The Webretailer News Digest for November 11, 2022
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Happy Friday Webretailers! Here’s a statistic for you: Consumer electronics sales rose by 204% from Black Friday to Cyber Monday. eBay sellers should subscribe to our Tuesday tips email for guidance on increasing their revenue for Cyber Week 2022.
Today’s newsletter is 913 words and takes three-and-a-half minutes to read.
What Amazon retailers can do during a projected downturn
Two weeks ago the financial world was buzzing when Amazon gave a bleak forecast for its fourth quarter this year. And this week, they announced a full-on corporate hiring freeze.
What does this mean for retailers on the platform?
It’s actually good news considering Amazon announced — and launched for select sellers — a cash advance partnership with Parafin last week, which will give sellers access to more cash to restock their inventories.
Amazon will make moves to keep their seller base happy during this downturn. After all, they’re going to drive sales and keep buyers coming to the platform.
What can Amazon sellers do during this down period?
- Monitor your inventory and supply channels – It’s a good time to invest in top-tier analytics and reordering tools that help you keep your inventory in check.
- Boost your Marketing campaigns – Down times call for some extra marketing spend to draw customers into your store. Use tools that can help you spend your Marketing budget effectively.
- Optimize listings – When times are tough, you want to capture anyone that searches for your products. Use these tools to ensure you’re using the right keywords.
Side notes and final thoughts
Amazon also sweetened the deal for Prime members this week with an announcement stating they’re expanding their catalog on Amazon Music. The move aims to undercut both Apple and Spotify. The Wall Street Journal stated the expansion is also a nod to Walmart who announced a partnership with Paramount+ for streaming services.
Expect the company to continue rolling out offers on products not found elsewhere on the market and appeasing their seller base. Use the tips above and continue working your channels to succeed during this period.
Big Retailer and US Shipping News
eBay announces lower FedEx delivery pricing — maybe
eBay announced to sellers this week they’re dropping the price on residential shipping for FedEx packages. However, the announcement provided no concrete discounts or rates, so sellers are unsure how much they’ll actually save. The company only provided a link to their Holiday Shipping site.
What is FedEx Home Delivery?
It’s a delivery to a residential address on any day of the week that weighs 150 lbs. or less. Deliveries under this tier come with a $4 surcharge per package.
The ‘maybe’
According to EcommerceBytes, they’ve received chronic complaints about eBay underquoting the cost of FedEx shipping. They stated they recently received a letter from a top-tier seller — $200k sales gross on eBay and Amazon — saying eBay quoted them shipping charges at $20 – $29 and then received a bill for around $50.
The seller explained that many retailers rarely follow up on quotes versus the actual cost because they don’t receive billing up to a week later.
Final thoughts
It’s good if eBay has a lower cost for FedEx Home Delivery, but with so many complaints, be sure to check the bill after you ship.
US sellers should note changes coming to USPS custom forms
This week the USPS released an announcement regarding a new set of requirements for shipping to the European Union coming in March. Web retailers shipping products to the EU will need to be mindful when completing customs forms or they could have to deal with delivery delays and fines.
What’s going on?
The European Union released a new set of regulations that require a “Harmonized System” on tariff codes for customs forms with goods going to the EU. Sellers will need to be much more specific with what they put on the form.
How specific?
Basically, you won’t be able to write ‘clothes’ if you’re shipping clothing. Instead, you’ll need to be specific and say exactly what the item is — e.g. Men’s shirts, girl’s jackets, etc. The same concept applies for a host of other categories. Here’s a list of guidelines from the EU.
Also in the News:
- TikTok switches up US leadership. PYMNTS.
- Echidna launches a new eCommerce site for AirBorn. EINNewswire.
International Retailer News
AliExpress is making a push into South Korea
In a recent interview with CNBC a rep from AliExpress stated the company is spending $7 million on a push to reach customers in South Korea. They also stated the company launched 3-to-5-day shipping to South Korea with orders through Taobao — also owned by Alibaba.
Pushing against the US
Currently, the US tops the eCommerce market in South Korea, but Alibaba wants to tap into a market valued in the billions of dollars. In fact, the CNBC report stated that AliExpress users increased by 22% in South Korea from January to September 2022.
Final thoughts
The move is in alignment with ByteDance’s eCommerce dive into the US that we reported last month. Overall, Chinese retailers are pushing back against US retail’s global dominance.
The Gap is selling its Chinese business to Baozun
This week, Gap Inc. landed a deal to sell its Chinese business to eCommerce service provider Baozun. The deal is set at $40 million.
US business in China is changing
The deal comes at a time when many US companies are looking to divest in China as the country is facing economic uncertainty amid strict COVID protocols. US companies are also dealing with stiff competition from domestic companies rising within the Chinese market.
The bottom line
Monitor what’s happening in China as it could signal a shift to other areas that web retailers may have to deal with in 2023.
Also in the News
- Instabox announces bankruptcy in Europe. Instabox.
- eCommerce fraud is up in the UK. BusinessWire.
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
November 15: TikTok Roundtable: Advanced Best Practices Across Creative, Advertising, Trends, and Influencers. Tinuiti
November 17: The New Power Couple: Retail Media & Influencer Drive Conversions. Tinuiti.
For UK sellers
November 14: RetailX Research: Ecommerce World Review. ChannelX.
November 15: Expand to Central and Eastern Europe with Allegro. ChannelX.
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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