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April 26, 2022

Global Ecommerce Weekly News: 26th April 2022

By Clea Boyd-Eedle & Kayla de Oliveira / Ecommerce Trends, Global Ecommerce, Amazon

Get up to date with this week's ecommerce headlines from around the globe.

Former Amazon executive, Maria Renz, hired as Gopuff’s Senior VP

  • Gopuff has recently hired Maria Renz, who will start in May as Senior Vice President, overseeing business operations and strategy in North America.

  • Maria has nearly 20 years of experience, and has held high-level roles at SoFi, Amazon, Quidsi. In addition, she has reported to Jeff Bezos as his VP and technical advisor.

  • Gopuff aims to improve financial performance, and make changes to its business structure.

Read more on Charged Retail

Amazon acquires Indian social commerce startup, GlowRoad

  • GlowRoad is an Indian ecommerce platform that connects manufacturers with resellers using drop shipping.

  • Amazon has invested a total of $6.5 billion USD into expanding into India as a key overseas market, attempting to digitise the large market.

  • Amazon believes this acquisition is a step in the right direction, and together with GlowRoad, will accelerate entrepreneurship and increase online shopping and delivery efficiency across the region.

Read more on Tech Crunch

Amazon planning a $1 billion USD investment in warehouse technologies

  • Ecommerce giant, Amazon, is set to invest $1 bn into an investment program called the Amazon Industrial Innovation Fund (AIIF).

  • The investment aims to seek out new technologies in warehouses, increasing delivery efficiency and improving warehouse experience for logistics workers.

  • Multiple startups are being backed through the investment, such as Modjoul, a business creating wearable safety technology to reduce injury rates.

Read more on Charged Retail

Chinese sellers want to decrease their reliance on Amazon

  • As part of government policy, China is looking to “de-Amazonize” cross-border ecommerce operations, despite Amazon acting as the leading channel for Chinese brands to reach customers in Western markets.

  • A press release in a large Chinese newspaper urged sellers to diversify from Amazon due to high fees and restricted access to consumer data.

  • Walmart is benefitting from sellers in China making the switch away from Amazon, although D2C websites seem to be the preferred path.

Read more on Marketplace Pulse

Alibaba Group joins low carbon patent pledge (LCPP)

  • Alibaba Group has joined LCPP, an international platform that encourages the sharing of patents for low carbon data centre technologies.

  • This marks the first time the company has pledged to offer broadly available critical intellectual property on sustainability.

  • Alibaba Cloud is working towards having its global data centres running entirely on clean energy by 2030.

Read more on Charged Retail

Shopify closing the gap to Amazon by acquiring ecommerce startup, Deliverr

  • In the next 2 weeks Shopify will acquire Deliverr, an ecommerce fulfilment startup which was recently valued at $2 billion USD.

  • Similar to Amazon’s ‘Fulfilment by Amazon’ service, Deliverr handles storage and fulfilment, integrating with companies such as Walmart, eBay, Wish, Shopify and Amazon.

  • Shopify hopes to allow its merchants to offer shorter delivery times across more of the US, and believes Deliverr’s network can put this into action.

Read more on Charged Retail

The Hut Group rejects takeover bids and have recorded increases in profits

  • The Hut Group (THG) has reported a 38% YoY increase in sales, hitting £2bn USD in revenue during the 2021 financial year.

  • THG’s beauty division grew 49%, its tech division 42%, and nutrition was up 17%.

  • The ecommerce firm has rejected multiple ‘unacceptable’ takeover bids from interested firms attempting to buy the company.

  • Although THG shares may have fallen, the company states they will remain confident in delivering its strategic growth plans.

Read more on Charged Retail

New government reforms put in place to prevent fake reviews online

  • Recent investigations have found some UK Amazon sellers fraudulently boosting listings using fake reviews.

  • The new reforms will look to enforce consumer law, and put fines in place. UK competition and markets watchdog make it illegal to pay someone to write or host a fake review.

  • These regulations aim to protect consumers from being mistreated by firms.

Read more on Retail Systems

Farfetch launches beauty destination, offering over 100 gender-neutral brands

  • Ecommerce fashion retailer, Farfetch, targets the beauty market by launching a beauty platform, which will offer a curated selection of gender-neutral skincare, fragrance, make-up, hair, bath and body products.

  • Brands will range from high-end global names such as Gucci, Tom Ford, and Chanel to smaller, natural and organic brands like African Botanics and Westman Atelier.

  • The company aims to create a ‘one-stop destination for the next generation of luxury fashion & beauty shoppers’ and will utilise tech to showcase products and allow consumers to virtually ‘try-on’ makeup looks.

Read more on Fashion United

As the cost-of-living rises, online sales fall by 8%

  • According to the Office for National Statistics, the proportion of online retail sales was 26% in March, its lowest rate since February 2020.

  • This has been largely attributed to increases in the cost of living, decreased consumer spending, as well as the recent easing of covid restrictions worldwide, and shoppers wanting to return to physical stores.

  • Overall, retail sales made online are still higher than pre-covid, suggesting a long-term shift in consumer behaviours toward online shopping.

Read more on Charged Retail

More Resources
Germany Shopper Report 2022
Tmall Global Benchmarking Report 2022
Australian Ecommerce Benchmark Report March 2022
UK Shopper Report 2022