eBay acquires Shutl and is subject to an investigation, same old Amazon seen in quarterly results, Fab redesigns and much more.

It was a bumper news week for the ecommerce industry. Amazon announced a second quarter in which they made a loss but their stock price increased. I have been thinking about Amazon.com in some detail and think these quarterly results is only giving the world a partial look at the Seattle based business. Amazon has increased their free shipping amount for the first time in 10 years to $35 and then in the analyst call mentioned that “millions of Prime members were added in the last quarter.” Coincidence? I think not.

Google is increasingly using maps and local to compete with Amazon. For me the hypocrisy seen in the last few weeks regarding Hummingbird, Banner ads in Search and these new PLA managment campaigns are all designed to do one thing – make Google more money. I can honestly say – Google is no saint but their “we care about our users” line can be kept in Mountain view meetings. Anyone notice that since Marissa Mayer left all the things she stood for has been changed.

Alibaba has not yet decided where they want to do their IPO. First it was Hong Kong, then New York and now Hong Kong is seemingly back in the good books of Alibaba management. The bigger story is that Alibaba has unveiled an investment group that will be seen in the US. I personally think Alibaba is going to hard into the US. Why? Jack Ma wants to show Amazon, eBay and other that his company is the most powerful ecommerce business in the world. He will invest in startups like ShopRunner, Fanatics and others. Alibaba will be able to invest a few billion if they want to.

Online Shoppers in the US are going to have a large selection of merchants that will be doing Free Shipping during the holidays. The Free-Shipping wars have started and it will be seen in other markets in the next 12-18 months..

The stories that caught my attention this past week are:

1. It’s Official: Tencent & Naspers Go Their Separate Ways In India; Restructuring – India is a very important ecommerce market. The fact that Naspers (disclosure: they are my employer) is restructuring in India should be a sign that the war is still being fought in ecommerce in India. Tencent is going to have a very big impact on ecommerce in the coming 18 months..
2. eBay’s big day – eBay is trying to turn itself into a marketplace with a mobile based user interface. Acquiring Shutl provides them reach into Europe and expertise for their same day shopping play in the US. Am I the only one seeing that the Startups they are acquiring are all smallish?
3. Zalando makes €427m in second quarter as it pushes for €2bn revenue this year – “The company attributes the growth to launching in new markets in the second half of 2012, along with its aggressive expansion in established markets. It aims to hit $2bn in revenue in 2013 – a fairly realistic goal judging by its latest earnings report. In 2012, Zalando reached more than €1.15bn in revenue.” When does Zalando IPO? When there are no more markets to conquer in Europe?
4. Rivals Aim to Hit Amazon Where It Hurts – Same-Day Deliveries – eBay has this idea that they are the anti-Amazon. Everything that Amazon does is either old, not optimal or antiquated. The fact is that eBay is spending millions on acquisitions to battle Amazon tells me another story. Amazon’s logistics model works and it will be what differentiates Amazon from their competitors. eBay has their value due to relationships with retailers but what happens when those retailers want to go at it alone?
5. Alibaba Reportedly Acquiring Social Shopping Service Mogujie for $200 million – 2013 will be remembered as the year in which ecommerce websites fundamentally changed their layouts and UX. Pinterest I think can claim to be the first version seen of this new layout. Alibaba buying a social shopping business is not surprising but why has it taken so long?
6. Salsa, Cervezas and Lentescol – New Wharton-born Startup Makes Waves in Colombia – Colombia is an ecommerce market that fascinates me. The post contains a lot of interesting tidbits on Columbia and the contact lens industry.
7. Nigeria.com – The Emergence of Ecommerce – A detailed look into Nigerian ecommerce. Massive challenges are still seen in the industry ie. logistics and payment but most importantly second generation ecommerce entrepreneurs are still not seen in Nigeria. That will be the sign that the market is maturing.
8. Chinese e-commerce giant Alibaba establishes venture division in U.S., looking for more investments – Michael Zeisser has been given the reigns to run Alibaba’s venture business from San Francisco Bay. The targets are “innovative platforms, products and ideas with a focus on Internet commerce and emerging technologies.”
9. Same Old Amazon: All Sales, No Profit – “In three of four quarters over the last year—yet its stock price is near an all-time high, following a 35 percent jump over the last 12 months.” In any other business the CEO would have been on the receiving end of shareholder criticism but investors love Jeff Bezos and his leadership. Lots of opportunity to invest into parts of commerce both online and offline.
10. Fab.com Updates Site To Give Better Recommendations As It Pursues Global Growth – I am increasingly beginning to think Fab.com is in trouble. The constant redesigns and PR can only continue for so long.

Bonus Links:

• How to compete with Amazon– Jeff Jordan from Andreessen Horowitz provides a few interesting strategies for retailers who want to compete with Amazon.com.
• EBay Probed by Regulator Over Loans Pioneered by Payday Lenders – Bill Me Later is being investigated for the period in which the loan payer is outside the 6 month window. The consumer bureau said in an Oct. 1 report that these “deferred interest” products can end up being more expensive for consumers than using a normal credit card.
• Anticipatory Commerce: the Evolution of Intent on the Web – Tomasz Tunguz has fast become one of my favorite reads. The intent cycle has been changed and due to the streams of data created by users anticipatory commerce is a reality.
• The ShopRunner story – and why it is important – A post I wrote earlier in the week regarding ShopRunner and their new round of funding. This could be a massive potential shake up in the ecommerce ecosystem  if Alibaba acquires ShopRunner.
• Amazon is still a pretty small part of the retail environment in the UK – “Amazon has become enormously popular with British consumers, but it is also a company of contradictions. Despite rising revenues, Amazon made a loss last year, and despite creating new jobs in the UK, it has been criticised for the amount of tax it pays and the damage its expansion has allegedly caused the high street.” I wonder how many other Amazon businesses are in the same position – I can imagine that this article would have had some serious impact at UK retailers.

Onwards..