The Global eCommerce Newsletter 07.18.16

 

Asos sales soar spurred by international growth and jump in customer numbers

The British online retailer has seen strong retail growth in the four months to June 30. UK sales grew 28%. International sales jumped 31%, driven by a 53%increase from the U.S. and a 32% increase from Europe. Overall, international sales account for 59% of the company’s total sales during the period. The company closed its standalone Chinese website in May.

Alibaba Group opening VR shop
Alibaba plans to open a virtual-reality (VR) demonstration shop this month. By wearing a VR helmet or glasses, shoppers can rotate products they see in the virtual store, ask for a model to show how the product works or is worn, and purchase the product. While the cost to convert a real product to a digital, three-dimensional version is high ($50), Alibaba hopes to lower the cost to $1.

Brexit: what does it mean for [British] online retailers?
The EU is Britain’s largest trading partner as the western European markets account for more than 50% of the country’s export of online business. The negative effects of Brexit has already been felt: depreciating pound and potential importing tariffs and taxes. On the other hand, a weakening pound has made British products more attractive to international buyers. UK-based online retailers will be able to sell more goods aboard but will face a potential increase in tariffs and VAT.

Amazon just had its biggest sales day ever
Amazon has its biggest sales day ever on the self-created holiday, Prime Day. Orders grow more than 50% in the U.S. The event may have added between $500 million and $600 million to the retailer’s topline. In an otherwise slow shopping month, the retailer’s event not only generates more revenue but also encourages more shoppers to sign up for a Prime membership. According to Consumer Intelligence Research Partners, a non-member spends about $500 on Amazon, whereas a Prime member spends roughly $1,200 a year. Prime members tend to be loyal. CIRP finds that 91% of members renew for a second year. It also finds that after a free 30-day trial 73% of the people are converted into paying members.

RELATED: Walmart takes on Amazon Prime Day with week-long free shipping deal
Walmart takes on Amazon Prime Day with a week of free shipping with no minimum purchase required.

Is eBay Losing Its U.S. E-Commerce Footing To Walmart?
eBay has been struggling to compete with Amazon in both visits and sales. The company’s Q1 result shows the its total marketplace revenue falls 2.3% YOY to $1.5 billion while Amazon grows 25% YOY to $26.6 billion. Domestic market only contributes 39% of eBay’s total marketplace revenue. Meanwhile, Walmart has grown its online business in the last year. comScore’s web traffic data indicates that eBay’s loss in visits has been partially Walmart’s gain.

 

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