Get up to date with this week's ecommerce headlines from around the globe.
Amazon opens first physical clothing store with tech-enabled fitting rooms
Amazon has opened its debut Amazon Style store in Los Angeles, where customers can enjoy a personalised shopping experience. The store allows shoppers to use an app to scan items they want to purchase, and provides them with a choice to have the items sent to a fitting room or straight to the checkout counter, where they can pay with Amazon’s palm recognition service. The touchscreen panels in the fitting rooms allow the user to browse other options and even purchase them digitally.
Amazon shareholders reject 15 motions on worker rights and environment
Investors presented 15 resolutions to positively influence Amazon’s environmental impact and treatment of workers, and Amazon shareholders voted to reject all resolutions that were brought forward. Amazon’s board argued in its proxy statement that it has already acted to address the underlying concerns of the proposals that were put forward.
Amazon and Walmart have empty shelves and excess staff
Following a period of accelerated growth during the pandemic, when shoppers were purchasing more online, online retailers are now seeing a slow of business. Two of the largest ecommerce giants, Amazon and Walmart, have been unsuccessful in anticipating staffing and warehousing needs, experiencing reduced productivity and higher costs.
Other Marketplace News
Ebay Ads research finds shoppers turning towards second-hand items
The cost of living crisis is pushing consumers to shop for second-hand items. A survey of 1000 consumers found that 30% are putting more thought into their purchases, and buying a higher amount of second-hand items in an effort to save money. Between the rising cost of living and a growing desire to shop sustainably, the move towards ‘pre-owned’ has been rising consistently year-on-year.
Klarna switches focus to short-term profitability
After cutting 10% of its staff amid a ‘likely recession’, buy now pay later giant, Klarna, has decided to change its strategy. Rising prices, shifts in consumer sentiments and the ongoing war in Ukraine has resulted in the company needing to raise capital. Klarna’s CEO has mentioned that the company will change the weighting of its investments, focusing more on short-term profitability instead of long-term new, potential investments.
Alibaba, Tencent and JD.com have all posted their slowest revenue growth
Chinese tech giants, Alibaba, Tencent and JD.com, have all seen their slowest revenue growth to date. Beijing’s tech crackdown and a recent Covid resurgence with stay-home orders in China has disrupted supply chains and logistics, creating challenges for efficiency and growth.
Alibaba exceeds analysts’ expectations as its stock rallied by 15%
Chinese tech giant, Alibaba, continues to grow despite facing recent challenges. Meanwhile, the company’s main competitor, Singapore-based Shopee has grown by 94% in the same period. Assuming Alibaba is on track to achieve 5-10% growth this year, Shopee has the opportunity to beat the Chinese giant’s stable by 15-30%.