As the coronavirus fuels a rise in online sales, Amazon plans to hire 100,000 more workers and raise pay for all employees in the U.S. and Canada by $2 an hour. The company’s starting wage is currently $15 per hour in its U.S. fulfillment centers. In the U.K., wages will rise £2 ($2.45) per hour and approximately €2 ($2.24) an hour in many European Union countries. At end of 2019, Amazon employed almost 800,000 full-time and part-time workers. Other companies are also seeing increased online sales as a result of COVID-19. Continue reading Online Shopping Spikes, Amazon Hires 100,000 New Workers

Amazon broke previous records with its Q4 sales, and shares skyrocketed 10 percent in after-hours trading, adding $100 billion to its market value. Profits rose 8 percent to $3.3 billion during the holiday quarter, after suffering a 25 percent decline in Q3 due to the expenses of one-day shipping for Prime members. Q4 revenue rose 21 percent to $87.4 billion from the same period a year earlier.  A FactSet survey showed that earnings per share were $6.47 whereas analysts had predicted $4.04. Continue reading Amazon Reports Booming Sales, Profits, and Share Prices

Deloitte chief of staff, technology, media & telecom industry Glen Dong introduced a discussion on the global economic landscape with a focus on China, which he dubbed “arguably the largest economy in the world.” He introduced Dr. Ira Kalish, Deloitte’s chief global economist, who put that into perspective with a 2020 economic outlook. “We’ve already seen a substantial deceleration of growth in the global economy,” he noted. “The Chinese economy has had some of its slowest growth in a decade.” Continue reading CES 2020: China’s Place in the Global Economic Landscape

Online sales boomed this Thanksgiving holiday weekend, with record-breaking $4.2 billion in purchases on Turkey Day, followed by $7.4 billion spent on Black Friday. Although this was a new high — up $1.2 billion from last year’s Black Friday — it didn’t meet Adobe Analytics’ prediction of $7.5 billion. Salesforce reported $7.2 billion in sales, even lower than Adobe’s numbers. Of those numbers, $2.9 billion in sales were conducted on smartphones that day. Top-selling electronics included Apple laptops, AirPods and Samsung TVs. Continue reading Black Friday Experiences New E-Commerce Sales Records

On November 11, Chinese e-commerce giant Alibaba brought in nearly $38.3 billion worth of goods in the 24-hour period known in that country as Singles Day. That surpasses last year’s Singles Day that bought in $30.8 billion. Both figures dwarf the numbers for Black Friday, the massive commercial day-after-Thanksgiving sale in the U.S. Alibaba invented Singles Day ten years ago and, since then, has become a tech giant along the line of Amazon or Alphabet. China also has become wealthier and more digitally connected. Continue reading Alibaba’s Singles Day Reaps $38.3B, Dwarfing Black Friday

Online toy shopping is getting increasingly creative, as digital reality tools rise in popularity among retailers and consumers. Walmart and Mattel are now leasing “floors” at the BuzzFeed-produced interactive video experience KidHQ, a virtual reality store that allows users to browse products via choose-your-own-adventure-style videos. Both companies are looking ahead to the holiday season as they try to sell toys ranging from Barbies to “Frozen 2” merchandise, and are using interactive video to connect with consumers to do so. 

Continue reading KidHQ: Walmart and Mattel Renting Space in Virtual Store

Amazon released its annual Holiday Toy Guide featuring more than 1,700 “curated” items. In order to be considered for a spot in the well-regarded guide, Amazon charges toy companies millions of dollars, according to documents reviewed by Bloomberg. Amazon sells “Holiday Toy List” sponsorships for up to $2 million, and “the more sponsors pay, the more products they can nominate to be on the list and the more prominently their own products will be featured on the popular website.” Amazon’s summer toy list charged lower rates.

Continue reading Amazon Curated Annual Holiday Toy Guide Comes at a Cost

It seems as though the holiday online shopping competition is already revving up. Walmart will soon release a new program to compete with the Amazon marketplace, which boasts 40 percent control of the U.S. e-commerce market. On Walmart’s own marketplace site, vendors pay a fee to list goods. Soon, the prices of some of these goods will temporarily lower, but the vendors will still be paid in full with Walmart subsidizing the difference, according to a description of the plan obtained and reported by Bloomberg. 

Continue reading Walmart Aims to Take On Amazon by Subsidizing Vendors

Amazon is stepping up its e-commerce domination with same-day shipping, even for products that cost less than $5, according to analysts at Edgewater Research. Rather than having to combine your “add-on” item to a larger purchase in order to reach a $25 minimum order to qualify for Amazon Prime shipping deals, the company is providing members with free same-day shipping, even if the only item is a $2 roll of dental floss. Amazon’s willingness to lose money on such a model illustrates its desire to compete with stores like CVS, Target and Walmart, where consumers often go for convenient purchases. Continue reading Amazon Offers Same-Day Shipping For Low-Cost Products

Amazon recently announced PayCode, a new pay-with-cash option for its online shoppers. The e-commerce giant’s service is the latest step in taking on low-price retail chains like Walmart. The move could help attract the 8+ million low-income households in the U.S. that do not presently have bank accounts, debit cards or credit cards. PayCode users can place an order on Amazon and then pay in cash within 24 hours at one of 15,000 Western Union locations. Amazon is also looking to expand its recently developed cashierless Go technology by bringing it to retailers such as movie theaters and airport shops. Continue reading Amazon Eyes Low-Income Shoppers with PayCode Service

Pinterest is now promoting itself as a “visual discovery engine,” where its 300 million global monthly active users can not only browse billions of images but also purchase the items they find there. For most of its users, Pinterest is a go-to place for home décor, gardening and personal style, allowing users to “pin” or post photos to create inspiration boards. According to Pinterest, its AI technology can accurately pinpoint 2.5+ billion objects in photos, millions of which can be purchased by clicking on the item. Continue reading Pinterest Becomes a Visual Discovery Engine for Shopping

Amazon’s search algorithm can make or break a product. Sources are now saying that the tech behemoth adjusted its system late in 2018 so that products that bring it bigger profits get the most visibility. That could include Amazon’s own brands over products that might be more relevant and popular. The tweak in the algorithm took place against the backdrop of ongoing tensions between the executives running Amazon’s retail businesses, who wanted the switch, and those at A9, the company’s search team, who did not. Continue reading Tension Over Algorithm Roils Amazon Retail, Search Teams

The Federal Trade Commission has begun its investigation of Amazon by trying to determine if small businesses do in fact have alternative marketplaces. Several attorneys and “at least one economist” have been conducting 90-minute interviews with some of Amazon’s third-party vendors, to see if they do earn revenue from eBay, Walmart or other shopping sites. According to former FTC staffer Michael Kades, the length of the interviews and number of staff dedicated to the task indicates the agency is doing a “serious job.” Continue reading FTC Begins Amazon Probe by Talking to Third-Party Vendors

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

European Union competition commissioner Margrethe Vestager has just opened an inquiry into whether Amazon unfairly uses data gleaned from third-party sellers. The investigation has no deadline and could go on for years. At issue is whether Amazon has an unfair advantage by selling its own goods on the site, in competition with its third-party sellers. Amazon stated it will “cooperate fully” with the investigation as well as “continue working hard to support businesses of all sizes and help them grow.” Continue reading The European Union to Investigate Amazon’s Data Practices