Amazon is a force to be reckoned with, and Walmart is doing everything to catch up and gain market share. This week, however, FedEx, a longtime partner of Amazon, surprised us by announcing FedEx Fulfillment, an ecommerce service very similar to Amazon FBA. Read on for more industry trends and our latest insights.
PLATFORMS & MARKETPLACES
Walmart Undercuts Amazon With Free Two-Day Shipping for All Customers
Walmart has abandoned its Amazon Prime-like ShippingPass membership program in favor of their new offering: free two-day shipping for all customers purchasing orders costing at least $35. "At this day and age, two-day shipping is table stakes,” said Marc Lore, founder of Jet.com and chief of Walmart’s ecommerce division. “We don't think we should charge membership for it."
This new shipping offer can be seen as a better deal than Amazon’s, since Walmart’s two-day free shipping doesn’t require membership. Amazon’s non-membership free shipping option requires orders of at least $49 and takes between 5 to 8 days for delivery.
Via Retail Dive
FedEx Fulfillment Takes On Amazon With New eCommerce Platform
FedEx recently launched its answer to Amazon FBA: FedEx Fulfillment, an ecommerce fulfillment and inventory management service that helps small and medium-sized retailers fulfill orders from multiple channels, from webstores to online marketplaces.
Businesses using the platform will be able to store their products at FedEx warehouses, and FedEx Fulfillment will handle the whole order fulfillment process, from warehousing the products, packaging and delivery to online returns.
Pinterest Rolls Out Visual eCommerce Feature, “Shop the Look”
Pinterest recently launched a new service called “Shop the Look,” which lets users tap a blue circle on a product pin to get recommendations for similar items they can purchase directly within the platform or from a brand’s website.
Social media platforms like Pinterest and Instagram are make it easier for targeted shoppers to find and discover products. Retailers really need to get on Pinterest and take advantage of social commerce.
via Chain Store Age
RETAIL BY THE NUMBERS
Personalized Customer Service Drives Greater Loyalty Among Shoppers
Human interaction, whether in the store or over the phone, often results in higher customer loyalty, retention and brand endorsement, according to research by Verint. Good customer service really pays off.
According to the study, shoppers who received good customer service are:
- 38% more likely to renew a product or service, even if it is not the least expensive option.
- 27% more likely to sign up for the company’s loyalty program.
- 19% more likely to leave a positive review.
By contrast, customers that had only had a positive customer experience over a digital channel are 57% more likely to do nothing following that experience, compared to having a personal interaction with a customer service representative in-store or over the phone.
Via Fierce Retail
Online Sales in 2017 Will Grow 3x Faster Than The Retail Industry
According to the National Retail Federation (NRF), online sales are projected to triple the year-over-year growth rate for the entire retail industry in 2017. Nonstore sales is projected to grow 8-12%, compared to the projected 3.7-4.2% growth rate of the retail industry as a whole, excluding car sales, gas stations and restaurants. NRF predicts only modest sales growth for brick-and-mortar stores in 2017.
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