A Decade of Fulfillment by Amazon (FBA)
A decade ago Amazon made three long-term bets: Prime memberships, fulfillment consistency, and third-party sellers are going to be key. They were the right bets to make.
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What Happened to Jet.com
Jet.com website traffic declined to 10.5 million visits in February, down from 35.5 million visits in February 2017. That's a decrease of 70% in a year.
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Selling Products to Strangers Doesn't Cut It Anymore
The products which outperform their peers are the ones which start with the customer, understand their wants and needs, and then execute accordingly via relevant channels. On marketplaces the customer is the marketplace.
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The Best iPhone out of 10,000
Devin Wenig, CEO of eBay, said "Nobody wants to go through 10,000 iPhones. Show me the four best options." eBay is correct that the way eBay functions today is not how most people shop.
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Amazon Marketplace Drove a Fifth of US E-Commerce
Customers spent $453.46 billion online in 2017, a 16% increase from the previous year. For the first time e-commerce sales represented more than 10% of total retail sales at 10.5%. Amazon accounted for 41% of online retail sales.
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The Race to Sell Chinese Goods to US Customers
Customers, and the media talk a big game about manufacturing ethics, and the pressure on local retailers. And then they want a $9.99 t-shirt. Ethical supply chain is good, fast shipping is better, low price is best.
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The Channel Shapes What Is Bought
People do not shop the same on Amazon as on eBay, nor on eBay as in small websites, and neither in small websites as in retail shops. And so people do not buy exactly the same things on Amazon as they do elsewhere.
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Of Course eBay Plans to Cut Off PayPal As Its Main Payments Processor
The big news story today is eBay announcing that it will stop working with PayPal as its back-end payments service in 2020. Modern marketplaces are bundles of vertically integrated services, payments are a big part of it. eBay independent from PayPal will do better.
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Five Thousand Sellers Account for 25% of eBay Sales
eBay marketplace has tens of millions of sellers selling worldwide, but the majority of sales is done by a small pool of top sellers. We estimate that top 5,000 sellers account for 25% of worldwide GMV on eBay.
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Amazon Australia One Month Later
Amazon launched in Australia in December last year. One month later the marketplace attracted over 5,000 sellers. In fact, Amazon Australia is the fastest growing marketplace relative to its size. 55 new sellers join every day.
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