Jetting to the Big Apple ✈️
This week’s Dose highlights: the Trade War, the big MC: mcommerce, and Jet.com's Big Apple strategy.
The Trade War's impact on ecommerce
Even with the Trump administration reportedly open to trade talks with China, the administration is still planning to impose an additional $200B in tariffs. Retailers and manufacturers have already started to feel the affect of the tariffs imposed in May, July, and August, which begs the question how ecommerce companies and marketplaces might fair.
What stood out to us? This quick impact breakdown: Ebay and Amazon rely heavily on small merchant sales—Amazon's marketplace contributes to 68% of total sales, Apple has the pockets to take some losses, furniture companies like Wayfair will probably get hit hard, and low markup stores like Walmart might have to raise prices.
What we heard? "Eh, what's a cool $10M to us?" - QVC CEO
Mobile drives 60% of ecommerce traffic
According to Salesforce, 60% of all ecommerce traffic occurs on mobile devices and 71% of consumers use mobile devices to make purchases. Although 46% still prefer to shop at a physical store, customers' time on mobile is expected to exceed TV time—creating a shift in ad spending dollars. By 2020, mobile ad spending in Canada alone is predicted to reach $7.1B.
What stood out to us? Mobile Commerce has been on the rise for a long time now—this year alone, 55M U.S. customers will make a mobile purchase. Yet, many marketers are only now jumping on the mobile app and wallet bandwagon. Shoutout to Starbucks for establishing its loyalty program early-on and grocers who capitalize on the one in five adults who order groceries online.
Jet.com rebrands & repositions site
Yesterday, Jet.Com unveiled a newly rebranded site focused on targeting city-dwelling Millennial consumers. Along with a refreshed look, the Walmart-owned ecommerce platform launched a new three-hour grocery delivery service to the New York City market. Walmart's delivery service startup, Parcel, will provide service for this same-day and next-day delivery demand. Additionally, Jet's partnership with Nike will come into play—the marketplace will feature a curated collection of Nike and Converse products.
What stood out to us? Jet.com's repositioning launches as reports show that over the past year, site traffic has been less than 1% of Amazon's and less than 5% of Walmart's. Will a curated local selection of products, heavy investments in advertising, and a revamped electronic selection successfully target a market that tends to avoid Walmart?
What we heard? Siri, add lime La Croix to my shopping list.
In the Headlines
- 24/6: FedEX will expand U.S. ground operations to six days per week to account for the growing ecommerce demand.
- B2Billion: Amazon Business exceeds $10B in annual sales.
- EKG-unit: Apple unveils new FDA-approved Series 4 Watch with built-in EKG monitor.
- Hot on Walmart's heels: Amazon increases Whole Foods grocery delivery service to 38 markets.
Because we can
Read this if 📖
the true cost of free two-day shipping is on your mind.
Listen to this if 🔊
HBO's series finale of Newsroom gave you all the feels.
Bull Moose is experiencing a Bull Market by leveraging CX.
This is for you
Each week we spend time creating this newsletter for you. Help us deliver more content YOU enjoy by letting us know what you want see more of—or better yet, tell us what you never want to see again.
P.S. if you're not getting The Dose delivered straight to your inbox already, you're wasting valuable time typing in this site's URL every Saturday. Subscribe using that lovely form on the right.
See you next weekend! ✋
Media is sourced from: giphy