Tag: e-commerce

The acceleration of e-commerce as the global Covid-19 pandemic revolutionises buying trends is giving rise to exciting new developments in the financial technology industry.

According to research by the United Nations Conference on Trade and Development (UNCTAD), e-commerce’s share of global retail trade grew from 14% in 2019 to about 17% in 2020.

And the phenomenon shows no signs of slowing down.

“Businesses and consumers who were able to ‘go digital’ have helped mitigate the economic downturn caused by the pandemic,” says UNCTAD Acting Secretary-General Isabelle Durant

“But they have also sped up a digital transition that will have lasting impacts on our societies and daily lives … Developing countries should not only be consumers but also active players and thus producers of the digital economy.”

It is not surprising that ecommerce’s meteoric rise has birthed new financial products and technologies that are able to align with needs of merchants and consumers.

In March, the New York Times described startup fintech companies as “hot tickets” among investors, and with good reason. Any company A person with a beard

Description automatically generated with low confidence not investing in online banking and digital tools will be left behind as the economic landscape undergoes a complete overhaul.

The result is that some fintech companies have already begun to list on the New York Stock Exchange, and this is only the beginning.

Closer to home, FinTech magazine forecasts that the financial technology sector will be “critical to the recovery” of numerous countries in Africa in the wake of the pandemic.

Figures from early 2020 show that venture capital funding for African fintech startups had risen by 51%. It was reported that new fintechs raised almost $350-million (R4.9-billion) during the first quarter of 2020, with South Africa leading the way with $112m (R1.6bn) in investments.

Projects included virtual banking projects, consumer credit checks and finance apps.

Against this backdrop, it was a ‘no-brainer’ for South African internet auction and online marketplace bidorbuy to partner with local e-commerce payment solutions company Payflex.

Payflex allows shoppers to pay off their purchase over six weeks, interest free, which obviously is also to the benefit of merchants as it will attract more consumers to their platforms.

“Payflex allows buyers on the platform to get the benefit of getting the product they want right away, but the flexibility of paying that off over six weeks, is a huge advantage. There is no catch and there is no interest charged on the repayments,” says bidorbuy CEO Craig Lubbe.

While bidorbuy is yet to see which categories are most popular for payments with Payflex, Lubbe expects that it will enable shoppers to have access to products that would, in many instances, be slightly out of reach in terms of value.

The marketplace also recognises that there is an ongoing shift from more established methods of payment such as EFTs (electronic funds transfers), to credit card and other contactless payment options.

“We also expect to see further developments within the e-wallet payment space,” Lubbe says.

“Because payment options are evolving as the needs of consumers change, we truly believe that we should offer our shoppers as much choice as possible. Not only does this include the wide assortment of new and used goods for sale, but also that our shoppers can pay in the way that is most convenient to them. Not every option suits the needs of every customer and we’d like to be as accommodating as possible to all who transact on our platform.”

Payflex CEO Paul Behrmann believes the partnership with bidorbuy will be a “win-win” for buyers and sellers on the marketplace.

“Our innovative payment solution helps buyers on bidorbuy purchase what they want to today – and pay for it later at no additional cost. And for sellers on bidorbuy, it makes it easier to close a sale by making purchases more affordable to buyers,” he says.

“At Payflex our primary ambition is to introduce innovative debt-free payment solutions that make shopping more accessible and affordable to all. By adding bidorbuy as a Payflex store, we can now offer thousands of Payflex shoppers the opportunity to shop with Payflex at the best marketplace in South Africa. A big-win for Payflex shoppers – which is a big-win for us”.

As part of the launch campaign, Payflex and bidorbuy will be offering new bidorbuy Payflex customers a number of promotions when they use Payflex on bidorbuy.

The partnership is very much in keeping with the latest international trends

In the United Kingdom, buy now pay later (BNPL) is the fastest growing payment method, with a growth rate that is double that of bank transfers and more than triple that of digital wallets, according to finder.com.

Its research shows that 37% of British consumers have used a BNPL service, and more than half of (52%) of BNPL users are using these services more during the Covid-19 period.

Similar statistics are being reflected in the United States, where a recent study found that 42% of respondents had used a BNPL service before.

Takealot competitor launched

Source: MyBroadband

New ecommerce player Everyshop has launched, offering South Africans a wide range of technology products, computers, appliances, and other products from leading brands.

Everyshop is part of JD Group, which owns many high-profile retail chains, including Incredible Connection and HiFi Corp.

Through these stores, JD Group offers consumers technology products, computers, appliances, and gadgets.

It also provides household goods, including furniture, mattresses, and appliances through Rochester, Sleepmasters, Bradlows, and Russells.

JD Group has a national network of 16 distribution centres that perform home deliveries to customers using their own logistics fleet and courier partners.

The increased need for convenience through online shopping has encouraged the company to look at new ways to serve its customers, which culminated in the launch of Everyshop.

Everyshop features products from the group’s existing product ranges and many new product categories and leading brands.

It currently offers products in 10 main categories – entertainment, fashion, health & beauty, perfect home, work & study, projects & DIY, lifestyle & leisure, fitness, cellular, and kid’s world.

Everyshop featured numerous big tech brands like Sony, HP, Acer, Apple, Canon, Dell, Epson, Garmin, Hisense, Huawei, JBL, LG, Samsung, Pioneer, and Xbox.

Delivery is available throughout South Africa and will be made from Monday to Friday (excluding public holidays), subject to payment and order confirmation before 12:00.

Depending on origin and destination, a delay of up to 24 hours may be experienced on delivery to outlying areas.

Everyshop offers many payment options, including debit, credit, and cheque cards, Maestro and VISA Electron debit cards, Discovery Miles, Visa Checkout, MasterPass, Call Pay, PayU Wallet, and Everyshop gift cards.

The online shopping platform does not currently support collections. It is, however, planning to launch collection points in the near future.

Source: MyBroadband

JSE-listed Imperial announced that it has acquired Parcelninja on 1 February 2021 in one of the largest e-commerce deals in South Africa.

Parcelninja was founded in 2013 by Justin Drennan, Ryan Drennan and Terence Murphy and it launched its first commercial services in October 2014.

It offers South African online shops an affordable outsourcing solution for all their fulfilment needs.

They integrate with most existing e-commerce engines and offer smart product warehousing, picking and packing, courier optimisation, and real-time reporting.

Parcelninja is therefore a logical fit for Imperial and helps the company to achieve its ambition of strengthening its digital offerings.

“This acquisition supports Imperial’s strategic ambitions to accelerate our digital capabilities and expand our logistics and market access services into last-mile distribution, e-commerce fulfilment, footprint and scale in Africa, while ensuring local relevance for our clients and principals,” Imperial said.

South Africa is experiencing an unprecedented e-commerce boom, with transaction rates peaking at higher levels than Black Friday.

After many weeks of crippling retail restrictions which formed part of the national COVID-19 lockdown in March and April, unlimited ecommerce was allowed from 15 May.

The new regulations allowed all goods to be sold through ecommerce platforms, except for alcohol and tobacco products.

South Africans flocked to online shopping sites to buy products which were not allowed to be sold during the level 5 lockdown.

Many online shopping sites saw record sales on products like gaming consoles, laptops, vacuum cleaners, treadmills and home gym equipment, and media players.

A source close to Takealot told MyBroadband the company is now generating close to R1 billion in sales per month – around double their usual volumes.

Takealot did not confirm these numbers when it was asked for comment, but other ecommerce players also told MyBroadband their sales have more than doubled in recent weeks.

Online shopping volumes have increased so rapidly that many online retailers are struggling to cope with demand.

Takealot’s distribution centres, for example, have been overwhelmed because of the increased demand. This, in turn, has resulted in deliveries being delayed.

Many other online shops have increased their expected delivery times by over a week to address logistics bottlenecks.

Big jump in payment processing – PayGate
The companies which have the best overview of online sales volumes are online payment platforms like PayGate and PayFast.

PayGate chief sales officer Brendon Williamson told MyBroadband they have seen a marked increase in transactions since unlimited ecommerce was allowed.

“On Saturday 30 May our transactions per minute increased by double our pre-lockdown average with liquor, food, and gaming being the biggest drivers,” said Williamson.

He added that they were experiencing transaction peaks four-times higher than that of Black Friday 2019.

He said lifting the restrictions on ecommerce resulted in many people using online stores to buy products they could not purchase during level 5 of the lockdown.

“We knew this would be the case and so we had always planned to scale our systems to meet the high volumes of transactions,” said Williamson.

“The reality was we had to boost capacity by 700% just to meet consumer needs in level 3.”

While the current boom in ecommerce sales is expected to subside, sales will still be higher than usual.

“While we will see some correction during June, we expect our monthly volumes for the rest of the year to settle at around 40% higher than last year,” said Williamson.

“We believe the simplicity and efficiencies of digital commerce will keep consumers coming back for more.”

Continued growth since April – PayFast
PayFast founder and MD Jonathan Smit told MyBroadband they have seen unprecedented week-on-week increases in the number of online payments made since the start of the COVID-19 lockdown.

“Following an initial dip at the beginning of April, the weekly trendline in total sales volumes shows incremental growth,” said Smit.

PayFast saw steady week-on-week growth throughout April, which continued into the first two weeks of May in anticipation of ecommerce opening up.

“Working off an already high baseline in the middle of May, total payment volumes grew by 20% in the first week after ecommerce restrictions were lifted and by another 17% the week thereafter,” said Smit.

PayFast transactions peaked in the final week of May, with another 7% growth compared to the previous week.

“The first two weeks of June have seen slight dips, which is in keeping with monthly online shopping trends that generally spike towards the end of the month when most people get paid,” he said.

Smit added that they have registered over 7,000 new merchant accounts over the lockdown period, surpassing any other high-volume period of registrations, such as the lead-up to Black Friday.

Online stores suffer major delivery delays

Online retailers in South Africa are struggling to deal with the onslaught of orders during the country’s coronavirus lockdown.

  • Takealot is suffering delays of between two weeks and a month. One MyBroadband user sent the publication a screenshot of an order that had been placed on 26 May but was due to be delivered by 30 June. Consumers have also complained of an inability to get hold of customer service agents in order to schedule returns and get refunds
  • Yuppiechef customers have complained of slow delivery and of changing stock. One reader complained of her order being changed to “out of stock” three times
  • Makro consumers have been complaining of delayed deliveries, incorrect orders and a lack of access to anyone in customer care to deal with returns or refunds
  • Online grocery app Zulzi has also been plagued with complaints of incorrect deliveries, lack of customer service and outstanding refunds

By Vukani Mngxati, CEO for Accenture in Africa

COVID-19 is a global pandemic, evolving at unprecedented speed and scale. It is creating a universal imperative for governments and organisations to take immediate action to protect their people. Self-quarantine. Social distancing. Community spread. These formerly obscure terms are now everyday words. New habits and behaviours are forming that in many cases are not likely to go away after the crisis passes.

And while the impact to the economy is not fully known, both direct-to-consumer (D2C) and business-to-business (B2B) organisations are scrambling to meet the immediate needs of their marketplaces. In particular, those who have viewed digital commerce as a secondary channel now need to reorient every aspect of their business towards a digital commerce mindset. There exists an opportunity to double-down on digital commerce, augmenting existing offerings and creating new lines of service.

While this represents an opportunity to grow revenue, attract new customers and drive channel shift, it depends on digital channels and capabilities having appropriate scale and stability to handle the crush.
Reassure your customers and employees

There is unprecedented confusion on what, where and how to buy things, as customers are concerned about who to buy from, whether they are paying a fair price or even whether they will be able to find the essentials they need.

Unfortunately, some businesses who proved to be opportunistic and exploited customers by loading prices of critical items, contributed to this issue. This may have yielded profits in the short term, but in the long term, they will lose market share as customers are increasingly gravitating towards companies that are truthful, transparent and driven by a clear purpose.

These principles extend through customer channels and their engagement with retailers, as well as into B2B relationships and how companies work with their distributors, wholesalers, or manufacturing direct suppliers. This is amongst other confirmed by a study that was released in collaboration between the World Economic Forum (WEF) and Accenture in January 2020, which indicates that companies who execute stakeholder-eccentric leadership, display stronger financial performance.

If this was the case then already, this pandemic that currently affects the whole of mankind, has no doubt brought the need for human-centredness to the fore. Companies who can demonstrate these attributes will deliver a differentiated level of customer service and make themselves more relevant and connected to their customers – old and new – on an ongoing basis.

Stabilise your digital channels, platforms and infrastructure

With the closure of cafés, restaurants, bars and hotels and the grounding of airlines, much of this demand will need to be met by the grocery sector, online. That’s the new reality as mass quarantines and unpredictable retail stock availability cause online commerce to skyrocket. While this represents an opportunity to grow revenue, attract new customers and drive channel shift, it depends on digital channels and capabilities having appropriate scale and stability to handle the crush. Businesses must flex quickly to capture the opportunity, and systems must be prepared to withstand the increased loads.

Reconfigure and extend your offering for seamless online delivery

With the closure of retail establishments, and the disruption of supply chains, the rules for merchandise and inventory have fundamentally shifted. Historical data on what sells online vs. offline is out the window. Companies now have a lot of inventory that they are sitting on in retail outlets that they need to figure out how to get online.

Businesses that have historically invested in digital commerce sales tools will likely have an easier time adjusting to this new, digital first economy, while those that have only made moderate strides will be more greatly disrupted. For example, traditional auto auction houses are shutting down, while on-line auctions are fast becoming the norm – even in a reduced volume business, those that are digital-prepared are seeing increases. As businesses are realising the value of e-commercialising, this will in all likelihood also lead to a decline in the need for brick and mortar operations.

Power up your value proposition through power networks

All evidence points to the fact that the economy will continue to decline and that there will remain a requirement for social distancing for time to come. For this reason, customers will keep on abandoning brands they’ve been loyal to and migrate to companies who can deliver what they need in the fastest, easiest and most cost-effective manner. Better yet, if they can get it all from one single, service provider. This will require businesses to move beyond just creating ecosystems, to establishing power networks through symbiotic partnerships and collaborations to collectively expand their value proposition all together. At the same time, it is an enabler to establish lean and mean operations in an uncertain economic climate, whilst accelerating growth exponentially.

Leverage new behaviours for new growth

Naturally, the national lockdown forced business and society to start doing things differently. Gyms are helping their customers to stay fit through online fitness programmes. The healthcare industry is using virtual assistants and hotlines to respond appropriately to the COVID-19 crisis. Restaurants are providing online cooking classes. Consulting businesses and academies are providing information and counsel through webinars, online learning tools and systems. Businesses are enabling their staff to work remotely and are using online platforms such as Microsoft Teams to conduct meetings. Parents are using online mechanisms to educate their children, and tertiary students are tapping into online learning.

All these new behaviours can be leveraged for new business growth. For example, as South Africa has just moved to level 3 of the national response to the COVID-19 pandemic, only a portion of our children are able to return to school, and only some tertiary students are able to return to their educational institutions. This necessitates an extreme acceleration of the virtualisation and digitalisation of education, supplemented by substantially increased access to the internet, especially for those learners in disadvantaged and rural areas.

Unlock the potential of emerging trends

There is a myriad of trends that are emerging in this COVID-19 world, that present businesses with new potential avenues for growth. Health and safety are for example currently the first and foremost priority for both business and society and will in all likelihood not just remain a trend but become part of the new normal. Whilst discretionary spend is generally bound to decrease significantly, people on the higher end of the market who have been robbed of the pleasure of traveling for leisure, may be more likely to spend money on luxury items such as jewellery, to spoil themselves. In addition, every single person now requires enhanced access to the internet, more efficient technology and mobile devices to live, work and play from anywhere, at any time. This is a time to conceptualise novel solutions for at-home activity, at-home education, at-home entertainment and at-home workspaces.

Reassess relevance and reframe your strategy

Some of our industries that have been hit the hardest by the COVID-19 pandemic are the tourism, entertainment and beauty sectors. Businesses in these sectors have no choice but to reassess their relevance and adjust their strategies accordingly. While people are no longer able to go out and explore the whole wide world, the tourism sector will have to innovate ways to bring the whole wide world to them, by i.e. creating virtual tours or expanding their offering to include entertainment such as gaming. Entertainers can leverage online platforms to create worldwide events and distribute their material digitally. Hairdressers and beauty salons can provide ‘how to’ channels on a subscription basis and develop e-commerce channels for their customers to get the necessary products quickly and effortlessly.

Unlock the value of data to engage consumers optimally

As the landscape we find ourselves in is changing faster than ever before, the wants and needs of customers are also evolving at an unparalleled speed. The businesses who will be able to successfully deliver on these wants and needs, are the ones who are ever attuned to exactly who their customers are, what their preferences are, and what they may also need in future, before they even know it themselves. To this end, it is critical to acquire the most suitable technology to intelligently collect and interpret client data. However, in this ultra-competitive online race, it is no longer sufficient to simply deliver what customers want and need, it is also important how you deliver it. The businesses who will grab and retain their target audiences’ attention, will be the ones that leverage high technology to create immersive virtual spaces and continuously deliver the most engaging digital experiences.

Embrace e-commerce as a necessity, not just a priority

In conclusion, in this brave new COVID-19 world, digital commerce is no longer a priority, it is a necessity for the very survival of business. But whilst establishing their e-commerce facilities, business should never lose sight of what is first and foremost for their customers: Trust, relevance, convenience and economy.

According to IPG Mediabrands’ specialist digital agency Reprise, South Africa’s e-commerce industry, while still in its infancy, is showing strong growth thanks to high mobile penetration, secure payment options and changing spending habits.

Natasha Courtney, social media manager at Reprise South Africa says: “Currently only a quarter of South African retailers are spending through digital channels but with more of the population shifting their behaviour and budgets to online shopping, more retailers are making their products and services available online all the time.”

Women especially prefer interactive and easy-to-use options that allow them to share their shopping experiences with other users, and to get feedback and user ratings about the products or services they’re interested in purchasing. “Out of the 39% of women who are actively shopping online in South Africa, there was one predominant reason they enjoyed shopping this way – convenience,” says Courtney.

Digital shopping platform ThinkOver says that 89% of women will wait for an item to go on sale before purchasing. More than half of respondents (55%) said they continuously check a retailer’s website for sales while 58% monitor their inboxes for sale alerts. What’s more, 75% of women said they get upset when an item they wanted to buy went on sale and they weren’t aware of it.

When it comes to preferred payment terms, 54% of South African shoppers like to pay cash on delivery. When asked about debit card payments, 52% of consumers preferred this method – quite an even split. “Loyalty programmes are a big part of a woman’s shopping experience with the study finding that 80% percent of women belong to store loyalty programmes,” she says. “And we’re spending a lot of time online – the majority of female shoppers spend an average of an hour a day looking for great deals before we buy.”

For South African female consumers, the three most popular categories of online purchases are clothing, entertainment and education, and tickets for events. Over 75% of women stated that they go online and choose what they want to purchase before they go out, suggesting that most purchases are pre-meditated and not a spur of the moment decision.

“Pick n Pay’s integrated annual report for 2018 showed a 70% increase in its customers visiting their website from a mobile device since they launched their online grocery shop,” says Courtney. “But there are some down sides too – when purchasing clothing online, some women say that the clothing sizes are incorrect on delivery and the return policies and overall service turnaround times are the areas that need attention from retailers.

Poor user experience on websites is another deterrent to online shopping.

Mobile technology is transforming e-commerce in Africa, and consumers are actually more likely to have a mobile device than a bank account,” she says. “South Africans are also becoming more comfortable with mobile shopping due to, for example, easy-to-use apps for ordering car rides or food becoming more commonplace.”

This research shows that the online shopping industry is growing and is set to grow even more in the coming years. It is also clear that consumers will choose online payment partners they can trust, and that provide peace of mind that the security of their financial information will be a priority.

“For now, traditional shopping habits still dominate in South Africa but with almost half the population set to make an online purchase in the next year, it is clear that the ecommerce market has huge potential and will continue to grow year on year. It’s hugely exciting for retailers and consumers alike!”

By Jordan Valinsky, CNN Business

Amazon said this year’s Prime Day was “once again the largest shopping event” in its history.The company said sales from its two-day shopping event surpassed its sales for last year’s Black Friday and Cyber Monday combined.

Amazon didn’t reveal specific figures, like revenue. It also doesn’t typically disclose numbers for specific shopping days, with the only glimpse of sales being in its quarterly earnings.

A record number of Prime members in the United States shopped during the extravaganza, according to Amazon. In total, Prime members globally bought more than 175 million items.

Prime Day was also successful for Amazon’s line of deeply discounted gadgets. It was the “biggest event ever” for the electronics, which encompass the Fire TV Stick, Echo smart speakers and Fire tablets, among others.

“Members purchased millions of Alexa-enabled devices, received tens of millions of dollars in savings by shopping from Whole Foods Market and bought more than $2 billion of products from independent small and medium-sized businesses,” CEO Jeff Bezos said in a release. “Huge thank you to Amazonians everywhere who made this day possible for customers.”

In the United States, Instant Pots and DNA kits were the top-selling items. Prime members in the United States also bought more than 100,000 laptops, 200,000 TVs and more than 1 million toys.

Prime Day also had a halo effect on Amazon’s competitors. Large retailers, or companies that generate more than $1 billion in revenue, had sales jump 68% over the two-day period, according to Adobe Analytics. Smaller retailers’ sales also spiked 28% for the same period, a reversal compared to last year when sales declined.

“This suggests that people are comparison shopping more than ever and will open their wallets to those who offer the best deals, regardless of the size of the retailer,” said Jason Woosley, vice president of commerce product and platform at Adobe in a release.

Online shopping has become increasingly popular amongst South African consumers. Convenience, competitive pricing, and a wide choice of products make online purchasing a no-brainer for tech-savvy shoppers, but retailers need to stay ahead of the curve when it comes to standing out against the competition.

Over the past year, a couple of popular South African retailers’ pricing has come under scrutiny where products were advertised as discounted from inflated list prices to give customers the perception of a bigger saving. In both cases, the advertising was ruled to be misleading. While unscrupulous practices like this may get consumers all riled up, the benefit of these kinds of cases being brought to the fore is that consumers have become more discerning when it comes to finding a bargain online.

Comparison tools and aggregator sites take the hard work out of shopping around and comparing prices. According to PriceCheck Founder, Kevin Tucker, comparison tools are just as important to retailers as they are to consumers. “Retailers are able to monitor price changes, price drops, promotions from competitors to allow them to stay relevant.” With more than two million visits each month, PriceCheck is South Africa’s number one product discovery and comparison platform.

Online purchasing behaviour indicates that consumers tend to go for trust over price point, particularly in the case of lesser known and international retailers. Consumers would rather pay a little bit extra at a reputable retailer than find a great bargain only to have to wait longer for delivery time, experience delays, or deal with poor customer service and a sketchy returns policy.

For this reason, comparison tools have become an invaluable tool for discerning shoppers, helping customers make informed decisions about their online purchases. Consumers love a good bargain, especially in tough economic times, and daily deals, sales and discounts create a sense of urgency and encourage impulse purchase behaviour. By listing retailers that offer a benefit to consumers, especially those that don’t have the financial backing of the big players in the e-commerce space, comparison tools add value to consumers while at the same time sending the listed retailers good quality traffic and qualified leads.

While building trust with consumers goes beyond fair and competitive product pricing, retailers need to consider the customer journey from start to finish. Tucker advises retailers to invest in online support through live chats or chatbots. “Real-time support can go a long way with consumers.”

He believes that providing as much information for the consumer to review is essential for retailers to maintain their credibility. “Delivery and returns policies, shop reviews, and payment methods all need to be clearly indicated to manage expectations and ensure that consumers are able to make the best buying decision possible.” he says.

Death by Amazon

By Rebecca Ungarino for Market Insider

A new “Death by Amazon” index released by the investment-research firm CFRA tracks the stocks its analysts believe could be short-seller targets given their vulnerabilities to competition from Amazon.

The index is full of home goods and electronics retailers like Party City and Bed Bath & Beyond, some of which have seen their entire market value wiped out in recent years.

Investors are familiar with the Amazon effect by now.

The e-commerce juggernaut announces that it is preparing to enter into an industry – be it medication, brick-and-mortar grocery, entertainment, or others – and the stocks of companies in the new target market fall as jittery investors are struck with the fear that irreversible disruption is coming.

So the investment-research firm CFRA created a new index, “Death By Amazon,” that tracks the stocks its analysts think are particularly vulnerable to Amazon’s expansion and offerings.

“The equally weighted index serves as a retail performance benchmark and short-selling idea generation tool for our clients,” CFRA analysts Camilla Yanushevsky and Todd Rosenbluth wrote in a report to clients earlier this month.

To pinpoint the 20 constituents the analysts believe are poorly positioned to compete against Amazon’s efforts in various industries, they evaluated the companies’ “Share of Voice” data that comes from web-traffic analytics company Alexa Internet (which is owned by Amazon as its other Alexa-named product).

That measure shows the percentage of searches for a keyword across major search engines in the past six months “that sent organic traffic to the respective site.”

For example, the analysts compared how much traffic was going to a national jewelry retailer’s website when consumers search for the term “jewelry” versus how much traffic was going to Amazon for the same search term.
With this kind of analysis, you get an index full of brick-and-mortar retailers whose products are available on Amazon – and apparently less popular through online searches – from floor tiles to party supplies.

To be fair, it’s not the first Death by Amazon index. Bespoke Investment Group had already created its Death by Amazon index, tracking the same theme.

Here are all the stocks listed, in alphabetical order, with how their “Share of Voice” scores for various products stack up against Amazon:

  1. At Home Group
    1-year performance: -40%
    % below all-time high: -46%
    Share of Voice score for “seasonal decor”: 4.2%
    Amazon’s Share of Voice score for “seasonal decor: 19.6%
  2. Barnes & Noble Education
    1-year performance: -38%
    % below all-time high: -74%
    Share of Voice score for “textbook”: 1.3%
    Amazon’s Share of Voice score for “textbook”: 6.9%
  3. Barnes & Noble
    1-year performance: -0.1%
    % below all-time high: -84%
    Share of Voice score for “books”: 23.2%
    Amazon’s Share of Voice score for “books”: 12.2%
  4. Bed Bath & Beyond
    1-year performance: -16%
    % below all-time high: -80%
    Share of Voice score for “cookware”: 2.4%
    Amazon’s Share of Voice score for “cookware”: 23.3%
  5. Best Buy
    1-year performance: -14%
    % below all-time high: -19%
    Share of Voice score for “electronics”: 1%
    Amazon’s Share of Voice score for “electronics”: 8.1%
  6. Big 5 Sporting Goods
    1-year performance: -71%
    % below all-time high: -88%
    Share of Voice score for “fitness equipment”: 0%
    Amazon’s Share of Voice score for “fitness equipment”: 11%
  7. Big Lots
    1-year performance: -6.5%
    % below all-time high: -41%
    Share of Voice score for “cookware”: 0%
    Amazon’s Share of Voice score for “cookware”: 23.3%
  8. Dick’s Sporting Goods
    1-year performance: +15%
    % below all-time high: -43%
    Share of Voice score for “sports deals”: 18.7%
    Amazon’s Share of Voice score for “sports deals”: 24.5%
  9. GameStop
    1-year performance: -31%
    % below all-time high: -87%
    Share of Voice score for “video games”: 7%
    Amazon’s Share of Voice score for “video games”: 17.1%
  10. Kirkland’s
    1-year performance: -49%
    % below all-time high: -81%
    Share of Voice score for “home decor”: 5.4%
    Amazon’s Share of Voice score for “home decor”: 10.8%
  11. Office Depot
    1-year performance: -19%
    % below all-time high: -95%
    Share of Voice score for “office supplies”: 33.1%
    Amazon’s Share of Voice score for “office supplies”: 9.8%
  12. Overstock.com
    1-year performance: -67%
    % below all-time high: -86%
    Share of Voice score for “dresser”: 1.3%
    Amazon’s Share of Voice score for “dresser”: 9.9%
  13. Party City
    1-year performance: -49%
    % below all-time high: -65%
    Share of Voice score for “party supplies”: 22.5%
    Amazon’s Share of Voice score for “party supplies”: 13.2%
  14. PetMed Express
    1-year performance: -40%
    % below all-time high: -60%
    Share of Voice score for “pet supplies”: 5.1%
    Amazon’s Share of Voice score for “pet supplies”: 13.7%
  15. Pier 1 Imports
    1-year performance: -65%
    % below all-time high: -97%
    Share of Voice score for “home decor”: 8.3%
    Amazon’s Share of Voice score for “home decor”: 10.8%
  16. Signet Jewelers
    1-year performance: -49%
    % below all-time high: -87%
    Share of Voice score for “jewelry”: 3.8% for kay.com, 2.9% for jared.com, and 0.12% for zales.com
    Amazon’s Share of Voice score for “jewelry”: 10.7%
  17. The Michael’s Companies
    1-year performance: -43%
    % below all-time high: -67%
    Share of Voice score for “drawing supplies”: 13.1%
    Amazon’s Share of Voice score for “drawing supplies”: 24.5%
  18. Tiffany & Co.
    1-year performance: -5%
    % below all-time high: -31%
    Share of Voice score for “jewelry”: 6%
    Amazon’s Share of Voice score for “jewelry”: 10.7%
  19. Tile Shop Holdings
    1-year performance: -36%
    % below all-time high: -85%
    Share of Voice score for “tile”: 2.1%
    Amazon’s Share of Voice score for “tile”: 22%
  20. Williams Sonoma
    1-year performance: +7%
    % below all-time high: -42%
    Share of Voice score for “cookware”: 16.7%
    Amazon’s Share of Voice score for “cookware”: 23.3%

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My Office News Ⓒ 2017 - Designed by A Collective


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