Amazon’s Entry into South Africa, Walmart and Amazon’s Toy Catalog Battle and More News
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Welcome back to another Friday News Digest. The end of the month is slowly upon us, but before that happens we still have some interesting bits of eCommerce news to walk you through. Last week, Amazon and Walmart stole the headlines, and it seems that they are not wasting their time to be on top of everyone’s news yet again today. So, grab your coffee, and check out what we have in store for you this week.
Today’s news is 1772 words.
Amazon’s Entry into South Africa
Amazon is going to launch its online shopping service in South Africa in 2024, marking its second venture into Africa after Egypt. The move aims to provide independent sellers in the country with an opportunity to quickly grow their businesses. South Africa, considered Africa’s most advanced economy, serves as a strategic entry point for companies looking to expand across the continent.
Although the rise in online shopping in South Africa initially surged during the pandemic, recent trends show a return to shopping malls, and the country’s economic challenges may pose obstacles for Amazon’s success.
While Amazon should increase competition in the local market, analysts are uncertain about its potential impact due to the limited growth of the consumer market in South Africa.
This expansion reflects Amazon’s ongoing efforts to broaden its global footprint and compete with local online retailers. South Africa’s online retail industry is currently dominated by Naspers’s Takealot.com, which boasts a significant delivery network and local appeal.
The specific configuration of Amazon’s platform to comply with local competition authority regulations remains uncertain, as these regulations require the segregation of retail divisions from marketplace operations.
While Amazon’s entry into South Africa is not guaranteed to be a success, it represents another milestone in the eCommerce giant’s global expansion strategy.
What does it mean for eCommerce sellers?
Amazon’s entry into South Africa in 2024 poses opportunities and challenges for eCommerce sellers. With Amazon’s presence, competition will intensify, prompting sellers to rethink their pricing, product offerings, and marketing strategies.
South Africa’s status as a relatively developed economy offers market expansion opportunities for both local and global eCommerce sellers, leveraging the country’s consumer base.
However, success in this market will require adaptation to local conditions, consumer preferences, and regulatory requirements, highlighting the need for sellers to monitor how Amazon navigates these challenges and consider similar adjustments to their strategies.
MORE: Check out Amazon tools and services.
Big Retailer News
Walmart and Amazon’s Toy Catalog Battle
Walmart and Amazon are going head-to-head in the race to capture holiday toy shopping this year. Walmart recently mailed its 2023 holiday toy catalog, arriving in mailboxes just two weeks after Amazon’s catalog.
While both catalogs offer engaging activities for children, there are some notable differences. Amazon’s 104-page catalog boasts higher print quality and even includes stickers, giving it a more premium feel.
In contrast, Walmart’s 64-page catalog feels more like a newspaper insert typically seen around Black Friday.
Both catalogs make use of QR codes to help shoppers easily access featured toys on their mobile devices. Walmart’s catalog stands out for its emphasis on finding gifts within specific price ranges, such as toys under $10 or select Bratz dolls under $30. They also feature a “Top Toy” badge highlighting the must-have toys of the season.
Additionally, Walmart promotes its membership program, Walmart Plus, offering a free 30-day trial, which now includes access to the Paramount+ streaming service. Amazon, on the other hand, promotes its Prime membership program, mentioning its streaming service on the back cover.
The battle for attention between these two retail giants continues, as they compete not only in print but also in the digital space. Amazon’s catalog features a charming cartoon fox on a sled on the cover, while Walmart opts for a more traditional approach, showcasing toys like Barbie dolls and Ninja Turtles.
The question remains: which catalog will captivate children and parents alike in the lead-up to the holiday season?
What does it mean for eCommerce sellers?
The competition between these retail giants highlights the importance of promoting membership programs as part of holiday marketing strategies. eCommerce sellers can explore similar tactics, offering exclusive deals or benefits to members during the holiday season to incentivize customer loyalty and drive sales.
Vinted Elevates Second-hand Luxury Market
Vinted will elevate its appeal to high-end clothing and accessory sellers by introducing a product verification service for items priced above 100 euros.
Following months of testing, this service will be available as an optional add-on for buyers. Initially launching in select European markets, including France, Italy, Germany, Belgium, and the Netherlands.
The move follows Vinted’s acquisition of the luxury resale platform Rebelle. Buyers can request verification for eligible brands and price points, with plans for gradual expansion.
Adam Jay, CEO of Vinted, emphasized the company’s commitment to making second-hand fashion the preferred choice and building trust within its community.
The launch reflects Vinted’s strategy to dominate the European second-hand fashion market, rivaling Vestiaire Collective in the premium and luxury segment.
This announcement comes on the heels of Vinted Go, the company’s logistics division, which is granting access to a vast network of pickup and drop-off points across Europe.
What’s also important to note is that in 2022, Vinted recorded substantial growth. With a 51% increase in revenue to 370.2 million euros and reduced losses, it positioned itself as a dominant player with 80 million members across 19 markets.
With its impressive revenue growth and expanding logistics capabilities, the company aims to provide a reliable and secure platform for both buyers and sellers, positioning itself as a major player in the evolving fashion resale industry.
What does it mean for eCommerce sellers?
eCommerce sellers operating in the fashion resale space can take note of this trend and consider implementing similar verification or authentication services for their platforms. Providing buyers with a reliable way to ensure the authenticity of products can help build trust, attract a broader customer base, and ultimately boost sales in the competitive world of second-hand fashion.
As Vinted’s strategy demonstrates, offering such services can be a strategic move to position oneself as a major player in the evolving fashion resale industry.
MORE: The World’s Top Online Marketplaces in 2023.
Also in the News
- Amazon CodeWhisperer. Amazon AWS.
- CPG Sales Tracking on TikTok Shop. MediaPost.
International Retailer News
European SMEs Seek Digital Growth
A recent study by Amazon reveals that a staggering 70 percent of small and medium-sized business (SME) owners in Europe lack the confidence required to expand their digital presence.
The research, which surveyed 2,500 SME owners across France, Germany, Italy, Spain, and the United Kingdom, highlights the challenges faced by these entrepreneurs in the ever-evolving digital landscape.
The findings indicate that many of them seek assistance in optimizing logistics, while others grapple with the complexities of VAT and customs compliance.
Despite recognizing the immense potential of digitizing their operations, SME owners are actively seeking support and guidance. The SME sector in Europe has experienced substantial growth, witnessing an 18 percent increase over the past 14 years and employing nearly 84.6 million people.
A whopping 82 percent of these business owners acknowledge the benefits of adopting digital sales strategies, with eCommerce being a particular game-changer. eCommerce offers round-the-clock accessibility, location flexibility, and access to a broader customer base.
However, transitioning to a digital platform poses numerous challenges, with many SMEs spending an average of 10 hours a week researching ways to scale up and manage online sales.
International regulations and the intricacies of each country’s laws add additional hurdles. SME owners are yearning for experienced partners to navigate this complex landscape and ensure a smooth transition to digital commerce.
Xavier Flamand, VP Amazon Europe Seller Services, emphasizes the importance of supporting these business owners in their digital journey to help them overcome regulatory complexities and drive growth.
What does it mean for eCommerce sellers?
For eCommerce sellers, this study highlights an opportunity to assist European SMEs in expanding their digital presence. Many SME owners in Europe are actively seeking guidance and support to navigate the complexities of digitizing their operations.
MORE: Maximize your profits with our various business calculators.
Cautious Optimism in European Holiday Sales Amidst Inflation
According to a new analysis by Signifyd, while inflation is slowing across Europe, it’s not expected to provide a dramatic boost to retailers’ fortunes. The analysis projects a modest 3% increase in online sales compared to the previous holiday season, with a 2% increase during the Cyber Five period, which includes Black Friday and Cyber Monday.
These growth predictions, based on transaction data from Signifyd’s Commerce Network, fall short of the current inflation rate. Signifyd’s Chief Customer Officer, J. Bennett, explained that European consumers, like those in Western economies, are facing high fuel prices and increased grocery costs. This in turn is leading them to be cautious spenders during the holiday season, seeking out the best promotions and value for their money.
Despite the tempered outlook, Signifyd’s analysis reveals a solid start to the Christmas season, with October sales up 5.5% compared to the previous year.
However, sales should remain flat in November before rebounding in December, up 4.6% year-over-year. While these figures may seem underwhelming when compared to the double-digit growth of previous seasons, it’s essential to consider the context. Signifyd notes that since the onset of COVID-19, there hasn’t been a decline in year-over-year sales, only a slowing in growth.
However, amid the reserved outlook, there is a glimmer of hope in September’s online performance, witnessing a 9% sales surge in the EMEA region compared to the previous year.
Signifyd’s forecasts rely on transaction trends, growth patterns, and seasonal considerations, drawing insights from its extensive Commerce Network comprising numerous brands and retailers.
While challenges lie ahead, this analysis suggests that European merchants have reasons to remain cautiously optimistic as they navigate the holiday season.
What does it mean for eCommerce sellers?
Consumers in Europe are grappling with economic difficulties such as elevated fuel expenses and rising grocery prices. This has made them cautious spenders, actively seeking the best promotions and value for their money. eCommerce sellers should consider offering competitive pricing and appealing promotions to attract cost-conscious shoppers.
Also in the News
- How marketplaces have come to define modern eCommerce. Internet Retailing.
- JD expansion. Cross Border Magazine.
Webinars
For everyone
Various dates: Amazon advertising’s global webinar program continues with 20+ webinars scheduled, covering Amazon Prime Day preparation, sponsored products,sponsored brands, reporting, optimization, and other tips. Learn more: Amazon.
For US sellers
November 2: The 15 Minute Breakdown. Learn more: Tinuiti.
For UK sellers
Various dates: Amazon advertising’s global webinar program continues with 20+ webinars scheduled, covering Amazon Prime Day preparation, sponsored products, sponsored brands, reporting, optimization, and other tips. Learn more: Amazon.
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