Amazon has announced that it is permanently closing 8 Go convenience stores located in Seattle, New York City, and San Francisco. Already, two stores based in Seattle have been shut for quite some time. The company plans to shut 6 more stores that are currently operational (in San Francisco and New York City) by April 1.
This will leave only 21 Go stores operational after the closure. But the company clarified that it’s still pursuing efforts to open more new stores in the future.
“Like any physical retailer, we periodically assess our portfolio of stores and make optimization decisions along the way,” Amazon said in a statement. “We remain committed to the Amazon Go format, operate more than 20 Amazon Go stores across the US, and will continue to learn which locations and features resonate most with customers as we keep evolving our Amazon Go stores.”
Amazon Go stores offer a unique shopping experience as they don’t have any checkout counters or cashiers. Instead, customers use the Amazon Go app to enter the store, pick up the items they want, and simply walk out. The technology behind this experience includes computer vision, deep learning algorithms, and sensor fusion – which work together to track the items customers pick up and automatically charge them to their Amazon account as they exit the store.
In February this year, the company’s CEO Andy Jassy revealed that the company was planning to go big on a different kind of physical store – grocery stores. Amazon last year also announced that it was planning to close all its physical bookstores as it works to re-align with evolving demands in the e-commerce marketplace.
The Fresh Market last week launched a new way for shoppers to explore and buy groceries via a digital magazine. Based in North Carolina, The Fresh Market is a top player with more than 150 stores across 22 states.
‘The Magazine’
Late last week, the firm introduced ‘The Magazine’. This will be a digital-only, promotional magazine that will allow consumers to discover products, recipes, and meal inspirations. The magazine was previously available in print but now features a fully elevated and interactive shoppable experience.
Each page in ‘The Magazine’ features a ‘shop now’ tab that readers can click to visit the firm’s online site and order items for pickup or delivery. Interestingly, the magazine also embeds shoppable videos that deliver engaging content to readers while also providing a quick way to complete purchases.
“Our new digital-only shoppable magazine marks our largest and most immersive magazine experience ever, allowing our guests to make both every day and special occasions memorable through a wide variety of recipes, meal solutions, and fresh deals,” said Kevin Miller, chief marketing officer for The Fresh Market. “The magazine will also continue to feature special savings on high-quality products at a great value from our vendor partners that our guests love.”
Chinese influencers, or Key Opinion Leaders (KOLs) as they are often referred to, have long been a driving force behind the country’s thriving e-commerce industry. With their unparalleled reach and influence over consumer behavior, they have become an indispensable tool for marketers seeking to tap into the country’s massive consumer base. But what can US marketers and content creators learn from their Chinese counterparts? In this article, we’ll explore three key lessons that can be gleaned from the Chinese influencer ecosystem.
1. KOLs are More Than Just Influencers
In China, KOLs are more than just social media celebrities with a large following. They are seen as trusted advisors and thought leaders in their respective fields, whether its fashion, beauty, or technology. Their expertise and insights are valued by their followers, who look to them for guidance and recommendations. As a result, KOLs in China often have their own online stores or product lines and are seen as genuine business partners rather than just paid endorsers.
2. Authenticity is Key
Perhaps the most important lesson that US marketers and content creators can learn from Chinese KOLs is the importance of authenticity. In China, KOLs are valued for their genuine opinions and recommendations, rather than just their reach or popularity. As a result, successful KOLs are those who are able to build trust and credibility with their audiences, by being transparent about their partnerships and only promoting products that they genuinely believe in.
3. Micro-influencers are Becoming More Influential
Micro-influencers are taking an expanding role in the Chinese social commerce market. These are people are not popular celebrities but rather have an established social media presence, along with good presentation and personality skills. More so, micro-influencers tend to have their personal interests aligned with the products they are promoting, which enhances their ability to deliver the message and respond to specific queries from their followers. Many brands find that micro-influencers are a better option for communicating greater authenticity.
4. Mobile-Centric Marketing is Crucial
Mobile commerce has been one of the top online shopping trends in the past few years. More and more Chinese KOLs are thus leveraging messaging platforms such as WeChat to expand their mobile footprint. These platforms make it easier for marketers to identify their super fans and use them as evangelists. Some marketers are doing this by creating mobile messaging groups to share brand news and have followers propagate it forward through their private channels.
5. Social Commerce is really the Future
Social commerce has exploded in popularity in China over the past few years. KOLs have played a major role in this trend, using their social media platforms to sell products and engage with their followers in new and innovative ways. For example, many KOLs in China use live-streaming to showcase products and offer exclusive discounts to their followers, creating a sense of urgency and excitement around the products they are promoting. US marketers and content creators can bank on this trend by exploring new ways to integrate e-commerce into their social media campaigns. Some options to think about include using augmented reality and partnerships with other creators to deliver more immersive shopping experiences.
Conclusion
The Chinese social commerce sector is a bit more mature and thus there are a lot of lessons U.S marketers can pick. By focusing on building long-term relationships with influencers, exploring new ways to integrate e-commerce into social media campaigns, and prioritizing authenticity in their influencer partnerships, brands can tap into the immense power of influencer marketing and reach new heights of success.
As social commerce records significant growth in the US this year, Chinese e-commerce apps are scrambling for the market. These apps – which mostly focus on fashion products – are using ingenious marketing and social media to establish a foothold in the market.
Temu
One notable Chinese app that is dominating the charts is Temu. This is a discount shopping app that attracted massive attention after a clever Super Bowl ad tagged ‘shop like a billionaire’. It soon became the most downloaded shopping app in the U.S., surpassing retail giants Walmart and Amazon. Apart from the winning Super Bowl ad, Temu has invested heavily in social media, offering deals on diverse products ranging from fashion to electronics.
According to estimates by data tracker Sensor Tower, Temu has been downloaded more than 24 million times since it was launched in November. Temu’s parent company is PDD, a firm that also operates a popular Chinese e-Commerce platform known as Pinduoduo (one of the three largest such companies in China after Alibaba and JD.com).
Shein
Shein is another company that has expanded rapidly over the last few years. The app was founded in China but has since relocated to Singapore. Marketed as a fast-fashion outfit that offers trendy clothes, Shein attracted tens of thousands of younger buyers, particularly during the early years of the pandemic. It had more than 172 million downloads last year, as reported by the Wall Street Journal. The company’s valuation is now over $100 billion.
TikTok
While not predominantly a shopping app, TikTok is also making moves to claim its place in the US social commerce market. The app recently launched in-app shopping features and is already beta testing with a few major retailers. Given TikTok’s growing popularity in the US, one might argue that it is one platform content creators and eCommerce vendors ought to keep in their scopes.
Conclusion
These developments strengthen China’s position as the world’s factory. It’s likely that the likes of Temu are taking advantage of direct supply chain links to lower costs and better compete with US-native eCommerce shops. But some are also concerned that quality control challenges and worsening U.S.-China relations could pose a challenge.
Today’s consumers expect quick and efficient delivery of their online purchases. Indeed, in a social commerce age where consumer experiences matter more than ever before, faster deliveries are likely to lead to increased loyalty and repeat purchases. It’s no surprise that (as reported by the Wall Street Journal) Amazon.com is looking to become an even bigger player in same-day deliveries.
Since 2019, Amazon has opened more than 45 same-day shipping centers and might have much more set up within the next few years. These facilities, which carry about 100,000 of the most popular SKUs on the company’s website, are opening in main metropolitan centers within the US. The company has already set up new centers in Phoenix, Los Angeles, and San Francisco.
“We’re always exploring ways to bring our customers new levels of convenience and delivery options that work best for them. Same-Day Delivery is one of the latest innovations,” an Amazon spokeswoman told the paper.
Superfast deliveries can arrive within hours, but the company’s charges Prime subscribers a free of $2.99 per orders
Rising competition in eCommerce deliveries
By aiming for lightning-fast delivery, Amazon is trying to use its formidable logistics network to compete with other players in the space. Walmart uses its thousands of stores to respond quickly to online orders. Subscribers to the company’s Walmart+ can receive free same-day or next-day deliveries from local stores while Instacart+ and Target’s Shipt services also offer free deliveries.
Conclusion
There’s no doubt that social commerce is the future of online shopping. Amazon has been one of the leading innovators in this emerging area, with the Amazon Live platform helping move thousands of products via shoppable live streams. However, the company has been facing a steep challenges from TikTok, YouTube, Shopify, and other major players.
Satisfied woman in jeans and T-shirt relaxed sitting in bag chair against background of shelf with folders
Social media has become an integral part of the eCommerce landscape, allowing vendors to connect with customers, drive traffic, and increase sales. But what are the best social media channel for creators who are looking for better conversions? While the answer may vary from one person to the other based on demographics, this article highlights the leading platforms based on studies and statistics.
Why social media remains an important channel
According to Statista, global eCommerce sales are projected to reach $6.54 trillion in 2023, up from $4.28 trillion in 2020. The number of social media users worldwide is expected to reach 4.41 billion by 2025, up from 3.78 billion in 2021. With so many potential customers on social media, it’s clear that e-commerce vendors can’t afford to ignore these platforms. Some of the clear benefits of making social media a key part of your go-to-market strategy include the following:
Increased brand awareness – social media is the best platform for vendors to reach a wider audience and build brand recognition.
Improved customer engagement – allows e-commerce businesses to build relationships and foster loyalty.
Higher website traffic – social media is an effective way to drive traffic to ecommerce websites, leading to more sales.
Better targeting and personalization – businesses can target specific audiences and personalize their messaging.
Top social media channels for eCommerce in 2023
Content creators and eCommerce brands have no shortage of social media channels to set up in. But not all platforms are equal:
1. Facebook
Facebook is the largest social media platform in the world (with over 2.91 billion monthly active users). While the platform has scaled back from live shopping in the recent past, it offers a range of advertising options, including sponsored posts, carousel ads, and retargeting ads. You can also target your ads based on demographics, interests, behaviors, and more. Facebook is also a great platform for building a community around a brand and interacting with customers through comments and messages.
Nearly 80% of US-based consumers have discovered products on Facebook
2. Instagram
Owned by Facebook’s parent company Meta, Instagram boasts over 1.3 billion monthly active users. Particularly popular with younger audiences, its focus on visual content makes it a great platform for showcasing products and building a visually appealing brand. You get a wide range of advertising options, including photo and video ads, stories ads, and shopping tags that allow users to buy products directly from the app.
The company says that around 70% of its users use the platform to consider their next purchase.
3. TikTok
TikTok has become an increasingly influential channel for eCommerce marketing and covnersions. Studies show that as much as 35% of TikTok users have bought something on the platform while around 44% of users have discovered products via ads and content published by brands. One thing that stands out on TikTok is the fact that vendors attain high engagement rates (18% on average) which is way impressive compared to the likes of YouTube and Instagram (at 3.9% and 1.6% respectively).
TikTok is also taking a strong stance on social commerce and is already introducing its in-app shopping features in the US. This means that it is a platform that creators and eCommerce brands should seriously pay attention to.
4. YouTube
While technically a video-sharing platform rather than a social network, YouTube has over 2.3 billion monthly active users. It is a powerful tool for eCommerce outlets because it allows you to create product demos, tutorials, and other types of content that showcase products and build brand authority. YouTube’s advertising options include display ads, overlay ads, and sponsored videos.
The average conversion rate on YouTube is 14%, which is 40% higher than what you get on Facebook and all other social media sites combined.
5. Pinterest
Pinterest has over 478 million monthly active users and is known for its visual discovery and curation features. It’s particularly popular with female users and is a great platform for businesses selling home decor, fashion, beauty, and food products. The platform offers advertising options like promoted pins and shopping ads along with features like buyable pins that allow you to purchase products directly from the app.
A report by Feed Marketing showed that up to 83% of weekly Pinterest users made purchases on the platform based on content they saw from brands on the platform.
6. Twitter
With 192 million daily active users, Twitter is a fast-paced platform that’s great for real-time engagement and customer service. It’s particularly useful for businesses that want to keep up with industry trends and news. Twitter offers advertising options like promoted tweets and sponsored hashtags, as well as targeting options based on keywords, interests, and demographics.
Important statistics on social media for eCommerce
Now that we’ve covered the top social media channels for ecommerce, let’s take a look at some statistics and studies that demonstrate their effectiveness:
Conversion rates
72% of Instagram users have purchased a product on the app, while 26% of Facebook users have made a purchase after clicking on a Facebook ad.
~Hootsuite
Engagement rates
Instagram has the highest engagement rate of any social media platform, with an average engagement rate of 1.22%.
~Sprout Social
Sales generated
Social media drove 10.9% of all ecommerce sales in Q1 2021, with Facebook and Instagram driving the majority of those sales.
~Shopify
ROI
ecommerce businesses saw an average return on ad spend (ROAS) of 4.68x on Facebook and 3.53x on Instagram.
~Smartly.io
Conclusion
Social media is a powerful tool for e-commerce businesses looking to connect with customers, increase brand awareness, and drive sales. By leveraging the right social media channels and following best practices, businesses can see significant ROI from their social media efforts. With the right strategy and tactics in place, social media can be a game-changer for e-commerce businesses in today’s digital landscape.
Amazon has expanded its Small Business Academy to include a suite of free, interactive resources that will help support entrepreneurs right from concept to launch. The company announced last Friday that it will provide basic business education along with industry experts as part of its ongoing commitment to help aspiring and current business owners’ fast-track their digital business success.
Amazon initially launched its Small Business Academy in early 2020. Back then, the program was designed to cover the fundamentals of business growth, including marketing, inventory management, merchandising, and more. It offered up to 16 hours of beginner, intermediate, and expert-level courses created in collaboration with the National Association for Community College Entrepreneurship (NACCE). Given that the e-commerce and digital business scene (in general) are ever-evolving, it only makes sense that the Amazon decided to give their course a revamp.
What does the new curriculum cover?
The new curriculum will cover key business skills that entrepreneurs need to have while also equipping them with the soft skills they need to have for confidence, self-reliance, and perseverance. This new learning program was created in collaboration with the Collegiate Entrepreneurs’ Organization (CEO). This is a leading entrepreneurship network that has a presence in more than 250 universities around the world. The partnership means that users will benefit from training by professors and experts in various areas, as well as access educational webinars and on-demand learning materials.
“Starting a business is a leap of faith and can seem overwhelming at times. We built Amazon Small Business Academy to be the go-to resource for early-stage entrepreneurs to succeed in building a solid online business foundation,” said Danyel Surrency Jones, director and head of Amazon’s Small Business Academy.
Audio content is available
Small business owners will now also be able to access audio content via the This is a Small Business Podcast. This series will encompass multiple episodes covering key business decisions that an entrepreneur often has to make. There is also be a virtual event series dubbed the Founders Table, where the inaugural event featured Sarah Friar (CEO of Nextdoor) on Februrary 9.
Given that nearly 60% of the merchandise on Amazon comes from selling partners (the majority of which are SMEs), the expanded portal will serve as a centralized location where business owners can access the information they need to succeed.
Short video giant TikTok has launched a new monetization tool – Creativity Program Beta – that will help creators make more money with longer content. This will be an invite-only program that is designed to help creators use creativity to unlock more opportunities and generate higher revenues. It adds to the long list of monetization tool that the platform has introduced over the last few years. The company says that it developed the new program after taking in creator feedback on past solutions, including the TikTok Creator Fund.
How does it work?
Creativity Program Beta will only be available to creators on an invite-only basis. Hopefully, the company hopes to make the tool available to all eligible creators in the US – possibly within the next few months.
What if I’m already in the TikTok Creator Fund?
TikTokers who are already in the Creator Fund program can choose to switch to the Creativity Beta. The company added that those who are not in the Creator Fund can enrol to the new program once it is available.
How do you start earning?
Creators who are invited into TikTok Creativity Program Beta need to create and publish authentic content over one minute long in order to start earning. The platform will provide a dashboard where users can keep track of video eligibility, projected revenue, along with performance metrics and analytics.
TikTok Creator Fund vs Creativity Program Beta
While both programs are designed to help support creators on the platform, there maybe a few similarities and differences in terms of how they work.
Tiktok Creator Fund
Creativity Program
Eligibility
TikTokers over 18 who meet certain performance metrics and post original content are eligible
Only available by invite (as of now)
Earning Potential
Creators earn based on video views and engagement
Aims to provide higher revenue potential and unlock more opportunities
Content Requirements
Original content that meets specific laid-out guidelines
High quality original content over one minute long
Availability
Available in more countries (U.S., U.K., Germany, Italy, France, Spain)
A new China-linked shopping app has surpassed retail giants Amazon and Walmart to be the most downloaded app in the US.
The e-commerce app, known as Temu and based in Boston, is linked to the same Chinese owner behind the social commerce outfit Pinduoduo. This is marketplace app that allows buyers to share products on third-party social networks such as WeChat and invite followers to form shopping ‘teams’ that can then buy products in build to earn discounts.
Temu made its debut on Super Bowl Sunday with a crafty video ad. Users will be able to buy virtually everything in the superstore, from home goods to electronics and apparel.
One heck of a video ad
https://www.youtube.com/watch?v=RgNuwb9lpeg
Temu’s Super Bowl commercial invited consumers to ‘shop like a billionaire’. The 30-second spot focused on super-low prices that would allow customers to feel like they are splurging without using a lot of money.
“Through the largest stage possible, we want to share with our consumers that they can shop with a sense of freedom because of the price we offer,” a spokesperson of the company told CNN.
Very low prices
Products on the app indeed have eyebrow-raising prices, with a woman’s swimsuit going for just $6.5 and wireless earphones going for $8.50. Eyebrow trimmers are available for only 90 cents. These low prices have drawn comparisons to Shein, another Chinese fast-fashion company that offers a wide variety of inexpensive goods in the United States. Other companies that are competing on price include discount retailer Wish and Alibaba’s AliExpress.
With such an enthusiastic entry, Temu will likely pose a new challenge to existing retail giants. It’ll be interesting to see how users will adopt the platform.
Facebook’s parent company Meta has introduced a new subscription service dubbed Meta Verified. This new capability will allow users on the platform to acquire the sought-after blue verification badge on both Facebook and Instagram at a monthly fee of up to $15.
The new service was announced by Mark Zuckerberg in a Facebook post. Previously, the blue verification was only reserved for public figures such as actors, musicians, lawmakers, athletes, journalists, and other notable figures.
How will this work?
Meta Verified is currently available in both New Zealand and Australia as the company plans to expand it globally in the coming days. It’s a notable launch given that it will allow users on either Facebook or Instagram to verify their identity using a government-issued ID card. Some of the benefits of subscribing to this platform include added protection against impersonation attacks, easier access to customer support, as well as enhanced reach and visibility.
How much will it cost?
Meta has revealed that the verification badge will cost around $11.99 on the web and $14.99 on Android and iOS devices.
A quick fix for declining revenues?
While Zuckerberg emphasized in the announcement Facebook post that this service is meant to help increase authenticity and security across the company’s service, some have argued that the company may also be looking to plug reducing revenues. The company’s earnings have taken a notable dip in the last few years in part due to Apple’s implementation of stringent privacy changes on IOS that have affected the company’s ability to track their users’ internet browsing activity. Analysts projected that Apple’s changes would cost the company as much as $10 billion in lost revenues this year alone.
Twitter copycat?
New Twitter owner Elon Musk recently introduced a subscription service that would see users on the platform pay a monthly fee in exchange for a verification icon on their profiles. The company’s service (Twitter Blue) is now available in as many as a dozen countries around the world and has garnered more than 180,000 subscriptions as of January 2023. It’s likely that Meta took a cue from Twitter’s move and it’ll be interesting to see how users on both Facebook and Instagram adopt this new service. Some have argued that this is just another demonstration of a company running out of ideas after it recently scrapped live shopping on Instagram.
What are the implications?
Facebook has not charged customers to use its platforms in the 15 years that the company has been in existence. Instead, they have generated most of their revenues from advertising. In addition to helping the company plug its revenue troubles, Meta Verified could actually have positive implications for users. Increased security and authenticity could actually lead to more engagement and better user experience, allowing users to better engage with their audience.
Logie streamlines influencer discovery, product distribution, and content performance to drive measurable sales for eCommerce brands. We also equip content creators with the smart tools, brand partnerships, and commission opportunities they need to turn content into income.
