Online selling is becoming more difficult as fulfillment costs rise along with evolving customer expectations. Shipping rates seem to increase every year, and Amazon has been enforcing new policies to protect the Amazon customer experience. To be competitive, retailers need to keep an eye out on shifting trends and invest in the areas that will grow their business.
8 in 10 Americans Buy from Amazon at Least Once a Month
The ubiquity of Amazon is undeniable. According to a recent poll of 1,000 shoppers on Amazon, 80% said they purchased something from the site at least once a month. Most respondents said they shopped on Amazon regularly while only 1% said they shopped just once a year.
Here’s the breakdown of how frequently Amazon shoppers make a purchase:
- 20% make a purchase once a week or more
- 36% make a purchase 2-3 times a month
- 24% make a purchase once a month
- 19% make a purchase 3-4 times a year
- 1% make a purchase once a year
Product assortment and prices were among the top reasons why shoppers like Amazon. In fact, 38% of shoppers said they choose to shop on Amazon because of product selection, and 29% said it was because of prices. Other reasons include fast delivery, cost-effective shipping options and customer experience.
Additionally, nearly half of Amazon buyers said that product reviews influence buying decisions, more so than word of mouth, online ads or social media. In a separate study by Trustpilot, 80.7% said reviews were somewhat or very important to their purchase decisions.
Amazon is indeed America’s favorite mall, and marketplace sellers need to be competitive on price and product selection. Winning customers on Amazon requires giving customers the right products at the right prices, while providing an excellent customer experience that scores great reviews.
Via eMarketer
FedEx Trims Retail Customer Base to Better Manage eCommerce Deliveries
It’s been a record peak season for FedEx, with a 9% increase in Ground revenue year over year. But to better manage pricing and capacity, especially during the peak season volume from thanksgiving through Christmas, FedEx had to cut ties with retailers that didn’t agree with their rates and capacity requirements.
“It should be noted that this surge in demand is driven primarily by a relatively small number of customers,” said Mike Glenn, president and CEO of FedEx Services. “Less than 50 large retail and e-tail customers are responsible for the majority of peak demand, so it’s extremely important that we understand their forecast well in advance to allow us to plan resources properly.”
Escalating order volumes and the ever-increasing expectations of customers continue to put strains on both FedEx and online sellers. The cost of shipping will only go higher, which makes alternative omnichannel strategies, such as ship-from-store and in-store pickup, more appealing.
Via Retail Dive
Walmart Marketplace Now Has More Than 2,000 Active Sellers
According to Marketplace Pulse, a leading ecommerce analytics and insights company, the number of active third-party sellers on Walmart Marketplace has more than doubled since their last count in October.
In the beginning of 2016, Walmart Marketplace barely had a hundred active sellers, with a limited product selection. Today, there are over 14 million products sold by more than 2,000 active sellers on the marketplace.
Retailers on Amazon or eBay should consider joining Walmart’s seller list as soon as possible, while there is still relatively little marketplace competition. Since Walmart enforces a strict pre-approval process, it prevents scams and counterfeiting associated with eBay or Amazon. Sellers looking to join Walmart should use an integrated partner to speed up the approval process.
