A-B-C-D-E-Friday!! ✨

As we cap off this work week and head off to the weekend, let's take a look at some of the top retail and e-commerce stories that caught our eye. (Well, you know the drill! 🙌 )

• Facebook earnings fell short of anticipations for the fourth quarter, and the firm acknowledged a slew of problems ahead in the first quarter.
• On a $1.6 billion valuation, a startup financing platform, Wayflyer, just raised $150 million to provide more accessible loans to e-commerce sellers.
• UPS's strong parcel demand implies another year of "firm pricing."

Top Retail and E-commerce Stories

Facebook Shares Take a Tumble: Shares Fall 20% After Disappointing Earnings

Is Facebook losing its grip? The stock fell more than 20% in extended trading on Wednesday, following a disappointing earnings report, tepid outlook, and the revelation that user growth has ground to a halt.

Facebook said it's been hurt by a variety of issues, including new privacy restrictions imposed by Apple's iOS and broader macroeconomic problems. According to Facebook, inflation and supply chain difficulties are contributing factors to the lower-than-expected growth in advertising income.

There's also a shift to items that don't make as much money as the company's main news feed. For example, people are spending more time watching Reels.

Loans Made Easy: Wayflyer Raises $150 Million to Take on the World of Loans for E-Commerce

Fast, easy, and convenient loans for online sellers? Sign us up! The Irish-based startup, Wayflyer, acquires unicorn status after closing its Series B round with $150 million in funding. Wayflyer is an e-commerce financing platform that provides accessible loans to e-commerce sellers via its revenue-based lending model.

The e-commerce financing and growth platform plans to use the money to fuel its global expansion into the US, Europe, and Asia as well as hiring world-class talents across the globe. The raise comes after the firm experienced a significant amount of growth in 2021, with cash advances increasing by more than 900% year-on-year.

With additional cash from Left Lane and Guillaume Pousaz (Checkout.com creator), new investors include Prosus, J.P. Morgan, and Madrone Capital Partners.

Shipping Powers: High Parcel Demands Means Another Year of "Firm Pricing" for UPS

Sorry, still no 'ship' in pricing powers for online sellers. Shipment costs continue to rise as increasing package volumes put a strain on carrier networks. UPS just implemented a 5.9% general rate boost, as did FedEx. 

Many shippers have accepted increasing costs as part of doing business in a squeezed market. On a December earnings call, FedEx CMO and Communications Officer Brie Carere said that the company expects "a higher-than-normal capture" of its general rate rise, with over half of its client base renewing contracts.

The Amazon Corner

Pandemic Magic Gone? Amazon's Shares Dip on "Lackluster" Earnings

Is the Pandemic Magic starting to fade? After a year of record-breaking profits, this week, Amazon's stock prices took a dive. During the height of the pandemic, Amazon experienced a boost in sales from people who were confined at home, a trend that has since reversed as individuals return to in-store shopping.

Another problem is that owing to its size, the company has been facing wage increases and a scarcity of labor.

A LITTLE MORE

• Shoppers making the switch to TikTok for purchases
• Pinterest embracing home AR shopping experience
• Five Data Privacy Practices for gaining customer trust in 2022

FUN FACT

24% of online shoppers are okay with spending more to qualify for free shipping vouchers.

QUICK TIP

Try this. Email marketing is a powerful method to reach out to potential customers and clients. You'll want to get people's email addresses through an exit intent pop-up or lead magnet so you can keep promoting your brand and products to them.

TWEET TWEET

“It’s not about ideas. It’s about making ideas happen.” — Scott Belsky

OLDIE BUT A GOODIE

In 2005, Etsy was created by a group of friends led by Robert Kalin, an amateur furniture maker who wanted to find a better way to sell his items online. Here's a snapshot of their beta site!