Amazon Revenue Strong, Record Profitability Streak Ends

After posting its best profits over the previous four quarters, Amazon broke its streak; its Q2 profit rose 3.6 percent from a year ago, to $2.63 billion, missing analysts’ predictions. Profitability got a hit from the increased costs of shipping, as Amazon struggled to make one-day shipping the standard for all its Prime members. Chief financial officer Brian Olsavsky said that “when the dust settles, we will regain our cost efficiency over time.” Revenue was a bright spot, however, with performance above analysts’ expectations. Continue reading Amazon Revenue Strong, Record Profitability Streak Ends

Once Again, Prime Day Shatters Sales Records for Amazon

According to Amazon, this week’s Prime Day 2019 topped last year’s Black Friday and Cyber Monday combined. Despite competing discounts offered by eBay, Best Buy and Walmart, Prime members purchased more than 175 million products during the annual sales event. The tally is challenging to compare to previous Prime Day events since the e-commerce giant keeps expanding the duration of the sale (this year it was 48 hours, compared to 36 hours in 2018 and 30 hours in 2017). However, the event set a number of sales records, including new milestones for Amazon devices. Continue reading Once Again, Prime Day Shatters Sales Records for Amazon

Amazon, Target, Walmart Ramp Up Their Delivery Services

Walmart launched Delivery Unlimited, which offers consumers a subscription grocery delivery service for $98 per year or $12.95 per month, with a 15-day trial period. Per-order fees run $9.95 or less. The new subscription service is priced competitively, with Shipt and Instacart charging $99 per year. Prime Now costs $119 per year, but touts all of the benefits of Amazon Prime, including fast shipping and streaming media content. Target, which bought Shipt, now offers shoppers same-day delivery and a first-time $9.99 per order fee.

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Retailers Push Loyalty Programs to Compete With Amazon

Last month, Amazon earmarked $800 million to guarantee one-day delivery for its Prime members. That’s another blow for U.S. department stores struggling to find ways to retain their customers against the Amazon onslaught. One important way they’ve done this is to focus on loyalty programs. According to market intelligence company Beroe, the U.S. loyalty program sector was worth between $27 billion and $55 billion in 2018 and is expected to continue to grow by 2 percent to 4 percent between then and 2020. Continue reading Retailers Push Loyalty Programs to Compete With Amazon

Verizon, AT&T and Sprint Moving Forward With 5G Service

At a J.P. Morgan investment conference, Verizon chief executive Hans Vestberg revealed that the Samsung Galaxy S10 5G is performing at 1.5 Gigabits per second. The caveat is that, per Ookla Speedtest, the company is “tightly curating” the test for reviewers, including a testing site outside of Motorola’s offices and other locations adjacent to its 5G hardware. Meanwhile, Sprint stated that it will turn on 5G in Atlanta, Dallas, Houston, and Kansas City on May 31; it opened up preorders for 5G devices on May 17. And AT&T is offering 5G to business customers in 19 cities. Continue reading Verizon, AT&T and Sprint Moving Forward With 5G Service

Amazon Will Pay Employees to Quit, Start New Companies

Competing for delivery drivers in what The Wall Street Journal calls the tightest U.S. labor market in 50 years, Amazon is willing to pay its current employees to quit their jobs to start local package-delivery businesses in order to help the e-commerce giant with its ambitious delivery goals. In an increasingly competitive market, Amazon is looking to move away from depending on the U.S. Postal Service and other companies to make deliveries happen. Instead, Amazon announced plans to invite entrepreneurs of its own making into the mix.

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Walmart Offers Next-Day Delivery to Compete with Amazon

This week, Walmart announced that it will start offering free, next-day delivery on select online orders over $35 without any added membership fee. This announcement comes after a similar one from rival retailer Amazon just last month. Amazon, the lucrative e-commerce giant, announced that it is investing $800 million in its warehouses and delivery infrastructure with the goal of cutting the speed of its Prime deliveries from two days to just one. For now, Walmart’s quicker deliveries will only be available in select markets.

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Amazon’s One-Day Shipping Plan Boosts Logistics Startups

Last month, Amazon made a pledge to spend $800 million in efforts to make next-day delivery the new standard. In turn, this put increased pressure on brick-and-mortar rivals like Walmart, Best Buy, Macy’s and many others who are rushing to keep up. And it could mean big deals for the logistics companies that work with those physical retailers. As just one example, the Seattle warehouse space and online order fulfillment startup Flexe just announced a $43 million investment from New York firm Tiger Global Management.

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Cable Providers Update Boxes to Retain Fleeing Customers

With its Xfinity X1, Comcast has remade the traditional cable box, with a voice-enabled remote that allows search across live TV, on-demand and sources such as Netflix. It combines the multiple apps, passwords and monthly fees of streaming services into one place, with one bill. Perhaps we don’t need to get rid of cable, but rather to improve it. With the advent of ever-more choices from Apple, Amazon, Roku to Verizon and T-Mobile, the major cablecasters have the chance to bring their services into the modern TV age. Continue reading Cable Providers Update Boxes to Retain Fleeing Customers

Amazon and Google Offering Ad-Supported Music Services

Spotify has new competition. Amazon just introduced an ad-supported version of Amazon Music available in the U.S. via Alexa devices. To jumpstart the service, Amazon has reportedly offered to pay some record labels per stream for music licenses, separate from ad sales. The catalog is limited, but listeners can access some of Amazon Music’s “top playlists.” Google also announced that YouTube Music will be free on Google Home smart speakers and Google Assistant devices in the U.S., Canada, Mexico and parts of Europe. Continue reading Amazon and Google Offering Ad-Supported Music Services

Apple Readies TV Service With CBS, Starz, Viacom Content

Apple is reportedly aiming for a March or April event to announce its new streaming TV service that is expected to include original content plus subscription services from CBS, Viacom and Starz among others. Apple has been hinting at such a service for quite a while, has spent about $2 billion on original programming, and has signed major players such as Oprah Winfrey. Apple’s service is expected to take on competitors Netflix and Amazon Prime Video by launching globally, possibly distributed via the App Store since it is already available in more than 100 countries. Continue reading Apple Readies TV Service With CBS, Starz, Viacom Content

Spotify Commits to Podcast Network With Major Acquisitions

Streaming music giant Spotify has signaled its commitment to building a leading podcast network with strategic acquisitions of podcast publishing platform Anchor and podcast content creator Gimlet Media. The purchases are part of the company’s plan to produce more original programming, grow Spotify’s audience, and eventually become the top global audio platform. Spotify founder and CEO Daniel Ek predicts that expanding podcast offerings will lead to a future in which non-music audio content will represent 20 percent of listening via Spotify. Continue reading Spotify Commits to Podcast Network With Major Acquisitions

India Is YouTube’s No. 1 Audience with 250M Monthly Viewers

According to App Annie, in 2018 India was the country with YouTube’s biggest audience. As 4G rates in that country are below $2 per month, Indians are now streaming mobile video at rates that are 10 times and billions of hours more per year than in the last three years. Research by global consulting firm Analysys Mason boils that down to 85 gigabytes of data, potentially more than 40 hours of video per month without using Wi-Fi, more than rates in the U.S., China or Japan. The mobile video usage is transforming Indian media. Continue reading India Is YouTube’s No. 1 Audience with 250M Monthly Viewers

German Court Rules That Amazon Dash Button Violates Law

A regional court in Munich recently ruled that Amazon’s click-to-purchase Dash buttons for Prime members violate German consumer protection legislation. Based on the contention that the thumb-sized, adhesive Dash buttons do not always provide the latest pricing information, the court ordered Amazon to halt taking purchase orders through the Wi-Fi-connected devices. The decision follows a case brought against Amazon by a German consumer protection watchdog group that says it took action after fielding complaints by consumers. Germany is Amazon’s second largest market. Continue reading German Court Rules That Amazon Dash Button Violates Law

Amazon to Expand Whole Foods Stores, Prime Now Delivery

Amazon plans to build more Whole Foods stores across the United States, indicate sources, with the goal of adding more customers within reach of the company’s two-hour delivery service. The move is a transformation for the grocery store, which had slowed its growth in the years before Amazon’s 2017 purchase for about $13.5 billion. Although Amazon wouldn’t comment on expansion plans, sources say that Whole Foods staffers are searching for potential retail space in Idaho, Utah and Wyoming, which currently don’t have Whole Foods stores. Continue reading Amazon to Expand Whole Foods Stores, Prime Now Delivery

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