Alibaba & Amazon comparison, Amazon, eBay, and Wal-Mart are the big 3 in mobile commerce, Meet Vipshop  and much more

It is Black Friday today in the US and having a look around the globe this marketing driven event is clearly now part of global ecommerce. Merchants worldwide have decided to latch on to the day in which buy, buy and more buy is the goal for shoppers. Walmart had major performance issues which lead to unhappy customers and in Nigeria, Konga was surprised by all the shoppers accessing their sales. I am going to be tackling this topic in the coming weeks as I believe the phenomenon could also be adversely effecting ecommerce businesses..

The Alibaba and Amazon comparisons have begun. I can honestly say that I think it will only be gaining more momentum as when Alibaba goes public I think the Yangtze crocodile will be swimming into North America. Let me state that I believe global commerce is in for a massive shake-up as Alibaba with capital is going to be a disruptor. Amazon has clearly accelerated their investment into logistics and one has to wonder if that was to counter the possible entry of Alibaba in North America? Alibaba has scale and they can directly compete with Amazon..

The article of the week that I reread was the fascinating look at VIPShop in China. This flash-sales behemoth is a public company that is currently trading at $80 per share. What I find interesting is that the business is relatively unknown but also has serious critique against it. They have 800 brand partners, out of a total of 6,000, that have signed restrictive contracts with the company.

Customer information is kept secret by the company, cutting brand partners out of any efforts to broaden the customer base. “Our relationship is a very simple, one-time transactional relationship. We don’t work with them on marketing, branding or operations and there is no such sense as ‘growing together’.

It clearly is a massive player in the flash sales business but one has to wonder how they have been flying below the radar for so long..

The stories that caught my attention this past week:

1. In War for Same-Day Delivery, Racing Madly to Go Last Mile – This highlights just how important logistics has become in the last 12 months. What is very interesting to note is that unskilled human interaction is still needed to solve this last mile delivery. The problem for eBay and others is that this is one of the elements that Amazon absolutely owns and with their partnership with USPS, I see eBay and others battling for solutions.
2. How PetSmart Shampoos Its Way Around Amazon – PetSmart has continued to fetch sizable returns despite pressure from Amazon’s Wag.com. The e-commerce giant’s pet store is well into its third year of business, with no shortage of treats and toys on offer. The way to beat Amazon is via services that they have no current business in. Wag.com is a vertical that sells pet items but that is it.
3. How Amazon, eBay, and Wal-Mart became ‘The Big Three’ in mobile commerce, and what they’re doing to succeed – “Amazon, eBay and Wal-Mart have achieved something remarkable. With millions of apps and websites competing for attention, each has carved out a mass audience on mobile and have become the top three mobile commerce properties in the U.S.” When Business Insider do research generally it is good.
4. Google introduces review monitoring for SMBs – Reviews are clearly a massive part of Google’s local strategy and is clearly trying to make this seem like a win for SMBs. There is “no ability for a business owner to flag a review as inappropriate from within the dashboard. He/she must still visit the About page for the business to flag reviews.”
5. When Will ecommerce Companies Start Talking Profitability? [Kunal Bahl Of Snapdeal] – Kunal Bahl, the founder of Snapdeal shares his thoughts on the fragmented Indian retail market, evolution of the marketplace model and the road ahead. Fascinating insight into Indian ecommerce..
6. Take that Amazon! Chinese e-tailer Jingdong launches its own JDPhone smartphone program, eyes MVNO – Jingdong has been active but it needs to be said that this is a response to Alibaba’s aggressive move into mobile commerce. Amazon has been rumored to be doing something like this for the last 18 months but it has not found a model which will work for them. Jingdong is partnering with Chinese OEM’s to make the JDPhone but how will they ensure that users interact with their platform? Preloading of apps? a JD appstore?
7. Demolition Man: why does Fab’s CEO keep building big companies that suddenly implode? – I think Jason Goldberg is becoming a lot like Andrew Mason. They are both successful smooth talking businessman but Goldberg seemingly has a reputation for not being happy with a business model etc. It is becoming clear to me that the fab board has a very big decision to make in the coming 6-12 months. Do they keep Goldberg or are they going to look for adult supervision for him?
8. Target (Yes, That Target) Wants To Launch An Accelerator In India To Tap Into Its Startup Scene – If you wanted validation that the Internet is disrupting retail then here is your sign. Target and other retailers are being forced into accelerators or moving into Silicon Valley as Amazon and Walmart keep moving the goal posts.
9. Taobao offers free analytics to small merchants – Taobao has 7 million merchants and by providing them with tools they are ensuring a win-win for both the merchant and the merchant. “Taobao marketing tool, which has been downloaded by over 1 million vendors since October, allows sellers to identify popular items that are frequently added to online shopping carts.”
10. Russia’s Sistema considers buying into e-commerce firm Ozon – Sistema also owns the Detsky Mir children’s store chain and some online retail franchises. Ozon is clearly looking to be raising money but Sistema will be an interesting partner. Retailer plus a competitor – why is more businesses in Europe looking at retailers for investment?

Bonus links:

• Can SearchinMENA.com raise the funds it needs to build an Alibaba for the Middle East? – A B2B marketplace in the Middle East? I think they might be competing against Alibaba sooner than what they are expecting..
• Is a ‘Google Store’ Now Inevitable? – Google will be opening stores in critical markets to sell their devices. They need customers to use their devices to interact with their premier revenue generator – advertising.
• PayPal just made gift cards way better (by accepting them) – Ever since David Marcus took over at Paypal the company has been moving forward. PayPal wants to be a very large switch for credit card companies as then users can use their cards or gift cards more.
• Amazon Close to Launching 3rd Party Logistics Services in India; Pilot Begins This Month – Snapdeal and Flipkarts biggest challenger has arrived. 3rd Party logistics for smaller merchants will definitely effect their business. I wonder how they got passed the FDI issues so quickly?
• FindTheBest destroys “matchmaking” patent, pushes RICO case against troll – FindTheBest needs to be commended for challenging this patent troll and for getting a positive result from the judicial system in the US.
• Google Trusted Stores Now Integrates With AdWords, Shows StellaService Ratings In US – Google has recently introduced pilot programs for Google Trusted Stores in the UK, France, Germany, and Australia. Only shoppers located in a particular country will see the badge for that country. Need I say more?
• TrustedCompany is Yelp for e-commerce, aims to solve trust issues online – This will be an interesting business to keep an eye on in Asia. If they succeed they will become an acquisition target.

Onwards.. Till next week!