MGR eCommerce Edge Weekly | February 4, 2020

MGR eCommerce Edge Weekly | February 4, 2020
Top News This Week

future_commerce

Macro View: As We Enter the Next Decade, Where is Commerce Going?

Change in commerce is nothing new, eCommerce just happens to be the fastest growing shift right now. But, despite its rapid growth, it still remains a small fraction of the total commerce pie (about 15% in the US). So what new innovations will drive growth even further?

Our guess? Commerce will become more driven by media (both independent and mainstream) in combination with zero-friction payments. I.e. watching YouTube or Netflix, seeing something you want, tapping on it and have it show up at your door the next day.

Benedict Evans, long-time digital strategy thought leader and Partner at Andreesen Horowitz, gave an excellent presentation for Nasdaq about the future of media and commerce, it’s well worth your time.

“When technology works it kind of disappears into everything and becomes part of the world.” – Benedict Evans

See the full presentation here >

Amazon_Q4_2019

Amazon Reports Q4 Numbers: $87.4 Billion in Revenue, Over 150 Million Prime Subscribers

I’ve discussed in the past about Amazon’s dwindling advantage. Their tech-stack is no longer unique as there are plentiful options for building an eComm store, and even FBA will become commoditized as more and more 3PLs expand their fulfillment abilities.

But what they still do have, and what isn’t going anywhere anytime soon is 150+ million paying, loyal subscribers who list Amazon as their first choice when buying online.

This is the ultimate challenge that those who want to beat Amazon will face. Building enough demand for your products and brand that customers are willing to go out of their way and leave the Amazon ecosystem to buy from you.

In addition to Prime membership growth, their ad platform revenue was up 41% YoY to $4.78 billion in Q4. Amazon continues to gain market-share from Google in the product search category as expected, but the big question is whether or not they can create more media based advertising to go after Facebook’s ads dominance on the “demand generation” side of digital marketing.

Read More >

Other Notable Links:

1. For the first time ever Goole has revealed revenue numbers for YouTube, in 2019 they sold $15 billion worth of ads – THE VERGE

2. Pinterest is beginning to show strong eCommerce gains – MODERN RETAIL

3. LVMH, the luxury conglomerate that owns Louis Vutton, Givenchy, and other brands, announced they will not be joining Amazon’s new luxury products program – ROBB REPORT

4. Amazon is teaming up with Goldman Sachs to create a small business lending platform for Amazon sellers – BUSINESS INSIDER

5. In a shocking move, the FTC has blocked Shick’s $1.37 Billion acquisition of Harry’s, could this shake up the future DTC acquisitions? – LA TIMES

Subscribe to MGR eCommerce Weekly and receive weekly news directly in your INBOX.

2020-02-08T22:00:17-07:00

About the Author:

Manuel Gil Del Real is the owner of MGR Consulting Group, an Interactive Marketing Agency providing marketing solutions to companies worldwide. He’s also an auto racing enthusiast and a blog author who enjoys sharing his thoughts and ideas on eCommerce, SEO, Social Media, Website Design, Video Marketing Internet Marketing, entrepreneurial advice, lifestyle and travel experiences among many others.