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Chinese critic Tuberville rebuys Alibaba stock

Alibaba stock

The Chinese critic Sen. Tommy Tuberville of Alabama bought Alibaba Stock again. He was buying and selling stocks. The recent reports from Alibaba reveal the transactions.

Tuberville and his wife engaged in three purchases last year. However, the share value of the stock was $300,000.

Republican’s spokeswomen informed, “CNBC that in mid-2020 he had ordered his financial advisors to sell off a small stake in Alibaba stock after becoming aware it was in his portfolio.”

The Alibaba stock also held a value of less than $5000. It was when the former Auburn University ran for the senate seat. In July, Tuberville violated the transparency law. As per the STOCK Act, the filing of 130 stock and stock options was missing. The dates of trades were between January 2021 and May 2021.

The conglomeration of the stocks included the sale of stock put options. The put option gives the holder the right to sell. However, the share price of the Alibaba Stock was $230 by Sept 19. It’s value was at $15,001 to $50,000.

The sale made it to the accounts months after the divestment. Tuberville has no knowledge of trades. Also, the Financial advisors were in complete charge.

Later, in July, Tuberville and his wife bought the put option. They also sold the option on the same day. It sold at a lower strike price.

The disclosure report also identifies their involvement in four trades. All the transactions of Alibaba Stock were of the value of $80,000 and $215 000.

Tuberville now holds a share in Alibaba. The Holding American depositary now values $50,001 and $100,000. However, their joint account recently purchased the shares of Stratasys. The value was between $15,001 and $50,000. The Individual account of the critic also purchases a contract. The value was between $1,001 and $15,000.

Online Sales records $204 billion over holiday season

online sales

Adobe analytics notifies that online sales revenue generation increased to 9%. It accounts for almost $204.5 billion. With the covid, people tend to buy gifts online rather than the stores.

Even with the increase in price, 1 trillion shoppers bought things online. There was a hike in price from apparel to groceries. The price of goods rose 0.8% with the demand. Online sales lead to inflation over the year in prices by 3.5%.

Lead Analyst at Adobe Digital Insight, Viven Pandya, says, “It’s definitely a key contributor to the growth, but it’s not the totality of the growth”. He also explains that inflation is one of the factors.

More and more consumers are buying goods online. The categories of goods involving jewelry boosted the sales growth.

It was the “out of stock” feature that cut the uptake. It was the fault of retailers. There were problems in the supply chain. Shipment of merchandise delayed. The sale also suffered.

Lululemon and Abercrombie & Fitch recorded low revenue in the fourth quarter. The reason is the same. Urban outfitters also struggled to accumulate home goods in stock. It used air freight to bring apparel.

From Nov 1 to Dec. 31, 2021, 6-billion out-of-stock messages were up on retailer websites. It was more than 10% from last year. And 253% from 2019. These are some shocking figures in online sales.

Out-of-stock messages open sales for other retailers. Shoppers can always open another site. Supply chain issues lead to a 2% shrink in the salesforce.

The discounts on goods were less this year. The retailers facing higher prices increased the price. In comparison, electronics will be 8 percent compared to 21% in 2020.

Sporting goods were down by 6%. Shoppers enjoyed a discount of 14% last year. It was a good year for online sales.

Chinese eCommerce giant JD.com opens robotic shop in the Netherlands

eCommerce giant

The Chinese eCommerce giant is openly challenging Amazon with robotic shops in Europe. The shop will feature robots as staff. Robots will prepare and deliver packages. JD.com opens two retail stores in the Netherlands.

The store is in the name of the brand Ochama. It is in the city of Leiden and Rotterdam. The shop proclaims China’s vision to expand its merchandise. This is the first incursion in Europe.

JD.com claims that customers can place an order for anything. It will feature all kinds of services from food to beauty and home furnishing. They can drive to the store where robotic arms will pick and sort orders.

On arriving at the store, shoppers can scan the barcode on their app. The conveyor belt will carry the order to them. The app can deliver the order at home as well.

The Chinese eCommerce giant can swiftly pierce the European market. This innovative model challenges Amazon’s reach in Europe.

Amazon recently launched the cashier-less grocery store. It is AmazonGO. It modifies the buying process. The shoppers can just scan a QR code from the app and add products. It features zero human interaction. The opening of robotic shops can create a threat to AmazonGO’s market share.

The eCommerce giant is planning to open two more similar stores. The next stop is Amsterdam and Utrecht. JD.com plans to move ahead with logistics and eCommerce. The company owns a logistics arm in China. It intends to expand similarly worldwide.

JD.com is one of China’s best-performing companies. It expanded its market overseas in recent years. The revenue generation surged with the shopping site Joybuy.com. It operates for an e-commerce joint venture in Thailand. It owns most of the share of the Vietnamese shopping platform Tiki.

Xin Lijun, the CEO at JD’s retail business, notifies CNBC, the company will carry out “further strategic analysis in Vietnam and Europe” as potential locations to expand in.

Lululemon shares falls in Fourth Quarter

Lululemon shares

Lululemon announced its fiscal quarter earnings this Monday. The Retailer calls out that Lululemon shares will receive low-end estimates. It announces the shortage in staff as one of the main reasons for the fall. The reduced store hours due to the rise in Covid cases impacted the revenue accusation.

The retailer recorded the stock closing price of Lululemon shares at 1.9% at $348.43.

In the recent press release, Lululemon states that the fourth quarter will stand in the range of $2.125 billion to $2.165 billion. The earning per share (EPS) will also range between $3.25 to $3.320.

Refinitiv the analyst estimates and announced the Lululemon share for earnings of $3.34 per share on the sale of $2.17 billion.

The CEO, Calvin McDonald, shares his view, as he states, “We started the holiday season in a strong position but have since experienced several consequences of the omicron variant, including increased capacity constraints, more limited staff availability, and reduced operating hours in certain locations.”

Like Lululemon, many other retailers are also facing the problem. The staff often falls sick due to the pandemic. The exposure of labor in the highly contagious omicron variant is bringing the sale down.

Macy’s, Apple, Walmart are also facing the same problem. Macy’s has reduced store hours across the country for the rest of the month. Big merchant retailers like Walmart closed down their stores at 60 locations in December 2021. The rise of the new variant has reduced the availability of employees. This has cut in hours for the store opening.

Similarly, Nike, Athleta, and Starbucks have cut down the opening hours. The reduced staff is the common reason.

Lululemon share prospects are bullish of nature on its business. The holiday performance of the retailers was not as hoped. The investors are disappointed in the performance.

Leading online merchants working on customer satisfaction

online merchants

Online Merchants are offering customer-friendly features at the time of checkout. With these features in hand, consumers will have more buying control. It aids in the easy checkout process. This feature will reduce friction during the payment process.

According to a survey, 2139 shoppers in America, convenience features have increased the satisfactory checkout experience. Installation of convenience and security features will increase revenue generation.

The enhancement in the security protocol feature eases up the online shopping experience. Consumers are now no more scared of online theft. They can freely and independently buy anything.

The most applauded feature was that the mailing address matched the billing address. It saves customers time retyping the address. Online merchants today also tend to provide free shipping. It attracts customers to buy certain goods without paying any extra charges. It builds transparency between online merchants and customers.

The other convenience feature which boosts customer satisfaction is the online address confirmation. This lets them choose manually where they can get the product. Choosing the availability of location from home to office clearly satisfied customers.

Most of the time, online merchant websites run out of products. The ping for the product back to stock made buying easy.

Customers who filled the survey said they were very or extremely pleased with SSL encryption at the time of checkout. More and more online Merchant websites are focusing on security protocols. The focal point to ease the process of buying is not on refunds, buy buttons, and quick add to cart.

The increased focus on these features affects the free shipping option. Online merchant websites swiftly reduced the free shipping.

Now, speaking of middle and bottom-performing websites, they are having trouble acquiring customers. It is mainly due to the lack of availability of features.

To cite the difference between the top and other online merchants, 100% of the top-performing merchants offer product ratings, reviews, and recommendations to their customers while only 73% of the mid-performers and 11% of the bottom.

The top-performing merchants offer 24 hours assistance, while only 77% of mid and bottom-performing websites offer such a feature.

Bed Bath & Beyond records heavy losses due to Supply Chain issue

Supply Chain

Bed Bath records disappointing third-quarter results on Thursday. Shares in the start descended more than 9% but rebounded itself quickly. The main cause behind the quarter was due to supply chain bottlenecks. It accounted for the company with a loss of $100 million.

The company faced severe drawbacks from the meme-stock rallies. The retail investors poured into the shares of GameStop and AMC Entertainment. It is also the cause for dipping share prices.

Bed Bath is the most heavily shorted stock. 22% of the stock is available for trading. Short sellers include hedge funds, which borrow from a company’s shares. It is to buy back the share at lower prices in the future.

Currently, the company’s average daily volume for shares is 5.5 million. The retailers are in big trouble. To deal with the problem, CEO Mark Tritton lays out the plan. He recommends adding private label products and shutting down the underperforming location.

He also advised the launch of an online marketplace. It will help the company to compete with third-party sellers (like Amazon and Walmart).

Bed Bath will cut back all unnecessary promotional mailers to reduce costs. It hurt the sales as flyers were no longer distributed. It happened due to the disrupted supply chain relationships with the paper vendor.

Refinitv survey records the total loss of the company. Bed Bath records a loss of $276 million. It lost almost 25 cents a share. The sale was down to 28%.

The company holds planned and ongoing store closure for the loss. To state the figure, it closed 170 Bed Bath locations.

Analysts from StreetAccount forecast a drop of 0.9% for the systemwide same-store sales.

The CEO informs that baby categories did well. The doomed sales of Bed and Bath are mainly responsible for the loss.

Tritton better explains the situation by stating, “We think about the ecosystem of life moments … when they’re planning their first child or having their first child to when they send them to college.”

Bed Bath announces the stock buyback plan. It is expecting $1 billion. The repurchase plan is set to put the company again on the right track.

Interview with Andrew Chan from AfterShip

Andrew Chan

Team eCommerce Next interviewed Andrew Chan from AfterShip to get more insights on How Outdated Returns Processes Can Sink the Holidays. Following is our interview with him:

Tell us about the genesis of AfterShip

Teddy and I founded AfterShip in 2012 at Startup Weekend Hong Kong, which is a 54-hour hackathon competition. We won the local Hong Kong competition and later became the global winner, as well. The idea behind AfterShip first came to Teddy when he was running his own e-Commerce stores selling electronics and remote-control toys. Using his engineering background, he built an automated tracking system for his online store that reduced order delivery enquiries by more than 50%. Today, AfterShip has more than 10,000 customers including leading marketplaces like Amazon, eBay Wish, and Etsy, as well as iconic brands such as Gymshark, Kylie Cosmetics, Murad, and Kate Sommervile.

What makes AfterShip different from other post-purchase and tracking platforms?

Unlike other post-purchase platforms that only handle a specific aspect, AfterShip offers shipping, tracking, and returns solutions at an enterprise level. Our solutions are designed for businesses of all sizes, from a D2C brand using Shopify to a Fortune 500 business that needs to handle millions of shipments per month.

One thing that makes AfterShip stand out is our investment in product and development. Close to 70% of AfterShip’s employees are from the product and engineering team and ensure the company ships fast to the market. The company also offers 24/7 live chat support to any customers, not just the enterprise customers. It is important for the company to support new and small businesses for them to grow.

And lastly, AfterShip works closely with many amazing partners in the market, including platform partners like Shopify, Bigcommerce, and Salesforce, as well as other solution partners like Klaviyo, Gorgias, Omisend, and Shipstation.

How can an outdated returns process negatively affect online retailers specifically during the holidays?

The return process is an extension of the merchant’s brand. Having a negative return process can lead to the permanent loss of a longtime and valued customer. This is particularly detrimental to brands since existing customers are 50% more likely to try a new product and spend 31% more than new customers (source). However, if a valued customer has a negative return experience, they may never shop with the brand again. This loss can be very costly for a merchant because keeping existing customers is much cheaper than finding new ones.

How should online retailers quickly address their outdated systems for returns?

The best thing to do is to implement an online return solution. When it comes to returns, consumers are looking for two things — speed and convenience —so it’s best to make the return experience as virtual as possible, and allow customers to print a return without asking customer support. Consumers who purchase online are much more likely to want a return process that’s 100% online, so it’s best to deliver on that customer insight. Allowing the customers to initiate the return online without the need to pick up the phone will both save your company money and increase customer satisfaction.

How can a bad returns process hurt an online retailer’s brand reputation?

Many brands want to be seen as revolutionary, trendy, and up to date. Also, customers compare a brand’s return experience with other companies, especially Amazon. The return process is an extension of the company’s brand, hence having an outdated and non-friendly return process doesn’t help a brand position themselves as a leader in the market. If a brand wants to position itself as tech-forward, they need to deliver on that promise and that includes having a user-friendly online portal for processing returns.

Why do certain online retailers use complicated processes that make returns difficult for their customers?

It’s unlikely that brands use outdated or complicated return processes to purposely trick customers or to manipulate them into avoiding returns. The reality is that returns are complicated and complex for the merchant as well. They need to process the customer’s return request, ship a label, accept the parcel in the warehouse, process the refund, and then dispose or resell the returned item. Of course, automating some of these processes would help significantly. However, companies have limited resources and don’t always have the time to evaluate, integrate, implement, and launch new software. Implementing a new software, testing it and integrating it with all of their other tech stack can take several weeks, which could be a deterrent for some brands. Companies like AfterShip’s Return Center only take a few weeks to integrate, whereas there are many solutions that can take several months. While most brands genuinely want the best for their customers, they have limited budgets and resources. This means that much of these two will be spent on marketing, promotions, and other pre-purchase activities while post-purchase and returns get deprioritized.

How has COVID-19 affected AfterShip and its clients?

On the positive side, there has been an increase in online shopping, which pushed e-commerce to the next level. Pre-COVID there had been a lot of predictions that ecommerce will continue to grow. However, COVID really accelerated that growth far beyond any prediction.

On the downside, of course, there is a global supply chain issue. Most companies also begin to experience delays in their personal supply chain since they need to and want to keep warehouse employees safe, which leads to warehouse delays with packaging and getting packages ready. Retailers are abiding by restrictions on how many warehouse employees can work simultaneously and about social distancing, which is causing delays with getting packages out the door. On top of that, there are the major global supply chain issues that everyone is facing, which can sometimes lead to unhappy customers calling into customer service and wondering why their package is delayed.

What AfterShip offerings have helped your clients quickly adjust to the new reality of the pandemic?

Many of our clients use analytics and the dashboard to proactively inform clients of late packages. With so many supply chain issues and so many shipment delays, it’s becoming more and more imperative for brands to inform customers about shipment delays. AfterShip’s live reports help our clients catch shipment delays as they’re happening, and many of our clients use this data to proactively send their clients notifications that their shipment is delayed. Many of our clients also use the reports to spot trends. For example, we’ve had a client who noticed in her AfterShip portal that there’s an increase in delayed shipments in Italy, so she looked into what’s going on in Italy and found out that there was a major storm. This allowed her to proactively inform all customers in Italy that their shipments are impacted by the storm.

How does AfterShip help its clients both large and small navigate the post-purchase process?

Retailers utilize AfterShip to send their customers automated shipment tracking notifications to ensure that they have a positive post-purchase experience. The branded shipment notifications are an excellent tool to promote more products and keep a brand top-of-mind. Because shipment notifications have an extremely high open rate (70% on average) and click-through rate (30% on average), AfterShip’s clients have seen a 3% lift in overall repurchase rates, which is a very crucial factor for business success.

The AfterShip platform is also instrumental in helping retailers build customer loyalty, which leads to more sustainable growth. Our clients have seen a 40% reduction in where-is-my-order inquiries (WISMO) and a 15% reduction in delivery-related complaints, which means more happy customers.

What guidance does AfterShip provide its clients when using its product?

We have live support 24/7. We are an international company so we have clients and large teams across the globe. It’s not a situation where we have one lone person sitting in an office at night and anyone reaching out needs to wait until the one person gets off a call with another client. We truly have large teams working at every time of day to support all the time zones that customers live in. Our account executives and customer success managers are always available and happy to answer any questions. We’ve recently started doing win/loss interviews with the customers who recently signed up to learn more about their sales and onboarding experience. More than 75% have unsolicitedly mentioned that the openness and availability of our account executives was one major reason that they decided to join AfterShip.

About Andrew Chan

Andrew Chan is the Co-Founder and CPO of AfterShip, a leading post-purchase and tracking platform for e-commerce businesses. Andrew has more than 10 years of experience in SaaS product development and sales. He manages the company’s product managers, sales teams, and marketing teams. Before launching AfterShip, Andrew worked for Accenture as a business analyst.

About AfterShip

Founded in 2012, AfterShip is a post-purchase and shipment tracking platform for online retailers to improve consumers’ post-purchase experience. Integrated with more than 740 carriers worldwide, AfterShip tracks more than 6 billion shipments per year. Currently, more than 200 top brands and more than 50,000 Shopify merchants utilize AfterShip to give their consumers peace of mind from shipment to anticipation to delivery. Partnering with leading e-commerce platforms such as Shopify, Magento, and Squarespace, AfterShip provides branded tracking pages and sends proactive delivery updates. Major marketplaces like Amazon, eBay, Etsy, Wish, and Lazada, and brands like Inditex, Harry’s, Dyson, Gymshark, Blenders Eyewear, Pura Vida Bracelets, and Kylie Skin employ AfterShip to customize their own shipment tracking solution and add value to their merchants and consumers.

Interview with Kiel Harkness, VP Marketing, from UPS Capital

Kiel Harkness UPS Capital

Team eCommerce Next interviewed Kiel Harkness from UPS Capital to get more insights from customers such as PROOF Ice Cream, LegacyBox and Freight Club. Following is our interview with him:

What have been the biggest hurdles faced by SMBs this holiday season?

SMBs have faced a lot of the same issues other businesses have felt this year, from global delays to rising prices. Supply chain issues have been a pain point for SMBs, with 33% of customers expressing concerns about supply chain delays when it comes to their holiday shopping, according to the UPS Capital 2021 Holiday Shipping Experience Report. With tighter budgets and margins, SMBs are increasingly being squeezed out in favor of big box retailers who have resources like large capital, higher inventory, and the technology to give customers a premium shipping experience. This situation can potentially harm SMBs who risk losing customers to bigger retailers if they can’t deliver similar, seamless shipping experiences.

What are the trends driving consumer spending this year?

Heading into year end, folks are dealing with inflation, drastically impacting consumer spending. UPS Capital’s survey found nearly 50% of consumers plan to spend less this holiday season as a direct result of inflation. Fears of supply chain issues causing shipping delays forced consumers to start shopping earlier than before. The same survey found nearly 70% of consumers are worried supply chain issues will prevent their orders from arriving on time, and 35% would be motivated to purchase from a retailer if offered guaranteed replacements for lost or damaged packages.

How does inflation factor into the equation for SMBs looking to stay competitive?

Inflation touches more than just consumers who are looking to cut down on spending this year – for SMBs, consumers cutting back means there’s less chance to make ground against big box retailers. Nearly 50% are worried about the downstream impact of inflation on their bottom line, according to UPS Capital’s survey. For the smaller ecommerce business owners that can’t compete against bigger companies, the best way they stay competitive is by offering a world-class customer experience (CX). SMBs should be as transparent as possible with customers to ensure timely deliveries of goods, and have open lines of communication to update when items are out of stock, to share the status of replacements items, and more.

What is the impact of shipping on customer experience?

A positive shipping experience translates into a good CX, which directly translates into happy customers. UPS Capital’s holiday survey reports that 82% of customers will shop with an SMB if they offer free shipping and 45% will shop with you if you offer one or two day shipping. The trick is getting it right when things go wrong. Nearly half of consumers (44%) say a lack of resolution support for stolen or damaged packages would cause them to never shop at a retailer again. By making customers feel seen and heard after an incident like porch piracy or a supply chain delay, you help build a foundation of trust with customers that is essential to retention.

What are some ways that SMBs can help retain customers if something goes awry with their order?

SMBs have lots of options to help make things right if a shipping issue arises. UPS Capital’s survey found that consumers look past traditional offers from companies like discounts on future purchases and refunds – those are nice offers, but consumers want a resolution, rather than a band-aid. Nearly half (44%) of all consumers say they’d never shop with an SMB again over a lack of resolution for a lost package, while 39% say a lack of communication around delayed deliveries drives them away from shopping with a retailer again. SMBs can offer resolutions for customers in the form of free expedited shipping on a delayed product, or expedited replacements in the event of a lost or stolen package – 35% of consumers say they’d purchase if a replacement is guaranteed. Keep the lines of communication open, offer opportunities to share feedback, create solid omnichannel networks to align in-store and online experiences to meet customer needs, and enable a positive post-sales experience by using shipping insurance to reship a replacement quickly and maintain trust in the wake of a shipping mishap.

How can SMBs prepare for surges in demand, like what we’ve seen in the past year as a result of the pandemic?

With the roadblocks businesses and consumers faced this year, there are several ways SMBs can address issues before they become problems. Offering timely promotions will ensure delivery before Christmas – you could even set a deadline to place an order for optimal transparency. Leverage electronic inventory management systems that updates your eCcommerce site, so customers aren’t placing orders for out-of-stock items. Lastly, obtain coverage for shipments to mitigate the financial hit you and the customer take in the event of a shipping mishap – you’ll save on the unexpected expense and the customer has a positive experience.

About Kiel Harkness

As VP of Global Marketing and Business Intelligence, Kiel connects UPS Capital’s digital insurance solution set with small businesses across the U.S., Europe, and Asia to create positive outcomes for customers. Kiel harnesses his experience with insurance, small businesses, and insuretech to offer small businesses solutions they can access, afford, and grow with as they navigate business cycles through domestic and global market trends. UPS Capital is the shipping insurance division of UPS, providing package and freight shipping insurance for any carrier, by land, sea and air.

About UPS Capital

UPS Capital is the shipping insurance division of UPS, and they provide package and freight shipping insurance for any carrier, by land, sea and air. They deliver the brighter side of shipping by anticipating and removing pain from the process for small and medium sized businesses, by giving them peace of mind that their customers will have better post-purchase experiences.

Amazon Stocks underperforms FAANG

Stocks

Mega-cap Technology Amazon records a meager increase of 2.4 percent in 2021. The company’s stocks received a blow and ended up underperforming other so-called FAANG stocks. Amazon shares recorded such bad returns in 2014. The stock took a 22% hit that year.

The other four members of FAANG performed extraordinarily well. Alphabet, the top performer, gained 65% in the stock. Whereas Meta Platforms, Netflix, and Apple had quite a good year with 23%, 11%, and 34%, respectively.

Microsoft’s share also saw a rise of 51 percent this year. The Nasdaq Composite also recorded growth of 21% in stocks.

Analysts identify several factors behind the company’s steeped stock performance. The impact of the pandemic on business is contradictory. With more consumers shifting to online retailers, there are increased sales for Amazon, Etsy, WayFair, and eBay.

Even Amazon’s business featuring cloud computing and advertising had good revenue in 2021. Bad performance in core retail is mainly responsible for poor stocks performance.

According to Forte, an Amazon stock investor, “investor concerns about rising costs in Amazon’s core retail business may have also contributed to the stock’s underperformance.”

Amazon notified Wall Street that the company would dedicate itself to spending billions of dollars on coronavirus-related costs. The company supported front-line workers.

In the latter part of the year, Amazon was hit by global supply chain constraints. The labor challenges were also part of the same issue.CEO Andy Jassy commented on the issue, “Amazon would take on several billion dollars to take care of this problem.

As a result, Amazon increased wages and bonuses to take care of the labor constraint. It also had to reroute packages, which increased the inventory cost.

The Guggenheim Analyst, Seth Signan, highlighted the hope for better stocks growth this year. He also added that Amazon would enjoy benefits from the pandemic-related investments. Also, the stocks could record high growth in 2022.

Lastly, there will be issues with rebounding. However, several analysts have already announced Amazon as their top pick of the year.

Omicron can fuel inflation as Americans incline more to shopping

shopping

The National Retail Federation’s Chief Economist, Jack Kleinhenz, warns that the third wave of Corona holds the potential to create inflation as more and more Americans will keep shopping instead of spending more outside of the home.

The news recorded his view on the current economic scenario. He said that “little is certain about omicron’s impact on consumer demand, but people who stay at home because of the variant are more likely to spend their money on retail goods rather than services like dining out or in-person entertainment.”

Also, this can speed up inflation as supply chains are already overloaded by online shopping.

He adds that “each successive variant has slowed down the economy, but that the degree of the slowdown has been less.” Consumers are reluctant to spend more as they are now fully vaccinated and are hearing about milder cases.

As per the data collected by John Hopkins University, the U.S. recorded more than 1 million new infections on Monday. The country is currently reporting 553,000 new infections daily, which is twice the week before.

The spread of Omicron has led to the shutting down of retailers and restaurants across the country. Starbucks, Nike, Apple, and Gap-owned Athleta, have either shut stores or shortened the opening hours. Walmart has temporarily closed more than 60 stores in the coronavirus hotspot region.

The Federation predicts that holiday shopping will boost revenue generation in November and December by between 8.5% and 10.5%. It also has the potential to set a high sales record of between $843.4 billion and $859 billion.

The trade group will report the official holiday sales next week after the Census Bureau shares December retail sales data. Kleinhenz also stated that holiday sales could increase by up to 11.5 percent over last year.

Lastly, it is important to understand that Omicron is unlikely to disturb or slow down businesses.

Bed Bath & Beyond Business falls to 30% as Amazon and Target Attract Couples

Target

A recent survey conducted by Baird revealed that more and more engaged couples are signing up with Amazon and Target. This is bad for Bed Bath & Beyond’s as its share of wedding registries slipped to 30 percent.

Amazon declared itself the top retailer for wedding registries, with a total of 45 percent listing penetration. Bed Bath recorded a drop in the listed share from 33% in October to 34% in July. This decline could create serious trouble for the company.

Target has a 26% market share in the wedding registry industry. Justin Kleber comments that “wedding registries are an important indicator for retailers who sell home goods. Registry purchases tend to have higher margins since family and friends often choose gifts from the list rather than hunting for deals. “

He also added by saying that “If you are capturing a customer at a point in time when they’re married, what comes after that is maybe a new apartment or a new house, and maybe after that, your family is expanding with a new baby or two.”

Experts suggest that the current year will be a wedding boom as couples will move forward with ceremonies and celebrations. It is a flourishing sign for the industry after the pandemic period.

Baird tracks the randomized data of newly engaged couples from The Knot.com. The data has changed significantly since the survey started in January 2017.

Earlier in 2017, Bed Bath ruled this industry with a 44% listing penetration share. Target and Amazon, with 29% and 20%, respectively,

Kleber also said that the changes showcase Amazon’s strategies to acquire the market. And also the struggle of Macy’s and Bed Bath & Beyond to adapt to eCommerce to attract potential audiences. The company reported its fiscal third-quarter earnings on Thursday.

Retailers are also having a hard time dealing with new threats. Today, couples tend to opt for a honeymoon and cash funds rather than requesting knife blocks, towels, and duvets.

Cash/travel records popularity with a hike of 6% penetration from January 2017 to 2022. This happened to millennial and Gen Z couples who prioritize experience over goods.

Guggenheim said Nike will dominate the market in 2022

Nike

Guggenheim analyst Robert Drbul notified the clients that Nike will dominate market share in retail. Nike’s share will continue to grow with new innovations in footwear and apparel in 2022.

Even though Nike had turbulence in the global supply chain. The factory closures during the pandemic slowed down the shipments this year. But the company bounced back quickly to reach the financial target laid out in June 2021.

The brand suffered slow growth in China, becoming a key weakness for the company’s reduced revenue. It happened due to the availability of low inventory in Vietnam. Shipment delays caused by the ongoing COVID lockdown stifle sales growth in countries such as China.

Robert also added that “this presents an opportunity for long-term investors as Nike continues to deliver and innovate products that connect with local consumers by promoting healthy lifestyles and other important societal themes.”

Nike announced that it was incorporating a virtual sneaker company, RTFKT, last year. With the Metaverse engagement, the brand expects to increase its revenue. This will make Nike one of the first footwear brands to enter the shared virtual world. This digital transformation will enhance customer service as it will become more creative and fun.

The brand’s engagement strategies in the metaverse will be a sight to watch as they will continuously evolve. Nike aims to expand its potential into the metaverse via virtual sneakers.

The retailers filed trademark applications related to their vision of selling virtual sneakers and apparel. It partnered with the Roblox video game last year. The engagement between the two was to launch “Nikeland.”

The aim was to create a platform that enables the customer to interact, connect, and dress their avatars with Nike’s digital showroom. The digital showroom featured products like the Air Force 1 and Nike Blazer.

The shares of retail faced a beat of 1 percent in early trading this morning. However, it increased its stock by nearly 18 percent in 2021. Currently, the market value is well over $260 billion.

Interview with Rob Van Nuenen from Channable

Rob Van Nuenen Channable

Team eCommerce Next interviewed Rob Van Nuenen from Channable to get more insights on 2021- Year in Review. Following is our interview with him:

What was your view going into 2021 knowing what 2020 had gone through?

Going into this year, we really did not know what to expect. A big driver for us in the past has been events, in-person communications and networking to increase brand awareness in our emerging markets. As we pivoted to an online “everything” model, we did not know how fast certain industries would adapt.

Any assumptions we had about the industries we serve being unresponsive were unfounded. After the first few months, everyone adapted quite well to working from home. What did surprise us was 2020 to 2021. We expected the explosive growth of our market to level out a bit (more over the year), but this growth seems to be here for the long run. The transition to get online and the growth in e-commerce and Channable has not stopped. Now looking back on two years of change, we know the shift to e-commerce is here to stay. This will only grow as people and businesses get more comfortable online.

As the e-commerce landscape started to get a bit more crowded, we noticed that the reason new clients came to us was to help them stand out from the competition. I mean this in a few different ways. First, e-commerce advertising does not just mean a web shop and Google Shopping anymore. It means a more focused multi-channel strategy that requires an overarching view with insights to successfully sell your product(s). Second, with the rise of social channels and marketplaces, digital data distribution became a lot more complicated. Meaning, that the original online shop data sources needed to be organized, optimized and fine-tuned for each channel to create the desired ad results for our clients. These challenges led to many of our customers requiring deeper data insights into their ads to have a better Return on Ad Spend (ROAS) or Profit on Ad Spend (POAS) marketing strategy.

Channable had a significant surge in growth in 2021 in terms of people and customers. What do you attribute your success?

Well, Covid-19 over the past year did have some interesting effects on our business. It made people more aware of the importance of online selling, pushing businesses to allocate a much higher contribution of online ad spend vs. offline – resulting in more revenue being driven by online sources. Because Channable is scalable by default, we mostly saw a group of new customers that would not have normally advertised so heavily in e-commerce or would have needed product syndication tools (like ours) to manage their channels.

The push in 2020 was to get online meaning building an online presence via platforms like Shopify and Squarespace, but the next question on every retailer’s mind was where to advertise. This is when Channable provides the next step in the e-commerce business strategy – multichannel product advertising and distribution. Our unique offerings of feed management and PPC automation were very attractive to many retailers and marketers ready to take their online strategies further.

As e-commerce grows significantly each year, what new developments are you looking at in 2022 and why?

Well, we do have some exciting news! With the success of the past few years and our own internal preparations, we are now looking to further develop the North American market. This has already started with the opening of our US office in New York City. We see this market significantly growing moving forward. With our North American expansion, we are also focusing our development on the needs of that specific market, with more announcements further into 2022.

What are some of the benefits of product data feeds that digital marketers today need to capitalize on more in your view?

Well as I mentioned earlier, many of our clients are utilizing more and more data insights to drive their ROAS marketing strategy and increase ROI. The ROAS metric is calculated to enable companies to assess the value of their ads as well as compare them with each other. Creating hyper-relevant ads can often seem like an impossible task – especially when you have multiple accounts with large product catalogs. But many people do not realize they are sitting on a goldmine of data if they can organize and decipher it properly. With a product feed management solution, this information can be used to drive advertising decisions and even generate the ads themselves based on the original product information in little time.

What are some of the common mistakes you see marketers make when working with large e-commerce clients?

All I can say is work smarter not harder. At a certain point, you cannot scale and handle more clients or ads if you are doing the work manually. Look and see what solutions you can utilize to help support your workflow and advertising strategy.

About Rob Van Nuenen

Rob Van Nuenen, Channable’s co-founder and CEO, is a progressive leader focused on leveraging emerging technologies. His deep knowledge of technology delivers top e-commerce results for global digital marketing agencies, brands, and online retailers.

Rob’s experience and reputation are built on a successful track record of over 15 years in the SaaS, IT, and retail industries. Now, leading Channable, widely recognized as one of the fastest-growing e-commerce technology companies, Rob and his team power sales and optimize e-commerce performance with actionable insights for SMBs and leading retailers around the world including: The Disney Store, Philips, and Samsung among others.

Rob holds a BSc from the University of Utrecht.

About Channable

Channable provides an intelligent, scalable and simple-to-use solution for data feed management and PPC automation enabling online retailers, brands and agencies to sell, market and advertise their products globally. Spanning hundreds of directories, search engines, eCommerce sites and social networks, Channable powers sales and optimizes e-commerce performance with actionable insights to ensure peak performance. With over 6,000 clients worldwide using its product data feeds connections, price comparisons, order synchronization and affiliate platforms, Channable connects online retailers and marketers with global marketplaces, including Amazon, Google Shopping, Facebook and Microsoft Advertising.

Interview with Laura Haines from Famous

Laura Haines

Team eCommerce Next interviewed Laura Haines from Famous to get more insights on how to create an engaging, mobile shopping experience, the importance of high-quality design in creating immersive brand content and shopping experiences, Ecommerce predictions, and trends for 2022. Following is our interview with her:

What will 2022 bring for ecommerce?

We can expect to see ecommerce grow even further and that will bring some big changes and more innovation in the ecommerce tech space. Here are a few key trends that will be important.

As big tech companies are exploring the Metaverse, we will see the adoption of AR and VR accelerate in ecommerce. Some of the things we will likely see next are AR glasses for Instagram shopping and consumers creating their own avatars and personal identity in VR. Using these technologies will allow brands to differentiate themselves and create more personal connections with customers through immersive and highly customized shopping experiences.

Social commerce is another area that will see further growth next year as people discover and buy right in their social stream. Relevance is the key driver here and user data proves that the more we know about a user and their preferences, the more we can surface the best products that lead them to purchase. Being able to target them at the right time, in the right channel means businesses need to think about their marketing and messaging at multiple touchpoints. Having a great website, email and social campaign is no longer good enough.

There are still some last hurdles brands will need to overcome to truly be successful in the area of social commerce. First, brands need to better streamline payments to remove any remaining barriers for customers to complete a purchase and have a seamless shopping experience. Some businesses have even started to adopt cryptocurrencies or NFTs, and are leading the way for others to follow suit. Live shopping will be the second challenge here. Brands that make it as easy as possible for shoppers to discover and view a product and then make a purchase via livestream will reap the benefits of increased customer engagement, loyalty, and ultimately sales.

Brands will also need to prioritize building trust with consumers and ensure they’re well educated about their products. While there are more and more channels available for customers to purchase as well as more content and ads used to influence their decisions, we see a decrease in the content length and customers’ decision-making time. If brands continue to encourage such quick, impulse, and often ill-informed purchase decisions, they risk having to deal with increased returns and customer churn. In 2022, it will be crucial for brands to be transparent about their offerings to foster customer trust and loyalty.

What does 2022 look like for small businesses?

2022 will be a true game-changer for the decentralization of ecommerce as we know it. Smaller brands will be able to compete with bigger players thanks to lower barriers of entry and tools that allow them to create premium, high-quality content as well as better and more easily sell their products online.

At Famous, we believe that in today’s digital world, unlocking your own potential, getting your ideas and business online, creating a website and online store, and building creative marketing campaigns should be fast and simple for businesses of all sizes. And anyone, regardless of their skill level and technical abilities, should be able to create high-quality sites, pages, and visuals to bring their ideas to life and build a successful business to ultimately connect with the world.

While some of the latest technologies such as AR and VR might still take a while to be more accessible to small brands, there are plenty of other tools out there that empower entrepreneurs and brands of all sizes to build engaging shopping experiences and look as premium as they feel – on par with big players. Ecommerce and design tech has immense potential for growth and we’ll continue to see more innovation to make it easy for anyone to create beautiful ecommerce experiences.

How do you see marketing strategies change for ecommerce businesses?

Consumers’ attention span continues to shorten and we’ve become increasingly used to multi-tasking – especially since everything became digital amid the pandemic. Therefore, marketing efforts are moving to shorter, easily digestible, and more targeted, personalized content.

We’ll see brands moving away from long-form content such as TV ads and leverage shorter, in-screen or online video content. Audio and banner advertising will also become more popular as a way to make content consumption a by-product of consumers’ browsing activities online.

As all generations have adapted to scanning QR codes amid the pandemic, we’ll likely also see marketers continue to use them in various ways to integrate and align the online and in-person experience.

How can brands create more engaging shopping experiences that increase conversions and sales?

First, it’s important to optimize your landing pages and entire shopping experience for mobile. With mobile making up 52% of internet traffic and desktop use declining, shoppers are on their phones and use social media apps to browse and shop. This means it’s crucial to optimize your pages and designs for mobile, which is different from the desktop and browser experience.

Brands should also use immersive, well-branded designs and visuals. With so much competition, it’s hard for brands to get customers’ attention online – it only takes approximately 50 milliseconds (0.05 seconds) for visitors to form an opinion about a website that determines whether they will stay or leave. This translates to your social posts and pages, so it’s essential to use videos, animations, and other immersive visuals that engage the shopper and trigger whatever emotions you want them to feel about your brand and product.

After you’ve created a top-notch mobile shopping experience, make sure to elevate and promote it with creative marketing campaigns that drive people to your store. If you don’t engage with them where they are, shoppers likely won’t find out about your brand, so be sure to cover all relevant channels – from social media to email and text message.

Focus on telling your brand story rather than selling your products to build a more personal relationship with consumers and allow them to connect with your brand on a deeper level. This will ultimately lead to higher conversion rates, increased customer engagement, and loyalty.

With consumer attention limited, what are some design strategies brands can implement to capture their attention?

To best capture consumers’ attention, using immersive and engaging visuals, as mentioned previously, is key. Research has shown that customers are twice as likely to purchase a product if it has a 3D product image rather than a flat image, so make sure this is a priority.

Your messaging across various channels – from social media accounts to landing pages – should also be succinct, straight to the point, and easy to understand. Avoid jargon or sales language and effectively convey the value your product provides. Convey to them the why – why the customer should have that product in their life and how it will improve it. That allows you to tap into some truly powerful messaging.

Intuitive navigation is another important design element. Shoppers should be able to easily browse your page to see and access relevant products and information quickly.

Finally, tailor your product pages to your different audience segments and where they are in the marketing and sales funnel to optimize engagement and conversion rates.

About Laura Haines

Laura Haines is the Chief Product Officer of Famous, a mobile ecommerce design platform helping anyone easily market and sell products online. Based in Australia, she helps drive the company mission and leads the cross-functional teams in product design, development, and strategy.

Laura started her career as a software engineer at JPMorgan before she went on to project management and finally product management at companies such as Skyscanner and Typeform. Prior to Famous, she was the General Manager of Global Partnerships and Products at the leading design platform Canva, where she oversaw the entire product and partner portfolio, set the company’s mission, strategy, and goals, and managed a variety of teams across sales, marketing, engineering, operations, and product.

About Famous

Famous is a no-code mobile ecommerce design platform that enables merchants, creatives, and business owners to captivate their customers through beautiful, engaging, and immersive designs, leading to lower bounce rates, higher conversion rates, and increased customer loyalty. Famous makes it easy to create and customize, with little to no technical expertise required. We believe that the future of ecommerce lives on mobile and we give brands the ability to convey their unique stories and cultivate a deeper connection with customers to sell their products in the best way possible.

Apple shifts focus to Product Push in 2022

Apple

Apple did profoundly better last year than its competition in terms of revenue collection. And the company is on track to do exceptionally well even in the new year of 2022. It plans to increase its customer engagement by launching new iPhones and Air Pods.

According to Bloomberg, Apple is likewise looking to strengthen its position in VR headsets. It will serve as a high-end niche product featuring 8k displays and eye-tracking technology to its consumers.

Even though 2021 was a golden, bright, and optimistic year for the revenue department, it couldn’t come up with new elements. It is one of the obvious reasons why Apple has decided to push products into the year 2022.

The tech behemoth will release new pick-up products, including iPad pro Macs and one of the best MacBook Air redesigns in the history of Apple. It has also envisioned creating havoc in the ever-developing market with the iPad Pro with wireless charger.

Apple will try to appeal to its potential buyers with an advanced 5G version of the iPhone SE and a new iPhone 14 range with a hole-punch-sized notch later in the fall. It will also bring in the latest featured Apple Watches, featuring the new SE, a series 8. This version is professionally and specially designed for sports enthusiasts.

According to a recent popular report, Apple will not take a break until it releases a new VR headset codenamed N301. However, there is no specific time limit for the same. Apple has knocked down this project before. Now it is finally set for the years 2020 and 2021.

To not lose its talents to competitors like Facebook parent Meta, the company has been giving luxurious and extensive bonuses to encourage skilled engineers. Meta hired around 100 engineers in the last few months from Apple. It has appealed to the company to take better care of its employees.

Dealers thinking to leverage ‘Now’ in buy now, pay later

pay later
pay later

In retrospect, there are the tendencies, the seismic changes in the landscape that appear apparent and that we probably have noticed a mile away. Understand, then, of purchase now, pay later arguably the fees noticeable of the previous year. The reinforcements, the tailwinds, were, and are, looking us just in the face.

The perception that installment fees provide towards allowance planning and money flow supervision has found special appeal with customers care about. To that edge, we probably question a few of the headline sales that have implied the need for fee giants to increase a further foothold in the area.

The significance inherent in BNPL is that substantial numbers of users discover that extending pay later over time enables them to regulate their monthly costs and avoid payments. In other terms, there’s perception inherent in the norm.

There are indications that conventional lending, as a business, is taking the attention of BNPL. In late December, value reporting agent Equifax put an agenda in place the following year to add BNPL or buy now, pay later strategies to credit reports.

The time has ended with a bit of difficulty for BNPL, mainly in the form of regulatory attention. CFPB or The Consumer Financial Protection Bureau is presently querying fee policies, refund, issuance of buy now, pay later companies. There is evidence that the main quarter is probably a bit bumpy.

The December 16-page ruling from the CFPB asserts that The Bureau is regulating BNPL items and customer usage of these items. This Order will give data crucial to make such inquiry in submission with Congress’ requirement.

The Bureau monitors for hazards to customers in the provision or offering of customer financial services or products. It includes improvements in markets for such services or products. Zip, PayPal, Klarna, Buy Now, Pay Later, and Affirm have until March 1, 2022, to answer back.

Holiday gift returns anticipated to be 59% despite supply chain and labor issues

supply chain

Americans’ returns of undesirable holiday presents will confirm costlier for dealers. CNN wrote, especially as dealers grapple with increased expenses because of the tag-team assault of the labor market and supply chain problems.

Returns processor Optoro asserted that in 2021, a $50 product would seize $33 to process, a 59% uptick from the previous year. The expenses have also undergone liquidation and discounting problems.

Recoveries are not uncommon after the supply chain festivals, and the increased percentage of digital investments has only accelerated that. However, as per Optoro, 2 out of 3 buyers are apt to return at least 1 present during the 2021 festival season.

There is a possibility of about $120 billion in products returned between Thanksgiving and the end of January 2022. The 2021 festival season is also probably a period of record-setting. CEO and National Retail Federation President Matthew Shay also explained the holiday deals could increase as much as 11.5% from the last year.

People in America soldiered on and kept purchasing this year despite a myriad of problems, such as inflation and supply chain problems. As per an article from Mastercard, retail deals increased 8.5% year-over-year between Nov. 1 and Dec. 24, with apparel deals enabling to run that along.

Adviser Steve Sadove said the festival investment was starting to begin much earlier, starting further in October or so. He also continued that the customer “buys early,” and then they proceed to purchase. That is why it is good for industries to maintain the season driving longer by keeping items running over months and utilizing promotions.

Besides, Sadove also said that an effort from supply chain executives is necessary to regulate inventory. Dealers, he said, had also dropped into a system not realizing the requirements, everyone intending for the worst and not purchasing enough.

Walmart scored the largest of all click and collect orders in 2021

Walmart

One in every four dollars that people in America expended on digital investments obtained. They obtained it through either curbside picking or inside of shops this year moved to Walmart. The huge box giant moved 25.4% of all click-and-collect investments in 2021.

It is the biggest market investment of any U.S. dealer. That clarifies a total of $20.4 billion in deals. Retailers expect Click-and-collect to leap by nearly 21% to $101 billion in 2022, as per the data tracker. This is something individuals are committing now, noted Suzy Davidkhanian.

She is the main analyst for e-commerce and retail at Insider Intelligence. Individuals started to receive behavioral alterations during the Covid pandemic. For Walmart, click and collect has transformed a big shop footprint into a projectile to drive back e-commerce giant Amazon.

Not just to push more deals but to nudge online sales and margins near to profitability. Walmart owns over 4,700 shops in America, excluding its membership-based shop Sam’s Club. Amazon’s shop footprint is only a part of that, particularly of its over 500 Whole Foods areas.

Walmart, the nation’s biggest grocer by earnings, started piloting digital grocery pickup before the Covid-19 pandemic. It assessed the method of buying at a shop in Denver in 2013. It also showed its 1,000th area with assistance in 2017. Walmart now has curbside pickup at over 3,700 shops.

Walmart’s click-and-collect deals have almost tripled over the last 2 years, rising from a total of $7.21 billion in 2019. Its market investment has risen. Its U.S. e-commerce industry has yet to change revenue, despite broadening 79% in the last fiscal year.

After Walmart, customers can expect Home Depot to have the second-largest market investment for click and collect. Home Depot launched curbside pickup to shops across the nation in spring 2020 at the beginning of the corona pandemic.

After COVID-19, customers are relying more on digital payments

digital payments

Among the numerous ways, the pandemic has transformed our existence is the way it transformed how we feel about digital payments. We reported in the new instalment of the Expanding Payments Choice Playbook.

Research displays that 49% of customers have gotten more habituated to making online payments as an outcome of the pandemic. In several cases, the reason was that they had few other choices in the first stretch of the Covid case.

But digital distributions portray the minority of distribution techniques, with only 16% of millennial customers. 17% of Gen Z respondents asserted that they had received an instant distribution when polled in 2020. The rising approval of digital payments could generate those volumes up.

Our conclusions also displayed that more Americans earned a distribution over the last 2 years than in current memory. Previously again, it was down to Corona, as many of those distributions came from the $400 billion in national basis fees generated to 138 million Americans.

And just as customer choices have shifted more and more to digital payments, so too have their senses shifted to digital tracks. The digital outlets include direct deposit, automated virtual cards when obtaining those fees. Our study discovered 68% of the customers prefer electronic payments for hourly wages.

And 47% of them prefer earning loan distributions and 45% for clinical reimbursements. Lastly, our study discovered that the receipt ratio of instant distributions tripled over the previous year. It rose fivefold in the past three years to the fact that it presently accounts for 17% of all distributions.

It includes product purchases, insurance claims, income, and investment accounts. This development coincides with a boosting awareness among customers of quick digital payments in general. If you’d prefer to know more about the shifting face of digital payment options, download your available copy of the Expanding Payments Choice Playbook.

Credit unions focus on AI to keep digital services crime-free

digital services

Several customers are modifying from in-person marketings to digital services tracks throughout 2020. New chances arose for fraudsters to take advantage of the rising situations. As an outcome, the Federal Trade Commission (FTC) obtained over 1.3 million crime reports between Q3 and Q1 of 2020.

CUs or Credit unions both in and in other portions of the globe were not free from these continuous crime trends. Most CUs and their dealers utilized risky email systems practiced bad software patch supervision, and fell victim to leaked worker certificates.

Cyberattacks on value unions cost organizations anywhere from $190,000 for tiny CUs and over $1.2 million for big CUs. Also, the economic effect of an assault on a single dealer is economically devastating. Expenses of digital services may exceed $1 million for big CUs and $300,000 for tiny CUs.

The new PYMNTS, Credit Union Tracker, and PSCU assess how the new crime prevention equipment and software can enable CUs. So that they can effectively prevent and mitigate crime while still giving high-level consumer services.

Credit federations are not resistant to the rise in crime attempts afflicting bigger digital services. A tiny part of Redstone Federal Credit Union’s 650,000 units newly fell victim to a BIN attack. The CUs crime prevention specialists reacted instantly to decrease and prevent further assaults. Luckily most of the proportions proceed on risked reports under $10.

The assault appears after a related safety breach that influenced the Air Force Federal Credit Union this year. Credit federations are waiting for the future with attention to cloud migration. Cloud technology possesses the ability to fulfill the digital-first odds.

While credit federation rulers historically have discovered the cloud intimidating because of the nuances of their actual legacy networks. To know more about how the new technology can enable CUs to proceed with meeting members’ digital service expectations and demands, go through the Tracker’s PYMNTS Intelligence.