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Report Ranks E-Retailers On Use Of Social Marketing Platforms

February 8, 2014: 12:00 AM EST
A new ranking of 872 e-retailers on the effectiveness of their social marketing strategies across seven social platforms – Facebook, YouTube, Twitter, Instagram, Pinterest, Google+, and Vine – puts fashion retailer Free People – owned by Urban Outfitters – at the top of the list. Vigorous use of, and consumer involvement in, the seven platforms earned the company the highest scores for brand awareness, social upstream traffic, website social lift, and social CRM. Other top-ranked e-tailers include Lancome Paris, Smashbox, LollyWollyDoodle.com, Plndr.com, Target.com, BourbonandBoots.com, ToysRUs.com, WWEShop.com and Modcloth.com.
"Social Commerce IQ Retail 2013", Report, 8th Bridge, February 08, 2014, © 8thBridge, Inc
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Russia's Booming Online Market Poses Some Hurdles For Foreign Brands

February 7, 2014: 12:00 AM EST
Online sales in Russia is forecast to account for 5 percent, or $46 billion, of the country’s total retail sales by 2015 from the current 2 percent, according to market research firm Morgan Stanley. Also, Russian consumers who use the Internet are fond of foreign brands, which made it to the top 25 list of brands searched on local search engine Yandex in 2013. There are, however, several obstacles that international brands need to overcome before they can expand into the Russian market, including a more complex shipping policy since the country adopted new import laws in December 2013, problems related to shipping and payments, and the exit of many major carriers, such as DHL and FedEx. Nevertheless, the pros outnumber the cons —for example, the current 70 million Internet users in the country are forecast to increase to 80 million by the end of 2014.
Ben Davis , "What you should know about ecommerce in Russia", Econsultancy, February 07, 2014, © E-consultancy.com Limited
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Wal-Mart Stores Expects New Office In California Will Employ 1,000 E-Commerce Pros

February 7, 2014: 12:00 AM EST
Wal-Mart Stores, which ranks fourth on the Internet Retailer 2013 Top 500, has opened an office for its global e-commerce unit in Sunnyvale, Calif. The office will eventually support 1,000 professionals; the San Bruno, Calif., office employs 1,500. Staff at the new office will focus on projects related to online and mobile shopping. The company chose the Sunnyvale location because of the “talent density” in the area, including design, app and user interface expertise. Wal-Mart Stores is expanding its e-commerce capabilities, including through its San Bruno @WalMartLabs division whose mission is e-commerce research and development.
Thad Rueter, "Wal-Mart opens a second e-commerce office in Silicon Valley", Internet Retailer, February 07, 2014, © Vertical Web Media
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Southeast Asia Sees E-commerce Boom

February 6, 2014: 12:00 AM EST
Southeast Asia’s e-commerce segment grew strongly in 2013, driven by expansion moves by international and local startups seeking to promote their online retail platforms. Several factors make the region an attractive market for e-commerce companies: strong economic growth, growing middle and upper classes, abundance of young and technology-empowered consumers, and popularity of social media. Seeking to grab a piece of the action, investors poured more than $500 million into fledgling e-commerce companies in the region. While consumer-to-consumer operators currently dominate the market, business-to-consumer is the fastest-growing segment, with German company Rocket Internet leading the B2C trend with its Lazada and Zalora online stores. Other online retailers, such as Japan’s Rakuten and China’s Alibaba, are not too far behind.
Will Greene , "Southeast Asia E-Commerce Surge Boosts Region", Techonomy Exclusive , February 06, 2014, © Techonomy Media Inc
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Independent Pizza Shops Take It On The Chin As “Big Pizza” Thrives On Web Ordering

February 6, 2014: 12:00 AM EST
The move by big pizza chains to Web-based ordering systems – now accounting for 40 percent of total sales – has put the squeeze on less technologically savvy, poorer independent chains and shops. Large pizza chains, which already have marketing clout and lower cost ingredients, accounted for 52 percent of pizza orders, while the share for independents dropped to 29 percent from 31.5 percent. One pizza shop owner in Ohio reports a 20 percent decline in sales as a result of the Webification of pizza ordering. One possible solution for the little guys is online food ordering companies like Chicago-based GrubHub Seamless, which usually take a cut of online sales transacted via their platform.
Julie Jargon, "Big Pizza Chains Use Web Ordering To Slice Out Bigger Market Share", The Wall Street Journal, February 06, 2014, © Dow Jones & Company, Inc
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Smartphones, Tablets Account For 31 Percent Of Web Traffic In North America, Study Shows

February 6, 2014: 12:00 AM EST
Internet browsing from smartphones and tablets increased 35 percent year over year from the fourth quarter of 2012 to the same quarter of 2013 to account for 31 percent of all web traffic, according to Walker Sands. Data from the marketing and PR firm’s Quarterly Mobile Traffic Report revealed 31.3 percent of global Internet traffic to North American web sites in the fourth quarter of 2013 came from smartphones and tablets. Also, about 51 percent of mobile traffic to web sites comes from organic search, an increase of 19 percent since the fourth quarter of 2012. About 33 percent of mobile traffic is generated by consumers keying in web addresses into their browsers, while approximately 10 percent comes from referrals other than search engines.
Amy Dusto, "Mobile devices account for nearly a third of web traffic", Internet Retailer, February 06, 2014, © Vertical Web Media
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PayPal Goes After Users Selling Bitcoin Virtual Currency

February 6, 2014: 12:00 AM EST
Online payments company PayPal is purging its networks of people selling Bitcoin and may include related goods and services, such as Bitcoin mining rigs or computers that prospect for the virtual currency. Some market observers said the move did not come as a surprise, with PayPal perceiving the virtual currency as a serious threat to its transaction-fee-based business model. Although a PayPal representative said that merchants selling Bitcoin mining equipment can continue using PayPal as a payment option, the company’s Bitcoin policies may have changed. However, details of the revisions and their implications for PayPal users are not yet available.
Brian Patrick Eha, "PayPal Is Cracking Down on Bitcoin Sellers", Entrepreneur, February 06, 2014, © Entrepreneur Media, Inc.
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JD.com's IPO Prospectus Comes With Too Much Candor

February 4, 2014: 12:00 AM EST
Chinese online retailer JD.com filed the prospectus for its planned $1.5 billion U.S. public offering with the Securities and Exchange Commission. Apparently, the paperwork came with too much honesty, according to some observers. It detailed the company’s lack of experience in doing some of its businesses, such as Internet finance. It highlighted losses suffered by the company and warned potential investors it might not be able to make money. Also, the company admitted it is huddled by weak internal fraud controls and its financial reports may not be accurate. Its very strong sales growth, however, is expected to attract US investors. That is, if the company could overcome potential legal roadblocks and could actually get its shares listed in the country.
Heather Timmons , "This Chinese online retailer’s IPO documents could be a bit too candid", Quartz.com, February 04, 2014, © Quartz.com
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Millennials More Likely To Be Influenced By Peers' Social Media Posts, Survey Shows

February 4, 2014: 12:00 AM EST
Millennial consumers who use social media are more likely than older generations to be influenced by their friends’ social media posts, according to a January 2014 survey by Harris Interactive for The Webb Awards. Results of the survey revealed 68 percent of 18–34-year-old respondents said they are at least likely to buy after seeing a friend’s post, while 78 percent of social media users who are 65 years and older said they are not likely to make purchases based on what their friends post online. Also, majority of posts on social networks about new products and services were posted by women, with more than half of 35–44-year-old women posting at least sometimes.
"Millennials’ Social Media Posts Influence Peers to Buy New Products", eMarketer, February 04, 2014, © eMarketer, Inc.
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Online Tool Allows EZWatch Shoppers To Haggle

February 4, 2014: 12:00 AM EST
EZWatch, a manufacturer of security cameras and related systems increased its sales in 2013 by launching a customer engagement tool that allows online buyers to name their price. Developed by PriceWaiter, the online tool includes a “Name Your Price” button that lets online buyers indicate a price they would like to pay for a product. EZWatch CEO Ben Cornett said sometimes customers would key in an absurdly lowball price; however, EZWatch is often able to make a counteroffer that the buyer finds acceptable. PriceWaiter dropped the commission it previously charged sellers for using the online tool, but plans to introduce premium, fee-based services.
Paul Demery, "A seller of security cameras beckons online buyers to ‘Name your price’", Internet Retailer, February 04, 2014, © Vertical Web Media
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Online Grocery Shopping Debuts Again, This Time Without Heavy Start-Up Costs

February 4, 2014: 12:00 AM EST
Though a bust in the early 2000s – remember dot-com flop Webvan? – online grocery shopping and delivery are experiencing a revival, thanks to the efforts of “tech-savvy retailers and retail-savvy tech companies”. One of the reasons it’s working better these days is that companies are not trying to develop their own expensive delivery infrastructure, but are tapping into existing resources and taking advantage of smartphone app technology. Lean, mean companies like San Francisco’s Instacart avoid spending millions by using existing fulfillment centers (i.e., grocery stores) instead of building their own facilities and inventory. The company streams inventory lists from brick-and-mortar stores to its mobile app where users can fill virtual shopping carts, customize requests and identify acceptable substitutes.
Marcus Wohlsen, "The Next Big Thing You Missed: Online Grocery Shopping Is Back, and This Time It’ll Work", Wired.com, February 04, 2014, © Wired.com/Condé Nast
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Tide Chooses To Do Twitter Instead Of Spending Millions On A Super Bowl Ad

February 4, 2014: 12:00 AM EST
Procter & Gamble’s Tide laundry brand chose not to advertise during the 2014 Super Bowl and instead went to Twitter during the game. In addition to saving $4 million the brand would have spent otherwise on a Super Bowl ad, Tide was able to generate 3.6 million impressions via thousands of retweets of the 22 Vines and related tweets it made. Although it was not as widespread as the 111.5 million people who watched the most famous sporting event, Tide is happy with the results, as well as with how it was able to make jokes about other brands’ ads during the Twitter campaign.
Jack Neff, "Why P&G's Tide Ditched Its Super Bowl Ad For ... Twitter?", Advertising Age, February 04, 2014, © Crain Communications
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Asia-Pacific To Grab Biggest Share Of Fast-Growing Global B2C Ecommerce Market, eMarketer Forecasts

February 3, 2014: 12:00 AM EST
Global business-to-consumer ecommerce sales are forecast to grow 20.1 percent to $1.5 trillion in 2014, according to market research firm eMarketer. Details from the company’s latest predictions suggest that the market growth will be driven by the fast-expanding online and mobile user bases in emerging markets, growth in mobile commerce sales, new options in shipping and payment, and major brands’ expansion into international markets. Also, Asia-Pacific consumers are forecast to spend more on ecommerce purchases than their North American counterparts, with B2C ecommerce sales in the region reaching $525.2 billion, compared with $482.6 billion in North America. China will account for more than 60 percent of the ecommerce market in Asia-Pacific, with the country forecast to overtake the US in terms of online spending by 2016.
"Global B2C Ecommerce Sales to Hit $1.5 Trillion This Year Driven by Growth in Emerging Markets", eMarketer, February 03, 2014, © eMarketer, Inc.
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Visa, SAP Partner To Offer Electronic Payment Systems For Corporate Customers

February 3, 2014: 12:00 AM EST
Credit card company Visa said it plans to let corporations pay through the Visa Commercial issuer linked to software vendor SAP’s Financial Services Network, a cloud-based electronic payment system for corporate customers. Launched at the Swift Sibos conference in Dubai in September 2013, FSN is designed for use by customers, which use the SAP ERP system link to different banks. According to Visa, the service is aimed at corporations that want to adopt electronic business-to-business payments. Currently, retail banks and small businesses are outpacing their bigger counterparts in terms of adoption of electronic payment systems.
Tom Groenfeldt, Contributor, "Visa And SAP Want To Reduce Checks In E-Commerce", Forbes.com, February 03, 2014, © Forbes.com LLC
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Political Unrest Boosts Sales Of Thailand's Online Retailers

January 31, 2014: 12:00 AM EST
During Thailand’s months of political turmoil, the country’s online retail market experienced strong sales growth, as more consumers opted to stay home instead of braving potential safety risks posed by widespread protests in the country’s capital. To deal with this inconvenience, and help promote their business at the same time, online retailer deployed motorcycles as a way of delivering products to shoppers. For example, Rakuten’s Tarad.com partnered with Alpha Performance Group to launch the Hotline Express Messenger Post, a motorcycle and hand delivery service that covers even addresses located inside protest areas. Its smaller rival, Pomelo, which sells high-street fashion products from Tokyo, Hong Kong, and Seoul, launched a motorcycle delivery service using Vespa scooters.
Saiyai Sakawee , "During the Bangkok Shutdown, motorcycle delivery is a major selling point for online shoppers", Tech in Asia, January 31, 2014, © Tech in Asia
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Online Sales Grow In Germany, UK, Rest Of Europe During Holiday Season

January 30, 2014: 12:00 AM EST
Online sales in Germany grew 54.5 percent to €8.5 billion in the period mid-October to December 24, 2013, compared with the same period in the previous year, according to ecommerce trade association BVH. This also means online sales probably accounted for around 10 percent of total retail sales during the holiday shopping season. Across Europe, online sales grew 37 percent in December, according to payment services company Ogone. In the UK, sales of non-food products rose 19.2 percent in the same month, the sector’s highest growth rate in four years.
"German online sales leap 55 pct over Christmas", CNBC, January 30, 2014, © CNBC LLC
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China's Number 2 Online Retailer JD.com Files For U.S. IPO

January 30, 2014: 12:00 AM EST
China’s second-largest online retailer JD.com filed for an initial public offering of its shares in the United States. Formerly known as 360Buy, JD.com has raised $2.23 billion in the past six years, with notable investors including the Ontario Teachers’ Pension Plan and Saudi Arabia’s billionaire Prince Alwaleed bin Talal’s Kingdom Holding Co. Company founder and CEO Richard Liu controls about 46 percent of the company’s shares. In 2012, local media reports put a $7.3 billion for the company, which has tried to differentiate itself from rival ecommerce companies, including market leader Alibaba, by operating its own network of delivery providers and warehouses.
Aman Shah, "Alibaba rival JD.com files for U.S. listing", Reuters, January 30, 2014, © Thomson Reuters
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Marks & Spencer, Tesco UK Retailers With Most User-Friendly Web And Mobile Sites, Report Shows

January 30, 2014: 12:00 AM EST
Marks & Spencer and Tesco are the top retailers in UK in terms of ease of use and information content of their mobile web sites, according to market research firm ForeSee. Data from the ForeSee Experience Index, which includes almost 2,500 surveys, revealed consumers’ emphasis on ease of web site navigation and the disparity in customer satisfaction levels for conventional Web sites and mobile sites. Marks & Spencer and Tesco’s mobile sites received the highest levels of customer satisfaction with a score of 75 out of a possible 100 points.
Lauren Johnson , "Marks & Spencer, Tesco top British retailers in mobile satisfaction: ForeSee", Mobile Commerce Daily, January 30, 2014, © Napean LLC
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Alibaba Reports Strong Net Profit Gain, Slower Revenue Growth In 3Q

January 29, 2014: 12:00 AM EST
Chinese ecommerce company Alibaba Group Holdings Ltd. reported net profit of $792 in the third quarter. Revenue increased 51 percent to $1.78 billion, significantly slower than the 61 percent growth reported in the previous quarter. For the third quarter of the previous year, Alibaba reported a net loss of $246 million, due to the $550 million charge to purchase some of its shares from Yahoo Inc., which currently owns 24% of the Chinese online company. Alibaba, whose coming IPO is expected to value the company at more than $100 billion, outpaced its competitors Tencent Holdings Ltd., which grew 34 percent; and Amazon.com Inc., which reported revenue grew 24 percent.
Juro Osawa, "Alibaba Swings to a Profit but Revenue Growth Slows", Wall Street Journal, January 29, 2014, © Dow Jones & Company, Inc
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Walmart Expands Test Areas For Online Ordering System To Include Denver

January 29, 2014: 12:00 AM EST
Retailer Walmart has added Denver to the test markets for its Walmart To Go on-demand shopping service, allowing customers in the region to order their groceries online and then pick them up at a nearby Walmart store. Aimed at customers who want to do their grocery shopping in the morning or during their lunch break, and later get their orders on their way home, the service is not meant to replace existing home delivery service. Nevertheless, Walmart thinks many customers who will avail of this service are still likely to visit the store, based on the 55 percent of shoppers who said they prefer the online ordering service because it gives them the opportunity to pick up other items.
Sarah Perez, "Walmart Begins Testing Online Grocery Shopping With Local Store Pickup Option In Denver", Tech Crunch, January 29, 2014, © AOL Inc.
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Amazon.com Offers Tablet-Enabled Checkout System To Traditional Retailers

January 29, 2014: 12:00 AM EST
Online retailer Amazon.com Inc. said it plans to offer conventional retailers a checkout system that uses its Kindle tablets. According to unnamed sources, the company also plans to provide brick-and-mortar retailers credit-card readers, as well as other services, such as website development and data analysis. Observers say the initiative would help Amazon expand its business into the physical retail stores market, which still accounts for more than 90 percent of all commercial transactions, and gain access to more data on consumers’ in-store spending habits. It would, however, also put the company into direct competition with companies that provide traditional checkout systems, such as VeriFone Systems Inc. and NCR Corp.
Greg Bensinger, "Amazon to Offer Kindle Checkout System to Physical Retailers", Wall Street Journal, January 29, 2014, © Dow Jones & Company Inc.
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Online Retailers Likely To Focus More On Mobile In 2014, Study Shows

January 29, 2014: 12:00 AM EST
With transactions on smartphones and tablets accounting for 21 percent of online sales revenue in 2013, it is no surprise that 53 percent off online retailers are looking to expand their mobile business, according to a survey from Shop.org and Forrester Research. Data from the State of Retailing Online 2014 report revealed 46 percent of the 70 online retailers that participated in the survey say they plan to revamp their online stores, while 36 percent plan to improve their marketing efforts. Online retailers said sales grew an average of 29 percent in 2013, much higher than the market research firm’s 13 percent forecast. Also, retailers said their site conversion rate was 2.7 percent, with 58 percent of respondents claiming conversion rates had risen from the previous year.
"E-retailers will focus on mobile and site design in 2014", Internet Retailer, January 29, 2014, © Vertical Web Media
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Amazon Seeks Patent For Payments Card; Seeks To Rule Payments System Market

January 27, 2014: 12:00 AM EST
Online retailer Amazon.com applied for a patent for a card that would connect all of a consumer’s credit cards to one Amazon card that can be used with all conventional credit card machines. Amazon reportedly plans to connect the one-card system to its Pay with Amazon payment system. This move puts Amazon directly in collision with other payments technology providers, including Google and Paypal; however, the online retailer enjoys an advantage: its third-party sellers and other merchants are already using its payment-processing platform. Developers can already integrate the Pay with Amazon button to their apps or websites similar to how various companies are using the Paypal payment options.
"One card to rule them all: Amazon patent hints at payment card", Puget Sound Business Journal, January 27, 2014, © American City Business Journals
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China Tightens Rules For Country's Online Market

January 27, 2014: 12:00 AM EST
China plans to implement stricter rules governing the country’s fast-growing ecommerce market. Driven by the millions of Chinese consumers who are discovering the online market for the first time, China’s ecommerce sector grew from $3 billion in 2009 to $64 billion in 2012, according to a report by the “South China Morning Post” newspaper. With the country set to become the world’s second-largest online retail market, with the business-to-consumer submarket forecast to expand by an average of 34 percent each year, the government was compelled to flex its regulatory muscles. Several laws covering the market will take effect on March 15, 2014.
Sophie Song, "China E-Commerce: Regulations For Protecting Consumers And Fighting Counterfeit To Take Effect In March", International Business Times, January 27, 2014, © IBT Media Inc.
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India's Slowing Economy Gives Foreign Ecommerce Firms Hope For Expansion

January 23, 2014: 12:00 AM EST
U.S.-based ecommerce companies, including Amazon.com and eBay, are seeking to expand into India’s online market, which is forecast by investment bank CLSA to grow from the current $3.1 billion to $22 billion in the next five years. Existing government policies, however, keep foreign-owned online companies from storing their inventory in local warehouses and from selling their products directly to local consumers. India’s slowing economy, however, has prompted the government to rethink its position as it searches for ways to increase foreign investment. Meanwhile, U.S. companies are delivering and storing products on behalf of local merchants, which are allowed under current rules. At the same time, they are building their delivery and storage capabilities and investing in ecommerce startups.
Mahesh Sharma , "Amazon and EBay Inch Into India's E-Commerce Market", Bloomberg Businessweek, January 23, 2014, © Bloomberg L.P.
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Moscow Readies 30 Percent Import Tax On Non-Russian Online Retailers

January 23, 2014: 12:00 AM EST
Russia is planning to impose a 30 percent tax on imports from foreign-owned online retailers as part of the government’s efforts to protect local retailers. Among the measures being considered by Russia are restrictions on the number of parcels imported, which in effect will put constraints on parcel delivery service providers’ operations in the country. With this move, Russia joins a growing number of governments adopting policies aimed at limiting foreign ecommerce companies’ ability to sell products to local consumers. In Australia, for example, local retailers are calling on politicians to protect them from foreign online retailers, which accounted for 75 percent of online sales in the country in 2012. Online sales in Australia grew from A$6 billion in 2007 to A$10 billion in 2012.
Sarah Butler , "Russia considering 30% import tax on foreign online retailers", The Guardian, January 23, 2014, © Guardian News and Media Limited
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Subscription Service The Next Big Thing For Online Retail In 2014, Analysts Say

January 22, 2014: 12:00 AM EST
Ecommerce companies are forecast to adopt subscription-based sales platforms in 2014, driven by growing consumer demand for instant gratification and the expanding adoption of mobile devices, according to market research firm Gartner Inc. Online sellers of digital products, such as music, video, and games, are expected to take the lead in adopting subscription services; however, physical goods, such as cosmetics and snacks, are also forecast to become popular. Among the companies trying the subscription waters are Birchbox with the 400,000 subscribers to its cosmetics service and JustFab, which has secured $55 million in funding by convincing investors about the merits of its fashion subscription service. Subscription services offer many advantages for online retailers, such as a regular income, more chances to upsell, and the ability to create deeper interactions with customers. There are also some issues that need to be considered, such as the need to convince customers to stay with the service each month and the inability of current software to manage subscription fully.
Lisa Wirthman, "Subscription Services: The E-Commerce Trend To Watch In 2014", Forbes.com, January 22, 2014, © Forbes.com LLC
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Retailers Prepared For IoE Likely To Benefit From Much Wider Connectivity, Cisco Says

January 22, 2014: 12:00 AM EST
Internet of Everything will bring $14.4 trillion in overall value for the private sector and another $4.6 trillion for the public sector over the next 10 years, with the retail industry accounting for 11 percent of the total IoE value in the private sector, according to technology company Cisco. Fast moving and representing an explosion in digital connectivity, from 10 billion things currently connected to the Internet to 50 billion in 2020, IoE is forecast to have some tremendous impact on the retail market, including on customer experience, innovation, employee productivity, supply chain, and asset utilization. Retailers ready to adopt IoE-related technologies are likely to realize various benefits, including the use of interactive displays that help shoppers study and purchase products, ability to customize marketing and advertising based on customer preferences and conditions, and video collaboration tools that can promote interaction between experts and customers.
Joseph Bradley , "The IoE-Ready Retailer: Connecting Sellers and Shoppers Like Never Before", Cisco, January 22, 2014, © Cisco Systems
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Alibaba Poses Most Serious Threat Yet To Amazon's Business Model

January 21, 2014: 12:00 AM EST
China’s online retailer Alibaba poses the most serious challenge yet to Amazon.com and its business model, which is based on the so-called three pillars —operating with low margins, helping customers find deals easily, and creating a lineup of customer-oriented services. Alibaba threatens Amazon with its no margins business; it earns money not from sales but from advertising and premium services. Unlike Amazon, Alibaba keeps its customers and operations away from online search engines. Also, Alibaba creates revenue no matter what kind of customers is accessing its online store. There are two ways that Amazon can respond to Alibaba’s disrupting effect: first, the online retailer can ignore the challenge and instead continue focusing on its most profitable customers and, second, it can create an independent business unit that would adopt Alibaba’s revenue model.
Juan Pablo Vazquez Sampere, "Alibaba: The First Real Test for Amazon’s Business Model", Harvard Business Review, January 21, 2014, © Harvard Business School Publishing
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Tesco Opens Online Store In Scotland's Western Isles Region

January 21, 2014: 12:00 AM EST
UK retailer Tesco is launching its online retail store on the Isle of Lewis in the Western Isles of Scotland. As part of the expansion, Tesco will provide grocery delivery service from the island’s capital Stornoway, creating 29 new jobs for local people in the process. Since its launch in 1998, Tesco.com has delivered 170 million grocery orders across the UK, with Tesco customers placing more than 3 million online grocery orders in Christmas 2013 alone. Deliveries will be available from Tuesday to Saturday, between 9:00am and 11:00pm.
"Tesco.com launches in Stornoway", Tesco, January 21, 2014, © Tesco
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CPG Companies Getting Deeply Involved In Mobile Advertising

January 21, 2014: 12:00 AM EST
Mobile ad network InMobi said “deep engagements” by more than half of the leading CPG brands worldwide drove mobile ad spending up by 175 percent last year. Unilever, one of InMiobi’s top clients, is especially involved in mobile advertising: at least eight brands are using the company’s services, which include media, creative, ad delivery, consumer insights, research data, and technology platforms. According to Atul Satija, who manages InMobi’s operations in Asia Pacific and Japan, CPG companies are increasingly adopting a mobile-first strategy to engage consumers.
"InMobi sees CPG mobile ad spends grow 175% in 2013", News release, InMobi , January 21, 2014, © InMobi
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Digital Technology Will Help Boost Growth In Various Markets, Study Shows

January 21, 2014: 12:00 AM EST
Digital technology is forecast to boost growth rates for digitally contestable markets, such as healthcare and finance, according to market consulting firm Accenture. Data from the report “Remaking Customer Markets: How Digital Unlocks New Paths to Growth” revealed, for example, that although the core healthcare market in the United States is forecast to grow 2.5 percent annually in 2012–2018, digital technology, such as remote diagnostics and electronic records management, will help push up annual growth rates to 3.3 percent. In the UK, meanwhile, the financial services market is expected to grow 2.0 percent annually during the same period; however, the digital contested market is expected to achieve annual growth rate of 2.9 percent, driven by digital technology-enabled trends, such as crowd funding and virtual wallet. Accenture also said the impact of the digitally contestable shopping, paying, and healthcare markets in 2018 is forecast to be $5.9 trillion for the U.S. economy, €747 billion for Germany’s economy, and £519 billion for the UK.
Mark Spelman, "The new business model: Embrace online, branch out", CNBC, January 21, 2014, © CNBC LLC
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Bangkok Shutdown Driving Online Sales In Thailand's Capital, Market Observers Say

January 20, 2014: 12:00 AM EST
Anti-government protests in Bangkok and protesters’ plan to shut down Thailand’s capital are expected to drive up online retailers’ sales. While shopping malls and related businesses in areas affected by the political turmoil are closing earlier than usual or shutting down altogether, online shopping has become an attractive option for consumers who fear leaving the safety of their homes. For example, the country’s largest online retailer, Rakuten’s Tarad e-store, saw its sales grew by 71 percent during the period October to December 2013, while total site visits rose 93 percent during the same period. Mobile ecommerce, however, posted an even stronger growth rate during the current protests, with sales from mobile phones rising 637 percent. Mobile traffic to mobile sales company Tarad, for example, grew 564 percent.
Saiyai Sakawee , "Thailand sees huge boost in online shopping as Bangkok hit by shutdown", Tech in Asia, January 20, 2014, © Tech in Asia
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Headlines That Ask Questions Most Effective In Getting Online Attention, Norway Study Shows

January 16, 2014: 12:00 AM EST
Headlines in the form of a question with self-references to the reader get the most people’s attention online, according to a research in Norway. Results of the study conducted by Norwegian Business School researchers Linda Lai and Audun Farbrot on both Twitter and an eBay-like shopping website in Norway also revealed questions without self-reference cues also worked well, followed by declarative headlines, with rhetorical questions coming in last. Several factors might limit the validity of the research results, according to the researchers, including the limitations of the Twitter account used in the study, lack of data on nationality of Twitter followers, and the low number of message topics used.
Erik Sherman, "What Really Makes People Click ", INC.com, January 16, 2014, © MANSUETO VENTURES
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Tencent Buys Stake In China South City Holdings; Aims For Bigger Share Of China's Online Market

January 16, 2014: 12:00 AM EST
China-based Internet company Tencent bought a 9.9 percent stake in Hong Kong’s warehousing and trade center operator China South City Holdings. Part of Tencent’s efforts to expand its integrated logistics and ecommerce capabilities, the purchase deal would allow the company to work with the Hong Kong company in expanding integrated online and offline trade services, such as ecommerce, retail of branded goods, online payment and warehousing. Also, the deal will help Tencent compete with rivals Alibaba, which controls 51.1 percent of the market with its Tmall B2C platform, and Jingdong, which accounts for 17.5 percent of the market.
Sophie Yu , "Tencent eyes e-commerce presence", South China Morning Post , January 16, 2014, © South China Morning Post Publishers Ltd
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Amazon.com Remains Non-Union Employer After First Union Vote Fails

January 16, 2014: 12:00 AM EST
About 30 maintenance and repair workers at an Amazon.com warehouse in Delaware voted against forming a labor union. Earlier, the employees expressed their displeasure with the lack of opportunities for career advancement and the too frequent changes in management staff. Amazon.com, which employs more than 100,000 people worldwide, reportedly met with the concerned employees before the vote, according to union organizers.
Emily Siner, "First Union Vote At An Amazon Warehouse In The U.S. Fails", NPR, January 16, 2014, © NPR
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Twitter Seeks Deal With Stripe To Allow Credit Card Payments From Users

January 16, 2014: 12:00 AM EST
Social networking company Twitter is negotiating a deal with payments company Stripe that will allow it to accept credit card payments from its users. Although representatives of the companies refused to confirm the report, the proposed deal is seen as part of Twitter’s efforts to help brands, retailers, and manufacturers sell their products directly on the microblogging site. Twitter has yet to fully explore the commerce side of its business; however, it has dabbled in ecommerce by partnering with third-party providers, such as American Express and Starbucks. Reports said the Stripe deal marks the start of more ecommerce deals for Twitter, which appointed former Ticketmaster CEO Nathan Hubbard as head of commerce in August 2013.
Jason Del Rey and Mike Isaac, "Twitter Gets Serious About Commerce, Nears Deal With Payments Startup Stripe", Re/code, January 16, 2014, © Revere Digital LLC
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UK Retailers Post Higher Sales In December 2013

January 10, 2014: 12:00 AM EST
UK retail sales grew 1.8 percent in December 2013, compared with the same period in the previous year, according to the British Retail Consortium/KPMG monthly report. Data showed consumers’ last-ditch efforts to purchase gifts and the biggest increase in online sales ever helped drive the slight sales increase. Among the most in-demand products were toys, electronics, coats, and Christmas jumpers. Online sales, except for food, increased 19.2 percent from their year-ago levels, accounting for 18.6 percent of all non-food sales during the period, and posting an increase of 16.5 percent year on year. John Lewis, Next and House of Fraser were the leaders in Internet sales.
Angela Monaghan, "Online sales contribute to Christmas boost for retailers", The Guardian, January 10, 2014, © Guardian News and Media Limited
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Amazon Gave The Best Web Experience For 2013 Holiday Shoppers

January 9, 2014: 12:00 AM EST
A survey of over 67,000 consumers conducted by ForeSee asked which brands provided the best online experience over the 2013 holiday period. It found only 14 of the 100 largest retail brands delivered substantially above the average 79/100 consumer satisfaction score. The top performer was Amazon, with a score of 88. Avon has shown that it is developing its channel reach, and scored 83. Estee Lauder, with 82, provided a high-glamor site and a “more ways to shop” option that includes discontinued merchandise and gift cards. Walmart was above average, but only just, and its score of 80 was below Publix and QVC, both with 83. Others in the top 14 were: Vitacost (86); Keurig (84); L.L. Bean (84); Barnes & Noble (83); Bass Pro Shops (83); Apple (82); Disney Store (82); Shutterfly (82); and Victoria’s Secret (82). Interestingly, although the average score for the online experience was 79, it was 83 overall, indicating a better offline experience generally. 
Carol Tice, "Who Won The Web -- The 14 Best-Loved Brands Online", Forbes, January 09, 2014, © Forbes.com LLC
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Holiday Internet Sales Grow Slower Than Forecast But Faster Than Overall Market

January 7, 2014: 12:00 AM EST
Online shopping for the holiday season increased 10 percent to $46.5 billion in November and December 2013, compared with the same period of the previous year, according to market research firm comScore. Although online sales again grew faster than overall spending, the results were significantly lower than the market research firm’s previous forecast of 14 percent. Shoppers’ reluctance to spend and a shorter holiday season were among the factors that kept sales from rising further, comScore chairman Gian Fulgoni said. Online sales accounted for 10 percent of overall holidays spending, with Monday after Thanksgiving Day, also known as CyberMonday, seeing sales rise 18 percent to $1.47 billion. Thanksgiving Day sales rose 21 percent to $633 million.
"ComScore: Holiday shopping online rose 10 percent", CNBC, January 07, 2014, © 2014 CNBC LLC.
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Wal-Mart Turns To Online Sales For Growth

January 7, 2014: 12:00 AM EST
Talking to Fortune magazine, Neil Ashe, Wal-Mart’s head of e-commerce, said that the boundaries between offline and online are blurring as consumers increasingly expect a seamless transition between the two. Wal-Mart has been relatively late to e-commerce, but Ashe’s remit is to make e-commerce central in the retailer’s strategy. Consumers are becoming used to choosing from a variety of purchasing and delivery/collection options, and Amazon has been at the forefront of this change, with innovations like its Prime service. Wal-Mart gets it too, but it has done little to compete with Amazon online. Ashe sees the way forward for Wal-Mart as leveraging its existing assets and making them “contemporary”, and since joining Wal-Mart in 2012 he has been acquiring tech startups, allowing the retailer to trial social gifting and subscription boxes. Wal-Mart has a long way to go for its e-commerce effort to “move the needle”, but Ashe says it is learning. 
Jessi Hempel, "At Wal-Mart, moving the needle on e-commerce", Fortune, January 07, 2014, © Cable News Network
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Amazon.com Finds Key To Attracting High-Income Shoppers

January 7, 2014: 12:00 AM EST
Amazon.com is attracting high-end consumers, according to a study from The Shullman Luxury and Affluence Monthly Pulse, which shows 69 percent of adult shoppers with a household income of $250,000 and higher are shopping at the online retailer. Data revealed 35 percent of Amazon shoppers and almost 60 percent of the company’s customers with $500,000 and higher household income prefer to buy designer and luxury products on the site. Also, approximately 60 percent of the company’s online shoppers purchase products at least once a month; however, the study revealed the rate is higher for customers with income of $500,000 or more.
JUSTINE GRIFFIN, "Amazon.com attracting more wealthy shoppers", Herald Tribune , January 07, 2014, © HeraldTribune.com
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Online Grocers Continue To Address Negative Comparisons With Traditional Supermarkets

January 7, 2014: 12:00 AM EST
Online grocery shopping has had limited appeal, restricted by negative consumer perceptions of selection, price and delivery options, but competition in the market is changing that. This Wall Street Journal writer organized a shopping comparison and found that some online services are performing close to offline stores in terms of selection and convenience, and also price, driven by the expansion of online retailers like Peapod and FreshDirect, as well as the launch of AmazonFresh. Walmart has been trialing its Walmart To Go service in two cities, and further impetus is coming from new services, such as Instacart. Having others choose your food still puts off many from using online services, but for others it’s an advantage. There remain a number of issues still to address, such as minimum orders, what to do with all the delivery boxes, and product substitutions, but the retailers are taking notice and competition will help ensure these problems are ironed out.
Geoffrey A. Fowler, "Do Online Grocers Beat Supermarkets?", Wall Street Journal, January 07, 2014, © Dow Jones & Company, Inc.
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Forrester Research Highlights eCommerce Trends For 2014

January 5, 2014: 12:00 AM EST
Forrester Research expects eCommerce revenues to grow this year as more brands roll out their eCommerce programs and consumers continue to embrace online shopping and evolve their buying habits. It also published its opinion on the big eCommerce trends to look out for in 2014. Forrester expects the top trends to include more traffic through mCommerce, driven by more mobile sites and apps; an increasing willingness by brands to sell online; the need for retailers to plan for important shopping dates online, such as Singles’ Day in China; and the ongoing problem of making eCommerce profitable.
"Forrester: Top Five Global eCommerce Predictions for 2014", Business Wire, January 05, 2014, © Forrester Research, Inc/Business Wire
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Shoppers, Turn Off Your Cells If You Don't Want To Be Watched

January 2, 2014: 12:00 AM EST
If you’re carrying a mobile device in the supermarket, it could be used to spy on you. Brick-and-mortar retailers are trying to close the data gap with online retailers by using shoppers’ cell phones to monitor movements around the store. The New York Times says that the retailers can use a phone’s connection to the store's WiFi system, and can also recognize a returning customer’s smartphones.  Some stores use video cameras to track customers, gauging for example how long shoppers stop at different departments or aisles. It’s a development not universally welcomed by shoppers, and retailers might have to rethink. The retailers claim the results will benefit the customers by helping to optimize product selection and store layout, and generally enhancing the in-store experience. Retailers might not have to stop using these techniques if they are more transparent about the reason why they are using them and shoppers see they are getting something in return. 
Erika Morphy, "Attention, Shoppers: You're Being Watched", E-Commerce Times, January 02, 2014, © ECT News Network, Inc
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Tablet Adoption Among Senior Consumers Growing Worldwide, Study Shows

January 2, 2014: 12:00 AM EST
Consumers who are 55 years and older are increasingly buying and using tablet computers, according to a market research from Deloitte. Results from the July 2013 study revealed levels of tablet ownership among senior mobile phone users ranged from 12 percent in Japan to as high as 53 percent in Singapore. Most often, tablet ownership among seniors were within 10 percentage points of the average level of tablet ownership in countries covered by the study. However, data showed senior tablet owners are less likely to download apps compared with their younger counterparts.
"Older Mobile Users Adopt Tablets Around the World", eMarketer , January 02, 2014, © eMarketer Inc.
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Online Christmas Sales Booming In The UK, Driven By Mobile

January 2, 2014: 12:00 AM EST
Analysis of sales in the UK for the Christmas 2013 period shows that some of multichannel retailers were seeing continued switching from offline to online purchasing. Sales at John Lewis were up 6.9% on a like-for-like basis in the five weeks to 28 December 2013, but online sales jumped 22.6%. johnlewis.com contributed nearly 32% of all John Lewis sales in this period. Its Click & Collect orders were up over 62%. House of Fraser saw like-for-like sales increase 7.3% in the three weeks to 28 December, but online sales were up nearly 58%. The IBM Digital Analytics Benchmark shows that online sales on Boxing Day 2013 were up over 40% on the same day in 2012. Mobile commerce is gaining traction. Christmas Day traffic from mobile phones and tablets represented three quarters of total online traffic, and IBM data for Boxing Day show that 58% of online traffic came from mobile devices, and particularly smartphones (nearly 30% of all online traffic), but the tablet was the device of choice for those making purchases (29.4% of online sales). 
David Moth , "Christmas 2013 ecommerce stats round up: John Lewis, Amazon and m-commerce", eConsultancy, January 02, 2014, © E-consultancy.com Limited
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New Snack Subscription And Delivery Service Unveiled By General Mills

December 31, 2013: 12:00 AM EST
General Mills has launched a snack delivery service – “Nibblr” – that offers 59 portion-controlled snack varieties shipped by the U.S. Postal Service to subscribers. Subscribers control what they get, how often, and can cancel anytime. The service is available in the continental U.S.; snacks are delivered weekly, biweekly or monthly. Nibblr snacks – packed four to a box and sold for $5.99 each – include nuts (Clusters Last Stand), fruits, chocolate and a variety of flavors, including curry, chili pepper and chai (Chai It You’ll Like It).
"General Mills rolls out subscription snacks by mail", Nick Halter, December 31, 2013, © American City Business Journals
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Alibaba Execs Predict 2014 Online Developments For Small Retail Businesses

December 27, 2013: 12:00 AM EST
Michael Lee of Alibaba.com, and Jingming Li, vice president of Alibaba Group, put forward their predictions for how 2014 will play out for small retail businesses in the areas of m-commerce and e-commerce. For m-commerce, they expect small businesses will be able to access “more creative and low-cost or no-cost” mobile platforms; mobile checkout will need to be faster, more convenient and more secure; and US shoppers will increase their use of mobile wallets. They also expect cross-border e-commerce will expand as technology breaks down barriers and new online shoppers emerge from the BRIC and other growth economies, and that the growth of B2B e-commerce will outpace B2C e-commerce.
Sara Angeles, "6 Ways Retail Will Change in 2014", Business News Daily, December 27, 2013, © Business News Daily
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Returns Cloud Online Retail's Otherwise Rosy Outlook

December 22, 2013: 12:00 AM EST
In the United States, about a third of all products sold online are returned by consumers to online retailers, according to retail consulting firm Kurt Salmon. UPS said it expects product returns to increase 15 percent in the 2013 holiday shopping season, compared with the previous year. Rival FedEx’s survey of consumers’ holiday gift returns revealed about a third of U.S. consumers will return at least one gift after the holidays. Driven by free shipping and online retailers’ relaxed returns policies, the trend has prompted online sellers to mine their data for ways to encourage consumers to keep their purchases. For example, Kynetic LLC’s fashion discount seller Rue La La, which spent $5 million on returns in 2012, is testing a program that automatically identifies consumers who habitually return products and reminds them to choose products carefully as they purchase online. Such programs may result in fewer discount offers for constant returners and better offers for consumers spend more and return less.
Shelly Banjo, "Rampant Returns Plague E-Retailers", Wall Street Journal, December 22, 2013, © Dow Jones & Company
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