All Hail Friday!  🙌

In this week's edition of retail & e-commerce news, we've got a little something for everyone. From Amazon to Google, we're covering the hottest stories in the industry. So sit back, relax, and enjoy the show!

• Google is preparing to try again at Amazon with fresh enthusiasm to dominate e-commerce.
• According to a recent report, by 2023, 75% of DTC brands may provide subscription services.
• From “The Great Acceleration” to “The Great Rebalancing,” the retail industry is in a state of recalibration.
• In order to gain social media clout, Amazon is jetting high-profile internet influencers to five-star resorts.

Top Retail and E-commerce Stories

Amazon, Watch Out: Google is Coming For You

Google is back, and this time, they're serious. According to a report from Bloomberg, the tech giant is preparing to try again at Amazon with fresh enthusiasm to dominate the e-commerce market. Google's first foray into the world of online shopping was, by most accounts, a failure.

Consumers, on the other hand, were using Google and YouTube to do their product research and comparison shopping more frequently than they did Amazon, eBay, or Walmart, according to a study from Morgan Stanley. In fact, even Amazon's most loyal customers, Prime members, are using Google to look for items more frequently.

Now that Google has announced its e-commerce strategy, there are two things merchants can do to set themselves up for success:

1. The first step is to get your product feed hosted on Google Merchant Center. Currently, there is no cost to utilizing Google Merchant Center; you will only be charged if you wish to run premium shopping advertising.
2. The next suggestion is to get the most out of your Google Shopping ads by taking advantage of free product listings. You may include a product feed to Google through Merchant Center and advertise free shopping offerings as long as you have verified your account and uploaded basic information.

Breaking the Mold: DTC Brands Expected to Move to Subscriptions

Are you ready for the subscription takeover? According to a recent report, by 2023, 75% of DTC brands may provide subscription services. Customer acquisition cost, churning, cancellation, and subscription fatigue are just a few of the challenges they'll face if they transition to subscription services.

The United States accounts for 47% of DTC subscriptions, followed by Europe (21%) and China (14%). The overall GMV of monthly subscription box segments increased by 80% in 2020 as compared to the previous year, but subscription boxes are anticipated to see a decrease in GMV as the economy returns to normal.

The Great Retail Calibration: From “The Great Acceleration” to “The Great Rebalancing”

The retail industry is in a state of recalibration. During the early stages of the epidemic, it seemed like we had witnessed ten years' worth of e-commerce growth in only 10 weeks. Many media organizations and retail experts asserted that certain trends—particularly grocery home delivery—were long-term changes. Not so much, as it turns out.

While it's apparent that significant changes occurred during the Covid crisis, it's also clear that we're now in the midst of a "great rebalancing" and a very obvious return to more traditional purchasing habits.

According to the latest sales data report from the US Census Bureau, spending in areas that have seen the biggest increases over the past two years is slowing down. The most pronounced spending shifts of recent times are returning closer to the average.

Large-ticket expenditures and fitness equipment purchases that had been on the rise for some time have now fallen year over year. Apparel and restaurant spending, which took a hit during the lows of Covid, are both showing solid gains. The proportion of spending on eating out is rapidly growing above food acquisition at home, bringing us closer to pre-Covid levels.

The Amazon Corner

Clout Chasing: Amazon is Jetting Top Influencers to 5-Star Resorts

Amazon takes influencer marketing to new heights. 🏖 The e-commerce giant is flying social media stars to five-star resorts, in a bid to get them to post about products on their Amazon storefronts, according to people familiar with the program.

The all-expenses-paid trips are part of a new marketing push by Amazon to get more influencers—people with large social media followings who can sell products to their fans—to sign up for its invite-only Influencer Program, which lets them open their own Amazon storefronts.

A LITTLE MORE

• The best (and worst) states to conduct e-commerce
• The Home Depot is planning to distribute 125,000 mobile devices to its store associates and customers in order to improve customer experience.
• Amazon plans to start delivering packages via drone in California later this year, according to the company.

FUN FACT

55% of disgruntled customers are likely to tell friends and family about their bad experience.

QUICK TIP

Try this. A segmented email campaign produces an average of 760% boost in sales. Not all clients will fall within the same category so when creating email content, it is important to categorize your target audience into different groups. You can do this by analyzing factors such as age, gender, geographical location, interests, and previous interactions with your brand.

TWEET TWEET

“Chase the vision, not the money, the money will end up following you.” — Tony Hsieh