Shopify and Walmart signaling market downturn, Amazon's new digital wallet and more .............................................................................................. .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Before you hit the beach, the backyard, or the trails, it's time for some weekly reading 👇 of the latest retail and e-commerce news:
Shopify predicts return to pre-pandemic trends; warns others of a possible larger operating loss in 3rd quarter.
New Report: online prestige beauty sales have dropped by 14%.
Walmart's reduced profit projection is a wake-up call for the state of the American consumer.
Amazon launches a new seller wallet.
Top Retail and E-commerce Stories
Warning!: Shopify Lays Off 10% of Its Workers, Warns of Possible Larger Operating Loss in Q3
Have we reached the peak yet? Shopify announced on Tuesday that it predicts a return to pre-pandemic trends and will lay off approximately 10% of its workforce as a result. At its peak, many brands linked to internet spending predicted that the pandemic would permanently improve online shopping patterns due to people's new online purchasing habits.
In 2022, Shopify Inc. predicted a "new" year as e-commerce drops to pre-pandemic trend line and is beset with greater inflation costs, according to the company's press release.
Tobi Lütke, Shopify's CEO, said that “Shopify has always been a firm that makes the major long-term bets our merchants demand of us,” and that as e-commerce continues to spread rapidly, the company believes “the channel mix – the percentage of dollars that move through e-commerce rather than physical stores – would permanently advance by 5 or even 10 years.”
The shift in revenue has been a tough pill to swallow for Shopify. According to Lütke, the bet didn't pay off, and "it's now clear that [it] didn't pay off." The platform has been one of the most successful e-commerce stories in recent years, so its struggles are a sign that the industry may be facing more challenges than previously thought.
Beauty Slump: 14% Drop in Online Prestige Beauty Sales
Fading beauty? According to astudyby 1010data, luxury beauty sales have decreased 14% year over year. The study determined that shoppers were spending less money on online purchases at most merchants and across all high-end beauty categories. Even though internet sales are presently decreasing, they are still higher than they were before the epidemic, according to the report.
As the world opens back up, physical stores are becoming more appealing to beauty buyers. Color matching and testing in a physical store have also been crucial factors in influencing consumer behavior.
Walmart's Profit Warning: A Wake-Up Call for the State of the American Consumer
Walmart's profit warning: The beginning of the end? Walmart's profits are suffering due to markdowns that have occurred since the company reported a significant inventory increase, owing to changing consumer demand.
With demand from customers in certain sectors at a low ebb, warehouse capacity is limited across the country, and inventories continue to build up. The announcement this week by Walmart that it is reducing its quarterly and full-year profit guidance is the latest retail victim, demonstrating how inflation affects the consumer and a shift in spending habits that can send even the biggest businesses into turmoil.
The Amazon Corner
Sellers Rejoice!: Amazon Rolls Out New Digital Wallet Service for Sellers
More ways to get paid!Amazonannounced the debut of a new digital wallet service for "sellers" on its digital marketplace. According to anonline post by Amazon, the new wallet system will allow sellers to hold earnings from their sales or send it to their bank accounts conveniently.
Amazon will start rolling out the new Amazon Seller Wallet tool in the coming months to make the Amazon selling experience easier worldwide. This experimental solution gives vendors an easy, convenient method to hold, view, and transfer Amazon store proceeds on their own terms. Currently, the Amazon wallet service is available exclusively to a select group of Amazon's small business merchants, some of whom have already been testing it in recent weeks.
A LITTLE MORE
Now thatInstacart technology is available in 49 states and Washington D.C., consumers in those locations can purchase groceries using their Electronic Benefits Transfer (EBT) SNAP
PFS Partners with Vimaan for automated inventory tracking solutions as autonomous flying warehouse drones reach luxury retail e-commerce fulfillment.
FedExis moving to cut Sunday delivery in specific regions of the United States.
FUN FACT
According to Shopify's research on global purchasing, around 65% of customers would prefer content in their own language even if it isn't completely translated.
QUICK TIP
Try this. Use keywords in your product listings on Amazon to improve your search ranking and visibility.
TWEET TWEET
"The road to success and the road to failure are almost exactly the same."
On this 43rd episode of The E-Comm Show, our host and BlueTuskr CEO Andrew Maff is with Khasha and Maynard of JADA Brands, a vegan food seasoning company that aims to encourage people to be healthier cooking and, overall, live a healthier lifestyle. Starting from their main staple, chicken salt, they have come to innovate different variations of tasty seasonings and spices.
Tune in to this episode of The E-Comm Show as Khasha and Maynard share their successes and a fair share of struggles in launching America's first shelf-stable plant-based chicken.
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