It's been another wild week for retail and e-commerce news. From an app's Super Bowl debut to brands switching e-commerce platforms, here are the top stories of the week:
Thanks to its Super Bowl debut, a Chinese shopping application that lets users “shop like billionaires” has officially become the most-downloaded app in America surpassing even Amazon and Walmart's downloads!
An impressive 27% of all e-commerce businesses are eager to switch platforms, despite the expenses associated with doing so.
Target is doubling down on e-commerce, investing a whopping $100 million to create logistics hubs that will expedite deliveries.
Facebook is facing a formidable adversary in Amazon, as the retail giant's ad targeting capabilities present an increasingly powerful challenge.
Top Retail and E-commerce Stories
Yet Another Contender: Chinese Shopping App Beats Amazon and Walmart
Ready for some action! TheChinese shopping app, Temu, made an impressive splash in the US marketwith its Super Bowl ad. Last week, Temu debuted its Super Bowl ad slot and became a sensation within the U.S. market! Unsurprisingly, some of their most sought-after items include smart watches at only $11, wireless earphones for an incredibly low price of $9.48, and mini HD cameras that retail for just $6. Its pocket-friendly prices—compared to some Western countries' standards—enable consumers to purchase an array of products, without putting a strain on their finances.
After months of continuous expansion, the Super Bowl ad for this platform linked to one of China's top retail sites debuted. It already became a sensation in October by being crowned as the most downloaded shopping app across China, outperforming renowned names such as Amazon, Target, and Walmart as perMarketplace Pulse findings.
Making the Switch?: E-commerce Sellers Ready To Change Platforms
Photo Credit: Microsoft, Photo by Dan DeLong
Ready to jump ship? A recent survey conducted by eMarketer reveals that27% of all e-commerce businesses are eager to switch platforms, despite the expenses associated with doing so. A Digital Commerce 360 survey conducted from September to October of 2022 revealed that a whopping 27% of e-commerce businesses are considering changing their current platform. Most anticipate spending between $25,001 and $500,000 for the switchover process.
The motivation behind the desired shift may differ. Some survey participants want to migrate their platform to the cloud, while others are determined to leave it and host in-house instead. However, 35% of responses clearly preferred "commerce software tailored specifically for them hosted by an external provider in a single-tenant environment." Interestingly, 76% of retailers plan to increase spending on technology and services over the next year.
Era of Doubling Down: Target Invests $100 Million in Hubs to Beat Delivery Timelines
Photo Credit: Ecommerce Times
It's time to double down, folks! This week, Target has decided to invest in e-commerceand place $100 million in the creation of logistics hubs that will expedite deliveries.
Target is planning to have a total of 15 sortation centers by the end of January 2026, following their successful testing in Minneapolis. Each facility will employ an average of 100 people and they are already on track with 9 locations opened. The expansion will allow Target's workforce to grow significantly over the coming year.
Target is taking a risk on e-commerce expansion despite facing an excessive amount of inventory and visible decreases in sales. The company recently downgraded its holiday-quarter outlook, unveiling plans to reduce spending by $3 billion over the next three years. Investors will have their answers about fourth-quarter earnings and full-year expectations when Target reports them Tuesday. By adapting to this new model, Target has freed up space in its back rooms and allotted more time for in-store workers to spend time with consumers. Their model for opening hubs is targeted to hopefully satisfy both the online and in-person shopper experience.
A New Arena for Amazon: Amazon Takes on Facebook with New Ad Targeting
Photo Credit: David Paul Morris | Bloomberg | Getty Images
Can Facebook keep up?Amazon is quickly becoming a formidable rival to Facebook ads, as their ad targeting capabilities become increasingly powerful. As Facebook's targeting capabilities are becoming more limited and Amazon continues to expand its ad product investments, an increasing number of brands are transferring their advertising budgets.
Amazon's disclosure of its advertising business a year ago was unexpected and left analysts and investors to speculate about the size of its revenue. Now, this industry has grown exponentially - generating an annual profit of $38 billion! Additionally, last week’s fourth-quarter report showed 19% growth from 2019 with a staggering $11.6 billion in sales.
Not only has Facebook's parent Meta reported a worrying year-on-year drop of 4% in revenue for the quarter - reaching $32.2 billion - but this marks its third consecutive period with negative growth. Google on the other hand hasn't been as adversely affected by Apple's iOS update, yet its advertising business is still feeling an economic pinch.
With Amazon giving Facebook a run for its money in the advertising space, we're now curious. So, e-commerce sellers, have you given Amazon Ads a try yet? We are eager to post the results next week!
QUICK TIP
Try this.Tap into the potential of user-generated content (UGC) to reach new audiences, generate more leads, and build customer loyalty. UGC is a powerful marketing tool that can help you drive engagement and create an authentic connection with your customers.
FUN FACT
People love shopping online because of free shipping, discounts (38.1%), product reviews left by other shoppers (31%), efficient returns (30.1%) and expeditious checkouts (27.8%).
LISTEN UP
On this 73rd episode of The E-Comm Show, our host and BlueTuskr CEO Andrew Maff is with Arlen Robinson, co-founder of Omnistar Affiliate Software, a SAAS company providing an affiliate tool for brands and affiliates to easily manage their sales, commissions, and everything affiliate-related.
Here, Arlen shares all you need to know about the affiliate process plus a couple of tips on how to handle affiliate marketing for your e-commerce brand. So, if you want to learn where to get affiliates, how to manage your roster of influencers, and how to keep your affiliate marketers interested and motivated to sell and promote your brand, you’ve got to listen to today’s episode with Arlen!
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