A blog on eCommerce, Social Commerce, Comparative Shopping Engines & Business

By Hendrik Laubscher

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Why 10.10 Festival Is Important

Alibaba has it, JD.com has it, and Amazon has one. Shopping festivals are a trend that has accelerated as commerce seeks to energize global economies. A shopping festival offers consumers a dash of retail therapy while brands can grow sales and engagement.

A few weeks ago, Coresight Research, Shopkick, and Fashwire announced the 10.10 Shopping Festival. A well-known commerce research business, an offline to an online app, and a double-sided fashion marketplace offer US consumers, retailers, and brands access to customers.

“We’re thrilled to thank our loyal users by offering big kicks throughout Shopper Appreciation Weekend, and to partner with Coresight Research to make the 10.10 Shopping Festival a reality for shoppers across the country,” said Dave Fisch, general manager of Shopkick. “By rewarding consumers throughout the entire online and in-store shopping experience, we hope to make it that much easier to check off all of their holiday needs, while also offering a chance to give back to a worthy cause.”

Source: 1010 Shopping Festival
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The E-commerce Stepchild – Logistics

I have spent a large amount of time in 2020, researching and writing about logistics. In a recent project, I have had a front-row seat to see its strain on brands. The stepchild of e-commerce is not flashy and visible by consumers but can make or break customer perception. The final mile has an enormous impact on consumers’ experience, and in Q4 2020, it will become more critical.

Logistics is somewhat opaque currently, and in most cases, it can lead to many breaking points. Amazon has changed customer perceptions based on speed. On-demand startups such as Darkstore, FLEXE, and Flowspace also add complexity, which the customer does not see.

The sector is a low margin, capital intensive part of commerce that is due for innovation. It’s a topic that is not cool, nor does it get the attention it deserves.

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Is commerce a zero-sum game?

Over the past two weeks, I have sat in meetings and have heard executives discuss commerce unflattering. Retail is dead, and commerce is a zero-sum sector, and it left me dumbfounded.

As I have realized, commerce is a sector that has two parts that consumers use to interact with it. In-person (retail) and via technology (e-commerce) is not harmonious if you read the press.

The battle between the store and online.

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Tobi’s nightmare company that no-one talks about

Shopify has a competitor that has a little mention in e-commerce conversations. It’s not Facebook, PayPal (could be), or Amazon, but it is a company methodically creating an end-to-end commerce business. Tobi Lutke, I suspect either is following this business or is completely unaware of this company. Square will make Tobi have sleepless nights.

As 2020 evolves, consumers and retailers are experiencing change at a rate of knots. What could take ten years is now accelerated in three months. I continue to believe that Square could be Shopify’s new rival that can hurt them.

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The FBA Roll-up Delusion

I have been tracking a sector since middle April that has been gaining momentum. The acquisition of Fulfillment by Amazon (FBA) businesses by venture-backed companies or PE investors seems to be the 2020 fad.

In 2017-2019, the B2C e-commerce sector saw direct-to-consumer e-commerce investment at scale. It has cooled down to a degree, as questions over sustainability, vertical integration, and real impact became normal. In 2020, venture and private equity believe that rolling-up many FBA businesses into a holding company are the solution. I am not so sure about that.

The FBA Delusion
Source: Imgflip
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