There’s a behind-the-scenes battle going on between Amazon and Shopify that has big implications for merchants. Amazon now owns a technology that could help it compete directly. Here’s why the rivalry matters to online merchants, and how understanding it can help you select the right ecommerce channels for your goals.
As a bored, locked-down country lurched from trend to trend, retailers scrambled to cover demand. It’s no surprise ecommerce marketplaces thrived, connecting customers with 3P sellers to outperform even the strong growth of ecommerce as a whole. Their diversity gives them resilience during periods of complex change.
Amazon announced it plans to cancel its Early Reviewer program as of April 25, and won’t be taking any new applications as of April 10, as it has found other programs more effective in generating customer reviews, upsetting sellers who had found success with it. Experts however saw Amazon Vine as a superior review generator.
Thrasio, the most successful practitioner of the Amazon rollup model by creating economies of scale and supercharging growth, has raised $500 million, pushing it over the $1B mark in less than two years. It plans to pursue bigger targets, expand product development and go into other channels and international markets.
Boding well for the holiday spend here, the U.S. was the top seller of goods during Alibaba’s Singles Day 2020, which raked in $116 billion combined on Alibaba and JD.com. Alibaba itself reported $75.28 billion yuan in GMV, while JD.com said its Singles Day GMV was $40.72 billion. Sales from U.S. retailers topped $5 billion.
With Prime Day hitting Oct. 13-14, the unofficial kickoff of a very different holiday season, sellers are geared up to take advantage of the massive shopping event, but the proximity to other mega events from Thanksgiving on may lead shoppers and sellers to choose one or the other vs. both. Still Prime Day 2020 is expected to break records.
eBay has struck a deal with UPS to provide its sellers with discounted shipping, after telling them last month it was aware of service delays with primary carrier the U.S. Postal Service and complaints from sellers. The major marketplace said the discounts would be available to all of its sellers by the end of September.