Foundem starts legal proceedings against Google in the UK, Bezos does not care about profit margins and 2012 was a good year for South African ecommerce

The first real  working week of 2013 is in the record books and the news from across the ecommerce globe confirms it. Legal issues is starting to make news again and it seems that the word “anti-competitive” is back in the lights. Google has been accused of being anti-competitive by UK vertical search engine Foundem. The European part of the Google ruling has not been done and may potentially not be like those seen with the FTC.

Secondly, the Bazaarvoice acquisition of Power Reviews may also be potentially create results that ensures that the acquistion ensures changes to the Reviews market in North America. I am not a lawyer but it seems anti competitive acquisitions by companies that have potentially have huge implications on a specific market or vertical always creates activity for the Department of Justice.

One other story that has really interesting implications is Rakuten’s decision to “retire” buy.com and rebrand the business to Rakuten Shopping. It is becoming clear that this is the strategy that Rakuten does. Acquire a business, rebrand it and then potentially change the business model. Marketplaces seems to be their business model of choice.

The stories that grabbed my attention this past week:

1. Look no hands, ecommerce favorite little robot – Logistics will be a getting huge amounts of investment this year. Ensuring the last mile to the customer is under the e-retailers control will become a bigger advantage to those who aggressively invest in it.
2. Russia’s e-market to boom in 2013 – Morgan Stanley – The Russian ecommerce market is one that I believe will be maturing in this coming year. Investment is flowing into the market but the biggest challenge will be converting users to become more trusting of buying online.
3. The rise and rise of e-commerce in the Middle East – A great article about a region which will be getting more attention in the coming years. When do international ecommerce power houses open operations in the Middle East? (Not investment but actual operations is what will determine whether the regions has arrived.)
4. China’s Alibaba splits into 25 separate divisions to get faster and more nimble – Alibaba is going through a lot of changes and is obviously trying to get it’s house in order. IPO? Might be the case but Alibaba is also going through a transitional phase as Jack Ma moves into the background.
5. Shopzilla Partners with Google Shopping – A second Comparison Shopping Engine becoming a partner to Google Shopping. Does this indicate that Google is battling with finding content to list on their platform? Amazon is placing huge pressure on Google..
6. Rakuten changes Buy.com’s e-commerce model – This is becoming a pattern on Rakuten’s global strategy. Acquire a company, then rebrand the company and potentially then change the business model to suit revenue generation. SEO implications of a name change is big and would ensure that a lot of work potentially have been done to ensure a future success.
7. Target will now price-match Amazon, other retailers year-round – Amazon has a been able to disrupt retail in the US. I am not sure that price matching will be a long term sustainable strategy for retailers. Best Buy, Target and the rest have to be planning a strategy to counter Amazon’s effect.
8. eBay Reorganizes Its Mobile Group and Releases New Apps – “As part of the reorganization, which took place at the end of last year, mobile is now reporting into the company’s main marketplace division, rather than being a standalone product group. The restructuring is similar to moves that other companies are making now that smartphones and tablets are becoming a main part of the user experience, and not just a second or third screen.” I don’t think I need to add any more comment to that.
9. 2012 tops for e-commerce – South Africa is a developing ecommerce market and 2012 was a break through year for ecommerce. We still have things to execute better on, but the growth is indicative of the market becoming more use to buying online, which makes working in ecommerce an interesting occupation.
10. Amazon’s Jeff Bezos Doesn’t Care About Profit Margins– Normal businesses are driven by profit and the process of making profit for shareholders. Amazon is not a normal business and this article should clearly raise eyebrows for their competitors. Customer happiness and satisfaction is what drives the Seattle business.

Bonus links:

• Foundem sues Google in the UK, accusing the search giant of anti-competitive behavior  – Does Europe actually rule against Google’s methods of operations or is another FTC result coming?
• How The E-Commerce Revolution Is Changing Everything We Know About Retail – A must read article that contains a great data set from Morgan Stanley.
• Rocket Internet to IPO? – Something I wrote last weekend on the rumored Rocket Internet IPO. Needless to say this is going to be a story worth keeping an eye on.
• Rakuten’s Play.com is closing its retail business following the end of a key UK tax break – “Moving forward we are intending to focus exclusively on our successful marketplace, which is our main business area, and to phase out the direct retail part of our business.” I wonder how many more businesses will be closing their retail operations in light of the removal of Low Value Consignment Relief (LVCR).

Onwards..