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Amazon & Marketplaces
Winners on Prime Day 2020? Non-Amazon Sites
October 19, 2020 • Marcia Kaplan
Amazon’s delayed 2020 Prime Day event ran for two days — October 13 and 14 — as it did last year. While it does not release total revenue for Prime Day, Amazon touted in 2019 that Prime Day sales exceeded the prior year’s Black Friday and Cyber Monday sales combined. This year Amazon did not make such a claim.
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Amazon & Marketplaces
Can Walmart+ Compete with Amazon Prime?
October 11, 2020 • Marcia Kaplan
Walmart launched its premium subscription Walmart+ on September 15. The service offers unlimited free deliveries on orders over $35, up to a five-cent per gallon discount on gas at Walmart and Murphy fuel stations (Sam’s Club stations will be added shortly), and scan-and-go purchasing at any of its physical stores.
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Local Business
Mall Owners Become Retailers Amidst the Pandemic
September 29, 2020 • Marcia Kaplan
The Covid-19 pandemic and subsequent store closures have brought new momentum to the decline of brick-and-mortar retailing, especially malls. More than 50 percent of the department stores that anchor malls in the U.S. will permanently close by the end of 2021, according to real estate investment firm Green Street Advisors.
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Shipping & Fulfillment
Holiday Shipping Surcharges Are Coming
September 10, 2020 • Marcia Kaplan
Selling during the upcoming holiday shopping season will not be normal. For the first time in its history, the United States Postal Service is imposing a holiday surcharge on commercial packages. The price increases will begin on October 18 and run through December 27, 2020, and range from $0.24 to $1.50 per package.
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Business
Ecommerce in Q2 Takes a (Much) Bigger Share of Total Retail Market
August 27, 2020 • Marcia Kaplan
The U.S. Department of Commerce reports that ecommerce as a percent of all retail sales jumped from 11.8 percent in the first quarter of 2020 to 16.1 percent in the second quarter, representing a 31.8 percent increase to $211.5 billion. The data also shows a 44.5 percent bump from the second quarter of 2019, adjusted for seasonal variations.
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Cross-border Selling
Ecommerce in France: Loyalty to Domestic Sellers
August 13, 2020 • Marcia Kaplan
France has the third-largest population in Europe with 65.3 million residents and the second-largest ecommerce market. French consumers are loyal to their national brands and often shun cross-border ecommerce. Roughly 60 percent of French shoppers make only domestic purchases.
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Amazon & Marketplaces
Amazon, with Demand Surging, Transitions FBA
July 30, 2020 • Marcia Kaplan
Amazon is experiencing a dilemma that other ecommerce companies wish they had: a demand that exceeds supply chain infrastructure. In a note in mid-July, Amazon told sellers using Fulfillment by ...
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Cross-border Selling
Ecommerce in Germany: Opportunity Amidst a Pandemic
July 15, 2020 • Marcia Kaplan
Germany hosts Europe’s biggest economy and, with 83.7 million people, its second-largest population after Russia. It is the fifth-largest ecommerce market in the world and the second-largest in Europe, behind the U.K. Eighty-five percent of the population has Internet access. Germany represents a good opportunity for online sales.
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Business
Ecommerce Briefs: Walmart and Shopify, Physical Store Outlook, Instagram
June 25, 2020 • Marcia Kaplan
“Ecommerce Briefs” is my occasional series on news and developments that impact online merchants. In this installment, I’ll report on Walmart's partnership with Shopify, the struggles of brick-and-mortar retailers, and Instagram's ecommerce efforts.
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Cross-border Selling
Mexico’s Ecommerce Matures
June 11, 2020 • Marcia Kaplan
When I last addressed Mexican ecommerce, in 2014, citizens distrusted online purchasing, relied on simple payment methods, and did not buy from foreign websites. In 2020, much is unchanged. A large percentage of Mexicans still do not have bank accounts or credit cards.
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Cross-border Selling
Japan Is an Enticing Market for Cross-border Ecommerce
May 28, 2020 • Marcia Kaplan
Japan is the world’s third-largest ecommerce market following China and the United States. However, it is often overlooked by foreign online merchants because of an unusually low cross-border purchase rate and a somewhat insular approach to online shopping.
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Local Business
Bankruptcies, Layoffs Deplete the Retail Industry
May 14, 2020 • Marcia Kaplan
At the beginning of 2020 several brick-and-mortar chain retailers were struggling, trying to restructure debt or find new lenders while dealing with plummeting revenues. The Covid-19 pandemic has closed stores and effectively made those efforts pointless.
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Amazon & Marketplaces
Amid Covid-19, Amazon’s Q1 2020 Earnings Confirm Ecommerce Dominance
May 7, 2020 • Marcia Kaplan
On April 30 Amazon announced its 2020 first-quarter results. As anticipated, its total earnings for the three months ended March 31 were exceptionally strong — about $33 million an hour in sales.
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Finance
Alternative Funding Sources for the Covid-19 Crisis
May 1, 2020 • Marcia Kaplan
The Paycheck Protection Program has mostly not reached the intended beneficiaries. There is not enough money, and loans to date have often gone to large businesses. What follows are some options for small businesses.
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Finance
Impact of Covid-19 on 2020 Startup Investments, IPOs
April 16, 2020 • Marcia Kaplan
Initial public offerings underperformed in the last half of 2019 and the first quarter of 2020. That set the stage for an undesirable climate. Then came Covid-19.
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Finance
Will ‘Irrational’ Startup Valuations Continue?
March 30, 2020 • Marcia Kaplan
Even before the Covid-19 pandemic, IPOs for many start-ups with supposedly bright futures crashed when they entered the public market. Some didn’t even make it that far, canceling in 2019 their public offerings. A disturbing gap between the private and public valuations of venture-capital-funded start-ups has emerged. This divergence will likely continue as many start-ups are remaining private for longer periods of time.
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Shipping & Fulfillment
5 On-demand Warehousing, Fulfillment Providers
March 12, 2020 • Marcia Kaplan
On-demand warehousing and fulfillment providers act as middlemen — a kind of Airbnb for logistics. Merchants search on a provider's platform for available warehouse space in the location they want. It's one way for ecommerce sellers to achieve faster delivery.
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Business
Reset in the Direct-to-consumer Market
February 27, 2020 • Marcia Kaplan
Direct-to-consumer brands were stars from 2018 through mid-2019. The storyline was that they were flawlessly executing while brick-and-mortar retailers were flailing. Now weaknesses in the DTC arena are emerging.
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Cross-border Selling
Coronavirus Disrupting the Global Economy, Including Ecommerce
February 13, 2020 • Marcia Kaplan
When the coronavirus outbreak emerged in Wuhan, Hubei Province, Chinese authorities asserted that it was localized, albeit in an area with a large population and many manufacturing plants. Then the virus spread to other areas of China.
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Amazon & Marketplaces
New U.S. Regulations on Counterfeit Goods Target Marketplaces
January 30, 2020 • Marcia Kaplan
On January 24, the U.S. Department of Homeland Security issued a report signaling the federal government’s intention to crack down on ecommerce sales of counterfeit goods. In the report, the federal government all but declares that ecommerce is a threat to national security.
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Finance
2019 Holiday Sales Wrap-up
January 16, 2020 • Marcia Kaplan
The 2019 holiday shopping season exhibited mixed results, with online revenues growing substantially but brick-and-mortar sales showing meager or negative growth. The entire holiday season — November 1 through December 31 — saw a modest total increase in overall revenues.
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Local Business
Physical Store Closures Hit a New High in 2019
December 26, 2019 • Marcia Kaplan
2019 was not a good year for brick-and-mortar stores. As of November 1, U.S. retail store closures reached 9,302, a 59 percent increase over 2018 according to Coresight Research. The biggest contributor was Payless ShoeSource, which declared bankruptcy and closed all of its 2,100 stores.
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Business
Ecommerce Briefs: Unilever’s Liquidation Site; Amazon’s Shipping Delays; Shopify; Jumia
December 12, 2019 • Marcia Kaplan
“Ecommerce Briefs” is my occasional series on news and developments that impact online merchants. In this installment, I’ll report on Unilever’s new B2B liquidation site, Amazon’s holiday shipping delays, Shopify’s holiday shopping statistics, and the troubles of Jumia, the African ecommerce marketplace.
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Finance
Sales Report: 2019 Thanksgiving Day, Black Friday, Cyber Monday
December 4, 2019 • Marcia Kaplan
Adverse weather conditions in many regions and the ease of ordering via mobile devices contributed to record-setting U.S. digital sales for the 2019 Thanksgiving weekend. This is my fifth annual “Sales Report” for Thanksgiving Day through Cyber Monday.
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Cross-border Selling
Alibaba’s 2019 Singles Day: $38 Billion; 200,000 Brands; 78 Countries
November 14, 2019 • Marcia Kaplan
Alibaba’s Singles Day sales on November 11 totaled a record $38.4 billion or 268.4 billion yuan gross merchandise volume, an increase of 26 percent over 2018, according to the company. Gross merchandise volume — GMV — is total sales of merchandise through a particular marketplace over a certain time, excluding fees and commissions.
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Business
Apparel from Plastic Waste Driving DTC Fashion Brands
October 24, 2019 • Marcia Kaplan
A lot of plastic waste is either going into landfills or sitting around in stockpiles. An unlikely savior, the fashion industry, is now buying a lot of that plastic. Here are five direct-to-consumer brands that are successfully making products out of recycled plastic and other recycled material.
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Cross-border Selling
U.S., China Trade War Is Impacting Ecommerce
October 10, 2019 • Marcia Kaplan
The trade war between the United States and China has been going on for over a year. A new round of U.S. tariffs on additional Chinese goods is looming. What follows is my analysis of the effects on ecommerce in both countries and possible future consequences.
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Amazon & Marketplaces
Amazon Alters Small-business Strategy; Competitors Take Advantage
September 26, 2019 • Marcia Kaplan
Amazon has told many small merchants that it would no longer accept bulk wholesale orders from them for its Vendor Central program. Several companies have seized on this change and are trying to attract smaller merchants who may be looking for alternatives.
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Finance
Certified B Corporations Gain Ground in a Changing Business Environment
September 12, 2019 • Marcia Kaplan
Certified B Corporations are for-profit companies that have been evaluated by B Lab using rigorous social benefit criteria. The certification is becoming a competitive advantage as consumers, employees, and investors seek out companies that look beyond profits in how they conduct business.
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Conversion
Recommerce Surges as Retailers, Brands Get in the Game
August 28, 2019 • Marcia Kaplan
Recommerce, the process of selling used products or excess inventory to companies or consumers, is growing 20-times faster than the broader retail market and five-times faster than off-price retailers. Leading recommerce merchants include thredUP, The RealReal, and Poshmark.