The Webretailer News Digest for December 23, 2022
Explanation:
We fact-check all of our content to ensure you have reliable and up-to-date information for your eCommerce business decisions.
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Christmas is here in two days, so Happy Holidays to all our readers around the world! We hope our reports and tips helped you maximize your revenue this holiday season. And we hope you’re prepared to take on some returns in the coming week. You just can’t avoid some things in the eCommerce world.
Today’s news is 1021 words and takes 4 minutes and 5 seconds to read.
BigCommerce to refocus and reduce staff by 13%
BigCommerce is swinging big in 2023. This week the company announced they’re restructuring in a push to profitability by Q4 2023. The company stated they’ll “prioritize its strategic focus, investments and resources to build upon its expanding leadership position in enterprise ecommerce.”
What’s the plan?
The press release states they’re focusing on enterprise commerce, so it’s all a big push that benefits large companies. Unfortunately, to achieve their profitability goals, the company stated it must reduce its workforce “by approximately 13% across employees and contractors.” The layoffs will be mostly complete by the end of the year and will cost over $4 million
BigCommerce also stated they’re in the process of evaluating their facilities usage and will make cuts there as well.
The big picture and final quote
No one likes to see people lose their jobs — especially around Christmas — but with fierce competition in the eCommerce world, it seems BigCommerce is focusing on a model that caters to large enterprises. Sellers using BigCommerce should take note and see how this move affects their business.
“This focusing of our spending and resources, which impacts all of our teammates, was an incredibly difficult decision to make. We are implementing changes that will enhance the strength of our financial profile against the backdrop of a challenging economic environment. It will also drive focus on the areas we view as having the strongest product market advantage and best long-term financial performance.” – Brent Bellm, CEO of BigCommerce
Big Retailer News
Amazon raises fulfillment fees for orders off Amazon
A couple of weeks after announcing default ‘no-branded’ packaging ‘at no extra cost’ for multi-channel fulfillment (MCF) orders, Amazon is raising the price. The company stated the “fees will be adjusted to reflect the significant investments that we’ve made to improve our shipping speeds and add new features.” The new fees will hit on January 19th of next year.
New features and faster deliveries
What exactly are these new features? They include:
- Free-to-install MCF app experiences for BigCommerce 5, Wix 2, and Adobe (Magento)
- ISO/IEC 27001:2013 certification of our IT security systems.
That’s great for BigCommerce, Wix, and Magento users, but the real improvement is in the faster delivery times. The company stated they’ll improve standard shipping days from 7 to 5. Amazon will continue to offer expedited priority two-day and three-day shipping.
Quick switching
Faster shipping isn’t a big selling point when you offer something at ‘no extra cost’ and then hike the fees a couple of weeks later. Needless to say, sellers were not pleased, and many flipped out their calculators to let others in the Seller Central message boards know exactly how much this increase will cost.
Amazon passes parcels to USPS and UPS in holiday season rush
According to a report from supply chain news outlet LoadStar, most carriers are handling the holiday season influx well, except one. One of their observers noted Amazon had to pass off around 1 million parcels to the USPS and UPS to make their deliveries on time in December.
What’s the buzz?
Shipping consultant ShipMatrix stated that the UPS, FedEx, and USPS have improved their performance over last year. But Amazon is having trouble fulfilling two-day orders in mid-markets like Spokane, Washington and Buffalo, New York.
Apparently their warehouse closures from earlier this year are affecting their ability to deliver on time. Two-day orders are taking three to five days even after the holiday increase hasn’t been as significant as previous years.
For sellers
It could be beneficial for Amazon sellers to reach out to customers in this market. Or at least let them know what’s going on if they experience a delay on their order.
Also in the News
- eBay to offer seller protection to sellers affected by the winter storms. eBay Seller Community.
- eBay CEO calls for more action to protect small businesses. Fortune.
International Retailer News
Carrefour completes its WhatsApp ordering initiative
Last week, we reported Walmart is introducing a new ‘text-to-shop’ feature that allows customers to order and reorder items via SMS. It seems customers in France are also taking advantage of this technology.
International grocer Carrefour launched a bot on December 5 that allowed customers to order via WhatsApp and then directed them to the Carrefour site to complete the payment. The initiative included around 100 items from non-food categories.
An initial test
This is the first time Carrefour has dipped into text ordering. The company ran this test through December 21, and the results could prompt future tests in more markets. Mercado Libre tested the feature last month and is in talks with Meta to allow payment processing directly from the application.
Focus point
SMS and WhatsApp ordering are features that will drive eCommerce into the future. The feature has a low cost for implementation and customers use text more than any other feature on their smartphone. If you’re not leveraging this for your online business, then it’s time to look into this popular feature.
Amazon avoids fines in EU but pledges big changes
Amazon is in the news again this week, as the company made a big pledge to the European Union to change its business practices. The company was facing heavy fines from the EU with multiple competition probes.
What will they do?
By June, the company will adjust its site to give customers more visible choices for products, and they’ll increase the number of delivery options for Prime members. These changes will only go into effect in the EU and will last anywhere from five to seven years.
Final thoughts and a quote
With the EU coming down hard on tech giants like Meta, Google, and Apple, Amazon is fortunate they came out without a large fine. We’ll continue reporting on changes with other major eCommerce platforms.
“With these new rules, competing independent retailers, carriers and European customers, well, they will have more opportunities and more choice.” – EU competition commissioner Margrethe Vestager
Also in the News
- Savoo says Finnish customers are most sustainable in the EU. Savoo.
- Retail sales down in the UK this holiday season. Economic Times.
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
None though the end of the year. Happy Holidays!
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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