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.
Beyond the sales tax complexity of marketplace facilitator laws, states have used the Wayfair decision to implement new rules for marketplaces. From policing stolen goods to expanded income tax obligations, marketplace tax laws are far reaching. Here’s how they’ve changed, and how they’re impacting remote sellers.
Ecommerce sales will top $1 trillion for the first time this year, while Amazon will become the biggest retailer in the U.S. by 2026, surpassing Walmart with a 14.9% market share vs. 12.7%, according to a new report from Edge By Ascential. Costco and Home Depot will hold the number 3 and 4 spots, respectively, the report states.
It’s impossible to ignore the fact that most if not all fundamental features and characteristics of DTC brands are not just different from Amazon, but diametrically opposed to it. While Amazon takes the word “monolithic” to new extremes, platforms like Shopify thrive by staying low to the ground and expanding outward.
Target joined fellow big-box retailer Walmart today in posting a first-quarter earnings figure well below expectations as inflationary strain, inventory overstocks and spiraling costs including from labor and fuel continue to challenge the sector. Same-day services were up 8% — but it had grown a whopping 120% in Q1 of 2021.
Mobile commerce demand continues to grow as smartphones are a go-to shopping tool. Yet scalable m-commerce is nearly impossible for humans as it requires high volumes of data and continuous, real-time analysis. Automation helps improve efficiency, collect and analyze first-party data and personalize engagement.
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%.