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Thursday, December 2, 2021

Introduction to e-commerce: Wal-Mart; Amazon logistics; holiday shopping

“E-Commerce Newsletter” is my irregular series of news and developments affecting online businesses. In this issue, I will focus on Wal-Mart’s e-commerce activities, Amazon’s package delivery, and consumers’ holiday shopping intentions.


  • Earlier this month, Wal-Mart announced a partnership with Netflix to sell products from the streaming service’s popular children’s shows. Called the Netflix Hub, it will include music, clothing, toys and games-all of which can be purchased in Wal-Mart’s physical stores and websites.
  • Walmart announced in September that it is cooperating with the media company Meredith Corporation to create shoppable ads on Meredith’s portfolio of consumer websites, including Allrecipes, Real Simple, EatingWell, etc. Customers will soon be able to purchase ingredients from Wal-Mart to use in special meals on these websites and other cooperative projects.
  • Wal-Mart announced this week that it has established a partnership with technology company InComm Payments to provide in-store cash bill payment services. Through InComm Payments’ VanillaDirect program, the product can be used at all Wal-Mart locations in the United States. Consumers can use cash to pay daily bills or top up their existing VanillaDirect accounts. The VanillaDirect network has more than 15,000 billing and account providers from all walks of life.
  • ShipStation, an e-commerce transportation software provider, announced its integration with Wal-Mart’s Canadian market. Approved ShipStation merchants can now sell their products on Walmart Canada Marketplace, and existing merchants of the Marketplace can now process their orders on the ShipStation platform. Walmart.ca serves more than 900,000 shoppers every day.
  • Wal-Mart now provides delivery services for oversized items from more than 2,800 stores in the United States-bicycles, large-screen TVs, and Christmas trees. Wal-Mart has also expanded the pickup and delivery of alcoholic beverages, and now it is available for click-and-pick at 3,000 stores and delivery services at 1,500 stores.
  • According to research by Deutsche Bank, Walmart+ subscription plans are gaining momentum and attracting younger, higher-income shoppers. Wal-Mart has long coveted high-income shoppers. But unlike online consumers, Wal-Mart’s physical store customers are still older and lower income.

The subscription service launched about a year ago competes with Amazon Prime, offering free shipping and subscription-only discounts on prescriptions and fuel. According to a monthly survey of consumers by Deutsche Bank, this service has grown to an estimated 32 million American households. About 86% of Walmart+ members who responded to the survey also subscribed to Amazon Prime.

Amazon package delivery

According to data from postal technology company Pitney Bowes, Amazon has replaced FedEx as the three largest package delivery company in the United States-boxes and packages delivered to people’s homes. In 2020, FBA delivered 4.2 billion parcels, up from 1.9 billion in 2019. In terms of volume, Amazon now accounts for 21% of U.S. package shipments, second only to 38% of the U.S. Postal Service and 24% of UPS, but more than 16% of FedEx.However, FedEx owns 34% of the parcel market By income, More than 10% of FBA.

Consumer holiday shopping

The reward app provider Shopkick surveyed more than 23,000 US consumers in July to determine their holiday shopping intentions. 41% said that they plan to do more online shopping due to Covid-19. 30% of respondents believe that spending between US$301 and US$600 is the best choice, which is about the same as last year’s ratio. However, 21% of respondents said that due to financial insecurity, their spending will be lower than last year.

31% of respondents are interested in buying clothing this holiday. Electronic products-usually a popular gift option-account for only 21%. Perhaps he noticed the product shortage warning. About 22% of consumers intend to shop earlier this year than last year, and 25% expect to shop before Thanksgiving most of the time. 52% of shoppers plan to buy most gifts between Thanksgiving and Cyber ​​Monday. More than 60% of respondents said they plan to shop on Black Friday (57% last year), and 67% will shop on Cyber ​​Monday (65% last year). Compared with last year, more consumers said they will shop in physical stores this year.

94% of consumers surveyed stated that they want free shipping and free returns.

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