The Webretailer News Digest for August 19, 2022
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The retail world was buzzing this week after Walmart released its Q2 numbers — through July 31st. The company’s total revenue was up 8.4% to $152.9 billion, so investors can sleep well knowing the company isn’t going anywhere.
But at the Webretailer Digest, we’ll focus more on their eCommerce numbers, which were also trending north. The report stated that eCommerce sales are up 12% over 2021 this quarter, and online sales are up 18% over the same quarter in 2020. That’s good news for online sellers who have heard a lot in the news about post-pandemic eCommerce declines this year.
But that begs the question, “Why are Walmart’s numbers going up when other eCommerce companies are laying people off?” In other words, “Why isn’t inflation hitting Walmart so hard?”
Fortune was quick to point out that while inflation is influencing the way people spend their money, it isn’t stopping spending altogether.
More specifically, it’s middle- and high-income shoppers who are choosing to shop at Walmart for discount pricing. In an interview with CNBC, Walmart Chief Financial Officer John David Rainey said, “About three-quarters of Walmart’s market share gains in food came from customers with annual household incomes of $100,000 or more.”
eCommerce retailers should take this into account when designing their marketing strategies. There could be an opportunity to sell your items to a higher income tier than you previously thought! Speaking of which, Walmart also netted a 30% growth in their global advertising business through Flipkart and Walmart Connect.
Visit Walmart’s Q2 release on their corporate site to explore the full report.
Selling in India? Etsy has a plan for you
While many retail platforms keep their focus on the West, Etsy branched out this week offering a guide to help US sellers push their products in India. The Indian market investment seems like a smart move from the company as companies like Walmart and Amazon are also making their own push.
The announcement stated, “We have our sights set on India, and are excited to be investing in marketing to help buyers in India discover Etsy and your shops, and to help sellers in India like you have new opportunities to grow your creative businesses.”
Obviously, getting paid is the key issue for most sellers. To assuage any fears, the company partnered with Razorpay to allow for secure international payments. Sellers must enroll in Etsy’s India Payments program to gain access to the payment system and become eligible for Etsy’s Purchase Protection Program.
Other key points from the guide include:
- Global pricing strategy development
- Updating shipping details
- Adding a Goods and Services Taxpayer Identification Number (GSTIN)
We’ll keep an eye on how this plays out through the end of the year.
UPS arrives on eBay app, says more features on the way
UPS shipping is now available on the eBay mobile app, the company announced this week. The update adds the Big Brown alongside FedEx and UPS to provide even more options for sellers while they’re on the go.
The announcement stated, “We’ve been hard at work to improve the eBay app so that all domestic shipping services you are used to selecting when using your desktop are now available on the eBay app.”
The online auction company also stated their eBay standard envelope will also be available on the app, and sellers can expect additional features to drop in the coming weeks.
American used car eCommerce platforms merge to form the powerhouse
In a stock-for-stock deal, CarLotz and Shift announced this week they’re merging into a one-stop shop for used car purchasing. Together, these two companies will be able to reap the benefits of their comprehensive product lines and platforms for both online and in-person used auto purchasing.
The deal makes sense, as Shift services the West Coast, while CarLots has built its brand in the Mid-Atlantic region. Now, they’ll be able to offer their inventories to the whole country and potentially become a leading omni-channel auto retailer.
CarLotz certainly comes out on top in the deal as they’ll gain access to Shift’s at-home delivery services and proprietary inventory acquisition engine. Unfortunately, the company is also reducing its workforce by 60% as part of the deal.
eBay lists exclusive Funko line
Back in May, we reported that eBay was part of a consortium of investors in collectible toy creator Funko. As part of the deal, the platform also became Funko’s preferred secondary market.
But this week, the company showed it might be cutting out sellers as part of the deal with some eBay exclusive launches. The listings appear in a headline banner on Funko searches. And if you click a listing it states, “Shop with confidence: Direct from Funko – Item sold directly by the brand.”
Needless to say, many Funko sellers on the platform weren’t happy about the news and took to social media to voice their displeasure. We’ll have to wait and see how this pans out in the coming months.
Third-party service providers to attend the Amazon Accelerate conference
Whether you attend the conference in person or virtually, Amazon sellers will have the opportunity to speak with third-party service providers at Amazon Accelerate this year. This goes a step beyond what we’ve seen at the conference in previous years, where only Amazon reps were available in breakout and Q&A sessions — though they’ll be available too.
The keynote speaker and host for the conference are Amazon VP, Worldwide Selling Partner Services, Dharmesh Mehta. You can see the whole agenda for the conference on the Amazon Accelerate site. It’s an excellent opportunity to learn tips and tricks on growing your Amazon business no matter how you attend.
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
August 23: Using Haul Sale To Source and Downsize with Emma Theroux. eBay seller events.
August 24: 2022 Playbook for Q4 and Holiday Success. 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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