final-stage discussions to sell 15 percent of its logistics arm to Tencent and other investors in an early fundraising round. Bloomberg Technology, Reuters
Here's why an Alibaba-Kroger partnership makes sense for both sides. For Kroger, a partnership with Alibaba may help it revolutionize its e-commerce and in-store experiences. Alibaba has a number of technologies that would benefit Kroger if the partnership comes to fruition. And Kroger may have an interest in such innovations, as it recently embarked on its Restock Kroger initiative to improve its digital and omnichannel capabilities. Business Insider, Reuters
India and Mexico get an early taste of the ‘Bank of Amazon’. In places like India and Mexico, Amazon is offering unique payments services and actively approaching finance-technology startups for investments and acquisitions. The Economic Times
Amazon starts hyperlocal grocery delivery with NOW Store in India. Amazon is trying to up its grocery game in a big way. The e-tailer has silently rolled out hyperlocal grocery delivery with the launch of NOW Store– on its online grocery platform Amazon Now. MediaName, YourStory
Jet.com’s president is leaving just 18 months after the $3 billion Walmart acquisition. Liza Landsman had been elevated to the top role one year ago and is leaving to an unknown new role. Recode
Online shopping firm Jumia to open experiential stores in Kenya. An experiential centre is where someone can go and be taken through online shopping. The company expects to open an additional 5 to 10 stores this year, in Kisumu, Eldoret and Nakuru as it moves to deepen e-commerce in Kenya. Standard Media Kenya
When Alibaba Met Stadium Goods: The Case For Foreign SMEs To Try And Crack Chinese E-Commerce. McPheters shared that China was part of the Stadium Goods plan almost from day one. Only three months after launch the company began preparations for selling via cross-border e-commerce. Forbes
Gumtree and eBay merge motor offering in the UK. Gumtree and eBay have merged motor offerings to give dealers the ability to reach for sites audiences with one advert. Gumtree, which has been under eBay’s ownership since 2005, received 6m visits on its motoring section each month, while eBay records 3.7m users each month viewing new cars on its site. Verdict
Snapdeal parent sells logistics arm Vulcan Express to Future Group for $5.5m. “Similar to our recent sale of FreeCharge, we believe Snapdeal’s sale of Vulcan Express to Future Group is a successful deal for all three parties – Snapdeal divests off an asset that is non-strategic in nature for Snapdeal 2.0, allowing it to focus its capital and management on its core e-commerce business,” said Jason Kothari, Chief Strategy & Investment Officer, Snapdeal. DealStreet Asia
Berlin auctions off last pairs of public transit ticket sneakers on eBay. Berlin's public transportation company Berliner Verkehrsbetriebe (BVG) placed its last two pairs of Adidas sneakers up for auction on eBay on Thursday, saying they will donate the proceeds to a local charity to benefit the city's homeless. DW
Online marketplace Snapdeal's revenue saw a sharp drop of almost 40% at Rs 903 crore for the fiscal year ending 2017, according to latest regulatory documents filed with the Registrar of Companies (RoC). The Times of India
Pargo in talks with Alibaba to become a delivery partner for e-commerce giant in Africa. South African logistics startup Pargo is working with Alibaba to look at how the startup can use its smart logistics network to play a key role in improving the e-commerce giant’s logistics on the African continent. Ventureburn
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Weekly Marketplace Insights
Partnerships
This past week saw an above average amount of partnerships between large marketplaces that in my opinion is all about the U.S e-commerce.
1. The most visible announcement in the next six months will be Walmart's strategic partnership with Rakuten. I believe that Rakuten got the better part of the deal as Walmart will partner with them to create a grocery service in Japan.It is clear to me that Walmart is strategically moving certain businesses into partnerships and joint ventures with them taking an advisory role. Rakuten is dominant in Japan and partnering with them ensures that Walmart all but exits the Japanese market but gets a stake in their new grocery venture. This alliance is very similar to their partnership with JD.com in China which lead to Yihoadian becoming a JD asset and Walmart becoming an investor in the new business.
2. JD.com move into the U.S makes little sense to me especially given Alibaba's bad experiences in the last two years. However, if their core focus is their logistics business, then things look considerably more positive. JD.com has the most extensive cold chain logistics in the world and moving into the US would provide retailers with a new option to move product quickly. I see down the line that JD logistics will partner with Walmart and then I think Amazon has a worthy competitor to Fulfillment by Amazon.
3. Kroger supposedly had talks with Alibaba over co-operation regarding business development. Kroger I believe is one of the most strategic retailers regarding technology. Yes, I know they have Clicklist and pickup services and are not in the same conversation as Target and Walmart, but I believe they are making the right moves into their long-term sustainability. I think that they are a retailer worth keeping an eye on for the next 12 months.
Notice the name missing, Amazon. Amazon does not partner well with other retailers and famously has struggled to keep partners happy. I believe that it these moves all lead to Amazon being under pressure in its most dominant market that generates significant quarterly revenue.
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B2C (Business to customer) news
Amazon joined the tug-of-war over Big Apple-based Boxed.com. Jeff Bezos’ e-commerce giant invited Boxed founder and Chief Executive Chief Huang to Amazon’s Seattle headquarters on Wednesday to discuss an acquisition of the four-year-old company, a source with knowledge of the trip and discussions told The Post. The New York Post
Inside an Amazon delivery station in India run by the hearing-impaired. Every morning at around 8:30 am, as India’s financial capital wakes up to another noisy workday, a little-known e-commerce delivery centre joins the grind. Inside its facility, tucked in one of the hundreds of narrow lanes in the city’s Fort area, a diligent team of 26 begins to receive, record, sort, and deliver consignments. However, unlike their boisterous city, the employees of logistics company Mirakle Couriers barely raise a murmur. Quartz
Sotheby’s acquires Thread Genius to build its image recognition and recommendation tech. Sotheby’s has bought Thread Genius, which has built a set of algorithms that can both instantly identify objects and then recommend images of similar objects to the viewer. TechCrunch
Takeaway considers merging with Delivery Hero. Dutch food delivery service company Takeaway.com considers merging with Delivery Hero. Founder Jitse Groen thinks a shakeout is the next logical step, as a consolidation of the market is on its way. “In every major country in the world there can be only one player.” Ecommerce News Europe
eCargo, a Chinese-based e-commerce technology and logistics company, has announced the acquisition of a 45% stake in Jessica’s Suitcase, with an option to purchase the remaining 55% within 18 months. The company statement says that the combined business will offer eCargo a scale to plan for new Daigou services against the strong demand of Australia and New Zealand products by Chinese consumers through the rapidly-growing cross-border e-commerce channel. Power Retail
Broker start-up Homeday has recently launched an online price atlas giving property owners and brokers quick and easy access to local price levels across Germany. The price estimates are based on a machine learning technology and an algorithm that takes into account over 150 features. Thus, the value of a property, the average price per square meter and the price development of the last three years can be reconstructed. PropertyPortalWatch
Carrefour Bets Big On Digital. French supermarket giant Carrefour, regarded as a slow adopter of e-commerce, has announced a $4 billion-plus five-year strategy to leverage the boom in online grocery shopping before Amazon takes over. Power Retail
Tencent to Back Carrefour in Challenge to Alibaba in Retail. Tencent plans to invest in Carrefour’s China unit, following Alibaba's footsteps to uproot traditional grocery and department stores with technology. The social media giant, along with local retailer Yonghui Superstores, agreed to take a stake in Carrefour China, the companies said Tuesday. They plan to work together on data, smart retail, mobile payments and data analysis. Bloomberg Technology
Teamsters tell UPS to lay off drone, driverless delivery vehicles. As UPS begins contract talks with the Teamsters union this week, the union has already demanded that the logistics giant abstains from using drones or autonomous delivery vehicles to deliver packages. RetailDive, The Wall Street Journal
Google dropping Merchant Center feed integrations with BigCommerce, Magento, PrestaShop. A little over a year ago, ahead of the 2016 holiday shopping season, Google enabled integrations between Google Merchant Center and three e-commerce platforms. Those integrations are soon coming to an end. This week, Google began emailing customers taking advantage of the integrations that support for those direct imports will end as of March 20, 2018. Search Engine Land
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D2C (Direct To Customer) news
How Glossier’s gTeam is changing the role of customer service. Glossier has never been a brand to play by traditional rules, and its customer service team — dubbed the gTeam — is no exception. While many companies have long seen customer service merely as a necessary cost centre, the buzzy direct-to-consumer beauty brand, founded by Emily Weiss in 2014, sees it instead as a major value-driver. Glossier
LA investors smell a winner in direct-to-consumer perfumer Skylar Body. The consumer investment train keeps rolling through Los Angeles, with organic perfumer Skylar Body becoming the latest brand that investors here are banking on for a big win. The company raised $3 million late last year in a round led by Upfront Ventures, with participation from serial entrepreneur-turned-investor Brian Lee and other top-tier local investors. TechCrunch
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Fashion e-commerce news
What the Richemont-Yoox Net-a-Porter deal means for online luxury retail. At $3.4 billion, Richemont’s offer to buy online luxury group Yoox Net-a-Porter is a pricey sign of the times. Competition to embrace digital e-commerce and technology has defined the growth strategies of other luxury groups, Kering and LVMH, as Richemont has stayed behind. “There’s discomfort in longer-term visions, so sales reduce risk. Richemont has a lot of catching up to do, and Yoox Net-a-Porter has to expand to beat its competition. The game overall is who is going to be the biggest and the best.” Glossy, Richemont, Quartz
Reports of Fakes Continue to Pose Issues for The RealReal. Last week, the popular Instagram account @Diet_Prada (known for its thorough, unvarnished documentation of designers ripping off each another’s ideas) turned its attention to a floral dress that had been marked as a Prada item and sold on The RealReal. Racked
Zara launches tech-enabled pop-up ahead of new London flagship. Zara is launching a tech-enabled pop-up store in London designed for click and collect purchases ahead of a new permanent flagship space. The Westfield Stratford City pop-up, opening today, offers a small edit of men’s and women’s clothing that shoppers can purchase online while there in person. Doing so enables delivery same day if placed before 2 pm, or the next day if placed in the afternoon. The Current Daily
Canada Goose Sues Over Counterfeits. Canada Goose has filed a lawsuit in federal court in Chicago, charging “an interrelated group of counterfeiters” based in China of selling fake Canada Goose across hundreds of unauthorized websites. SBG Online
LVMH CEO still doesn’t trust that online retail won’t damage luxury brands. LVMH CEO Bernard Arnault is still concerned that a heavy presence online will damage the reputations of the luxury brands in the group’s portfolio, and that’s shaping how the conglomerate’s digital strategy plays out globally. Glossy
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Mobile commerce
Facebook rolls out Gumtree competitor in South Africa. Local Facebook users will soon see a little shop icon appear at the bottom of their social media app, indicating they can now scour their community for used goods or sell off their own unwanted home items. Facebook Marketplace, an online classifieds facility, launched in South Africa on 23 January 2018. ITWeb
Boxed CEO's Choice: Save Supermarkets or Help Amazon Kill Them. When Kroger offered to buy Boxed Wholesale, founder Chieh Huang didn’t waste much time: Huang said he’d consider the offer and hopped on a plane to Seattle. There Huang huddled with Amazon's corporate development and consumer executives on Wednesday to discuss a potential sale, according to two people familiar with the matter. Bloomberg Technology
This start-up aimed to turn your next Uber ride into a 7-Eleven. It’s also another revenue opportunity for your Uber driver. Drivers earn a 25 percent commission on sales plus a buck for every order, as well as tips if a rider so pleases — a revenue stream that for many earns them an additional $100 to $300 a month. The Washington Post
Aisle Ahead Buys BigOven to Assemble Shoppable Recipes. VIC LLC., announced today that it has purchased recipe app BigOven, and rebranded as Aisle Ahead. Terms of the deal were not disclosed, but the purchase helps Aisle Ahead become a player in the soon-to-be hotly competitive shoppable recipe space. The Spoon
Mobile’s Impact on Shopping: Timing Matters, Says Facebook Study. A shopper's choice of mobile or desktop as the first point of contact can make a major difference, Facebook IQ says. WWD
More shoppers choosing mobile apps rather than websites, says National Retailer Federation. Spending on mobile apps more than doubled to $86 billion in 2017 compared to two years earlier as smartphone and tablet users spend more time on their mobile devices, according to NRF. WRAL TechWire, National Retailer Federation
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Stats and other interesting news
Google expands controls to let you mute those annoying ads that follow you on every site. TechCrunch
Adoption Of Cryptocurrency By Marketplaces - Medium
How’s the food at Amazon Go? We tested out the tech giant’s foray into sandwich making. GeekWire
Chasing Luxury Market, JD.com Opens Chic Paris Office - Jing Daily
Australians spend $2.34B on online shopping while drunk, research finds - International Business Times Australia
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