Nearly six months after doing so in the U.S., Amazon is increasing the cost of Prime in the UK and Western Europe by up to 43%, as it too battles inflationary pressures and higher operating costs. German Prime members will see a 30% increase, with a 20% bump in the UK; Spain, Italy and France will see annual increases between 39%-43%.
Amazon once again claimed that the latest Prime Day event was the biggest ever, with 300 million items sold and importantly, more than $1.7 billion saved by shoppers, as some observers had said ahead of the fact that deals weren’t all that spectacular compared to everyday offerings.
Despite inflation fears, retailers are likely to see an increase in consumer spending this summer, with 61% planning to shop “holidays” like Prime Day, and 76% of them saying they’ll spend the same or more on the extravaganza as last year, according to data from Adobe Commerce.
Amazon is looking for a big win from Prime Day 2022 (July 12-13) to help restore some mojo to a company unaccustomed to criticism for earnings challenges, overbuilt warehouses and a stock that shed 40% of its value in the past 12 months, pre-split. This is the first time since 2019 it’s been in its accustomed spot in mid-July.
Amazon aggregators have seen massive investment and deal flow since 2020, but the activity has been slowing as the valuations of top sellers has increased, according to a report on M&A activity in the sector from investment banking firm Capstone Partners. There were just 30 acquisitions of major FBA brands in Q1 vs. 159 in all of 2021.
Walmart reported a disappointing earnings picture for the first quarter, blaming inflation, overstaffing, excess inventory and supply chain issues as the key culprits that sent profits below what analysts had been expecting. The top retailer reported $2.05B, in net income, down from $2.73B a year ago; ecommerce inched up 1%.
In an effort to lure in more third-party sellers as it battles Amazon’s dominant marketplace, Walmart is offering new sellers a 50% discount on commissions for 90 days, while also extending savings on Walmart’s version of FBA to new signups. Discount are available to new merchants who sign up by May 31 and start selling by June 30.
Too often, ecommerce marketplaces are looked at like a new feature, such as adding search capability. Thus, the marketplace project is not set up to overtake the main business, but pitched as a 12-24-month project to so many vendors.. The perspective is inside out. It’s rarely done outside in, from a customer-first point of view.
With new tool and technology, retailers and brands – and increasingly, affinity-based communities or organizations – are finding it easier than ever to launch ecommerce marketplaces. This report explores how affinity-based groups are empowering makers and creating an environment of shared experiences and passions.
CommerceIQ, a startup with a platform that allows major CPG brands to manage their ecommerce sales into retailers and marketplaces, has crossed the unicorn line with the closing of a $115 million Series D funding, bringing the company’s total valuation to more than $1 billion.