Global Ecommerce Weekly News: 7th June 2022

Kayla de Oliveira

June 7, 2022

 

Clea Boyd-Eedle

June 7, 2022

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


Ecommerce and Marketplace News


Google gears up for another strong push into ecommerce

Google is set to take another run at retail giant Amazon, allowing businesses to run shopping ads for free using Google Merchant Centre. Ecommerce researchers have mentioned that customers may not yet be conditioned to use Google as a place to purchase products, but rather as a starting point of their shopping journey.

Read more on Search Engine Journal

Walmart relying on its physical stores to beat Amazon in ecommerce market

Walmart’s vast network of physical stores are becoming ‘shoppable fulfilment centres’, taking advantage of the company’s huge physical presence to compete against Amazon for highly contended ecommerce market share. As the U.S.’s biggest grocery retailer, Walmart is setting sights on expanding its merchandise offering to transform the businesses proposition and increase pressure on Amazon.

Read more on CNBC

Pinterest to acquire AI-powered shopping platform The Yes

Idea inspiration and social media site Pinterest is acquiring The Yes, a fashion platform that harnesses AI technology and has developed a refined algorithm to provide customers with highly personalised product feeds. The acquisition will see Pinterest integrate The Yes’s AI technology into the platform, improving overall user experience.

Read more on The Retail Bulletin

Instacart’s new shoppable ad units bring new partners, Unilever, PepsiCo, and Mondelēz

Retail media networks are developing more sophisticated ad formats with tighter budgets as the market becomes more saturated. Instacart, an American grocery delivery and pick-up service, is expanding its ad product portfolio with new shoppable video and display units. Mondelēz International, PepsiCo, Unilever’s Dove, and S.Pellegrino are some of Instacart’s early partners. Sponsored videos are integrated into the feed with relevant products available for purchase.

Read more on Grocery Dive

Top 25 global retailers report over 8% YoY growth in revenue

Despite pandemic-related challenges, half of the top 25 publicly traded global retailers have continued to see revenue growth. Major marketplaces such as Alibaba, JD.com, and Amazon all achieved a revenue growth of over 20%, with Alibaba taking the lead as its YoY growth soared at 41%.

Read more on RetailME

Online shopping spending increases as social distancing rules are lifted in Korea

A recent survey conducted by local ecommerce platforms reported 8 out of 10 respondents who said their spending increased somewhat in May after restrictions were eased. The main reasons for the rise in spending were due to gift purchases and more social gatherings taking place.

Read more on Inside Retail

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Aug 9, 2022

Global Ecommerce Weekly News: 9th August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon opens first Irish warehouse in Dublin Amazon has unveiled its first Irish fulfilment centre in Dublin, the first of its kind in Ireland, and is expected to create 500 jobs. The ecommerce giant has said the new warehouse promises to decrease delivery times for Irish Amazon customers and will heighten the presence of the company in the market. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/05/amazon-unveils-first-irish-fulfilment-centre-in-dublin/) Amazon fulfils direct from brand stores to offer same-day delivery Amazon has launched a new fulfilment option allowing Prime members to shop for products from local stores and have them delivered on the same day. The initiative has taken off in the US in over 10 cities, with initial partners including Superdry, Diesel and PacSun. Other brands are offering users an option to buy online with Amazon and collect in store. [Read more on Retail Gazette](https://www.retailgazette.co.uk/blog/2022/08/amazon-same-day-delivery/?utmsource=Retail+Gazette+Subscribers&utmcampaign=2e98756cab-EMAILCAMPAIGN202208030744&utmmedium=email&utmterm=0d23e2768b6-2e98756cab-61040615) Amazon acquires Roomba manufacturer for $1.7bn Amazon has made a deal to purchase the manufacturer of Roomba for $1.7 billion USD. Roomba is a vacuum brand and is one of the highest selling robot vacuums on the marketplace. Roomba will join Alexa and Ring doorbell as the company expands its home system offerings. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/08/amazon-acquires-roomba-manufacturer-for-1-7bn/) --- Other Marketplace News --- Ebay beats revenue estimates on sales and earnings Ebay has outperformed in terms of its revenue expectations, as a new focus on luxury items and collectibles is improving sales and traffic to the website.The company recently launched a 31,000 square foot Ebay Vault, where collectors are able to store valuables, monitor their market value and sell them to other buyers. [Read more on Bloomberg](https://www.bloomberg.com/news/articles/2022-08-03/ebay-beats-estimates-on-sales-and-earnings-forecast-shares-rise) Alibaba lays off 10,000 employees to cut costs amid falling sales Alibaba has allegedly laid off 9241 employees as expenses rise in other areas and sales slow. This marks the company’s first drop in payroll size since 2016, highlighting the urgency to cut costs as it faces regulatory and economic challenges. Alibaba Chairman has said that the company plans on employing over 5000 new graduates in this year. [Read more on Gadgets Now](https://www.gadgetsnow.com/tech-news/alibaba-cuts-10000-jobs-to-cut-costs-amid-falling-sales/articleshow/93392190.cms) --- Other Ecommerce News --- Facebook to close down its live shopping feature Facebook has decided to shut down its live shopping program to focus more on Reels, its short-form video content in an attempt to keep up with Tik Tok to hold Gen-Z’s attention. The company is also ending the ability to create product playlists or tag products on the site. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/09/facebook-to-shut-down-its-live-shopping-program-as-it-shifts-focus-to-video-content/?utmsource=Retail+Gazette+Subscribers&utmcampaign=57ba61a3b9-EMAILCAMPAIGN202208090745&utmmedium=email&utmterm=0d23e2768b6-57ba61a3b9-61040615)
Aug 8, 2022

Global insights: Spotlight on Amazon in Emerging Markets

We have analysed Amazon in emerging markets compared to countries where it has already achieved dominance, following its reported growth of 22% between [2020](https://www.marketplacepulse.com/articles/amazon-gmv-in-2020) and [2021](https://www.marketplacepulse.com/articles/amazon-gmv-reached-600-billion-in-2021). Pattern’s [Amazon Consumer Insights Report 2022](https://info.pattern.com/amazon-consumer-insights-report-2022) has highlighted some interesting insights into the similarities and differences in the ways Amazon is used across 17 different countries. We carried out research on various macroeconomic indicators and data related to Amazon usage in each country to better understand the key factors that determine the suitability of the markets. In this blog we outline the most interesting Amazon global insights that will be of interest to brands determining where they should have a presence on the marketplace, particularly Amazon in emerging markets. Population, urbanisation and GDP per capita are all factors which have a large effect on ecommerce and marketplace strategy in a country. These factors need to be taken into consideration when understanding the potential a brand has when entering a new market. We highlight notable takeaways from the report below. Price of Amazon Prime The monthly cost of Amazon Prime varies greatly depending on how developed the Amazon market is in the country. We noticed that in countries with a higher GDP per capita and a more dominant Amazon presence, the price of Prime is substantially higher, for example, in the US ($14.99) and in the UK ($10.08). The monthly cost of Prime in the UK has [recently increased by $1.26](https://www.bbc.co.uk/news/business-62297014) due to higher operating costs, but we believe that UK consumers will accept this increase. As a comparison, less developed markets with lower GDP per capita figures, such as Poland ($2.56) and Brazil ($3.12), have significantly lower monthly Prime prices. Amazon purposely prices Prime to be very cost-effective for customers in emerging markets as a customer acquisition strategy and to help grow its market share more quickly. Desktop vs. Mobile India, Japan and Mexico were found to have higher percentages of traffic from mobile devices compared to other markets. This is in line with data which looks at the [leading countries based on retail mobile commerce sales growth](https://www.statista.com/statistics/1261743/leading-countries-mobile-commerce-sales-growth/), and shows how particular countries spend more time online using mobiles rather than desktops. App Downloads & Ranking In this year’s report, we made the decision to include data on the Amazon App (Android), as more consumers are shopping online on mobile devices. This is reflected in the average monthly downloads and category rank of the app. Mexico sees an average of 1.2 million monthly downloads of the Amazon (Android) App. This is expected, as Mexico is one of the regions that has a higher percentage of traffic from mobile devices compared to desktops. In terms of average monthly Amazon web traffic, Mexico is the 9th largest out of the 17 countries analysed, but after the US and Brazil, is the 3rd largest in terms of monthly downloads of the Android App, highlighting the country’s preference for using the Amazon App. Visit Duration & Page Views In markets where Amazon is robust and well developed, like the USA, UK and Germany, consumers tend to spend more time on the platform and view more pages per visit, as there is more choice from a wider range of products to explore. On the other hand, in markets where Amazon is still either at its early implementation or growing phase, like the Netherlands, Poland, and Brazil, there is less on offer and a far smaller selection or products. Inevitably, we noticed consumers have a lower average visit duration and view fewer pages in these markets. We would expect to see these metrics increase as Amazon’s product selection increases in these markets. Top Selling Categories There are many similarities between the different markets in terms of the top selling categories in each country. Out of 17 countries, 12 had Home & Kitchen and 11 had Electronics in their top 3 categories. Regional differences can be seen with Sports & Outdoors only ranking as a top category in the UK, Video Games only in Japan, and Hardware only in Germany. It is important for brands to acknowledge that not all categories will sell successfully across all markets. Just because the category is popular in one or more markets, does not mean that it will work across all 17 instances that we have analysed. Our Amazon consumer insights report shows that although the online marketplace dominates online retail in the USA and several other Western European countries, the company is aiming to build that position in countries where it is newer in the market by taking into account the regional differences in consumer behaviour and expectations within its proposition. [Download the full report here](https://info.pattern.com/amazon-consumer-insights-report-2022), and [contact us here](https://pattern.com/uk/contact-us/) to learn how we could support your global marketplace strategy or for more information on how we partner with brands to represent them on Amazon.
Aug 2, 2022

Global Ecommerce Weekly News: 2nd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon sees its share price rise 10% and beats revenue expectations Amazon has exceeded revenue expectations, mainly due to its Amazon Web Services cloud business and its fast-growing advertising arm. Investors who have been concerned about the effects of sharp macroeconomic effects have been reassured as the ecommerce giant has overperformed and seen growth. [Read more on the Financial Times](https://www.ft.com/content/911f7a71-72ed-4c26-8a07-932832ffff4d) Amazon set to launch localised versions of its Prime Video in Southeast Asia Amazon is launching local versions of Prime Video across three countries in Southeast Asia, with new investments in local content. The service will launch in Indonesia, Thailand and the Philippines, where users will be offered a 7 day free trial along with other discounted introductory offers. Prior to this launch, consumers in these countries had been able to shop cross-border on the platform but Prime Video has not been available until now. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/26/amazon-prime-still-worth-it/) Amazon closes down its cloud storage platform, Amazon Drive By the end of 2023 Amazon Prime members will be losing a big feature, Amazon Drive, as the company turns its attention towards its Amazon Photos service. The tech giant wants to focus on photo and video storage features, allowing Prime members to safely back up, share and organise photos & videos with Amazon Photos, which is currently available on iOS, Android and desktop devices. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/01/amazon-prime-members-are-set-to-lose-a-big-feature/) --- Other Marketplace News --- Shopify lays of 10% of its workforce Shopify has cut 10% of its workforce as it struggles with a slowdown in ecommerce growth. The company was relying on a permanent jump in online purchases in the retail space, and are now realising that incorrect assumptions were made, which now need adjustment accordingly. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/27/shopify-cuts-10-workforce/) Alibaba Group goes after primary listing on the Hong Kong Stock Exchange By the end of 2022, Alibaba will become dual-primary, listed on both the NYSE (New York Stock Exchange) and HKSE (Hong Kong Stock Exchange). Being listed in two major financial centres will allow the company to expand its openness and diversity, broaden its investor base, and will help to pave the way for its globalisation strategy. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/26/alibaba-group-pursues-primary-listing-on-the-hong-kong-stock-exchange/) Shopee and P&G launch virtual home shopping experience As part of Procter & Gamble’s Regional Super Brand Day on Shopee, a new exclusive 360 degree virtual home shopping experience feature has been launched, with P&G brands of household essentials on offer, categorised according to rooms. Accessible through P&G’s official store on Shopee’s website and app, the feature includes multi-format touch points like videos, games, and localised content to make online home shopping convenient and engaging. [Read more on Business Mirror](https://businessmirror.com.ph/2022/07/26/pg-and-shopee-launch-a-new-exclusive-360-virtual-home-shopping-experience/) The Hut Group ends investment deal with Japan’s Softbank UK ecommerce company, THG, has recently put an end to an investment agreement with Softbank due to “global macroeconomic conditions”. The deal was made to help fund the expansion of THG’s technology platform before going public in London. The company saw its share price fall after the announcement and its valuation remains well below its flotation price despite recent bidding wars. [Read more on The Guardian](https://www.theguardian.com/business/2022/jul/26/uk-thg-ends-investment-deal-softbank-lookfantastic-zavvi) --- Other Ecommerce News --- Third-party online marketplaces sales to account for 59% of all global ecommerce by 2027 By 2027, third-party sales through marketplaces will be the largest and fastest-growing retail channel globally, accounting for two thirds of all online sales. Alibaba will continue to hold its place as the global leader in retail sales, growing total net GMV sales in 2027 to $1.5trn, and Amazon in second place with $1.2trn. The number of third-party marketplaces operating globally has increased by over 500% since 2007, and is expected to see further growth. [Read more on Internet Retailing](https://internetretailing.net/marketplaces/third-party-marketplace-sales-to-account-for-59-of-all-global-ecommerce-by-2027/)