The SellerSingh.com News Digest for September 13, 2022
The SellerSingh.com News Digest for September 13, 2022
Meta Platforms Inc is planning to dissolve shopping page from Instagram
This week, most of the focus in the retail world is on the new iPhone, but the headlines that SellerSingh.com care about are as follows.
An internal memo obtained by tech industry news outlet The Information has revealed that Instagram will be removing its shopping page. Instead, the company will be pivoting to a 'tab lite' version of 'shopping' that includes less personalization.
The memo states that the reason for the shift is due to changes in company priorities. The memo also states that the changes reflect the new goals for the commerce organizations, which are more closely tied to advertising revenue for meta.
Next Steps…
Meta released a new public test of Instagram on Wednesday which includes the "Tab Lite" version of "Shopping". And by March of next year, Meta is also planning to delete a button that directs users to the current Shopping tab.
What is the latest news on ecommerce and meta?
Meta is generally pulling out of ecommerce. The company will be introducing a number of ecommerce features this summer, including:
- Investment in "creative commerce"
- The "Shopping with family and friends" section.
- Visual Search
- Shopping projects that are driven by the community
However, it seems that the company is not yet finished with shopping on Instagram. The Meta spokesperson said that their goal is to make Instagram the best place for people to discover and buy products from brands and creators that they love.
Final thoughts on the matter?
Meta reported in July that its advertising revenues have declined for the first time in the company's history, so it appears that they are shifting direction to compensate for the decline. Apparently, shopping is not a company high investment priority.
Instead, The Verge reported last week that it plans to add paid features to each of its platforms. A new division called 'new monetization experiences' was set up to research and create new features. But Meta's vice president of monetization overseeing the group, John Hegeman, has refused to leave anyone with the details of what they're planning.
Big Retailer News
- Last week, the company warned merchants trying to install Buy with Prime on their storefront that it violates Shopify's conditions of service.
- They also stated that this increases security risks by indicating that Amazon could potentially charge customers improperly and steal their data.
- Shopify also reminded merchants that Shopify will not offer protection when merchants are completing a fraudulent order
Mixed messages
It is not yet clear if the warning will work or not. Anyway, Shopify sent contradictory messages with Buy With Prime.
When it was launched , Shopify CEO Tobi Lutke has indicated that he would like to integrate the feature. But this apparently triggered an internal discussion, according to The Information (paywall).
And now they have issued that warning to their mercIt is not yet clear if the warning will work or not. Anyway, Shopify sent contradictory messages with Buy With Prime. When it was launched , Shopify CEO Tobi Lutke has indicated that he would like to integrate the feature.
But this apparently triggered an internal discussion, according to The Information (paywall). And now they have issued that warning to their merchants.
Amazon struggles in India, says Berstein.
Recently published by Sanford C. Bernstein Wealth Management is making the
rounds of many outlets this week. The Blistering report says that Amazon is
following Flipkart in India on key measures, and the company is floundering
in its attempts to break into small Indian towns.
According to the
TechCrunch, Amazon's gross merchandise value for 2012 in India was around $19 billion
minus the $6.5 billion in investment. And it's behind Flipkart that has
$23 billion in GMV in the country.
What’s at stake?
India's e-commerce market is the fastest growing in the world and is
expected to reach $130 billion by 2025, twice its current level.
What can Amazon do with that?
Not much. Amazon is competing with Reliance Retail - which last week
launched a WhatsApp integration in a grocery store with JioMart - Flipkart,
owned by Walmart, and a few other great names in India.
Due to regulatory requirements, Flipkart (Walmart) and Amazon are required
to operate as marketplace businesses. That means there is a lot of red tape,
including:
- They must have no controlling interest in sellers in their marketplace.
- They cannot make a seller sell exclusively on the platform.
- Individual sellers cannot have more than a 25% stake in an online foreign-owned marketplace.
In addition to this, the report states that the country has also restricted
deep discounts. And if a new Indian Central Bank guideline is
adopted, BNPL will also be impacted on Amazon.
A key point of Berstein's report:
The regulations do not allow an inventory-based 1P model for a foreign
entity such as Amazon. The company has invested in local retailers
like Shoppers Stop, More, and a rumored stake in Ecom Express, but
integration has been limited as the regulations don’t allow for full
control.
Also in the News:
- Etsy is holding a virtual holiday shopping event to help sellers this year. EtsyUp.
- eBay has discontinued Media Mail to be USPS compliant.eBay.
- CommerceHub is acquiring ChannelAdvisor for $23.10 per share. PRNewswire.
International e-commerce news.
E-commerce anti-counterfeiting consortium launched by Lazada
Three companies, Lazada, BMW, and HP, joined forces this week to create
the Southeast Asia
Ecommerce Anti-Counterfeiting Consortium. The Southeast Asia eCommerce Anti-Counterfeiting Working Group
will address counterfeit trade in online retail from Singapore.
Origins
Lazada proposed the idea of intellectual property rights protection in 2021
at the end of the pandemic when they saw a great need for companies in
southeast asia to work together on this issue.
A final quote
We're excited to be a part of the seca working group and help contribute
to the advancement of intellectual property rights protection and
industry-wide awareness. We can build a sustainable and fair
ecommerce ecosystem for all participants across Southeast Asia by working
together. - Alan Chan, the chief risk officer of the Lazada Group.
ONDC in India is changing
its philosophy across major platforms.
The Indian Government has changed its concept for its Open Network for
Digital Commerce (ONDC), according to India's
BusinessStandard. The original idea behind the marketplace was to fight Flipkart (Walmart)
and Amazon's dominance of Indian e-commerce.
Playing a different tune
It seems that the objectives of the ONDC are now changed. They are
currently in discussions with these same e-commerce giants about
partnerships and integration in their network.
Why this change of opinion?
The ONDC apparently wants to make sure that it has invested its 6.5 billion
dollars in a platform that has a solid architecture. And from there, they
need the help of companies such as Amazon, Flipkart, Reliance Retail,
Google, and more to kick-start supply chains and fulfillment.
Also in the News
- The Indian government has asked Amazon to remove seat belt safety blockers from its platform. Reuters.
- ebay germany has announced a new loan service in partnership with financial services provider ebay Germany.
Webinars
For everyone
Various dates: to help sellers grow their business Amazon advertising is
continuing its global webinar program with over 20 webinars planned. These
webinars will cover topics such as preparing for Prime Day, using sponsored
products and sponsored brands, reporting, and optimization. They will also
provide other advice to help sellers grow their businesses.
Amazon.
September 13:
ChannelX: BigCommerce Make it Big 2022 Conference.
For US sellers
September 13: Walmart DSP & Beyond: Leveraging off-site tactics for
omnichannel growth.
Tinuiti.
Sept 15: Need a Q4 banner? Harness Social Creativity.
Tinuiti.
For UK sellers
Various dates: Amazon Advertising's global webinar program continues with
over 20 webinars planned, covering Prime Day preparation, sponsored
products, sponsored brands, reporting, optimization and other advice.
Amazon.
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