Fab wants to become like IKEA, Rocket Internet helps the Brazil ecosystem, eBay offers more logistical opportunities for retailers and are considering investing into Snapdeal

The first calendar week of 2013 is in the record books. In South Africa, I reckon we will see more online shops re-opening and starting to process orders that was placed in the festive season. I wonder if in other markets this phenomenon also happens? Closure over the festive season is something I have become accustomed to.

My thoughts this past week was over the sudden emergence of potential retail for ecommerce businesses. Fab.com is seemingly keen on physical retail. I must say I am slightly surprised by this as I wonder how this would affect their bottom line? Well for starters I am assuming that they have data for their states in which the big sales occur. So, those I am expecting will be the first locations in which their retail operations would be opening. E-commerce is primarily done to ease the costs of retail locations and to create the ability for shoppers to buy any item they desire from their current location. Retail is they way in which commerce is done in a large scale across the globe. Maybe, my Amazon tinted glasses is ensuring that I don’t see the potential of physical retail for ecommerce merchants. I believe ecommerce businesses should stay away from bricks and mortars as long as they possibly can.

The other story which dominated this past week has been Google getting nothing more than a slap on the wrist from the FTC. I find the resolution in the US to be disappointing. I really would like to have seen that the FTC ensuring that Google is kept in check to ensure an Internet that provides potential for all businesses and not a select few.

The articles that got my attention this past week:

1. eBay Offers A Mobile Search Shortcut For Online Stores – eBay is in my mind reviving itself and becoming relevant. Why? They are the furthest advanced in providing a mobile commerce experience that customers want to use. (I have a longform post coming in the next few weeks on eBay)
2. Amazon Is Not A Commerce Company – Regular readers will be aware of my thoughts on Amazon. Matrix Commerce for me has no value, what does it mean? A reference to the movie or that Amazon is a multi-faceted business?  I will re-iterate one thing – Amazon is many things but their biggest advantage is scale, deep customer focus and consistent optimising based on data. Also it helps having 10 000 developers in your business that can build technology not seen anywhere..
3. The Gilted Age: Ex-Gilt Groupers are running this town – New York is a hotbed for ecommerce and have some big businesses that have either started there (Gilt, Etsy) or they house some of the most well known ecommerce businesses (Amazon, eBay). The Gilt Groupe will create a lot of long term capital for New York and most importantly Angel Investors whom have been in the trenches that continue the ecommerce boom in New York.
4. A Letter from CEO Jeff Katz – Katz is the CEO of Wize Commerce whom has Nextag in its holdings stable. I found the mere fact he mentions “according to third party data, we remain the largest independent comparison shopping product in terms of gross merchandise sales. We are also the largest comparison shopping site, according to our estimates, in driving mobile, social banner retargeting, and search traffic to your stores (online and offline).” All the information is relevant to the US as there is a small comparison engine in China that is the biggest traffic driver in the comparison shopping engine space.
5. eBay Tries Two New Ways to Sell: Drop-Off Points and Home Pick-Up – eBay has been flying below the radar for a while. However, helping sellers and the public with services to get merchandise on a platform is nothing new. What I like about this development is the usage of the eBay ecosystem..
6. The Rocket Effect: How Rocket Internet has Impacted the Brazilian Startup Landscape – Thomas Baldwin has written a great objective post on the impact that Rocket Internet has had on the Brazil startup ecosystem. I can say I have seen the same effect in South Africa.
7. eBay to invest in Snapdeal? – India is fast becoming a market where investors are marking their territory. If eBay is to invest in Snapdeal, then it would be to ensure that they have a business in the marketplace vertical in India. Remember Snapdeal has pivoted from being a daily deal operator to a full fledge ecommerce business.
8. E-Commerce in Vietnam: The Big Players for 2013 [Part 3] – South East Asia is an attractive market for ecommerce investors. Vietnam seems to be getting a lot of press and investment, is it simply a case of the fact the entire region is one of future potential?
9. 4 Ways to Combat Showrooming – Showrooming was a headline for 2012 across global ecommerce. Why? Mobile commerce is now a driver for retail. The 4 ways mentioned in the post can be summarised in one thought. Build a relationship between the customer and your retail product. If not they will continue to buy from other stores while walking through your store.
10. Exclusive: Jabong launches customer care (outsourced) service for ecommerce players – Jabong is Rocket Internet ecommerce business in India. What makes them different, is that they have quickly started offering customer service and logistics to their competitors (inside 18 months since launch). Operations as a service anyone?

Bonus links:

• Fab.com Is Poised To Become The ‘Ikea Of Fashion‘- Fab at the moment is primarily focussed on design. I find the IKEA reference interesting as that would indicate that they are going to aggressively scale in 2013. They had a bumper 2012 – just have a look at these slides for more indications that they can be a candidate for next big ecommerce player..
• Eight Percent of Amazon’s Sales Are Coming From Mobile – The figures quoted are estimates, does not include Kindle devices yet it is clear that Amazon is slowly getting behind in mobile commerce. I must say – if they do launch a phone (which I am expecting) then I believe it will be accompanied by upgrades to their mobile offerings.
• Last-minute Christmas shoppers turn to Amazon – Prime saved many embarrassing situations over the festive season. What should not go unnoticed is the 40% growth that the marketplace has shown YoY  Year on Year). 3P + FBA = The continued growth in ecommerce for Amazon in North America.
• The FTC’s Missed Opportunity on Google – It seems that the FTC was literally lobbied for 19 months over the result. It sets a very concerning precedent for the future. I have a long form post coming on this topic, but the just of the concern is that Money and politics have ensured that innovation is going to be hampered. Do I really want Google to continue showing me their services above single focussed businesses? (Yelp, Nextag, Buscape are the businesses I think about here…)

Some late breaking news was written by Thomas Baldwin – Rocket Internet are to IPO in 2013 . I knew something was up but this if true will have some interesting ramifications in emerging markets – especially for ecommerce.

Onwards..