The 10 e-commerce stories for the week ending 25 January 2013

Will Google Shopping Become a Marketplace? Google exceeds expected financial results, Amazon invests in a  text to speech service and much more.

The past week contained quarterly results for Google.  Google exceeded the market expectations primarily due to its advertising business. Google’s results were very interesting as international revenue was 54% of  Q4 revenue generated. The Motorola acquisition is in my mind a long term financial disaster for both companies. Google will continue to sell assets that Motorola Mobility business had until they are left with almost nothing. Did anyone else notice the lack of facts about Google Plus during the results presentation?

One idea that continually raises its head is the thought that Google Shopping might become a marketplace. It makes sense as Google has a lot of services that can be used to create the commerce value chain. Google Wallet, Merchant feeds, Google Trusted Stores, Bufferbox which can be used as a logistics solutions and an advertising platform that be used to build a solid competitor against Amazon. Whether Google wants to play in the marketplace space is another question for another post.

I missed mentioning eBay’s results from the 16th for some unknown reason. I think eBay is no longer a company that can be seen as a commerce nobody. Yes, I know their search is broken and that they are not seen a traditional ecommerce businesses. I must confess, eBay has flown below the radar for a while and I think 2013 is a year in which they make their case for being an Amazon competitor. Yes, I said it. Amazon competitor. Disrupt the disruptor and John Donahoe has done that with his mobile play. In my own mind, eBay is the furthest advanced in terms of of mobile commerce than any of the big players. Thus the lessons they have learned is going to benefit them greatly in the long run..

E-commerce businesses I believe has earmarked 2013 as the year of logistics development. Amazon continues to invest heavily in getting closer to their customers, Alibaba has unveiled a $16 billion dollar plan that will take between 5-8 years to complete. What is the driving factor for the investment? The ever elusive one-day shipping to customers which is a huge unique selling proposition for any ecommerce business to have.

The 10 stories that caught my attention this past week:

  1. Range, convenience and price – the three axes of retail competition – Nic Brisbourne has become something of a thought provoker for me. He writes on a variety of topics but this post written after HMV went into receivership got me thinking. Those 3 axes are the main drivers of ecommerce and if you execute them well like Amazon it drives rewards. E-commerce executives when last have you sat down for a moment and considered your business’s axes?
  2. Amazon deal lifts Polish IT hopes – Amazon acquiring Ivano Software is an interesting move. It is clearly not aimed at Siri as they acquired Yap in 2011 for that specific goal. The fact Ivano is being used in the Kindle Fire leads me to believe that this acquisition could be focussed on the rumored Amazon phone and potentially an API for developers which could lead to some very interesting ideas. Voice recognition software acquisitions have one interesting element to it. It has the potential to create a relationship that Google cannot index and thus not make revenue from. Apple and Amazon have realised it and are in my mind going aggressive in this area.
  3. Amazon Extends Its In-App Purchasing Option to Mac, PC And Web-Based Games – This move by Amazon confirms 2 things: They are trying to diversify the platforms they service (not just Android which they use for the Kindle Fire) and the ever increasing importance that gaming has on the company’s future.
  4. Online shipping marketplace uShip plans on leveraging Brazil’s logistics woes to bolster its business – Developing ecommerce economies have a few challenges that market entrants face. I think trying to use the opportunity to create a business is a great idea. I wonder if uShip will consider going to other markets after success in Brazil?
  5. Gawker Expects at Least 10% of Revenue From E-Commerce This Year, Says Denton Memo – Content based businesses like Gawker make their money via advertising and hosting events. However ecommerce will increasingly be seen as a way to create an additional revenue stream. I think it is safe to assume that this is a trend that will be seen in 2013.
  6. Will Google Shopping Become a Marketplace? – Is this a rumor that Google is fueling to the press or is fact? I am somewhere in the middle on this. I can see the possibility but Google going into marketplaces seems to be a stretch for Google.
  7. Alibaba to Build Logistics Network to Enable Same-day Delivery on Every Corner of China – This is without a doubt the story of the week. The implications for Alibaba is positive in the long term and for their competitors it is a call to action. The competitors have 5-8 years for a solution as this will close businesses down.
  8. 10 Apps That Changed How We Think About Shopping – Mobile shopping is a part of the retail landscape and it will continue to be something retail businesses need to address. Business Insider mentions a group of apps that has transformed shopping in the US.
  9. The growth of Egyptian e-commerce in 2013 – Egypt is a developing ecommerce market that is growing fast and the market fascinates me. This year I am expecting more press coverage for Egyptian ecommerce..
  10. Here’s The First Set Of Hard Numbers On Google’s Attempt To Steal Amazon’s Shopping Business – Product Listing Ads drove a lot of revenue for Google in Q4. It is clear that organic search engine results are increasingly being devalued by Google. Where does it leave other ecommerce businesses? Pay to be seen or die due to not spending on PLA’s?

Bonus Links for the week:

Onwards..