The Webretailer News Digest for January 6, 2023
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Happy Friday everyone! Unless you’re in politics, things are still moving slow or the same as December. Companies are using this downturn to reassess their business practices and models — and you should too! Subscribe to gain valuable insights every Tuesday along with the top ecommerce news stories on Fridays.
Today’s news is 971 words and takes 3 minutes and 53 seconds to read.
Shopify looks to boost big retail
With a tumultuous 2022 in the books, Shopify is moving onwards and upwards this year. On Tuesday, Shopify introduced a brand new service that targets large-scale retailers.
Commerce Components allows retailers to integrate the tools and services provided by the Canadian tech company into their own online platform. The company announced toy maker Mattel Inc. as the first large enterprise to sign on to the platform with more to come — Glossier, Coty, Steve Madden and Staples.
What is Commerce Components?
It’s a new stack offered by Shopify that allows enterprise retailers access to Shopify’s infrastructure. With access, big retailers can leverage the company’s components — checkout, analytics, APIs, and more — within their own sites. Pricing is contingent on how retailers set up their customized components structure.
Feeling the squeeze
Ecommerce small business owners shouldn’t feel panicked, but the squeeze is legit. Many large retailers using their own proprietary technologies will now have access to Shopify’s tool set. These online stores will get stronger, so now is the time to review your business practices and strengthen yours too.
The Webretailer is here to help online retailers accomplish their ecommerce goals. If you want to reinforce your online business this year, you’ll need the best tools and services. We’re a go-to source for the top ecommerce solutions for Shopify including:
- Product Sourcing
- Multichannel Management
- Shipping and Fulfillment
- International Ecommerce and Outsourcing
Big Retailer News
Poshmark launches $50k giveaway for new listings
Poshmark sellers looking to kick-start the new year have an opportunity to win some extra funds this month. The company set aside $50,000 for five lucky sellers who will win $10,000 each in their “January 10K Listing Event.”
Can we play too?
The contest runs from January 1st through February 5th. To take part and be eligible for one of the weekly drawings, sellers must create a brand-new listing marked as “For Sale,” “Drops Soon” or “Reposh.” According to their announcement, you’ll increase your chances of winning with each additional listing.
As always, read the fine print when taking part in any contest. 😉
Amazon lands unsecured $8 billion loan
According to a filing with the SEC, Amazon picked up an $8 billion loan from big financial names like TD Securities, DBS Bank, and Mizuho Bank. This loan will mature after 364 days, with an option to extend for another full year and will be used solely for ”general corporate purposes.”
The company provided a statement to Reuters regarding the loan: “Given the uncertain macroeconomic environment, over the last few months we have used different financing options to support capital expenditures, debt repayments, acquisitions, and working capital needs.”
For those of us who can’t even get an $800k loan…
At the Webretailer, we typically stray from financial deal reporting — funding rounds, stock prices, etc. — unless the deal will affect sellers in a way that’s noteworthy. This loan is a big deal. It signals that Amazon — with all their data — is expecting more decline this year and are taking the steps to cover expenses.
Whether you sell on Amazon or another platform like eBay, Walmart.com, Etsy, or Shopify, it’s time to brace for a rough patch and innovate your business practices. Subscribe to this newsletter to gain insights with the latest trends, top tips, and breaking ecommerce news.
Also in the News
- Amazon to lay off 18,000, including warehouse workers. Reuters.
- Amazon launches a new listing rating tool. Amazon Seller Central.
International Retailer News
Alibaba feels positive about 2023
According to a report from the South China Morning Post, things are looking bright for Alibaba in 2023. The company’s top brass and multiple analysts are seeing light at the end of a dark tunnel the company has driven in for the past two years.
It seems the wave of the Chinese government policy of reigning in big tech is slowing, and the country recently lifted its controversial Zero COVID policy. Analysts think these two key factors will allow Alibaba to level things out in the coming year.
What does it mean for web retailers?
Online sellers and dropshippers around the world using Alibaba as their supplier should experience better supply chains this year — but it may take a while.
With the Zero COVID policy lifted, China is experiencing massive outbreaks much like what the West experienced in 2020 and 2021. But with time, things will return to normal. And now, the Chinese government won’t be shutting down factories and entire sections of major metropolitan areas because of outbreaks.
Is Europe looking to bypass Visa and Mastercard?
Forbes contributor David G.W. Birch highlighted Europe’s potential move away from traditional credit cards in a recent article. In the past, there were failed attempts to circumvent the dominance of Mastercard and Visa with European alternatives. But it seems the European Payments Initiative — supported by the European Commission — is taking a different approach.
What’s the plan?
The EPI is focusing on implementing an account-to-account instant payment solution (A2A) that removes the need for processing by a credit card company. Instead, users will use a common digital wallet to transfer funds directly between accounts, thus removing the point-of-sale.
For online retailers
There is a lot of regulatory tape to cut before anything concrete will happen. But sellers should know what’s coming. One of our big trends for 2023 centers on expanding payment options on your site. Many online sellers are pushing for direct bank transfers — ‘Pay By Bank’ — to avoid additional taxes and fees. It’s something to consider as you update your store this year.
Are you leveraging Pay By Bank in your online store? Tell us about it in the comment section below!
Also in the News
- Chinese ecommerce apps are undercutting foreign ones with low-price strategies. SCMP.
- Some delivery applications are fizzling in Europe. Deutsche Welle.
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 11: The 15-Minute Breakdown: 5 Big Bets for 2023. 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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