Predictions for Target’s Top Holiday Categories

Kevin Lamb

November 22, 2021

Target joins the rest of the retailing world this week in the massive sale event that comprises the Black Friday and Cyber Monday weekend. Here we take a deep dive into what to expect from Target’s ecommerce offering for this year’s Turkey 5 sales.

Target sets itself apart

While this may not be unique to the holiday season, brands and customers will quickly notice something about Target.com as they browse the catalog that is distinct from the nation’s other ecommerce giants, Walmart.com, eBay, and Amazon. While their competitors tout titles like “The Everything Store,” “Low Price Leader,” and “Every Day Low Prices,” Target is not that.

A curated catalog

Target has a curated catalog of both brands and sellers. There are less than 300 sellers currently allowed to sell on Target.com. Target also does not have a buy box. This means that when you order a product, there is only a single, trustworthy seller designated to get you that product on time. If that seller does not meet shipping and listing standards of quality, that seller can and will be removed from the platform.

Target has sought to create a catalog of brands and products that they think represent the best products in their categories. When a category gets too saturated, they don’t add more products of that type. For example, if you look for true wireless headphones on Amazon, you will get roughly 10,000 brands (that might be hyperbole, but also might not be far from the truth). On Target, you will find around 10 brands to choose from. Target’s goal is to reduce the assortment for you beforehand and offer you what they feel are the best products for their customers.

Premium products

You will find low prices on Target, just like you will at Walmart. But you will also find luxury items, like this $153 hair brush and products from premium brands like Luxottica. While Target addresses a broad customer segment and does offer great products like this $17 Norelco trimmer, you can also go all out and buy this $148 trimmer from BaByliss. Target offers a range to allow shoppers to choose what budget and what quality they prefer.

Logistics constraints

Given the massive growth of ecommerce recently, it’s no surprise that all online retailers are struggling to keep up from a logistics standpoint. One area where Target is not unique is that they are spreading out deals in an effort to get shoppers to buy early and space out sales that used to be confined to a single weekend. The hope is that this will relieve some of the strain on fulfilling the huge amount of orders that come in from a single day shopping bonanza.

Target Holiday Deals,Early deals should help relieve the strain on sellers who rely on popular shipping carriers to fulfill orders

Early Deals on Target should help relieve the strain on sellers who rely on UPS, Fedex, and USPS to fulfill orders

Top Categories

A survey of Target’s deals shows a huge emphasis on Electronics and Electronics appliances this year. As of 11/19, the top 8 of the first 10 promotions on their homepage fall into that category. This is part of Target’s own push to establish themselves as a premium electronics retailer with brands like Beats, Samsung, and the Instant Pot (which is frequently a Black Friday top seller on just about every marketplace). Their strategy is working—Target’s hard lines grew 32% in 2020, while apparel, one of Target’s stronger categories, had very little growth year on year.

We anticipate Target's strongest category this year will be in home furnishings and decor, specifically because of the strategies we outlined above. Compared to Amazon, Walmart, and Wayfair, Target provides a curated selection of beautiful home decor that has grown leaps and bounds over the years. Consumers seeking a simple and trustworthy home goods experience will flock to Target. It also helps that Chip and Joanna Gaines have basically given Target their stamp of approval, and exclusive rights to their brand, Hearth and Hand.

Hearth & Hand at Target

Target in summary

Target has grown its ecommerce arm quite a bit over the last two years and has become a formidable contender for market share, moving up to 6th place in the U.S., just behind Best Buy, and surpassing Home Depot, Kroger, Costco, and Wayfair. We see first hand the efforts of category managers at Target to seek out the best brands and ways to improve the ecommerce platform for sellers. Target is on the move and Amazon, Walmart, and Ebay will need to be agile or risk losing their slice of the ecommerce pie.

Want to learn more about selling with Target or accelerating your growth on marketplaces? Let’s get talking.

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Sept 6, 2022

Global Ecommerce Weekly News: 6th September 2022

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Aug 30, 2022

Global Ecommerce Weekly News: 30th August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon set to shut down Amazon Care Amazon is closing its telehealth service, Amazon Care, which launched in 2019 as a trial program for its headquartered employees. Later the service was rolled out nationwide for employees and other companies. The ecommerce giant has now made the decision to move away from the healthcare space, believing it was not the right long-term solution for its enterprise customers. [Read more on CNBC](https://www.cnbc.com/2022/08/24/amazon-is-shutting-down-amazon-care-telehealth-service.html) Peloton closes new deal to sell on Amazon Following a recent deal, Amazon customers will soon be able to buy Peloton fitness equipment on the marketplace, marking Peleton’s first move outside a direct-to-consumer model. According to Peloton’s CCO, there are already around half a million searches on Amazon for Peloton products every month, despite having no presence on the marketplace. Some key products include the original Peloton Bike, retailing for $1,445 and Peloton Guide for $295. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/24/peloton-strikes-deal-to-sell-fitness-equipment-on-amazon/) --- Other Marketplace News --- 60% of Malaysians are buying from local sellers on Shopee A recent survey of nearly 3,500 respondents found that nearly half of the shoppers prefer to purchase from local sellers due to shorter delivery times. Other shoppers decide to shop locally due to the quality of the products made in Malaysia and an interest in keeping the economy running. As a result, smaller local merchants have been able to grow their businesses, and shoppers benefit from shorter delivery times, products of high quality and supporting local businesses. [Read more on The Malaysian Reserve](https://themalaysianreserve.com/2022/08/25/around-60-malaysians-are-buying-from-local-sellers-on-shopee/) Flipkart’s social commerce platform Shopsy crosses 100 million users Flipkart launched a social commerce arm, Shopsy, in July of last year, which has now surpassed 100 million users, ahead of its target timeline being the end of 2022. This acquisition of new users has made Shopsy one of the largest platforms of its kind in the country, and is expected to onboard a further 100 million by the end of 2023. The platform is centred around boosting local entrepreneurship and powering ecommerce for consumers across tier 2+ regions where users face challenges around trust and navigation when shopping online. [Read more on Business Standard](https://www.business-standard.com/article/companies/flipkart-s-social-commerce-platform-shopsy-hits-100-million-users-1220828006851.html) Meta joins Amazon and Walmart in bid for Indian ecommerce market Amazon mentioned earlier in the year that it would be building a logistics division in-house through its purchase of a 51% stake in Ecom Express, an end-to-end logistics firm, to make ecommerce deliveries more efficient in the country. Walmart operates Flipkart in India and is set to continue its investment in the marketplace. In an effort to compete in the Indian ecommerce market, Meta has partnered with Indian ecommerce company, JioMart, to offer customers a grocery shopping platform within its WhatsApp chat feature. [Read more on Pymnts](https://www.pymnts.com/news/retail/2022/meta-joins-amazon-walmart-indian-ecommerce-market/) --- Other Ecommerce News --- Ecommerce in Spain worth €57.7 billion in 2021 Spanish ecommerce saw 11.7% growth compared to last year, largely attributed to cross-border sales. In the final quarter of 2021, ecommerce sales in Spain were at €16.9 billion euros, at least 60% of which came from cross-border sales. Transactions from foreign locations to Spain generated a turnover of €1.56 billion in Q4, a growth of 27.7% compared to Q4 a year before. [Read more on Ecommerce News](https://ecommercenews.eu/ecommerce-in-spain-was-worth-e57-7-billion-in-2021/)
Aug 23, 2022

Global Ecommerce Weekly News: 23rd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to add mental health support to primary-care service Amazon is set to move into mental health therapy with its primary-care division, following its recent acquisition deal of One Medical. The plan is to partner with virtual behavioural therapy service, Ginger, to offer its Amazon Care users with on-demand access to mental health services, licensed therapists and psychiatrists. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/11/amazon-plans-to-add-mental-health-support-to-primary-care-service/) GMB union calls for £15 an hour minimum pay at UK Amazon warehouses Amazon recently offered its warehouse workers a 3% pay rise, which in comparison to the June inflation rate of 9.4% left employees disappointed. Following this, hundreds of Amazon warehouse workers stopped work last week, protesting against the minimal pay increase, seeking a minimum of £15 an hour. Recent protests consisting of employee walkouts and sit-ins aim to get a better offer out of Amazon. [Read more on The Guardian](https://www.theguardian.com/technology/2022/aug/09/gmb-calls-for-15-an-hour-minimum-pay-at-amazon-warehouses-in-uk) Amazon third-party sellers have received their first-ever holiday fee hike Amazon’s third-party marketplaces account for close to half of the company’s online sales. The company introduced a 5% fuel and inflation charge to its third-party sellers earlier this year, and has now implemented another inflation increase charge. Commencing 14 October, any seller who uses Amazon’s fulfilment service is subject to the price hike, which is set to be an additional 35 cents per item for products sold in the US and Canada. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/17/amazon-third-party-sellers-have-received-their-first-ever-holiday-fee-hike/) Amazon puts a pause on UK grocery shop roll-out as the cost of living increases Amazon has slowed down on its UK roll-out of till-free Amazon Fresh grocery stores following disappointing sales and the rise in cost of living. Allegedly, the company is no longer looking for potential sites to expand and if more stores are opened, they will likely no longer use a till-free system, as consumers become more cautious about spending. [Read more on The Telegraph](https://www.telegraph.co.uk/business/2022/08/21/amazon-pauses-uk-grocery-shop-roll-out-following-disappointing/) --- Other Marketplace News --- Shopee overtakes Alibaba across international markets Shopee has surpassed Alibaba and taken the top spot for sales outside of China. Singapore-based marketplace saw a year-on-year increase of 51.4% at the end of Q2 of this year, while Alibaba saw a 3% drop during the same time period. This can be seen as a promising development for start-ups and their ability to compete with some of the largest ecommerce giants in the market. [Read more on Exchange Wire](https://www.exchangewire.com/blog/2022/08/18/shopee-surpasses-alibaba-in-international-sales-amazon-searches-for-entertainment-exec/) H&M reopens its official store to Alibaba’s Tmall ecommerce platform It has been nearly 18 months since Alibaba removed H&M from its Tmall platform, following H&M’s criticism of human rights abuses in Xinjiang. It is estimated that over a million people, predominantly minorities in the area, have been unlawfully detained in camps across the city. Brands including Nike, Adidas, Burberry and Converse were swept up in the controversy, however H&M was one of the first to be targeted for speaking out about the issue. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/16/hm-returns-to-alibabas-tmall-platform-16-months-after-xinjiang-controversy/) Klarna launches new feature allowing UK consumers to view full online order history Buy-now-pay-later company, Klarna, has launched a new feature on its shopping app, which allows UK consumers to view their full online order history, regardless of whether they purchased the product using Klarna. The feature also shows delivery tracking and aids consumers in managing their online purchases more conveniently. [Read more on The Industry](https://www.theindustry.fashion/klarna-launches-new-feature-allowing-uk-consumers-to-view-full-online-order-history/) --- Other Ecommerce News --- Online marketplaces responsible for £280 billion business turnover in the UK Nearly 900,000 UK businesses are currently selling on online marketplaces, generating an estimated £282 billion worth of sales each year. This figure represents 6% of the UK’s annual business turnover, highlighting the notable contribution that marketplaces make to the UK economy, along with the potential for further growth in this area. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/09/online-marketplaces-responsible-for-280-billion-business-turnover-in-uk/)