Tradeshift and HSBC Collaboration, Amazon’s Altered Payment Policy and More News
Explanation:
We fact-check all of our content to ensure you have reliable and up-to-date information for your eCommerce business decisions.
Learn about our fact-checking process.
It’s the last day of the week, and you know what that means. eCommerce news is here and this week it’s definitely been a ride. But before we get into that, have you had the chance to catch up with last week’s news yet? If not then check out our article on Amazon’s move against unionization efforts, and come back to see what eCommerce and edible insects have in common.
Today’s news is 1575 words and takes 6 minutes to read.
Tradeshift and HSBC Collaboration
Tradeshift, a prominent name in the commerce sector, has ambitious plans to diversify its services for businesses. Together with HSBC, they will broaden the scope of financial services for B2B enterprises. Christian Lanng, CEO of Tradeshift, emphasizes that partnering with HSBC, with its global reputation, amplifies the credibility of any financial solutions introduced via the Tradeshift platform.
Gert Syvlest, Tradeshift’s co-founder, highlights the transformative nature of the HSBC joint venture. He believes that digitally streamlining global trade will redefine financial services. These revamped services will not only cater to the needs of individual businesses but also bolster trade relations, making them more efficient and lucrative for all stakeholders.
Set to debut next year, this venture aims to broaden its financial services reach beyond Tradeshift to other commerce platforms. Underpinning this partnership, HSBC is investing $35 million into Tradeshift and will also have representation on its board. With the anticipated influx from additional investors, the company plans to secure a minimum of $70 million in total. To date, since its inception in 2009, Tradeshift has amassed a remarkable $1.1 billion in funding, as cited by Crunchbase.
What does it mean for eCommerce sellers?
For e-commerce sellers, the developments at Tradeshift and its partnership with HSBC signal a potentially transformative shift in the financial and trade landscape:
- Diversified financial services: With Tradeshift’s intention to expand into services like B2B marketplaces, accounts payable automation, and embedded finance, e-commerce sellers might benefit from a broader range of financial tools tailored to their needs. This could streamline operations, improve cash flow management, and potentially lead to cost savings.
- Enhanced credibility: HSBC’s involvement brings a level of trust and credibility that can resonate with both e-commerce sellers and their customers. Partnering with a renowned global bank can provide assurance to sellers when it comes to payment security and financial transactions.
- Increased capital flow: With significant funding flowing into ventures like these, there’s an increased likelihood of continued innovation in the e-commerce financial space. Sellers can expect more cutting-edge tools and platforms to emerge, further simplifying and enhancing their operations.
Big Retailer News
Amazon’s Altered Payment Policy
Amazon faced criticism from UK and European sellers over a new payment policy that delays payments for a week after delivery. The revised condition mandates that sellers receive payment a week post-product delivery. This alteration in payment terms raised concerns among thousands of businesses about their sustainability and potential financial strain.
Responding to the rising tide of discontent from the seller community, as well as intervention from ministers, Amazon decided to delay the implementation of this policy change for select sellers until January 31 of the following year. The company acknowledged the need for additional support for certain sellers during the transition period.
Reports suggest that the revised payment policy could impact a substantial number of sellers, approximately 15%, or 33,750 small to medium businesses operating across Europe and the UK. The company highlighted its efforts to engage with and address the concerns of sellers affected by this change.
Working with any eCommerce platform can be a challenging experience. Make sure to check out our article on Shopify vs. Amazon. Do you know which one is the best platform for your business?
eBay’s ‘Immediate Pay’
eBay has been expanding its testing for the “Immediate Pay” feature. The premise seems straightforward: if a seller accepts a buyer’s offer or the buyer wins an auction, they should pay immediately. However, many eBay users aren’t enthusiastic about this option, primarily because many were unaware of this evolving policy.
The source of this discontent largely stems from a perceived lack of transparency. eBay’s help page on “How immediate pay works” suggests the feature is applicable only for fixed-price listings and auction-style listings with a “Buy It Now” option. It doesn’t mention that Immediate Pay can expand to offers or auction bidding. One user voiced their frustration on an eBay discussion board, claiming they felt deceived when eBay processed their payment at the close of an auction without their explicit consent.
Yet, not all feedback is negative. Some users welcome the Immediate Pay feature, highlighting its potential to combat non-payment issues that have plagued the platform. Non-payers or “deadbeats” have been a persistent problem on eBay, causing disruptions for both genuine buyers and sellers.
Supporters argue that this policy could deter such behavior, ensuring a more efficient and reliable marketplace. eBay seems to be taking this feedback on board and is considering further testing. They also recognize some challenges, such as how to manage requests for combined shipping in the context of Immediate Payment, and are actively seeking solutions.
Check out eBay tools and services to maximize your eBay store profits.
Also in the News
- Etsy’s new policy for minor safety. Seller 365
- Amazon’s custom AWS chips. Medium
International Retailer News
Edible Insects in eCommerce
The food industry is buzzing with the potential of insects like crickets and beetles as a sustainable protein source. Climate change threatens to exacerbate food insecurity, and analysts believe that insect protein could be a viable solution due to its eco-friendly and economical production compared to traditional livestock.
Major corporations and governments are increasingly investing in the edible insect market, hoping to mainstream this alternative protein source. As Heidi Tang from HSBC articulates, insects not only provide a means to reduce the environmental footprint of the agriculture sector but also adapt to the challenges presented by climate change.
Highlighting the environmental benefits, it’s crucial to note that the global food system is a significant contributor to greenhouse gas emissions, with animal-based foods responsible for nearly 60% of these emissions.
The rising costs and supply chain vulnerabilities associated with animal proteins – due to factors like climate-related natural disasters and inflation – make the case for insect protein even more compelling. An HSBC report underscores the rich nutritional content of insects, emphasizing their abundance and the diversity of edible species available, with over 1,900 species recognized by the UN’s Food and Agriculture Organisation (FAO).
From an efficiency standpoint, insects outperform livestock. They convert feed into edible weight at a rate of approximately 80%, compared to livestock’s 50%, as per FAO data. Furthermore, insect farming is markedly less resource-intensive. To yield a comparable protein amount, insects demand just about 10% of the land and 20% of the water that beef cattle do, and they produce under 1% of the associated greenhouse-gas emissions.
These findings underscore the potential of insects in reshaping the global food landscape, offering a solution that’s both nutritionally rich and environmentally sound.
For eCommerce sellers
The growing acceptance of insect-derived proteins offers a novel avenue for e-commerce sellers in the food sector. They can diversify their product offerings with sustainable insect-based foods, leverage eco-friendly branding, and employ educational marketing to address apprehensions.
However, they’ll need to navigate regulatory standards, cultural sensitivities, and decide on pricing strategies. This trend presents both challenges and opportunities, positioning early adopters at the vanguard of a potential dietary shift.
If you’re an eCommerce seller, is this an opportunity you would like to explore? Leave a comment with your thoughts down below.
Booking’s Delayed Payments
Booking.com is facing criticism from accommodation hosts in Scotland, as well as other parts of the UK and Europe, for delayed payments. Several hosts have reported not getting paid in months for guests they accommodated through the platform.
While Booking.com acknowledged the delays, attributing them to “unforeseen technical issues” during planned IT system maintenance, affected hosts have expressed their frustrations and financial difficulties stemming from the situation. Emma Audain, a Glasgow flat owner, stated she hadn’t received payments since June, causing significant disruptions to her business operations.
This incident has not only strained the company’s relationship with its hosts but also raised questions about transparency and trustworthiness in online marketplace transactions. The situation is even more critical when considering that guests have already paid their dues, unaware that their hosts have not received their rightful earnings.
It seems that a lot of big companies are straining their customer and seller relationships lately. For buyers and sellers alike, it’s important to be part of a platform that aims to be transparent. Make sure to check out our article on the World’s Top Online Marketplaces in 2023, and decide for yourself which marketplace is the one you feel connected to the most.
Also in the News
- China’s two-legged, AI powered robots. SCMP
- Amazon’s one time cash flow disruption. eCommerce Bytes
Webinars
For everyone
Various dates: Amazon advertising’s global webinar program continues with 20+ webinars scheduled, covering Prime Day Preparation, Sponsored Products, Sponsored Brands, reporting, optimization, and other tips. Amazon.
For US sellers
September 7: The 15 Minute Breakdown. Tinuiti.
For UK sellers
Various dates: Amazon advertising’s global webinar program continues with 20+ webinars scheduled, covering Prime Day Preparation, Sponsored Products, Sponsored Brands, reporting, optimization, and other tips. Amazon.
Leave a Reply