Category: eCommerce

  • Sync Everything with Skubana

    When I think of e-commerce, there are essentially two parts to it. The first is the lovely and beautiful UX of product pages and shopping carts that buyers use to purchase items from online retailers. The second is the tremendous amount of systems behind this UX that ensure the buyers actually receive the products they order.

    And it is this backend infrastructure that is the major pain point for e-commerce sellers today. Just think of all that sellers can (and usually must) do to fulfill orders and run their business.

    1. Channel Integration – most e-commerce retailers sell on multiple sales channels (Amazon, eBay, Magento, Shopify, etc.), which means they need tools to communicate with those channels.
    2. Order Processing – whether shipping orders from their own warehouse, outsourcing fulfillment to a 3PL center, or drop shipping products directly from their vendors, sellers must rely on a myriad of software platforms to deliver their products to customers.
    3. Inventory Management – as orders come in, products leave the warehouse, and the challenge of synchronizing inventory across all channels becomes a huge headache because none of the channels communicate with each other.
    4. Purchasing – as soon as sellers start running low on inventory, they rely on purchase orders to their vendors to replenish stock.
    5. Accounting and Analytics – e-commerce is a tremendously competitive space, and unless a seller can keep track of their expenses and analyze sales data, they will likely get outperformed by the competition.

    If the list above sounds complicated, it’s because it is. There are 5 million (and growing) small and medium e-commerce sellers in the U.S. alone that currently struggle to process their orders and manage inventory because they have to piece together a hodgepodge of software solutions to run their business. These are serious pain points that cause sellers to lose thousands of dollars each year due to overselling and being under-stocked.

    One of those sellers is Chad Rubin, a very successful owner of the e-commerce company CrucialVacuum. While I was in the U.S. in October I caught up with Chad, and to my surprise found out that he might have the answer to the woes that plague e-commerce sellers today. The name is Skubana, and it is Chad’s latest and without a doubt greatest endeavor: the world’s first and only all-in-one cloud e-commerce backend platform.

    To create such a revolutionary product, Chad knew he had to team up with the right technical resources.

    Enter D.J. Kunovac, an enterprise architect and engineer who previously developed software for hospital networks while working for McKesson, the largest healthcare company in the world. The two have teamed up to create something no one has dared to try so far in the e-commerce world: an e-commerce unification platform.

    And after seeing the platform in action, I believe that this is a potential game changer.

    Skubana is based in New York and a stone’s throw away from where Quidsi was operating from. Currently Skubana is only focused on the U.S. market and is at the moment doing a private beta with select merchants.

    You can sign up here: http://www.skubana.com/signup

    Skubana has, in my opinion, the ability to democratize a part of the commerce industry that is not big enough for enterprise software, but is too complex for out-of-the-box solutions. They launch in the Spring of 2015, and the world of e-commerce may never be the same again. Stay tuned.

    Disclosure: I received no payment for this post nor have any business interest in Skubana. Chad is someone whom I respect and his business is a part of ecommerce that no platform is looking at. This post is my opinion about a platform that I think can change a lot of things for business owners.

  • Why did eBay repatriate $9 billion?

    I have been thinking about eBay over the last 6 weeks. The primary reason for it is “why did eBay repratriate $6 billion?” but also other news such as – David Marcus leaving Paypal into a newly created role at facebook, eBay being hacked and not saying much about it and the continued focus on Russian ecommerce. The company also announced moves into Latin America and an acquisition (AppTek) which is suppose to aid it in moving into new regions. The point is that eBay has been in the news for a variety of reasons and seems to be going a hundred miles a hour in a hundred directions.

    PayPal – the “unifying element of commerce”
    I am firm of the belief that eBay should have spun PayPal off. Why? Payments is a hot industry which is seeing an enormous amount of innovation. Tell me – where does PayPal fit into that? Close to the end of the line for payments businesses? I thought so.

    I read the excellent piece about the PayPal mafia that was in the  TechRepublic and I could not help but wonder why eBay could not keep any of the founding team to stay at the business. Would PayPal have been spun off by now?

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  • What are the challenges for Alibaba post IPO?

    Alibaba has been on my mind for the last 18 months. I have not been writing about the company as I researched, asked opinions from senior ecommerce executives and have been trying to understand the impact that the Chinese behemoth will have on ecommerce. Let me be frank – everything changes, it really is as simple as that.

    The reality of Alibaba

    I spent a few days reading the epic and first real look at Alibaba – its SEC IPO documentation. I have always thought that Amazon was a very difficult company to try and compartmentalise (the amount of disruptive businesses inside Amazon is small in comparison to Alibaba). In terms of business functionality Alibaba can be seen as the following:

    1. Amazon Marketplace
    2. Paypal
    3. UPS
    4. Amazon Webservices
    5. Fidelity investments (this is to be seen as comparison to Alibaba’s Yu’e Bao fund)
    6. Amazon’s MVNO for mobile phone contracts (which will be operational from June)

    All of the above together is equal to Alibaba. There is no easy way to explain the scale that is seen at Alibaba.

    The thing that makes Alibaba astounding is the size that they have. The scale that Alibaba has is partly due to the size of their home market (China) and the aggressive nature that they have defended their businesses.
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  • The real reasons behind Rakuten’s Viber purchase

    Rakuten, the Japanese ecommerce giant has done it again. They have bought another company that has raised alot of questions about their merger and acquisition strategy. Viber, the messaging company that uses wireless internet to do phone call is now a Rakuten company.

    The issue with Rakuten for me is that they have little or no strategy on acquisitions in comparison to their direct competitors like Amazon, Alibaba and eBay. The company seems to be moving away from being a commerce based business to being a media distribution company. Their recent acquisitions: Wuaki.tv (streaming movies), Pinterest (crowd sourced curated content), Kobo (eReader) are all not really commerce related but bolt on acquisitions for a company that does commerce.

    Purpose of acquisition

    Viber is a messaging and VoIP service operator and has approximately 280 million global registered users, and monthly active users over 100 million. Viber apps on smartphones allow users to have conversations, and through its high quality functions users can send and receive messages and images, thus Viber offers a hybrid range of services rarely found on competing platforms. Viber is rapidly growing numbers of users, especially in emerging countries.

    The Company decided to acquire Viber to strengthen its global platform through the use of Viber’s range of customers in the Company’s E-Commerce and digital contents services.

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  • Alibaba vs Amazon – 2014 Edition

    When I wrote my first post on Amazon in which I looked at the competitors it will face; back 2012, I had 7 major ecommerce businesses that could destabilize Amazon’s domination in ecommerce:

    1. Amazon is and still is it’s own biggest concern
    2. Apple
    3. Alibaba
    4. eBay
    5. Walmart
    6. Rakuten
    7. Regional players (Netretail, Ozon, MercadoLibre)

    Fast forward 2 years and a variety of changes (global economic changes, investments and the rate of offline and online retail convergence) – the above list changes considerably. The growth in single global brand ecommerce businesses has grown remarkably primarily through the globalisation of ecommerce.

    Let me be clear – I am of the opinion that regional ecommerce competition is a less of a factor now as the global competitors can at any time launch in a market.  Global ecommerce businesses (Amazon, eBay, Rakuten etc) have the potential to invest significantly in a market through funds and staff.

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