View in browser

April 21, 2023

Diversity is 🔑

There

From retail to B2B, this week's top stories show that the landscape of e-commerce is constantly evolving and the competition is fierce! Here's a roundup of the top stories that have been making waves in the industry:

As the retail industry braces for turbulent times, Walmart relies on its grocery strength, vast resources, and limitless reach to remain well-positioned.
To satisfy hybrid shoppers, retailers are strategically revamping their omnichannel offerings.
B2B customers demand a comprehensive digital buying experience and they want it now!
Amazon has unveiled an Artificial Intelligence platform designed to cater to their corporate clients, entering the AI arena alongside Google and Microsoft.

Walmart Unchained: Keeping Retail Alive and Thriving

Photo Credit: Bloomberg | Bloomberg | Getty Images

Walmart on the front lines. With shoppers becoming more frugal, Walmart is capitalizing on the opportunity to showcase its strength. Just like other retailers, it must confront slowing sales as pandemic-led spending diminishes and inflation impacts consumers' finances.

Unlike most other companies, Walmart has a few key advantages: the majority of its profits come from groceries and food products - items that consumers need no matter what state the economy is in. Additionally, it stands by its commitment to providing low prices which allow shoppers to save money. Lastly, due to Walmart's expansive reach, they are able to make more money through ads, delivery services as well as fulfilling orders for third-party sellers online.

Side Note: Top 5 Marketing Strategies for Selling on Walmart

Walmart's executives have seen a dramatic shift in their customers' buying habits. According to John David Rainey, the company's Chief Financial Officer, shoppers now rely on private-label products and opt for more cost-effective proteins such as peanut butter or hot dogs instead. Furthermore, individuals are investing more money into groceries and essentials rather than general merchandise - an alteration in purchasing that is influencing sales not only at Walmart but also with retailers like Target.

Read more to learn about how Walmart is responding to changes in Consumer spending habits!

Rethinking Retail: The Omnichannel Advantage

Change is the new normal! As shoppers have had to become more flexible due to COVID-19, merchants must follow suit by offering increasingly hybrid services. In particular, retailers are now having to consider what services they can expand such as curbside and buy online pick up in-store (BOPIS), and which ones they should cut back on - a strategy that is outlined in Digital Commerce 360s 2023 Omnichannel Report.

In 2022, physical retailers gave Amazon true competition for market share as digital spending in the U.S. was 35.7%, which is slightly lower than 36.9% from 2021; but even with this decrease, the web giant still accounted for 20.7% of all growths in e-commerce activity nationwide!

Side Note: What is Shopify Markets and How Can It Scale Your E-Commerce Business?

Digital Commerce 360 reports that there has been a sharp decline in online sales compared to 2021 and 2020 when e-commerce was booming due to the pandemic. With the right technology strategy such as omnichannel services, retail stores are able to gain back lost ground by providing customers with convenience and dependability both online and in-store.

Learn more about how omnichannel services are becoming the new norm for consumer-spending preferences!

Now or Never: B2B Gets Its Digital Moment

Business-to-business commerce is making its way into the digital age. Companies are now recognizing that their B2B customers want a comprehensive online buying experience and they expect it now!

B2B buyers are increasingly investing heavily in e-commerce sites, with McKinsey's research indicating that 70% of decision-makers are ready to commit up to $500K in a single transaction. Even more impressive is the staggering 83% increase among those who can spend up to ten million dollars per order!

According to a recent McKinsey & Co. survey of nearly 4,000 business executives across 13 countries, B2B buyers are determined by their expectations for the digital purchasing experience they demand from sellers – and most often they want it now. According to the McKinsey survey, B2B e-commerce has established itself as the most successful sales channel with 35% of respondents ranking it number one. This is higher than in-person sales (26%), video conference (12%), email (10%), and telephone (8%).

Side Note: B2B Marketing - 5 Tools to Build Your Company

Businesses that are gaining ground in the marketplace have not only invested in digital self-service channels such as their own websites but also broad e-commerce platforms. For instance, McKinsey has found that 48% of companies expanding their e-commerce share are now selling on industry-specific marketplaces--a staggering percentage when compared to the mere 13% of businesses that have been losing out on this front.

Read more about how to leverage digital experiences to increase B2B purchasers!

The Amazon Corner

Bringing the AI Game: Amazon Joins the AI Revolution

Photo Credit: GETTY IMAGES FOR AMAZON WEB SERVICES

AI just got real. On Thursday, Amazon unveiled an AI-based service through its cloud computing platform that aims at corporate customers who wish to leverage the power of Artificial Intelligence in their business operations. This new approach by the tech giant is a deviation from other renowned companies' consumer-oriented strategies when it comes to implementing artificial intelligence technology.

Side Note: 5 Ways to Increase Your Amazon Profits

Companies can now construct and expand tailored AI applications for their business requirements with the assistance of Amazon Bedrock – a new service from Amazon Web Services. Bedrock offers two Amazon-crafted giant language models: Titan Text, a chatbot akin to ChatGPT that can generate text for tasks like emails and blog posts; as well as Titan Embeddings which enables search personalization. With these tools on hand, you'll be equipped to make the most out of your online experience.

Learn more about how Amazon is leaning into Artificial Intelligence to improve business operations and consumer experiences!

A Little More

Boasting an impressive $35 billion in annualized gross sales, Amazon Business is revolutionizing the way companies of all sizes purchase supplies.
By leveraging AI-powered automation, retailers are able to keep up with ever-changing demand and drastically improve warehouse operations.
Walmart is revolutionizing its operations through the implementation of state-of-the-art Artificial Intelligence (AI) technologies.

QUICK TIP

Try this. Leverage Google Local Inventory Ads (LIA) and have your store’s inventory showcased on Google Shopping. This is a great way to target potential customers who are searching for items near their location.

FUN FACT

Nearly half of the social commerce shoppers (49%) have been swayed to buy a product based on an influencer's recommendation.

LISTEN UP

On this 81st episode of The E-Comm Show, our host, and BlueTuskr CEO Andrew Maff is with Amanda Patton of Char-Broil, one of the oldest and top-performing brands for charcoal grills on the market. Learn how Amanda, the Senior Director of Omnichannel, leverages this multi-faceted marketing channel to reach her consumers across all channels to improve sales and customer loyalty!

Watch the full episode below, or visit TheEcommShow.com for more.