Ron Gluzman’s Post

There was a time when Amazon brought big changes into ecommerce with low prices, free and fast shipping, and hassle-free returns. This forced other large businesses like Walmart and Target to go toe-to-toe with them to avoid losing market share. This trickled down, and a transformative shift in how small- and medium-sized businesses (SMBs) operated their ecommerce stores. Today, we’re seeing yet another change, this time from Amazon-like Chinese marketplaces such as Temu, Shein, and AliExpress. Nearly 70% of Americans have shopped on these marketplaces in the past year, with 57% purchasing from Temu, according to our team's recent survey. But with every big change, there are also big opportunities. I share more on that in my recent article on Forbes Council post. #ecommerce #Amazon #Temu #onlinebusiness #Omnisend

Cloudtail, a major seller on Amazon India, was banned from the retail business due to regulatory restrictions imposed by the Indian government to ensure fair competition and protect small sellers. Cloudtail was a joint venture between Amazon and Catamaran Ventures (founded by Infosys co-founder Narayana Murthy), and its dominance on the Amazon India platform raised concerns among local retailers and policymakers. Reasons for Cloudtail's Ban: Foreign Direct Investment (FDI) Regulations: India has strict FDI rules for eCommerce, especially regarding marketplaces like Amazon. According to these regulations, eCommerce platforms operating as marketplaces (like Amazon) cannot have a direct stake in businesses that sell on their platforms. The idea is to maintain a neutral marketplace and ensure that no single seller has an unfair advantage. In 2018, India introduced changes to FDI rules prohibiting eCommerce platforms from selling products through entities in which they have equity stakes. Cloudtail, being part-owned by Amazon, violated this rule, prompting its removal from the platform. Allegations of Preferential Treatment: Small retailers and brick-and-mortar stores argued that large sellers like Cloudtail were receiving preferential treatment on platforms like Amazon. Cloudtail had access to better visibility, discounts, and promotional opportunities, which gave it an advantage over smaller sellers. This was seen as going against the spirit of fair competition in India’s highly competitive retail sector. The Indian government responded by enforcing stricter rules to limit the influence of such large sellers. Market Monopoly Concerns: Cloudtail and another major seller, Appario (another Amazon-affiliated entity), reportedly accounted for a significant percentage of total sales on Amazon India. This concentration of sales from a few sellers created fears of market monopolization, pushing Indian authorities to impose limits on such dominant players. Pressure from Indian Traders' Associations: CAIT and other trade bodies claimed that Amazon’s practices, facilitated through sellers like Cloudtail, were harming small and medium-sized retailers by undercutting prices and unfairly driving traffic toward affiliated sellers. Conflict of Interest: Amazon's dual role as both a marketplace operator and a part-owner of sellers like Cloudtail presented a conflict of interest. The regulatory focus was on ensuring that eCommerce platforms did not prioritize their own affiliated sellers, skewing the marketplace dynamics in their favor. Conclusion: Cloudtail's ban in the retail business was the result of regulatory compliance issues related to India's FDI rules for eCommerce platforms and concerns about market fairness. The Indian government sought to maintain a level playing field for all sellers and prevent dominant players from monopolizing the online retail market.

TOP AMAZON NEWS: Chinese Marketplaces Gain on eBay and Amazon Chinese online marketplaces, notably AliExpress, Temu, and Shein, are increasingly competing with established platforms like eBay and Amazon, primarily due to their competitive pricing. A recent Omnisend survey of 4,000 individuals from the US, UK, Australia, and Canada highlights that 34% of respondents shop at these Chinese marketplaces monthly, compared to 29% for eBay and over 75% for Amazon. Although trust in Temu is significantly lower than in Amazon, with only 6.4% of global respondents favoring Temu, nearly half have shopped there in the past year, attracted by low prices, user-friendly interfaces, and appealing deals. The survey also indicates that about 17.5% believe Temu could potentially surpass Amazon as the leading e-commerce platform. https://lnkd.in/eMymW_ZZ #ChineseMarketplaces #AliExpress #Temu #Shein #EcommerceCompetition

A Quick Look at the State of Top Marketplaces: #Ecommerce is Exploding! Here's What Brands Need to Watch Out For! The holiday shopping season is around the corner, and let me tell you e-commerce marketplaces are absolutely booming! The big players are pulling out all the stops, and if your brand isn’t prepared, you’re missing out on HUGE opportunities (and putting yourself at risk). Let’s break it down with some jaw-dropping stats: Amazon—King of the e-commerce jungle. With over 1.9 million active sellers and a whopping $514 billion in net sales in 2023, Amazon is responsible for nearly 40% of all U.S. online sales. That’s 7,800 products sold per minute on their Marketplace! It’s not just about the numbers—Amazon's Fulfillment by Amazon (#FBA) service is a game-changer, but it also means counterfeits and gray-market sellers are lurking. Brands NEED to protect their channels here more than ever! Walmart is rising FAST. With 150,000 sellers (tripling since 2020) and $570 billion in total revenue, Walmart isn’t playing around. It’s leveraging its massive store network as fulfillment centers, creating a marketplace that’s poised to take a huge bite out of #Amazon’sAmazon’s share. Expect Walmart’s e-commerce to dominate this holiday season, especially in groceries and everyday essentials—if you’re not on top of your channel compliance on #WalmartWalmart, you’re in trouble. eBay—Still a powerhouse for 17 million small businesses, eBay is pulling in $10.1 billion in revenue. Niche products, secondhand, and collectibles remain #eBay’s sweet spots, but if you’re not watching for pricing violations and rogue sellers here, you could be missing out on major profits. On the global side, AliExpress and Temu are cornering the price-sensitive market, and TikTok and Facebook #Marketplace are weaving social commerce into e-commerce with their own unique twists. As these platforms grow, expect counterfeits and pricing issues to become even more common, and let’s be honest—most brands aren’t ready to handle that. As we hit the 2024 holiday sales spike, brands will see a flood of activity, but this comes with risks—#counterfeits, #unauthorizedsellers, and violations of #MAP (Minimum Advertised Price) policies. With over 30% growth in some marketplaces, this holiday season will be a make-or-break moment. At Howell & Associates, we’re here to protect your brand during this e-commerce surge. We help you maintain your pricing integrity, fight counterfeits, and protect your sales channels from unauthorized sellers. The retail revolution is now—will your brand rise to the challenge, or will it fall prey to the chaos? Let’s secure your brand’s future in the fast-growing world of e-commerce! #EcommerceExplosion #BrandProtection #MarketplaceDominance #HolidayShoppingSeason #Amazon #Walmart #ChannelCompliance #CounterfeitRisk #HowellAndAssociates David G. Howell Jessica Howell Craig Phillipps Sigil, Inc. The Marketplace Dilemma

The e-commerce giant on Wednesday unveiled “Amazon Haul,” a shopping section of its app and site that features a selection of goods priced under $20, “with most under $10” and some as low as $1. Discounts accrue as orders grow, too, “with 5% off orders $50 and over, and 10% off orders $75 or more,” and delivery is free on orders over $25, according to a company blog post. The option is currently in beta and available to U.S. customers once they refresh their Amazon app. While the assortment of these low-priced items spans categories, including fashion, home, lifestyle, electronics and more, for these orders Amazon has departed from its usually swift fulfillment, saying on Wednesday that typical delivery times for “products with ultra-low prices” will be one to two weeks. The experiment is an answer to Temu and other fast-growing Chinese marketplaces, which have prospered amid a consumer focus on affordability, according to GlobalData Managing Director Neil Saunders. The super-deep discounting could cannibalize Amazon’s other sales, but that could be preferable to losing share to these players, he said in emailed comments.

This kind of News amazed me !!!!! Amazon answers ultra-cheap Chinese marketplaces like Temu with ‘Amazon Haul’ The e-commerce giant is testing a selection priced under $20, with most under $10. Free shipping on orders over $25 will take a week or longer. Amazon is slowing its roll and drastically lowering its prices on some items. The e-commerce giant on Wednesday unveiled “Amazon Haul,” a shopping section of its app and site that features a selection of goods priced under $20, “with most under $10” and some as low as $1. Discounts accrue as orders grow, too, “with 5% off orders $50 and over, and 10% off orders $75 or more,” and delivery is free on orders over $25, according to a company blog post. The option is currently in beta and available to U.S. customers once they refresh their Amazon app. While the assortment of these low-priced items spans categories, including fashion, home, lifestyle, electronics and more, for these orders Amazon has departed from its usually swift fulfillment, saying on Wednesday that typical delivery times for “products with ultra-low prices” will be one to two weeks. The experiment is an answer to Temu and other fast-growing Chinese marketplaces, which have prospered amid a consumer focus on affordability, according to GlobalData Managing Director Neil Saunders. The super-deep discounting could cannibalize Amazon’s other sales, but that could be preferable to losing share to these players, he said in emailed comments. Recent research shows that U.S. consumers say they trust Amazon over Temu, but that they are nevertheless increasingly shopping at Temu. Some 17.5% of global respondents to a survey from marketing software company Omnisend said they think the Chinese site could overtake Amazon as the leading e-commerce platform. “The value retail segment has been a major growth area over the past few years and while the regular Amazon site has a good value-for-money reputation, its wide offer means that it is not primarily seen as an everyday low-price destination,” Saunders said. I also think is every think cheap really make us survive?

Price and convenience drive consumers to marketplaces, survey reveals https://hubs.ly/Q02QYlQY0 #ecommerce #onlinemarketplace #consumerinsights #Amazon

Aaaaarrrrrggggghhhhh!!! Another week and another ecommerce marketplace going down the Amazon route to discover the gold in them there hills. A big name in UK e-tailing is opening up the buy box. The propaganda: Acting on feedback we've made these changes to allow sellers to compete publically with each other and sell on the same listing. The reality: (Blinded by the glare from the aforementioned gold). Competition on marketplaces isn't created equal! As a seller I don't want to compete with other sellers. What that "competition" means is a race to the bottom with pricing; it's other sellers stealing my hard work and effort; it's flooding marketplaces with questionable sellers. It's opening the door (wide) to fake products, negative feedback, broken supplier lines, excess inventory pile up and established brand relationships breaking down. Marketplaces will always spin this to be an advantage to customers. "They'll get the best price" - but at what cost? I think this is a massively short term view. This is pretty much always 100% at the expense of the seller. I am feeling more and more that sellers are financing virtually every aspect of online marketplaces and margins are getting squeezed tighter and tighter. The gold is obviously there for the platforms. Step 1: Flood your marketpalce with sellers Step 2: Introduce PPC Step 3: Collect the gold The gold has seller fingerprints all over it. I understand why marketplaces go down this road. Essentially they don't even need to sell anything and no doubt amazon ad spend revenue gets the pulses racing. It's a cash cow. Why wouldn't they? But it's a system that I think will eventually implode. I appreciate that sellers have to diversify and open other channels but as all the channels mirror each other it gets harder and harder. Would be great to hear what other sellers and marketplace experts feel about this!

3rd Party Marketplaces are proliferating, and in recent months, many upstarts have broken into the top five. 1. Amazon is the largest marketplace in the U.S., dominating third-party sales and aiming to achieve $325 billion in sales this year. 2. Walmart is a significant player with an estimated $10 billion in third-party sales and aims to surpass $100 billion in U.S. e-commerce sales, mainly from retail sales fulfilled from stores. 3. Temu and TikTok Shop are emerging marketplaces with ambitious sales goals, with Temu aiming for $60 billion and TikTok Shop targeting $17.5 billion for its first full year of operation in the U.S. 4. eBay focuses on resale and enthusiasts, while specialty marketplaces tailored to specific brands could outperform others in the market.

E-commerce major Amazon India is set to sell its stake in Appario, the largest seller on its platform, to Vinod Poddar group promoted Clicktech, which is also a seller on the marketplace. Click on the link to learn more about the deal... #retailnews #retailsector #retailindustry #retailupdates #businessnews #retailbusiness #ir #IndiaRetailing #IndianRetail #RetailinIndia #IndiaRetail #retailing #retailsectornews #ecommerce #marketplaces #FDI