The Webretailer News Digest for January 20, 2023
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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The month has flown by, and I can’t believe it’s already the 20th. If the month is moving just as fast for you, stay with us. We’ll keep you up-to-date on the latest news and trends affecting the ecommerce industry.
Here’s a statistic for you: Even with a downturn this year, analysts predict the ecommerce industry will grow by 50% by 2025 to $7.4 trillion.
Today’s news is 1,105 words and takes 4 ½ minutes to read.
Amazon to launch a new FBA capacity management system
Amazon sellers dealing with capacity limits within the Amazon FBA system received some positive news this week. The company announced the launch of its new FBA capacity management system on March 1st.
Addressing seller concerns
Sellers noticed additional capacity limits on top of the company’s annual holiday warehouse limits last fall, and they weren’t thrilled. Fortunately, Amazon stated the “new FBA capacity management system will give most sellers greater capacity limits, provide more predictability and greater control to get more capacity when sellers need it.”
What do the features fix?
Amazon listed four features for the new system that will address the issues raised by sellers over the past year.
- A monthly capacity limit – Amazon is combining weekly Restock limits and Storage limits into one monthly FBA capacity limit.
- Capacity limit estimation – Using your Inventory Performance Index (IPI) score, FBA will provide a forecast for two months of capacity limits for inventory planning.
- Limit increase requests – Sellers will now be able to request additional capacity — with a caveat. Approval hinges on the reservation fee you’re willing to pay. Amazon will award the space starting with the highest reservation fee per cubic foot and then give back performance credits as the products move. Ideally, sellers will recoup their fees with every request.
- Capacity limits display in units and volume – The new system will now show sellers their warehouse usage in cubic feet along with units. The company stated this “better represents the capacity sellers’ products use in our fulfillment centers and transportation vehicles.”
Reaction
The main buzz around the announcement has to do with the limit increase requests. MarketplacePulse is calling this an auction system, and it has some concerned that they’ll end up paying more fees.
However, Amazon stated they piloted the system with a pool of sellers to positive results. And a spokesperson told multiple outlets that “the vast majority of sellers have had their total reservation fee reimbursed.”
We’ll have to wait and see how things play out when the system launches on March 1st.
Big Retailer News
Walmart Commerce Technologies partners with Salesforce for local fulfillment and delivery
Last week, Walmart announced a new partnership between Walmart Commerce Technologies, Walmart GoLocal, and Salesforce. The company stated the move gives Salesforce Commerce Cloud users the ability to “offer their customers convenient pickup and delivery experiences with Walmart’s leading store fulfillment technologies and local delivery services.”
Access points
Commerce cloud sellers can now use Walmart Commerce Technologies Store Assist app for in-store fulfillment and Walmart GoLocal for “white-label, delivery-as-a-service technology.”
Considering Walmart’s brick-and-mortar reach and vast fulfillment network, this is an excellent way to offer local pickup. The announcement cited a statistic from Salesforce stating that 1 in 5 orders on the week of Christmas were Buy Online and Pick Up In Store (BOPIS).
Final Quote
“Retailers are looking for ways to improve cost efficiency while meeting their customers’ needs, no matter where or how they choose to shop. Fulfillment from stores is an effective way to achieve these goals and serve customers quickly and reliably through local delivery.” – Harsit Patel, Vice President and General Manager of Walmart GoLocal.
DHL gives ecommerce sellers positive news
In a recent interview with CNBC, DHL president of transportation for DHL Supply Chain North America, Jim Monkmeyer stated that even with the disappointing holiday retail sales numbers, “E-commerce is continuing to boom” and should see relief from the downturn by this summer.
Arriving at a conclusion
Monkmeyer cited falling freight rates and numbers reflecting inflation ease as key factors in the coming months. He said, “I think consumers will notice that right away and we will hopefully get back to some of that spending that we were seeing in the last two years.”
For sellers
It’s nice to get positive news during a downturn, but now is not the time to rest easy. Subscribe to our newsletter to receive weekly tips on how to navigate this low period for retail. And leverage our list of shipping and fulfillment tools and services to link up with solid solutions that address your needs as a web retailer.
Also in the News
- Walmart is pushing to repair supply chains with their new associate to driver program. Walmart Corporate.
- OSHA cites Amazon for hazardous warehouse conditions. NPR.
International Retailer News
Shopee completes its exit from Europe
Last week, Singapore-based Sea’s Shopee platform announced its exit from Poland, which completes its European goodbye. The site shut down last Friday after operating on the continent since 2021. Over the past year, the company also shut down operations in India, France, and Spain.
What gives?
Shopee parent Sea gained big profits from its gaming and ecommerce applications during the pandemic. And like many tech companies, they overspent and are now feeling the squeeze. Amazon, Facebook, PayPal, Twitter, and other tech giants made the same mistake, and they’re all making cuts to reduce costs across the board.
Alibaba allows BNPL in Europe
This week, The Wall Street Journal reported Alibaba is pushing global sales growth as they launched a new BNPL program in Europe. Payment provider Splitit Payments is handling the delayed payment service for the retail giant. The service will roll out in Germany, Spain and France first, with the potential to move into additional markets.
For sellers
This is excellent news for anyone working in the European retail markets. We’ve covered BNPL as a solid choice to expand your payment options this year, but from a B2C perspective. Alibaba is also on board with the practice as a B2B option. Take note!
Also in the News
- The Royal Mail is slowly but surely fixing issues. Royal Mail.
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
January 23: 5 Myths About Breaking Into the Streaming Space, Debunked. 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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