Online Sales Tax Strong Revenue, Wayfair’s Growth and Losses and Unilever’s 50% Global Ecommerce Growth
Online Sales Tax Generates Strong Revenue
Online sales tax is generating higher revenue than expected, and states are looking at ways to generate even more. Last week, California signed into law an overhaul of the state’s online sales tax regulations. This bill has a number of facets, such as including a marketplace facilitator law and requiring marketplaces like ones operated by Amazon and eBay to collect and remit sales tax on behalf of the seller. This extends to online marketplaces that generate at least $500,000 in revenue in California over the past 12 months. Overall, it’s expected that by 2021 the bill will generate an additional $759 million in state and local taxes. California isn’t the only state that has seen a significant increase in revenue. Pennsylvania expected to generate about $200 million in online sales tax revenue through the end of its fiscal year.
What stood out to us? Taxation without representation.
Wayfair’s Q1 Grows 38.5%, Losses Jump 85.9%
Wayfair Inc. has been all over the news as it continues to grow its revenue at a fast pace. However, losses are growing just as fast. The online home furnishing store reported net revenue of $1.945 billion in Q1 2019, which was up $1.404 billion from 2018’s Q1. Net losses rose $200.4 million in comparison to $107.8 million for the year’s earlier quarter, an increase of 85.9%. The company’s second-annual Way Day sales event generated the biggest sales day in Wayfair’s history. Below are some more fast facts:
- Net revenue of $1.945 billion, up 38.5% from $1.404 billion in Q1 of 2018.
- Ecommerce customers reached 16.4 million as of March 31, 39.1% increase year over year.
- Net loss of $200.4 million, up 85.9% from $107.8 million for the year-earlier quarter.
- Average order value was $237 for Q1 of 2019, from $236 for Q1 of 2018.
What stood out to us? Tick tock, tick tock.
Unilever’s 50% Global Ecommerce Growth in 2018
Unilever, a global manufacturer of over 400 consumer brands such as Dove soap and Lipton tea, is continuing to invest in ecommerce. B2C, B2B and B2B2C web sales grew 47% in 2018 to approximately $2.80 billion from $1.90 billion in 2017. Overall, ecommerce accounted for approximately 4.9% of total revenue of $57.12 billion in 2018, compared to 3.3% total revenue of $60.12 billion in 2017. “Our ecommerce sales were up by 47%, ahead of global ecommerce market growth and putting us well on the road to building a scale ecommerce business,” says CEO Alan Jope. As the company grows, it is investing in relationships with marketplaces such as Amazon in the U.S. and Taobao in China.
What stood out to us? Ecommerce With Purpose.
In the headlines
- Instagram’s influencers: The social media company is allowing influencers to create shoppable posts.
- Google’s ad growth: Google’s ad revenue grew 15.3% in Q1.
- Car delivery: Amazon is now delivering packages to the trunks of Ford cars.
- Adidas hits a record: The company's shares hit a record as ecommerce boosts profit.
Before you go
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