Ecommerce & Marketplaces Newsletter – Dec 29th, 2023
In our last edition of this year, we bring you “Predictions 2024 (Video)- Scott Galloway’s unfiltered predictions on business, tech, and more. Last year, Scott Galloway predicted that AI would be the most important tech development of the year. ChatGPT reached 100 million active users two months later and set a record as the fastest-growing platform. Scott also predicted that Disney would acquire Roblox, but hey – you win some, you lose some. Here, he shares unfiltered predictions for 2024 and reviews his wins and losses from 2023. While marketplaces offer promising opportunities for AI integration, it’s crucial to approach them with a nuanced understanding of their unique demands and the associated risks. Striking a balance between harnessing AI’s capabilities and addressing potential pitfalls is essential for long-term success in the marketplace landscape. Forbes’s article looks at the unique risks and rewards of online marketplaces. Alibaba Group is undergoing significant changes within its e-commerce division. CEO Eddie Wu is set to assume leadership responsibilities for the company’s domestic e-commerce operations in China. This strategic move comes as Alibaba faces increasing competition from rivals in the industry. Alibaba was once the most valuable company in China, handily dominating Chinese ecommerce. Since 2020, the business has lost market share to rivals, including PDD. Digital Commerce 360 story has more details. One of the most significant challenges for brands is determining which sales channels will yield the highest sales volume while requiring the least resources, including time, money, and operational effort. Online marketplaces can be a lucrative avenue for achieving this goal, but navigating these platforms effectively is crucial to maximizing the visibility of your product listings. DCL Corp story looks at ways marketplace operators/ brands can optimize product listings. Read this and other great stories in this week’s edition.
Notable news from the past week
Last year Scott Galloway predicted that AI would be the most important tech development of the year. Two months later, ChatGPT reached 100 million active users and set a record as the fastest-growing platform. Scott also predicted that Disney would acquire Roblox, but hey – you win some, you lose some. Here’s a video of Scott’s annual Predictions event, where he shares unfiltered predictions for 2024 and reviews his wins and losses from 2023.
All Eggs In One Basket: The Unique Risks And Rewards Of Marketplaces
Marketplaces have become a feature of our economy. From apps for our phones and third-party sellers on e-commerce platforms to content producers on social media and education websites, marketplaces enable businesses to forgo building a digital sales channel and piggyback on established websites and apps. With the rise of large language models, customized models have become a commodity similar to apps. Thus, OpenAI announced its marketplace. They want to enable solo, professional developers and small businesses to sell their OpenAI-based offerings. Marketplaces are an excellent opportunity to gather experience using generative AI and create revenue. Yet the experiences in many other marketplaces call for a more muted response. With the speed of innovation in AI in mind, let us delve into the risks and rewards of marketplaces.
Alibaba Group is shaking things up inside its ecommerce business. CEO Eddie Wu will take charge of the Chinese company’s domestic ecommerce as the business faces growing rivals. Alibaba owns the world’s two largest online marketplaces by gross merchandise value (GMV), Taobao and Tmall. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by GMV. Tmall ranks No. 2. Both outrank Amazon, the third-largest global online marketplace, according to Digital Commerce 360 research. Wu took over Alibaba’s domestic ecommerce effective immediately, the Associated Press reported on Dec. 19. Wu became CEO of the Alibaba Group in September, when he also took on leadership of the company’s cloud division. He now heads the overall business, along with two of the most important sectors: ecommerce and cloud.
How to Optimize Your Online Marketplace Product Listing
L One of the biggest challenges for brands is deciding which sales channels will net them the highest sales volume for the lowest amount of resources (time, money, operational output). Online marketplaces can be a great place to get this, but it takes playing the platform correctly so that your product listing pages get maximum visibility. Much of the effort to have success with online marketplace selling comes from the sales and marketing aspect of the channel. Getting your product listings right is key to catching the eyes of returning and potential customers. Every online marketplace is different, but there are some outstanding ways you can ensure your product listings get seen. Here are some expert tips to keep your sales strategy strong. Before you can optimize your presence, it’s so important to pick the right channel for your brand. Think about it. If all your competitors are on Amazon, but you’re not, consumers are probably finding their products and not yours. Having a presence is the first step to netting more customers.
Even though merchants have faced unprecedented challenges amid COVID-19, businesses need to amplify their digital presence with time. As per a Statista Report, Amazon hit nearly 514 billion U.S. dollars in net sales revenue worldwide in 2022. So, it’s quite clear that digital marketing growth is going to see an upward trend in the future. With this, it necessitates the digital marketplace demands to promote products with some influential e-marketplace trends. There are a plethora of digital tactics available over the internet for online marketplaces. Here in this article, we will chew over 10 profitable digital marketplace trends to get a powerful strategy to leverage on. Gone are those days when AI was associated only with the robotics industry. Today, Artificial Intelligence is transforming every walk of life and it seems to be expanding every year for more complicated tasks.
The best way to understand what a marketplace is to think about a real-life bazaar. It brings together two groups of people: sellers and buyers. Adam Fishman, Chief Product and Technology Officer at ResortPass and Reforge Expert paints the picture: “You can think of it like the spice market in Istanbul, Turkey. If you’re a tourist and you want saffron, you go there because that’s where hundreds of vendors sell saffron, so you know it’s a great place to get it.” A digital marketplace is a platform that connects and aggregates both sellers and buyers, rather than a specific physical location. The core part to understanding a digital marketplace is that it can be very different from a digital product, or a SaaS product. A marketplace is not the end product that a user buys, it is the facilitator. “When you’re building a marketplace, you’re not building the actual product. You’re building the platform that facilitates the end product getting to the user.”—Kleanthis Georgaris, SVP of Product at Toptal and Reforge Expert.
In today’s fast-paced world, the e-commerce industry is constantly evolving to meet the ever-changing needs and expectations of consumers. One technological advancement that has taken center stage in recent years is visual product search and recommendation systems. This blog explores how the integration of artificial intelligence (AI) in visual product search is reshaping the e-commerce landscape and revolutionizing the way we shop. Imagine this scenario: You’re walking down the street, and you see someone wearing a stylish outfit that catches your eye. In the past, identifying and purchasing similar items would have required a series of keyword searches, sifting through countless product listings, and often, frustration. But now, thanks to the wonders of visual search, your shopping experience has been transformed. You simply snap a photo of that fabulous outfit, upload it to your favorite e-commerce app, and voilà! The app instantly finds visually similar products from its vast catalog, making your quest for fashion inspiration effortless.
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