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Ecommerce & Marketplaces Newsletter – March 1, 2024

In this edition, Tom Gaydos, CMO of McFadyen Digital, dives into how Marketplace 2.0 is driving sustained profits for organizations all around the world. BigCommerce and Feedonomics leaders predict the top eCommerce trends for 2024. Data Innovation covers a newly introduced bill in Florida where eCommerce (Marketplace) legislation would conflict with the INFORM Act. These news items, blogs and other bulletin items are covered by these notable sources plus Digital Commerce 360, Fastbreak.one, ET Brandequity.com, Marketplace.org and PE Hub.

The exploding popularity of the online marketplace model has brought new and exciting ecommerce growth possibilities to organizations all around the world utilizing an expanding variety of multi-vendor commerce permutations. As we step into 2024, the landscape of ecommerce continues to evolve with remarkable speed, driven by technological advancements and shifting consumer behaviors. It’s clear that key themes such as artificial intelligence (AI), omnichannel strategies, and customer experience enhancements will shape the trajectory of online commerce in the year ahead. #ArtificialIntelligence is not just changing, but revolutionizing the way platforms like Amazon, Airbnb, and Uber personalize user experiences. But it’s not just about better recommendations; it’s about reshaping operations for efficiency and precision.

 

 

 

Marketplace Monetization: How Marketplace 2.0 Is Driving Sustained Profit

Many of the most profitable, fastest growing, and valuable retailers operate a marketplace. But how does this business model generate top-line sales and bottom-line profit? The exploding popularity of the online marketplace model has brought new and exciting ecommerce growth possibilities to organizations all around the world utilizing an expanding variety of multi-vendor commerce permutations. Yet for all the scale and success marketplaces have seen, many have either failed or underperformed due to insufficient monetization strategies. Fortunately, this is a solvable issue that presents opportunities for previously unseen levels of sustained profit. Aside from the traditional commission models of most online marketplaces, the dawn of Marketplace 2.0 sees site operators monetizing several varied sources of profit within their shopping ecosystems. For marketplace operators, monetization is not just a goal—it’s a continuous journey of innovation and adaptation. The importance of financial modeling, technology assessment, and aligning organizational structures cannot be overstated. A thorough revenue roadmap drawn from insightful data and tested models usher forth a future of sustained growth.

How Platforms Can Leverage AI to Accelerate Network Effects?

Step into the future of digital personalization with our latest deep dive! Explore how #ArtificialIntelligence is not just changing, but revolutionizing the way platforms like Amazon, Airbnb, and Uber personalize user experiences. From custom-tailored recommendations to dynamic pricing strategies, AI is setting a new benchmark for user engagement and satisfaction. But it’s not just about better recommendations; it’s about reshaping operations for efficiency and precision. Discover the potentials, challenges, and the exciting future of AI-driven platforms. As noted by @matthias Walker (https://www.linkedin.com/in/waltermatthias/) the biggest advantage is re personalization. Making the user experience even better, personal and therefore unlocking the next generation of platform businesses. Which at the end, makes it even harder for the classic retail stores to compete against #marketplaces and #platforms. What is your experience in leveraging AI for platform scale?

 

Walmart grows online sales in Q4, agrees to acquire Vizio

Walmart said online sales accounted for more than 13% of total sales in fiscal 2024, growing both in the U.S. and internationally. Walmart Inc. announced Feb. 20 that U.S. online sales grew 17% for its fiscal 2024 fourth quarter ended Jan. 31. Its global ecommerce sales grew 23% over the same period, while international ecommerce increased 44%. The retailer also agreed to acquire smart TV manufacturer Vizio for $2.3 billion. More than 70% of Vizio’s TVs are already sold at Walmart. The deal will give Walmart control over more than 20% of the U.S. TV market and further accelerate Walmart Connect’s U.S. growth, the retailer said. Walmart Connect is the retailer’s U.S. advertising business, which grew 22% in Q4. Global advertising grew 33%. “When we think about our business today compared to what it was during prior economic downturns, we now have a more compelling offer, a true omnichannel experience that makes us optimistic that more higher-income families will continue shopping with us across categories because we have pickup, delivery, and membership,” John David Rainey, Chief Financial Officer with Walmart said.

 

Zara owner Inditex expands bargain brand to counter Shein

 

The rapid growth of Shein, an online marketplace with no physical stores, is putting pressure on retailer like Inditex and Sweden’s H&M to find ways to respond to its budget prices. Zara has become less competitive on price since Inditex started hiking prices at its core brans to protect profit margins from inflation and as a part of a shift towards more upmarket customers.

BigCommerce Leaders Predict Top ECommerce Trends for 2024

As we step into 2024, the landscape of ecommerce continues to evolve with remarkable speed, driven by technological advancements and shifting consumer behaviors. It’s clear that key themes such as artificial intelligence (AI), omnichannel strategies, and customer experience enhancements will shape the trajectory of online commerce in the year ahead. Subject matter experts from BigCommerce along with Feedonomics share predictions and insights around AI, Omnichannel Connectivity, and how your customer’s experience is critical for brand loyalty in order to create a comprehensive picture of what we can expect in the coming year.

Department stores like Macy’s rely on an old shopping model. Can they change?

Macy’s is entering A Bold New Chapter — at least that’s what it calls the strategy it announced on an earnings call Tuesday that was designed to reposition the company. To make that happen, the retail chain said it needs to close 150 stores over the next three years. It currently has about 480 locations. Of course, Macy’s isn’t alone. Department stores have been trying to fight a dusty and dated image for decades now. When department stores followed urban sprawl into the suburbs after World War II, they became centers of shopping and socializing.

 


Florida’s E-commerce (Marketplace) Legislation Would Conflict With the INFORM Act

A newly introduced bill in the Florida Senate would require online marketplaces, such as Amazon and eBay, to verify and disclose the location of third-party sellers. However, online marketplaces already provide this information to consumers because a recent federal law requires them to do so. Moreover, differences between the proposed Florida legislation and existing federal law would create conflicting rules for online marketplaces operating in Florida. Therefore, the Florida bill fails to offer additional benefits to consumers but would create confusion for online marketplaces.

To subscribe to the Ecommerce & Marketplaces Newsletter, please complete the subscription form on this page (either to the right or below this article, depending on device). If you have any suggested content for this newsletter or would like to discuss evolving your organization’s digital commerce, please write to us at info@mcfadyen.com.

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