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Marketplace news
Amazon said to launch delivery service to compete with UPS and FedEx. The timeframe for rollout is soon, too: Amazon is said to be readying the service for its first launch in LA in the “coming weeks,” starting, not surprisingly, with companies that sell stuff via its website. After its initial launch in LA, Amazon will look to expand it out to other cities, possibly as soon as later this year, the WSJ says. TechCrunch, The Wall Street Journal
An unpacking of the Prime economy and how Amazon's focus on fast shipping in the United States, customer loyalty and new technologies combined with aggressive expansion into other industries continues to pay off. Reuters Graphics
Chinese E-commerce Giant JD.com Outlines Plans For European Expansion. Richard Liu, founder and chief executive of JD, said his company will launch its first European e-commerce sales and delivery services in France, then roll out services in the United Kingdom and Germany. Liu estimated the company would spend at least 1 billion euros (US$1.23 billion) to build a logistics network in France over the next two years. China Money Network
On October 30, 2017, Governor Tom Wolf signed House Bill 542 into law, making Pennsylvania the fourth state to impose sales tax collection or reporting obligations on platforms (e.g., ebay.com, Amazon.com). your business is making sales into Pennsylvania, you need to consider whether your business is subject to the law, and if so, what it needs to do before March 1, 2018, to be prepared to comply with the law by April 1, 2018. Lexology
Alibaba to Invest $865 Million in China Home Improvement Chain. Alibaba plans to buy a 15 percent stake in a chain of Chinese home improvement and furniture stores as part of its pushing into “new retail,” the company said Sunday. Bloomberg
Walmart Might Be Spending Billions for a Stake in Flipkart. Walmart is in discussions to pay several billion dollars for as much as 20% of India e-commerce leader Flipkart Online Services, according to a person familiar with the matter. Fortune, Bloomberg Technology, The Washington Post
ManaMano, a European online marketplace specialized in DIY & gardening, closed last year with a global turnover of 250 million Euros, which is an increase of 180 percent compared to 2016 when the French company generated a turnover of 90 million euros. Ecommerce News Europe
Amazon eyes new warehouse in Brazil e-commerce push - sources. Amazon.com Inc (AMZN.O) is looking to lease a 50,000-square-meter warehouse just outside Sao Paulo, people familiar with the matter told Reuters, as it steps up its push into Latin America’s biggest retail market, Brazil. Reuters
eBay is the New Frontier for Private Label Sellers. As private labelling hits saturation point on Amazon, eBay’s new technology is making it attractive for private label sellers and brands. WebRetailer
Rakuten unites flea market apps to counter top rival. Rakuten launched the Rakuma consumer-to-consumer marketplace app in 2014, which was followed by the 2016 acquisition of Fablic, the Tokyo startup behind rival app Fril. Under the new structure, Fril will compete as a single entity by absorbing Rakuma's user base and data, and eventually operate under the Rakuma name. Nikkei Asian Review
eBay Opens Doors to Latin American Shoppers. eBay has partnered with PideloRapido to give Latin American shoppers access to tens of millions of eBay.com listings. Shoppers who use the service from PideloRapido won’t need a US shipping address or PayPal account thanks to an integration with eBay’s API and technology that enables localized payments and reliable last mile delivery. EcommerceBytes
Naspers owned OLX, one of Africa’s e-commerce platforms, has wound up operations in Nigeria and Kenya, reports Business Insider Sub Saharan Africa (BI SSA) citing sources. The daily confirmed the closure of OLX operations in two of Africa’s strongest e-commerce markets, from several internal sources within both territories. Telecom Paper
What Happens When An Amazon Warehouse Opens? Lower Wages, No Increase In Jobs. A new report looking at the employment outcomes of Amazon fulfilment centres finds little or no net improvement in jobs over time. While a new centre does produce, on average, a 30% increase in storage and warehousing jobs within two years, according to a report from the Economic Policy Institute, there is little evidence of an overall uptick in employment. The researchers say the gains are either offset by losses in other industries or that they don’t register enough to make a dent in the data. FastCompany, Economic Policy Institute
eBay takes $61 million hit on Snapdeal, writes off investment. US e-commerce giant eBay has reported in its annual report that its investment of $61 million in India has resulted in a complete loss and it has had to write down this entire amount. The News Minute
Fake reviews on Amazon means you get free stuff. There’s a curious story in the Boston Globe this week about a retired couple in Massachusetts who have been deluged, starting this past autumn, with stuff they never ordered from Amazon. At first, Mike and Kelly Gallivan thought the free phone chargers, electric hand warmers and other cheap electronics were funny. The Outline, The Boston Globe
Zinox/Konga Deal: A Mixed Bag for Consumers. The news of the acquisition of Nigeria’s largest mall, Konga by Zinox Group, has been received with mixed feelings from industry watchers who believe that the development though promising, could threaten consumers’ choices and e-commerce business in the country. This Day Live
Flipkart to launch 165 more categories in private label this year (and more). After launching 53 categories under eight private labels since December 2016, e-commerce market leader Flipkart is all set to launch another 165 categories this year. Having launched private label products in fashion, furniture, consumer durables and large appliances, Flipkart will focus on expanding the range of these three categories. YourStory
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Weekly Marketplace Insights
Shipping with Amazon
Anybody that is surprised that Amazon is launching a service to utilize their logistics network for deliveries - is either naive or don't understand Amazon's operations and history.
Let me be clear - this test in Los Angeles is a very big deal and should concern the entire e-commerce industry. The selection of Los Angeles is not random but rather yet another history repeating itself moment. Amazon has a sortation location in Los Angeles and is using this plus their logistics footprint to test this programme. Remember that Amazon will utilize Flex drivers to supplement the workforce.
Amazon has always re-used capital invested into their ecosystem whether it is the third party marketplace or Amazon Web Service product once Amazon has reached scale the platform is opened for third-party usage. This obviously leads to UPS and FedEx stock price declines but Amazon has always looked after their own interests at the cost of partners.
The selection of Los Angeles is strategic for many reasons but it also designed to take away the attention of the impending launch from JD.com which is happening in Los Angeles. Amazon's dependence on their US retail results has to a degree lead to the launch of "Shopping with Amazon" in my opinion. Amazon can't afford to have any disruption in its core market and JD.com expertise in logistics make them a large threat if they roll-out logistics as part of their offering.
Amazon will undercut their service partners to drive down their own costs as they will be utilizing FedEx and UPS for a while. Shipping with Amazon gives Amazon a bargaining tool to use with their logistics partners and their willingness to negotiate with Amazon will be directly proportional to their long-term relationship with one of their larger volume partners.
Shipping with Amazon is all about control. Amazon wants to control the last mile to customers as currently, they are dependent on third-parties. Amazon wants to control the most important part of the purchase cycle.
Amazon has utilized logistics via Fulfillment by Amazon as a lever with third-party sellers. I won't be surprised if Shipping with Amazon is used a negotiation tool with brands who want to sell via Amazon's marketplace. Suddenly Amazon gets access to supply and demand information that currently is closely guarded by brands.
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B2C (Business to customer) news
GrubHub’s stock price is soaring after it announced a giant partnership with Taco Bell and KFC — and crushed earnings.Taco Bell’s parent company will also invest $200 million into GrubHub. Over the next five years, GrubHub will partner with Yum to offer pickup and delivery options nationwide at thousands of Taco Bell and KFC locations. Pizza Hut already offers delivery at its locations, but the two companies said they will work on ways to improve that service. Recode
L.L. Bean is dropping its unlimited returns policy. L.L. Bean's generous return policy is going to be a little less forgiving: The company, which has touted its 100 percent satisfaction guarantee for more than a century, is imposing a one-year limit on most returns to reduce growing abuse and fraud. The Virginia Pilot
Google Is More Aggressively Connecting Its Flight and Hotel Products. Google is putting it all together: In the coming weeks, Google will knit together some of its travel services via design changes.The Alphabet-owned company’s search-advertising business continues to drive a majority of its revenues a couple of decades after its founding. But developing its own travel products, which are still advertising-driven, is adding a twist. Skift
Thinking inside the subscription box: New research on e-commerce consumers. McKinsey surveyed thousands of US shoppers to understand subscription e-commerce trends. The findings have implications for start-ups, as well as retailers and consumer brand manufacturers entering the market. McKinsey
Britain's Amazon Obsession Puts Retailers at Breaking Point. The U.K. is leading the way into an online-shopping future, and that has the country’s traditional brick-and-mortar retailers fighting for their lives. With 18 percent of retail sales taking place online in Britain, the stakes are even higher than in the U.S., where the comparable figure is 12 percent -- and where department-store owner Bon-Ton has just become the latest victim of Amazon.com. Bloomberg Technology
Same-day delivery service Deliv launches Deliv Rx for same-day prescriptions. At launch, Deliv Rx, as the service is being called, will power same-day delivery of prescriptions for select Walgreens, as well as Kay Pharmacy, Phil, Phox Health, Rancho Park and others. TechCrunch
Fanatics Sees 60% Increase In Team USA Merchandise Sales Compared To Sochi. U.S. Hockey merchandise is the top-selling sport even though NHL players are not participating in the Olympics this year. SportsBusiness Daily
Why Walmart Wants to Sell More Stuff for $10 and Up. A cheap item costs the same to ship as something the same size and more expensive. So it makes more sense to push on the expensive side, where shipping comprises a smaller proportion of the total cost. Fortune, Reuters
Houzz Acquires Israeli Startup IvyMark For Reported $40M.The Israeli-founded interior design company Houzz, valued recently at $4 billion, has acquired an Israeli startup that developed a business management tool for designers and vendors for an undisclosed amount, but according to Globes report ranges between $30-40 million.
NoCamels, Globes Israel
Predicting the future of retail (the video is worth watching). Alex Taussig participated in a panel discussion a few weeks ago at the National Retail Federation’s “Big Show” conference. The topic was funding innovation in retail and commerce, and the audience was mostly retailers seeking to learn what innovative startups are doing to disrupt the industry. Medium
Delivery Hero beats expectations with €544 million in revenue for 2017. German food delivery marketplace Delivery Hero has announced a 60% increase year-on-year in revenues globally, reaching €544.2 million for 2017. Tech.eu
MakeMyTrip posts net loss of $45.3M as marketing & personnel costs continue to increase. The company said that the primary drivers of this increase are customer acquisition programs to accelerate growth of its hotel booking business and increases in brand advertisement, and the consolidation of marketing and sales promotion expenses of the ibibo Group. Medianama
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D2C (Direct To Customer) news
Target, Casper deepen ties with new exclusives. Target on Thursday announced that it is taking its tie-up with Casper up a notch with an exclusive mattress called Casper Essential that the companies call the brand's "first streamlined mattress." Casper is also launching a new Target-exclusive sheet line priced from $75 to $110. Retail Dive
Sheerly Genius launches indestructible pantyhose made with fibre found in bulletproof vests. Turns out they’re not bulletproof, but they are indestructible for up to 50 wears. TechCrunch
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Fashion e-commerce news
Echo Look to dole out fashion advice from Vogue and GQ. Instead, the fashion suggestions will appear in the Echo Look mobile app, where today Look users save photos and videos of their outfits, and ask Amazon’s in-house fashion stylists for personal fashion advice on what looks better. TechCrunch
Tmall Will Launch New Luxury Brands Each Month in 2018. Tmall will launch new partnerships with luxury brands each month in 2018, Jessica Liu, president of Fashion and Luxury at Tmall, told Jing Daily on Wednesday. Jing Daily
Four Chinese fashion brands showcased their latest menswear creations on the runway at the “New York Fashion Week: Men’s” event Wednesday. As part of the partnership between Alibaba’s Tmall and the Council of Fashion Designers of America (CFDA) to help American and Chinese brands break into each other’s markets, the brands were chosen to debut their new collections at the show from Feb. 5-8 in Manhattan, under the banner of “Tmall China Day.” Alizila, Glossy
Silicon Valley Has Developed a $300 Million Foot Fetish. Venture firms and celebrities alike are backing sneaker and sock startups hoping to prosper in an Amazon world. Bloomberg Technology
Consignment Sneaker Store Stadium Goods Is Now Backed by Luxury Conglomerate LVMH. In a deal announced today, mega European luxury conglomerate LVMH Luxury Ventures will now back the New York City-based resale shop and website — although financial details of the transaction were not disclosed. Footwear News, The Fashion Law
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Mobile commerce
The Swedish founder of e-commerce platform Tictail explains how a crisis made his startup stronger. “To succeed we need to make sure that the customer experience is great. We must demand that the companies live up to our high standards while making it easier for buyers to write reviews and standardize return policies and terms of condition. It adds up to a thousand things you have to do.” Business Insider Nordic
Flight Club — the retail Mecca for sneakerheads — is merging with the GOAT sneaker app. The combination will create a hybrid retailer with a valuation of about $250 million. Flight Club, the 12-year-old retailer that has developed a rabid fan base among sneaker enthusiasts across the globe, has merged with GOAT, a fast-growing startup that sells hard-to-find sneakers through a mobile shopping app that has become one of the most popular in the U.S. Recode
Swiggy Raises $100 Million From Naspers, Chinese E-Commerce Firm. Online food delivery startup Swiggy has raised $100 million in its seventh round of funding led by existing investor Naspers and Chinese e-commerce service platform Meituan-Dianping also participated in this funding round. Bloomberg Quint
Amazon begins offering Whole Foods deliveries via its Prime service. The option is open to Prime Now customers, who get free two-hour deliveries of their products when they spend over $35. An “ultra-fast” one-hour delivery option costs $7.99 for orders of $35 or more. TechCrunch
Facebook to launch online shopping feature Marketplace in Egypt within weeks. Facebook will roll out its online shopping feature Marketplace in Egypt, Morocco and Algeria in the coming weeks. Users can buy and sell items on the peer-to-peer selling platform, which will be available in Arabic for the first time. Ahram Online
This Magnet Lets You Order Booze by Tapping it With Your Phone. A very clever idea. Campari America (who owns Wild Turkey) has come up with a solution to this problem: a magnet that, with just a few taps, allows you to order booze immediately. The Manual
Walmart has updated its smartphone app with store maps and shopping-list builders, the latest step in the retailer’s push to reduce hassle amid a migration to e-commerce. The moves show how the world’s largest retailer is trying to embrace mobile shopping while maintaining the in-store customer traffic that remains its lifeblood. Customer visits to Walmart’s U.S. stores have risen for 12 straight quarters, fueling sales gains that helped push its shares up 43 percent last year. Bloomberg Technology
Mobile shopping platform Shopee emerged as the fastest growing e-commerce company in the Philippines, according to a recent study by the Malaysia-based iPrice Group, Shopee finished second behind Lazada among the top Android shopping apps of 2017 and took the top spot among iOS shopping apps in the third quarter of the year. The Manilla Times
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Stats and other interesting news
Walmart has acquired a virtual reality startup as part of its tech makeover. Spatialand joins Walmart’s tech incubator, Store No. 8. Recode
Amazon has launched its business marketplace Amazon Business in France. Ecommerce News Europe
Your online shopping habit is making city traffic worse. Quartz
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