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Amazon, Other Websites Battle Fake Customer Reviews

October 24, 2015: 12:00 AM EST
Online retailer Amazon and review websites, such as Yelp and TripAdvisor, face the persisting problem of fake consumer reviews. On October 16, 2015, Amazon sued thousands of freelance service providers for allegedly selling customer reviews. Review site Yelp has employed undercover staff to answer ads from companies soliciting positive reviews of their products or services. Demand for fake reviews continues growing, due to their positive impact on revenue. For example, an extra star rating on Yelp can help increase a restaurant’s revenue by 5–9 percent, according to Michael Luca of Harvard Business School.
"Five-star fakes", The Economist, October 24, 2015, © The Economist Newspaper Limited
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Logistics Horrors Bedevil India's E-Commerce Operators

October 22, 2015: 12:00 AM EST
In India, e-commerce startups have to deal with high costs of logistics, which can go as much as 30 percent of their net sales, according to consulting firm Technopak. In contrast, Amazon.com Inc. spent 11.7 percent of net sales on delivering packages to customers in the United States. Logistics-related obstacles Indian e-commerce firms face include bad roads, unreliable trucks, monsoon floods, corruption among state-border officials, and complicated tax rules. India’s leading online retailers, including Flipkart Internet Pvt., with more than $3 billion in the bank and a market valuation of $15 billion, and Snapdeal, offer customers large discounts on products ranging from smartphones to refrigerators.
Sean Mclain et al, "Indian Startups Vie to Win E-Commerce Battle", The Wall Street Journal, October 22, 2015, © Dow Jones & Company, Inc.
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Walmart Expects Weak Sales Growth In FY 2016

October 16, 2015: 12:00 AM EST
Walmart said it expects total net sales growth to be relatively flat for fiscal year 2016. During the company’s 22nd Annual Meeting for the Investment Community, company executives said Walmart’s investments in e-commerce platform and technologies, higher salaries, and store hours are expected to affect sales growth. Also, the company said total e-commerce and digital capital investments will be about $1.1 billion in fiscal year 2017.
Jamie Grill-Goodman, "Walmart Sales Will Remain Flat After E-Commerce Investments", Consumer Goods Technology, October 16, 2015, © Edgell Communications
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Karity Employs E-Commerce To Boost Direct-To-Consumer Selling

October 15, 2015: 12:00 AM EST
Karity is using online selling to grow its color cosmetics business. By adopting an online commerce platform, the startup seeks to use digital technology for its direct-to-consumer selling strategy. Like other startups in the beauty market, Karity aims to grow organically while keeping its advertising costs at a minimum and rely instead on word-of-mouth advertising. Also, Karity plans to launch a try-at-home program, which will allow customers to try its makeup and return the product if they do not want to keep it, for free.
Deanna Utroske, "Will state-of-the-art e-commerce shake up the beauty business?", CosmeticsDesign.com, October 15, 2015, © William Reed Business Media SAS
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Unilever's Online Revenue Growth Outpaces Global Market 2-to-1

October 15, 2015: 12:00 AM EST
Unilever’s online sales across its business grew 40 percent, twice the global market’s 20 percent. Benefitting from its early ecommerce investments, Unilever expects to see ecommerce sales accounting for about 6 percent of its retail sales in 2015. UK and Ireland are accounting for a significant portion of Unilever’s ecommerce growth, with France as the company’s third largest online market. Growth in its online business helped boost Unilever’s revenue by 5.7 percent in the third quarter, the company said.
Seb Joseph, "Unilever’s online sales are growing at twice the rate of the global ecommerce market", The Drum, October 15, 2015, © Carnyx Group Limited
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Birchbox Launches Own Line Of Cosmetics

October 14, 2015: 12:00 AM EST
Beauty subscription service company Birchbox said it will start selling its own makeup line. After making a name for itself by selling samples of established beauty brands and in a move to defend itself from beauty companies’ launch of their own subscription services, Birchbox is launching the LOC, or Love of Color, line of cosmetics products, including sets of lipstick and eye shadow. Developed by the company’s in-house team, two collections will be released each year, Birchbox said.
Kim Bhasin, "Birchbox to Start Selling Its Own Beauty Products", Bloomberg, October 14, 2015, © Bloomberg L.P.
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Metro Cash And Carry India Opens New Store; Plans E-Commerce Business Launch

October 14, 2015: 12:00 AM EST
Metro Cash and Carry India Pvt. Ltd. will open its second store in Delhi on October 15, 2015, bringing its total number of wholesale stores in the country to 19 and closer to its goal of having 50 branches in India by 2020. Besides opening new stores, Metro AG’s Indian unit plans to expand its business by launching an e-commerce business in the country. As part of its online business plans, Metro Cash and Carry began testing Metro Direct, an online service that allows customers to order non-food products, in Bengaluru.
Sounak Mitra, "Metro Cash and Carry eyes e-commerce sales", Livemint, October 14, 2015, © HT Media Ltd.
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Walmart Introduces Three-Year Business Growth Plan

October 14, 2015: 12:00 AM EST
Wal-Mart unveiled a three-year business growth plan, which includes sales growth projection of $45 billion to $60 billion for the period ending fiscal year 2019. For its main goal, the growth plan envisions Wal-Mart to be the first retailer to provide consumers with a “seamless shopping experience.” According to the company, it will achieve this goal by winning with its stores, building on digital relationship with customers, and adopting “critical capabilities” needed to drive growth. Also, the company plans to invest $1.5 billion to raise the starting wage for current associates to at least $10 in the United States. Wal-Mart is also investing in technology to improve customer experience.
Doug McMillon, President & CEO, Walmart, "Why Walmart is Positioned to Win the Future of Retail", Walmart, October 14, 2015, © Wal-Mart Stores, Inc.
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Walmart Announces Three-Year Strategic Plans At 2015 Meeting

October 14, 2015: 12:00 AM EST
Wal-Mart Stores, Inc. discussed its strategic outlook and future growth plans at the company’s 2015 annual meeting. Part of the company’s three-year strategic plans, net sales is projected to grow between 3 percent and 4 percent annually, or $45 billion to $60 billion, during the period. Also, the company highlighted plans to invest in people and technology to ensure strong shareholder returns. In terms of capital investments, the company will allocate $11 billion for fiscal year and will likely remain at that level for fiscal years 2018 and 2019. Also, the company said it plans to invest about $1.1 billion on e-commerce and digital business ventures in fiscal year 2017.
"Walmart strategy drives growth and sustainable returns, Plans $20 billion share repurchase program over two years", Walmart, October 14, 2015, © Wal-Mart Stores, Inc.
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Facebook Adds Online Shopping Features To Networking Site

October 12, 2015: 12:00 AM EST
Facebook Inc. is adding several advertising features to its online social networking site as part of its efforts to encourage users to shop using its app. Seeking to overcome users’ reluctance to make online purchases using their mobile phones, Facebook is working to make the process a faster and smoother experience. Features being tested by the company include ads that lead users to products without leaving the site.
Yasmeen Abutaleb, "Facebook pushes shopping features in move to e-commerce", Reuters, October 12, 2015, © Thomson Reuters
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Jet.com Drops $50 Membership Fee, Lowers Discounts

October 7, 2015: 12:00 AM EST
Online retailer Jet.com said it is no longer requiring members to pay $50 in membership fees. In July 2015, the company launched its membership-based online store to compete with warehouse clubs, such as Sam’s Club and Costco. Also, the company aimed to compete with Amazon’s bulk products business by offering prices 10 percent to 15 percent lower than the lowest online prices. Although the company is losing its only source of profits, Jet.com founder Marc Lore is confident of generating profits by offering smaller discounts.
Leena Rao, "Jet.com, the online shopping upstart, drops membership fee", Fortune, October 07, 2015, © Time Inc.
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Honest Co. Finds Success Through Digital Pathways

October 7, 2015: 12:00 AM EST
The Honest Co., currently valued at $1.7 billion, is one of the most aggressive and most effective brands when it comes to leveraging digital marketing tools, according to L2’s Digital IQ Index: Personal Care report. Co-founder Jessica Alba’s celebrity status has been helping the company’s overall performance; however, 80 percent of The Honest Co.’s revenue comes from its diaper subscription service. Like other subscription companies, The Honest Co. invests in paid and organic online search results, with the company’s website appearing in 4.1 percent of diaper-related search results. Also, the company’s HonestBaby mobile app integrates with the website and engages consumers by helping them keep track of their babies’ development milestones.
Homa Zaryouni , "The Secret Sauce to Honest: Subscriptions, Search, and Social", L2 Think Tank, October 07, 2015, © L2 Think Tank
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Campbell’s Jumps Aboard Amazon’s Rocket Ship To The Future

October 7, 2015: 12:00 AM EST
Campbell’s is helping Amazon revamp the way we re-order household brands and ask for – and receive – recipes. Campbell’s is testing Amazon Echo, a new speaker system with voice-control technology. Users can use an app called Alexa to ask Echo for several verbal or e-mailed recipes a day from Campbell's Kitchen, the company’s online cooking portal. Though Amazon and Campbell are keeping their product testing cards close to the vest, it seems that Echo complements Amazon Dash, the $5 smart buttons that can be installed around the house to instantly re-order products like beverages, diapers, toilet paper and coffee.
Christopher Heine, "How Campbell's Is Offering Recipes via Amazon's Voice-Control System Say 'hello' to our Jetsons-like future", AdWeek, October 07, 2015, © Adweek
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Wal-Mart Holds On To Market Share With Three Strategies

October 6, 2015: 12:00 AM EST
Wal-Mart adopted three strategies for protecting its share of the retail market from online retailers. Leveraging its “everyday low price” policy, the company added the Savings Catcher feature to its mobile app which enables customers to verify that the goods they bought are lowest priced at Wal-Mart. Also, the retailer offers unmatched convenience to consumers by combining ease of online shopping with local pickup option through its network of local stores. Wal-Mart’s mobile app has become one of the most popular in the retail segment, with consumer adoption driven by the app’s Savings Catcher feature to reach 22 million users as of June 2015.
"Three Ways Walmart Is Making Big Strides In Its Battle Against Online Retailers", Trefis, October 06, 2015, © Insight Guru Inc.
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Mobile Purchases, Contextual Commerce Driving Sales In Beauty Segment, PayPal Says

October 6, 2015: 12:00 AM EST
Mobile purchases and contextual commerce are driving growth in beauty sales, according to PayPal SMB merchant marketing Katie Ochieano. PayPal saw mobile payment volume jumped 68 percent to $46 billion in 2014, the executive said. With data from eMarketer forecasting more than 25 percent of the world’s population using smartphones by the end of 2015, the trend is expected to continue. Contextual commerce’s impact on the beauty segment remains to be seen; however, PayPal believes brands and sellers will soon be able to add a “buy now button” in online places outside companies’ websites.
Deanna Utroske, "Mobile purchases are rising fast and driving cosmetics sales, says PayPal", Cosmetics Design, October 06, 2015, © William Reed Business Media SAS
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Online Marketplaces Dominating Internet Economies, Euromonitor Says

October 2, 2015: 12:00 AM EST
Online marketplaces that host the e-commerce products and services offered by third-party sellers are dominating Internet-based economies worldwide, according to Euromonitor. According to the market research firm, the Internet is “being conquered” by online companies whose revenue model depends on providing a meeting place for buyers and sellers. Further growth is forecast for these online platforms, driven by expanding Internet penetration in developing countries, which is forecast to rise from 16.1 percent of the population in 2009 to 29.9 percent in 2014. Global online marketplaces, however, face significant obstacles in leading emerging markets. For example, eBay has been unable to make progress against Russia’s leading local marketplace Avito, while Amazon is finding it hard to compete in China against local giant Alibaba.
Pavel Marceux, "Why Online Marketplaces are Conquering the Internet", Euromonitor International, October 02, 2015, © Euromonitor
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Online Retailers Open Physical Stores In UK

October 1, 2015: 12:00 AM EST
Online retailers in the UK are opening brick-and-mortar stores. Online fashion retailer Boden, which has £280 million in annual sales, plans to open several new stores in the country, in addition to its original mail-order and online-only businesses. Rapha, an online seller of high-end bicycles and cycling products, opened its first physical store in central London two years ago. Online seller of beachwear, Orlebar Brown, started its ecommerce business in 2007; however, the company has opened five stores in London since 2011.
"Popping up everywhere", The Economist, October 01, 2015, © The Economist Newspaper Limited
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Target Adds More Rivals To Online Price-Match Lineup

September 30, 2015: 12:00 AM EST
Target Corp. expanded its price-matching campaign to include more rival retailers, such as Amazon.com and Wal-Mart Stores Inc. From October 1, 2015, Target.com will start matching prices from 29 online stores, as well as those of brick-and-mortar rivals, including CVS Health Corp. and Costco Wholesale Corp. Retailers have widely adopted price-match policies despite avoiding to make such offers previously due to bottom-line concerns.
Paul Ziobro, "Target Expands Online Price-Match Policy to Include Amazon, Wal-Mart", Wall Street Journal, September 30, 2015, © Dow Jones & Company, Inc.
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Emmas Enkel Opens New Stores In Germany's Cities

September 29, 2015: 12:00 AM EST
Startup online retailer Emmas Enkel continues expanding its operations in Germany’s urban centers. Already operating a store in the Berlin-Friedrichshain area, the company plans to open stores in the cities of Dortmund, Cologne, and Dusseldorf in the North Rhine-Westphalia region. Based on the company’s business concept of combining the atmosphere of a small store with the convenience offered by online shopping, the Berlin store features seating with the option of placing orders online. Retailer Metro Group bought a 15 percent stake in the startup in December 2014.
"Start-up Emmas Enkel continues to expand", METRO GROUP, September 29, 2015, © METRO GROUP
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YouTube Plans To Allow Shopping Ads On Videos

September 29, 2015: 12:00 AM EST
YouTube said it plans to introduce shopping ads on online videos that enable viewers to access retailers’ websites and purchase products displayed in the clips. At present, the Google-owned video-sharing site already lets advertisers display links to products within their videos; however, the new service will put ads on any video posted on the site. Video owners, however, need to opt in before the ads can be displayed.
Hiroko Tabuchi, "YouTube to Expand Shopping Links to More Videos", The New York Times , September 29, 2015, © The New York Times Company
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Wal-Mart Expands List Of Test Sites For Grocery Pickup Service

September 29, 2015: 12:00 AM EST
Wal-Mart Stores Inc. is expanding its free grocery pickup service to cover more cities in the United States. Seeking to address the growing competition from Amazon.com and other rivals that offer home delivery, the world’s leading retailer aims to leverage its network of brick-and-mortar stores across the country. Cities to be added to the retailer’s test areas for online grocery delivery services include Atlanta and Salt Lake City. Also, Wal-Mart will appoint or hire new employees to function as “personal shoppers” for shoppers availing themselves of the service.
Nathan Layne and Sruthi Ramakrishnan, "Wal-Mart expands grocery pickup in battle with Amazon", Reuters, September 29, 2015, © Thomson Reuters
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Aldi Plans To Launch Online Service In UK In 2016

September 28, 2015: 12:00 AM EST
German discount retailer Aldi announced plans to launch an online service in the UK. Scheduled for early 2016, the planned online service was unveiled following a 4.1 percent decline in sales in 2014 at the company’s UK and Ireland unit. Opening its first store in the UK in 1990, the company has spent £878 million on its expansion in the country, which included 54 new stores opened in 2014. As part of its proposed online business, the company will start selling wine by the case online, to be followed by non-food special sales in the spring.
Ian Walker, "German Discount Grocer Aldi to Go Online in Britain", Wall Street Journal, September 28, 2015, © Dow Jones & Company, Inc.
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Creative Mobile Marketing Tactics That Really Worked

September 24, 2015: 12:00 AM EST
Google released a report loaded with statistics and case studies describing creative mobile marketing tactics that have gotten results. One statistic that should prove eye-opening for mobile marketers: two-thirds of smartphone shoppers say they’ll switch to a competitors site if checkout drags on for too long. A case study on Red Roof Inn details how the motel chain took advantage of the statistic that canceled flights strand 90,000 travelers a day. The company launched a mobile campaign – “Stranded at the airport?” – targeting travelers frantic to find lodging nearby. Result: the chain experienced a 60 percent increase in last-minute bookings. Other “interesting” case studies in the report: Home Depot, Realtor.com, and Walmart.
Lauren Johnson, "4 Brands Whose Creative Approaches to Mobile Marketing Are Getting Big Results Google updates best-practice 'playbook'", AdWeek, September 24, 2015, © Adweek
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Indian Startup Aims To Offer Subscription-Based Products And Services For Men

September 24, 2015: 12:00 AM EST
The Man Company, a content-based subscription e-commerce platform for men’s grooming products, launched its service in the India market. Supported by a number of angel investors, including Microsoft India managing director Karan Bajwa and Airbnb India country manager Amapreet Bajaj, the company aims to offer male consumers in the country “convenience and choice” by integrating technology, high-end products, and high-quality content. According to the company, it seeks to meet the need for a brand and services exclusively for men. This also prompted the company to create its own brand of products for men, who currently face a limited range of choices in brands and products.
Harshith Mallya, "Subscription e-commerce startup for men’s grooming products raises funding from Microsoft India MD, Letsbuy founders", Your Story, September 24, 2015, © YourStory Media Private Limited
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N.Y. Bakery Links Up With Online Gift Retailer

September 24, 2015: 12:00 AM EST
New York City bakery Crumbs will gain access to a national audience thanks to a new partnership with online gift retailer Bake Me a Wish! Products to be featured on the page include gourmet assorted, chocolate lovers and birthday cupcakes, as well as seasonal offerings such as Halloween and holiday cupcakes. BMAW’s newly updated site offers the ability to share images of gifts across popular social media channels, show recommended gifts by occasion, has gift viewing options and sorting features. The site also offers an expanded product line including new cakes, cupcakes, cheesecake, pies and quiches.
"Bake Me a Wish! Announces New E-Commerce Website & Nationwide CRUMBS Delivery Partnership", News release, Bake Me a Wish!, September 24, 2015, © Bake Me a Wish!
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Online Shopping Behavior Differs For Touchscreen And Mouse Users, Study Shows

September 23, 2015: 12:00 AM EST
Online shoppers using touchscreen devices are more engaged and more satisfied with the buying process than those using mouse-equipped computers, according to Boston College researchers. Results of the study by researchers Adam Brasel and James Gips focusing on “interface psychology” revealed that touching an object on a screen provides a “direct visual metaphor” for the act of touching the product itself. Also, results of the study involving 63 participants showed subjects using touchscreen devices felt like they spent a longer time on the task than what mouse users indicated.
Arthur Zaczkiewicz, "Touch Screens vs. Mouse: A Tangible Difference for Shoppers?", Women’s Wear Daily, September 23, 2015, © Fairchild Fashion Media
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Instagram Reports Breaching 400-Million-User Mark

September 22, 2015: 12:00 AM EST
Social networking site Instagram said it now has more than 400 million users posting and sharing photographs online. Facebook’s subsidiary reported more than 75 percent of its users are located outside the United States, with more than half of the last 100 million members to join living in Europe and Asia. Among the site’s famous non-US-based members are UK’s David Beckham and Indonesia’s Raffi and Nagita. Instagram has been outgrowing other social network sites, including Twitter and Pinterest.
Davey Alba, "Instagram Now Tops 400 Million Users And 40 Billion Photos", Wired, September 22, 2015, © Condé Nast
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ASEAN's E-commerce Sector Expected To Boom, Analysts Predict

September 22, 2015: 12:00 AM EST
Socioeconomic conditions in Southeast Asia’s largest markets, which are Indonesia, Thailand, the Philippines, and Malaysia, are expected to spur growth in the region’s e-commerce market. Compared with other regions, ASEAN has a younger population, an expanding middle class, increasing Internet connectivity, rising smartphone adoption, and expanding range of payment options. In the period 2009 to 2014, the proportion of ASEAN population with access to the Internet grew from 12.6 percent to 25.8 percent, and is forecast to grow further to 44.6 percent by 2030. Euromonitor International forecast the apparel and footwear sector in Indonesia, beauty and personal care in Thailand, and consumer healthcare in the Philippines will be the fastest growing segments of the region’s e-commerce market.
An Hodgson, "Q&A: Understanding the ASEAN Consumer", Euromonitor International, September 22, 2015, © Euromonitor International
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Online Grocery Shopping Forecast To Reach $21 Billion In Value By 2016, Report Says

September 21, 2015: 12:00 AM EST
In the United States, online grocery shopping is forecast to expand from $15 billion to $21 billion by end of 2016, according to Forrester Research. Data from the market research firm’s report “Groceries 2.0” revealed a list of reasons for grocery shoppers’ reluctance to embrace online shopping. These include the inability to touch, smell, and feel fresh food products purchased online and not being able to avail of in-store promotions and discounts. Citing the experience of Walmart, the report identified challenges and opportunities for online grocers, such as the importance of marketing, the need to consider timing, and determining which products need to be available online.
Gemma Mainland et al, "America’s online grocery shopping expected to grow 40% by end of 2016", Australian Food News, September 21, 2015, © Australian Food News
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Factors Driving Growth Of E-Commerce In Emerging Markets Differ From Those In Advanced Countries

September 21, 2015: 12:00 AM EST
Several factors are driving growth of e-commerce use in emerging markets. Compared with those in developed markets, online retailers in emerging markets offer limited range and choice in products for sale. In turn, this is pushing demand for global shipping and international commerce. International online retailers also have to keep in mind the popularity of web-enabled mobile phones, which are often the only means of accessing the Internet in emerging markets. Most developing countries have limited banking facilities; hence, online retailers should offer more payment options in order to reach a wider consumer base.
Pavel Marceux, "What are the Main E-Commerce Drivers in Emerging Markets?", Euromonitor International, September 21, 2015, © Euromonitor International
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Personal Care Products Grab 11 Percent Share Of Brazil's Online Sales

September 17, 2015: 12:00 AM EST
Cosmetics, fragrances, and health products accounted for 11 percent of online purchases made by consumers in Brazil for the first half of 2015, according to market research firm E-bit. Data from the company’s WebShoppers report revealed online sales grew 16 percent during the period. Also, the average value of online purchases rose 13 percent, compared with the same period a year ago. Fewer people, however, shopped online, with the number of online shoppers dropping 7 percent to 17.6 million.
Deanna Utroske, "In Brazil, beauty and health purchases account for over 10% of ecommerce spending", Cosmetics Design, September 17, 2015, © William Reed Business Media SAS
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Ocado Reports Sales Growth Despite Supermarket Price Wars

September 16, 2015: 12:00 AM EST
Online grocery store Ocado reported gross retail sales rose 15.3 percent to £252 million in the quarter ending August 9, 2015, compared with the same period in the previous year. Sales growth, however, slowed from the 16.2 percent in the previous three months, while its average basket size declined 1.1 percent to £110.46 from the same period a year ago. According to analysts, falling prices in the retail sector, driven by price-cutting moves by the Big Four players, are adversely affecting Ocado’s sales.
Roger Baird, "Ocado sales rising as supermarket price wars intensify", Belfast Telegraph, September 16, 2015, © Belfast Telegraph
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Target Partners With Instacart To Launch Same-Day Delivery Service In Minneapolis

September 15, 2015: 12:00 AM EST
Target Corp. partnered with Instacart Inc. to offer same-day delivery of groceries and household products for $3.99 in Minneapolis. Described as an alternative to Amazon.com Inc.’s $299-per-year Amazon Fresh grocery delivery service, the service highlights supermarkets’ efforts to sell grocery products online. Target will be Instacart’s second-largest partner in the retail industry in terms of revenue.
Spencer Soper and Shannon Pettypiece, "Target Teams With Instacart to Challenge Amazon on Groceries", Bloomberg, September 15, 2015, © Bloomberg L.P.
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Walgreens Works With Postmates To Offer Same-Day Delivery Service

September 15, 2015: 12:00 AM EST
Walgreens partnered with Postmates to offer same-day delivery for a flat delivery fee of $4.99. As part of the partnership deal, Postmates will work closely with Walgreens to ensure that the catalog of the 500 most popular products in the store is always updated. Walgreens’ on-demand delivery service will be available at 600 stores across the United States.
Megan Rose Dickey, "Postmates And Walgreens Team Up For On-Demand Delivery", Tech Crunch, September 15, 2015, © AOL Inc.
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Target Tests Fast Grocery Delivery Service In Minneapolis

September 15, 2015: 12:00 AM EST
Target launched a speedy grocery delivery service in the Minneapolis area. Part of the retailer’s partnership with on-demand grocery delivery service provider Instacart, the service can deliver groceries purchased online from Target within an hour. Also, the partnership will enable shoppers to buy certain household, health and beauty, pet, and beauty products from Target’s online store.
"Target Pilots On-Demand Grocery Delivery with Instacart", A Bullseye View, September 15, 2015, © Target Brands, Inc. Target, the Bullseye Design and Bullseye Dog are trademarks of Target Brands, Inc.
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New Software Tools Help Retailers Sell Easily Across Apps, Social Networks

September 14, 2015: 12:00 AM EST
San Francisco-based e-commerce company Stripe unveiled a set of software tools, dubbed Relay, that help retailers sell goods more easily across a variety of apps and social networks. The product also makes checkout simpler for consumers. Believing that more people are starting to buy things online, Stripe hopes to lure big retailers like Macy’s and Saks Fifth Avenue to use Relay for selling across Twitter and other consumer apps. Twitter has integrated its e-commerce platforms with Stripe, hoping that   more people buy from inside Twitter itself. Fifty million people tweet some signal of intent — “I want, I need” — every month.
Mike Isaac, "Stripe Introduces New Tools to Simplify Mobile Shopping", The New York Times, September 14, 2015, © The New York Times Company
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Street-Side Retailers In India Not Really Harmed By Online Sales

September 12, 2015: 12:00 AM EST
India's traditional brick-and-mortar retailers are not suffering from the country's surge in e-commerce, according to credit ratings agency CRISIL. Street-side retailers will grow as much as 15 percent over the next three years in the country, despite the eye-popping success of Web sites like Flipkart and Snapdeal. CRISIL says revenues at 24 traditional retailers have grown at a “very healthy” 24 percent CAGR in the last five years “despite the headwinds.” By comparison, revenue growth among online retailers reached 60 percent in the same period.
Madhura Karnik, "Why India’s online shopping revolution won’t kill brick-and-mortar stores", Scroll.in, September 12, 2015, © Scroll.in blog
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Spending On E-Commerce Platforms Will Increase To Improve Customer Experience

September 11, 2015: 12:00 AM EST
Almost three-fourths of e-business executives say their technology budgets will increase this year, and the biggest spending priority will be on e-commerce platforms (58 percent), according to a new study. Other spending priorities include integration of customer-facing Web sites with back-end business software (51 percent) (e.g., order and inventory management, financial accounting), and mobile sites and apps (44 percent). E-business execs are spending heavily to upgrade e-commerce technology to improve the way customers interact online with sellers, according to a Forrester analyst, and to find the information needed to place orders.
Paul Demery, "E-business managers plan increased spend on new e-commerce sites", Internet Retailer, September 11, 2015, © Vertical Web Media
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Google Launches Android Pay Mobile Payment In US

September 11, 2015: 12:00 AM EST
Google launched the Android Pay mobile payment platform in the United States. Expected to compete directly with Samsung Pay, Android Pay has recruited a number of large retailers, including Macy’s, Subway, and Walgreens. Allowing Android phone users to pay with their smartphone at more than 1 million retail shops across the country, Android Pay also allows users to store gift cards, loyalty cards, and special offers on their phone.
Chantal Tode, "Android Pay debuts while Google Wallet evolves, escalating mobile payments wars", Mobile Commerce Daily, September 11, 2015, © Napean LLC
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Discover Cardholders Can Now Use Apple Pay Platform

September 11, 2015: 12:00 AM EST
Discover is making the Apple Pay mobile payment platform available to its cardholders. The launch features a 10 percent cash back offer to encourage customers to take advantage of the convenience of mobile payments. Apple Pay has been a slow starter, thanks to some technical difficulties and a long learning curve at brick-and-mortar stores, but is now catching on with retailers, credit card services and consumers. A Capital One executive predicts a massive shift to Apple Pay this year as more consumers carry smartphones at all times. Magnetic stripe payments will decline as a result.
Brielle Jaekel, "Discover introduces Apple Pay capability, tempts users with cash back", Mobile Commerce Daily, September 11, 2015, © Napean LLC
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Metro Group Partners With Alibaba To Promote Online Commerce In China

September 8, 2015: 12:00 AM EST
Retailer Metro Group partnered with Alibaba Group to promote e-commerce in China. As part of the strategic partnership, the companies will expand their e-commerce businesses in the country, with Metro Group opening a cross-border online store on Alibaba Group’s Tmall Global online market platform. According to the companies, they will also look at the feasibility of more collaboration opportunities in terms of sourcing, supply chain, and big data.
"METRO GROUP and Alibaba Group join forces to promote e-commerce in China", METRO GROUP, September 08, 2015, © METRO GROUP
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Amazon Expands Its Dash Button Re-Ordering Program

September 2, 2015: 12:00 AM EST
Amazon is expanding its one-click Dash Button program by offering more product brands, making it free, and expanding it to all customers. Dash Buttons for specific products allow users to simply press a button in the home to re-order detergent, trash bags, chewing gum, etc. – 18 brands so far -- via a smartphone. Amazon is not sharing any numbers related to the program, but the expansion indicates the initial phase of its “Internet of things” strategy is a success. The next phase is the incorporation of Dash Buttons into appliances and hardware, such as dishwashers (detergent), printers (toner) and water filters.
Leena Rao , "Amazon expands one click buying program, makes Dash Button free", Fortune, September 02, 2015, © Time Inc.
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India Trails Other BRIC Countries In Terms Of Online Shopping Penetration

September 1, 2015: 12:00 AM EST
In India, only 14 percent of Internet users shop online, according to a report by consulting firm EY. In contrast, between 30 and 35 percent of Internet users in Brazil and Russia and 55 percent in China buy things from online stores. Data from the report also revealed the value of online transactions in India is about 70 percent lower than any of the other BRIC countries.
"M-commerce: India Vs BRIC", The Economic Times, September 01, 2015, © Bennett, Coleman & Co. Ltd.
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The Macy’s Name May Not Be Magic Enough In China’s Online Market

August 24, 2015: 12:00 AM EST
If Macy’s hopes to succeed on China’s Tmall Global platform, it needs to understand the realities of Internet marketing to Chinese consumers today. Tmall enables foreign companies to advertise and sell directly to millions of China’s increasingly affluent online buyers. Macy’s is investing $25 million to tackle the Chinese online market and plans to sell $50 million worth of its premium brands in 2016 (without the brick-and-mortar stores). The key question is, why would Chinese consumers buy upscale brands like Coach and Estée Lauder from Macy’s? What value does the consumer get from a venerated old retailer? The answer: not much. The better approach would be to follow Costco’s successful Chinese marketing lead. “You’d think this is a nation of 1.3 billion squirrels, the way Costco is moving its private label Kirkland mixed nuts,” says the China Digital Review.
Sidney Sheldon, "Will Macy’s Magic Work in China?", China Digital Review, August 24, 2015, © China Digital Review
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U.S. Consumers Warm Up To Idea Of Online Grocery Shopping

August 16, 2015: 12:00 AM EST
Online grocery shopping is growing in the United States, driven by demand among busy people who do not have enough time to go to grocery stores. After launching its Aisles Online grocery shopping program in spring 2015, Hy-Vee has seen its stores averaging about 1,300 online orders per week. Other grocers, including Safeway and Giant, and other retailers, such as Wal-Mart, Publix, and Kroger, are also launching their respective online shopping programs. Online retailers, such as Amazon, Peapod, and Door to Door Organics, are also offering online grocery shopping services.
Patt Johnson, "Online groceries becoming a popular option", The Des Moines Register, August 16, 2015, © www.desmoinesregister.com
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Florida Grocery Chain Goes Full Tilt Into Online Cake Ordering

August 14, 2015: 12:00 AM EST
Florida-based Publix Super Markets is now offering cakes on their Web site that can be picked up at any of their 1,103 stores in six states. The company does not offer wedding cakes as part of the service, because of their intricacy. But customers can order “decadent dessert cakes" or "special-edition cakes" online. Industry analysts say the idea of ordering online has been tried and abandoned a couple of times by Publix and other grocers for logistical reasons. But now retail chains are feeling competitive pressure to provide online ordering convenience as Internet retailers like Amazon.com tiptoe into food ordering and delivery.
John Ceballos, "Publix adds cakes to online ordering service", The Ledger, August 14, 2015, © TheLedger.com
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Subscription Box Companies Make Money Selling Free Samples

August 12, 2015: 12:00 AM EST
One of the newest formulas for online retail success is the theme-based subscription box that arrives – at $10 to $30 per shipment -- full of stuff the company got as free samples from other companies. The concept originated with two Harvard Business School graduates who created Birchbox. The company, for $10 a month, mails a box packed with free sample cosmetics products. A slew of competitors now offer doomsday preparation supplies, pet treats, Japanese snacks, recipes and ingredients, wine, children’s products, socially responsible goods, and books (and trinkets) for young adults. Some observers think the subscription box phenomenon may be a bubble about to burst, but that’s not deterring copycats: “[The economics are] alluring enough that new players keep charging in."
Stacy Cowley, "Want to Shop for a Surprise? Try a Subscription Box", The New York Times, August 12, 2015, © The New York Times Company
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China’s App-Based Food Delivery Industry Is Booming

August 9, 2015: 12:00 AM EST
Startup food delivery companies backed by big investors like Alibaba Group Holding Ltd. and Tencent Holdings Ltd. have tapped into a vibrant market in China, as diners increasingly choose to order in. The app-based startups are providing stiff competition for struggling KFC and McDonald’s that have for years maintained armies of bike- or motorcycle-riding food couriers. New companies like Ele.me and Meituan Waimai that use mobile apps achieve economies of scale by partnering with thousands of Chinese restaurants and other food outlets. In 2014 the startup bike courier companies delivered $15.7 billion worth of food, a 54 percent increase over 2013, according to one research firm.
Laurie Burkitt, "In China, Fast-Food Fight Turns to Delivery", The Wall Street Journal, August 09, 2015, © Dow Jones & Company, Inc.
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It’s Time For Small Businesses To Prepare For “Social Commerce”

July 30, 2015: 12:00 AM EST
The big social networks are taking a giant leap forward into the online retail world dominated by Amazon and eBay. No longer content to simply provide links to retail Web sites, Google, Pinterest, Facebook and Twitter will soon be selling products directly on their sites, a trend called “social commerce.” The phenomenon, rolling out over the next 12 to 18 months, will make it even more critical that small businesses engage potential customers by marketing via social media. To make it happen they will need to take several preliminary steps: identify the networks customers use, determine which networks are used by the most profitable customers, know each network’s technical requirements, and register with each network. It is critically important to be able to show that shipping and customer service are efficient and top-notch.
Alec Bertram, "The imminent invasion of social commerce", The Guardian, July 30, 2015, © Guardian News and Media Limited or its affiliated companies
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N.Y. City Bakery Partners With Instacart

July 24, 2015: 12:00 AM EST
A popular bakery in New York City has joined Whole Foods Market, Costco and Fairway in partnering with Instacart for delivery of its freshly baked goods. Breads Bakery has built its business on providing handmade breads, croissants, desserts and other delicacies. Now customers can simply go online, select the bread or dessert, and Instacart will deliver to homes and offices in lower Manhattan within two hours
"Breads Bakery Teams with Instacart", 4-Traders, July 24, 2015, © ProQuest Information and Learning Company/ Surperformance
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