Amazon Becoming the Head of Beauty, Canada’s Cova Pay and More News
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Hey there folks! It’s time for another Friday News Digest. Are you ready for a fresh batch of eCommerce news? Last Friday Temu and Amazon went under fire for exploitation and linkage to forced labor — make sure to give it a read if you haven’t already. As for this week — we’re excited about Canada’s Cova Pay. Let’s dive in.
Today’s news is 1518 words and takes 6 minutes to read.
Amazon Becoming the Head of Beauty
With a legacy of turning pages into cloud servers, Amazon Inc. has continued to seize dominance in various sectors. Morgan Stanley now predicts that the eCommerce behemoth will claim a new crown. It looks like Amazon is becoming the foremost player in the beauty industry.
As projected by analysts led by Simeon Gutman, Amazon is on the path to surpass Walmart Inc. as the top beauty retailer in the United States by 2025. Amazon’s slice of the beauty pie, valued at a potential $180 billion by 2025, should reach around 14.5 percent. This outstrips Walmart, which will probably have around 13 percent of the market.
While traditional grocery retailers have maintained a solid grip on the US beauty market with approximately 29 percent market share, their slice of the pie has diminished over time. This shift has ushered in increased gains for specialist retailers such as Ulta Beauty Inc. and Sephora, who have been profiting handsomely.
According to Gutman, Amazon is on track to control nearly half (46.5 percent) of the e-commerce market by 2025. This remarkable growth underpins Amazon’s impending leadership in the beauty retail sector.
What does it mean for eCommerce sellers?
For e-commerce sellers, especially those in the beauty industry, Amazon’s projected rise in market share means several things:
- Amazon’s excellent delivery and customer service have raised consumer expectations. E-commerce sellers will need to meet these high standards, ensuring speedy delivery and quick resolution of any customer issues.
- As Amazon continues to expand its reach, more customers are likely to shop for beauty products online. This opens up new opportunities for e-commerce sellers to reach a larger customer base.
- While Amazon might be a dominant player, sellers should not ignore other platforms. A multichannel strategy could help diversify their customer base. It could also reduce dependency on a single platform.
- As Amazon’s market share grows, it’s more important than ever for sellers to optimize their product listings for search. Both on Amazon’s platform and in search engines.
Big Retailer News
Canada’s Cova Pay
Cova Software, a company known for its top-notch software solutions for cannabis shops, is bringing something new and exciting to the table – ‘Cova Pay.’ The new Cova Pay will make buying and selling cannabis much smoother, and it’s a big upgrade for eCommerce sellers.
What’s special about Cova Pay is that it works perfectly with Cova’s Point of Sale (POS) system. This remarkable feature enables cannabis shops to conveniently process debit and credit card payments directly, eliminating the necessity for third-party payment agreements. And that’s a really big deal!
Cova Pay’s system has a technological base that manages more than a trillion dollars in transactions every year. So, it offers a speedy and secure way to make payments.
There’s more to it as well. Cova Pay uses the latest mobile terminals for making payments. It makes billing and reporting a breeze. It talks directly to the POS system, ensuring a secure and error-free way of recording transactions. Plus, Cova provides top-notch support to its customers, making the entire process even easier.
As the latest addition to Cova’s award-winning solutions, Cova Pay shows how dedicated the company is to making things easier for cannabis retailers. It’s a game-changing tool that’s sure to make a big splash in the industry.
What does it mean for retailers?
For retailers, especially those in the cannabis industry, the introduction of Cova Pay presents numerous benefits:
- It removes the need for manual entry, which reduces the chance of errors and increases overall operational efficiency.
- Built on a robust technology platform, Cova Pay offers a secure way for retailers to process high-volume transactions. Cova Pay reduces the risk of fraud and ensures customer trust.
- With single-point support, retailers can quickly address any issues that arise. The customer experience is much improved and saves valuable time.
- The introduction of state-of-the-art mobile terminals allows retailers to be more flexible and adaptable. It provides seamless service to customers, no matter where they are.
Dangerous Amazon Investigation
Championing workers’ rights and safety, Senator Bernie Sanders, has taken a bold step against potential workplace hazards at Amazon warehouses.
He announced on Tuesday an extensive investigation into conditions he described as “dangerous and illegal.” This development signifies a new chapter in a sequence of federal actions against Amazon. It highlights previous citations and fines from the Department of Labor at six of Amazon’s facilities across the nation.
Sanders penned a straightforward letter to Amazon CEO Andy Jassy. The letter instigates the committee’s exploration into the challenges Amazon’s employees encounter daily. Sanders didn’t mince his words, asserting that Amazon is not unaware of these hazardous conditions. Nor is it aware of the life-changing implications for workers injured during their shifts.
Yet, in Sanders’ perspective, the e-commerce giant has made a conscious choice not to bolster adequate worker safeguards. The blame, according to him, lies at the feet of Amazon’s founder, Jeff Bezos, and his successor, Jassy. In Sanders’ eyes, they have fostered a corporate environment that views workers as expendable.
The question remains—what changes will this investigation bring about for Amazon’s workforce? Will it have an impact on Amazon’s eCommerce sellers? Share your thoughts on this topic with us in the comments section below.
And for all of our Amazon sellers, make sure to check out the Tuesday Tips section we have each week. June and July are all about Amazon Account tools and tips.
Also in the News
- Amazon’s and Walmart Battle for Dominance. Forbes.
- Walmart’s Simulcasts Live Shopping Event. Retail Touchpoints.
International Retailer News
Shopee Adopts Value-Driven Marketing Approach Through New Initiatives
eCommerce giant Shopee has announced its strategic move towards value-based marketing. Driven by a commitment to better serve its customers, Shopee aims to align with its values and beliefs through these new endeavors.
The key initiatives are instant delivery services and Shopee’s innovative ‘360 Marketing Solutions’, which is a comprehensive influencer marketing program.
Shopee is responding to the changing retail landscape where younger consumers prefer products and brands that align with their values. These include:
- sustainability,
- women’s empowerment,
- and support for rural-based small and medium enterprises (SMEs).
Shopee’s embrace of value-based marketing reflects its dedication to adapting to its customers’ changing needs. This approach recognizes the shift in consumer behavior. It has a clear focus on organic and natural products, and a growing preference for ethical and value-driven brands.
By empowering sellers with tools to grow and meet these evolving demands, Shopee is making a conscious effort to stay ahead of the curve in the competitive e-commerce marketplace.
Check out our article on the differences and similarities between B2B and B2C eCommerce.
European Regulators and Google
In a landmark move that sends shockwaves through the tech world, European Union (EU) regulators slapped Google with new antitrust charges last week. The regulators believe the only way to ease competition concerns is a partial breakup of the tech behemoth’s revenue engine.
This bold stance taken by Brussels marks a significant step-up in their ongoing crackdown on Silicon Valley tech giants. The move echoes a similar action by US authorities aiming to dismantle Google’s alleged online ad monopoly.
The European Commission, the EU’s executive branch, and chief antitrust enforcer suggested that “only the mandatory divestment by Google of part of its services” could address the problem. This is the first time the EU has suggested a tech giant should partition its business due to antitrust law violations.
Google now has an opportunity to defend its position before the commission’s final decision. The company expressed disagreement with the finding and pledged to respond. Regardless of the outcome, this marks a critical turning point in the dynamic between Big Tech and regulatory authorities.
What does it mean for our readers?
If Google divests part of its digital advertising business, it might change the dynamics of the online ad market. This could alter advertising costs. It could affect how eCommerce sellers budget for their digital marketing campaigns.
More than that, Google’s SEO and SEM services are critical for many e-commerce businesses. Any changes in these areas could require businesses to revise their SEO and SEM strategies. eCommerce sellers might need to explore other platforms for advertising if Google’s reach becomes more limited due to this potential split.
Phew, that’s a lot to take in this week. Hopefully, eCommerce sellers will have their answers regarding European regulations and Amazon investigations soon enough. That’s all for this week — we’ll se you next Friday!
Also in the News
- Positive growth prospects for European retail leaders. Payments Cards and Mobile.
- Zalando protests about being lumped with Meta and Amazon. Politico.
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
July 6: 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.
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