Get up to date with this week's ecommerce headlines from around the globe.
Amazon’s share price falls, raising concerns for warehouse owners
In 2020-2021, Amazon accounted for a quarter of all new warehouse demand in the UK, and in the first quarter of 2022, it accounted for only 3%. The ecommerce giant recently recorded its first unprofitable quarter since 2015, and has since issued a profit warning, causing a drop in share price. Consequently, some of the UK’s largest listed warehouses have seen drastic falls in share prices, and warehouse owners are losing optimism about profits.
Amazon’s ‘Buy with Prime’ may become a risk to Shopify
Amazon’s ‘Buy with Prime’ feature allows third-party retailers to make use of the company’s fulfilment service. More than 200 million Prime members are now able to shop directly from retailers' online stores, benefiting from the same Prime services they would get if they were shopping on Amazon. This brings bad news for competitor Shopify, as it could take away from its revenue and market power.
Shopify records its slowest quarterly revenue growth in seven years
Ecommerce platform, Shopify, has reported lower profits than expected and has seen a 17% fall in shares, largely attributed to the war in Ukraine, and increases in inflation and gas prices. The company has been investing in its warehouses and delivery networks in an effort to compete with larger rivals.
Shopify acquires ecommerce shipping company, Deliverr for $2.1bn USD
Marking the largest acquisition in Shopify’s history, the ecommerce platform is set to acquire shipping company, Deliverr. The deal will simplify supply chain challenges and improve warehouse, distribution and inventory logistics for all sellers both on and off Shopify.
Ebay reports lower revenue forecasts in the midst of an ecommerce gloom
Following two years of rapid expansion during the pandemic, ecommerce retailers are beginning to see jumps in costs, and slowing growth. Ebay has downgraded its revenue estimate as inflation continues to rise and pre-pandemic shopping habits return.
Zalando fails to meet forecasted sales targets and expects to lower profits
EU-based online fashion retailer, Zalando, saw revenue fall 1.5% in its first quarter, marking the company’s first-ever sales decline. Zalando has set lower expectations for its full-year sales and profits due to clear declines in consumer spending. Cautious shoppers are worried about higher costs and inflation, reflected in the stunted growth of multiple large ecommerce giants.
Klarna to start reporting ‘buy now pay later’ users to credit reference agencies
Starting next month, Klarna will be reporting customer use and missed payments of its buy now pay later (BNPL) products to UK credit reference agencies. This will provide the industry with a higher level of transparency of BNPL use, protecting customers and improving affordability assessments.
Ecommerce stocks fall as online consumer spending decreases
As the COVID-19 pandemic reaches its end, shoppers are making their way back to high-street stores, limiting online spending as inflation rises. Many players in the industry have not been able to meet revenue expectations, including giants such as Amazon, eBay, Etsy, Shopify, Wayfair, and Farfetch. Ecommerce-focused retails are feeling this hit, and fear an incoming halt to the sector’s growth.
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