The Webretailer News Digest for October 7, 2022
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Happy Friday web retailers! The news this week was full of acquisition and launch news that could create some opportunities for the right sellers.
Look for tips on how you can make 💰 in our upcoming newsletter this Tuesday.
Today’s news is 1,012 words and a 5-minute and 4 seconds read.
Naver purchases Poshmark
Never discount the value of perseverance! Naver, Korea’s top search engine, pulled out of buying eBay’s Korean subsidiary last year. But this week, they announced they will acquire US secondhand eCommerce platform Poshmark.
The deal is set at $17.90 per share — $1.2 billion — and gives Naver all issued and outstanding shares.
Why Poshmark?
According to Naver CEO Choi Soo-Yeon, the two are a perfect fit. Together they combine the top refashion platform with a leading search engine, AI, and eCommerce tools provider.
Plus, here are some other impressive Poshmark stats from the Press Release:
- Poshmark has 80 million registered users representing 90% of US zip codes
- Last year, Poshmark generated approx. $2 billion in GMV.
- It has a primary demographic of GenZ and Millenials.
What does this mean for Poshmark?
Poshmark will continue to operate as a US subsidiary of Naver and operate as it always has. It will keep its current management staff and employee base, and the HQ will stay in Redwood City, California.
Final Quote
“This is a highly compelling opportunity for our employees, who will benefit from being part of a larger, global organization with shared values and complementary strengths.” – Manish Chandra, Poshmark Founder, and CEO
Top Retailer News
Deals cut-off for Prime Early Access Sale coming soon
Last week we reported about Amazon’s second Prime Day coming on October 11 and 12th, and in Tuesday’s exclusive Webretailer Newsletter, we laid out top tips to help you maximize 📈. And today, we’re not letting up.
Was there enough notice?
On the Amazon Seller Central board, some sellers have complained that they didn’t get enough notice for the event and have not had time to prepare adequately. To that, anyone could admit, “Yes, the public announcement could have come sooner.”
But it didn’t, and as some Amazon moderators pointed out, they announced the event on Seller Central back on June 1st, where Deal submissions on recommended ASINs were open through August 5th.
No crying over spilled milk
Whether or not you knew it, the event is coming, so it’s time to get ready! Tuesday’s newsletter — subscribe for early access — listed top tips, but you only have until October 11 to submit a Prime Exclusive Discount or Coupon. Organize your inventory and tactfully choose the top products to offload and start the 🎄 season right!
Goodwill launching eCommerce site GoodwillFinds
It looks like there’s more news in the re-commerce department this week. US brick-and-mortar thrift reseller Goodwill announced the debut of its online store called GoodwillFinds.
What’s on the site?
The “re-commerce venture” includes a wide variety of products and brands — much like the brick-and-mortar stores — and features a broad range of pricing options. There are already over 100k items on the site, and the company hopes to have one million within a few years.
Is the company still a nonprofit?
Yes, the company is definitely still a nonprofit enterprise. The proceeds from GoodwillFinds will support its network of partnered community-based groups and social programs. To make the donations fair, the proceeds will go to the region where the item was sourced.
The bottom line
Goodwill already has an online auction site on ShopGoodwill.com. However, it’s operated by Goodwill of Orange County. This new site centralizes everything and aims to capitalize on the refashion and thrift shopping trend that’s exploding across the US and around the globe.
Also in the news
- StockX cancels multiple orders after coupon leak. BBC News.
- Nike grew its online sales by 23% in the previous quarter. Nike.
International Retailer News
H&M to test return fees for online sales
Isn’t H&M a big retailer? Yes, but it’s also a Swedish-owned company that made it to the International section this week. The company reported it would start testing fees for returns on online sales in a recent earnings call.
The fees apply only to online returns, so if a customer buys online and returns it to a physical store, there’s no fee.
How long and where are they testing?
H&M CEO Helena Helmersson stated “We don’t have an exact time limit on it. But again, let’s see when we see the evaluation of the tests, whether this is the most impactful thing to do or not.” The company didn’t specify their testing markets either.
The bottom line
H&M is hurting a bit after issues like inflation and their exit from the Russian market. The company is scrambling to cut costs and offload excess inventory. Unfortunately, things like online return fees may become more common if a big retailer like H&M rolls it out as company policy.
EU lawmakers give final approval to new eCommerce rules
This week the EU finalized the new Digital Services Act (DSA), which the council says “protects the digital space against the spread of illegal content and ensures the protection of users’ fundamental rights.”
What are the new rules?
Unfortunately, we’re not exactly sure yet as the document won’t drop until October 13th. But here are some highlights listed in the EU council statement:
- lays down special obligations for online marketplaces in order to combat the online sale of illegal products and services
- better protects minors online by prohibiting platforms from using targeted advertising based on the use of minors’ personal data as defined in EU law
- imposes certain limits on the presentation of advertising and on the use of sensitive personal data for targeted advertising, including gender, race, and religion;
It will also force very large online platforms and search engines (VLOPs and VLOSEs) to “offer users a system for recommending content that is not based on profiling.”
The bottom line
After the policy launching on October 13th, companies will have 15 months to comply with most of the measures. Needless to say, next year we will see enormous changes in how large online platforms and search engines operate in the EU.
Also in the news
- French luxury fashion brand Lemaire launched an eCommerce channel in China through Alibaba. Alizila.
- Veli.Store launches throughout the Caucasus Region. Yahoo! Finance.
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
October 11: The Holidays Unwrapped: Global Shopper Insights & Predictions. DC360.
October 13: Rethinking the Rules of Customer Engagement: Personalized, Proactive, Purposeful. DC360.
October 13: Harvest Season: Building & Utilizing 1P Data to Boost Retention & Loyalty. 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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