Business models, another Rocket Internet business get funding,Russia’s postal service to invest in better logistics and ecommerce in Africa.
The week contained a whole lot of emails to customers to buy last minute items on their favorite ecommerce retailer websites. I have a few thoughts on this: One, sending me emails every day leads to the specific business being seen in the same light as a daily deal operator. Browse subject, read first three lines and move to trash. If I have not bought items online just before the delivery cutoff times, why would I buy after getting repeated emails?
Also, can anyone tell me why no ecommerce retailers reward their customers who have bought from them throughout the year? Surely, this kind of data is sitting in the transactional records of the various CRM systems that eretailer use. Email is making a comeback (not that it went anywhere) but surely the current process can be made more valuable for eretailers..
Something is going on at Rocket Internet as the last 6 weeks the funding news have been getting alot of air time on blogs. Is the company in “wheels down mode” or is transforming into becoming one of the developing ecommerce world investors?
Without any more thoughts, the stories that caught my attention this week:
- MBA Mondays: Revenue Models – Commerce – Fred Wilson is a great source of thoughts on the entire digital space. Business models is something of an interest of mine, does commerce have a problem with so may dominant incumbents?
- Glossybox, The Samwer Brothers’ Birchbox Effort, Opens Its Lid: $72M In Funding And 2M Boxes Shipped – Glossybox is one of the initial clones that Rocket Internet did on a successful North America startup. 200 000 users, with 2 million packages delivered across the various countries in which they operate in. Is this a sustainable business in the long run?
- Looking Ahead to 2013 – David Marcus looks into his crystal ball for 2013. I found this interesting as he basically mentions that NFC is dead on arrival and that mobile payment processing is going to be big in 2013. Passbook from Apple is flying below the radar and has the potential to make Apple play a huge role in the loyalty space in 2013.
- Russia Plans Postal Reform That May Help EBay Speed Up Shipments – E-commerce in developing economies is full of challenges. Russian ecommerce is currently lead by Ozon.ru whom have invested into logistics. Does the Russian investment into their Postal Service, take away a significant advantage from Ozon? Does challengers like eBay get into the door through this investment?
- E-Commerce Darling Fab Has Its Sights on Bricks and Mortar – Fab is on a roll but is bricks and mortar really something that they need to consider? Surely one would invest in more countries and logistics before physical stores?
- Shopping Sites Open Brick-and-Mortar Stores – Bonobos and Warby Parker is opening smaller physical stores in New York and other states. I must say this makes a lot of sense especially as both of these businesses deal with merchandise that is in need of personal consideration. Does this mean that other smaller ecommerce businesses should be considering a physical space in cities?
- Google’s Head of Shopping Says Company Has No Plans to Become a Retailer – It is becoming clear that Google has serious issues. May I ask one question;Why did Google acquire Bufferbox?
- Fab’s Five Rules For Killing It In E-Commerce – Jason Goldberg and Bradford Shellhammer have created a business that has huge long term potential. These 5 rules mentioned is definitely worth putting in the memory bank for 2013.
- What e-commerce in India looks like [Recap 2012] – Indian ecommerce has had a pretty busy 2012, but 2013 looks to be a year of change…
- Africa e-commerce: Beyond the Hype – African ecommerce is something that interests me. The article contains a few inaccuracies but gives a great overview of the state of ecommerce in Africa. Anyone interested should read the article…
Bonus links for the past week:
- Lamoda’s founders secure $484k for their new fashion startup Looksima – Fashion is without a doubt something that evolved in 2012. I wonder if the next wave of fashion ecommerce startups are already slowly entering the market?
- Times Internet Invests in Fab.com, to help them launch in India – Fab.com has an Indian connection, but it is great that they are entering a developing market, such as India. What are the other markets that they are considering entering?
- How big is Amazon.com? – This is a post I wrote earlier in the week on Amazon.com. I make a few predictions on where I think they are headed in 2013 and an infographic that will give some perspective on the Seattle company.
- Google’s Product Listing Ads: The Aftermath – It seems PLA’s have increased click costs and decreased conversion for online retailers. I wonder whether this paid for model was actually given thought by the leadership team at Google. Amazon is not playing ball, so the traffic is going to smaller and medium sized online shops but does this provide the good user experience that Google advocates?
- eBay to Stop Advertising Inside Mobile Apps: “It’s Not Worth It.” – I honestly think that this article is a sign that eBay has reached a tipping point with mobile commerce. They can now remove the advertising as the usage of their apps is enabling them to make revenue from customers. I am going to say it, eBay is one to watch with regards to mobile ecommerce.
- How South Africans are shopping – The truth is that 2012 was a good year for ecommerce in South Africa. Customers are still going to retailers for certain categories but online shopping is gaining wider adoption. Bring on 2013..
- Ex-Amazon VP Heads Up High-Tech Fashion Store – Physical retail and online retail are finally meshing. I must say it is early doors for Hointer, but this concept is definitely worth keeping an eye on.
- Dave McClure makes new German investment – in “compare anything” tool VERSUS IO – Comparison products is pretty close to home for me. It is an interest and my occupation. Not to sound heartless, but I hope some of the investment goes into UI and data. I have played with VERSUS IO a bit and have left disappointed. They compete against FindTheBest whom provides a superb product..
- It looks like Overstock is getting ready to compete with Amazon Lockers – It is clear that Lockers is the new black in ecommerce. Every business is considering it, but it is already behind Amazon and Google in the space..
- Why Malls Are Getting Mauled – Jeff Jordan has quickly become a favorite source of thought for me. Malls are under pressure and in the long run seem unsustainable. Does a visit to the mall in 20 years seem possible? I doubt it.
Readers, I wish you a great and safe festive season and a prosperous 2013. (Don’t worry, I am not going anywhere, normal service is to resume next week.)
Onwards..