Marketplace Talk - May 2024

🎉 ChannelEngine acquires Retail Data Partners to enhance Amazon capabilities

ChannelEngine has acquired Retail Data Partners, enhancing its Amazon Vendor solutions and first-party (1P) selling capabilities. This strategic move allows ChannelEngine to offer a hybrid selling model, combining the streamlined sales of 1P with the flexibility and higher margins of third-party (3P) selling.

"Amidst rapidly evolving markets, solutions that enable hybrid online selling are essential to maximize our customers’ ecommerce revenue potential. That's why at ChannelEngine, we're dedicated to innovating and expanding our solution set. We aim to create an all-in-one platform that empowers multiple models of online selling, and enhances operational effectiveness in one seamless experience.”

Jorrit Steinz,
Founder & CEO at ChannelEngine

By integrating Retail Data Partners' tools, ChannelEngine provides advanced features like Dispute Recovery, deeper insights, and process automation, marking a significant step in optimizing online sales and maximizing ecommerce revenue potential for its users.

🆕 TikTok Shop to launch in continental Europe this summer

TikTok is expanding its ecommerce platform, TikTok Shop, into continental Europe this summer, with beta tests in Spain and Ireland. Following earlier launches in Asia, the UK, and the US, TikTok Shop aims to enhance its ecommerce market presence.

With over 15 million sellers globally and a GMV of around $20 billion last year, TikTok Shop plans to double this figure in 2024, leveraging its massive user base to drive sales directly on the platform.

Take a look at this infographic on how Live is supercharging the growth of social commerce.

🇮🇪 Amazon to launch Amazon.ie in Ireland in 2025

Amazon has announced the launch of a dedicated online store in Ireland, Amazon.ie, set to open in 2025. The store will offer a localized shopping experience with over 100 million products, including more from Irish businesses, at competitive prices without customs charges. This initiative follows the opening of Amazon's first fulfillment center in Dublin, improving delivery speeds and creating jobs.

John Boumphrey, Amazon’s Ireland & UK Country Manager, emphasized that Amazon.ie will enhance the retail experience for Irish customers and provide new opportunities for small and medium-sized Irish businesses to reach a broader audience.

📈 Zalando sees Q1 growth and rising profitability with enhanced offerings

Zalando reported a 1.3% increase in gross merchandise volume (GMV) to €3.3 billion for Q1 2024, with adjusted EBIT rising to €28.3 million. Enhanced assortment quality, expanded lifestyle offerings, and improved customer experience drive the company’s growth.

Zalando's strategy focuses on both B2C and B2B growth, with notable success in Beauty, Sports, and Kids & Family. In addition, the B2B revenue increased by 13%, driven by more partners joining its multi-channel fulfillment services, confirming a positive outlook for the year.

“Zalando is a challenging marketplace to start selling on, but its position as Europe’s number one fashion marketplace makes it an incredible opportunity with great chances of success.”

Mitchel Droge, Global Manager Channel Partnerships

Considering selling on Zalando? Prepare your brand for selling on Zalando with this guide.

🤝 Avalara expands partnership with Shopify for global tax compliance

Avalara has expanded its partnership with Shopify by joining the Shopify Tax Platform, allowing merchants of all sizes to manage and automate global tax compliance seamlessly.

This collaboration extends Avalara's services to all Shopify customers, enhancing compliance support across various tax requirements. Avalara’s robust solutions, including nexus tracking and tax return filing preparation, ensure that compliance does not hinder merchant growth, enabling businesses to scale confidently.

Read more about our partner Avalara here.

⚙️ Google unveils new AI tools to enhance retail marketing

At Google Marketing Live, Google introduced new AI tools to help retailers enhance their brand and product marketing. New visual brand profiles on Search provide richer information about brands, while expanded Product Studio features allow merchants to generate on-brand content and videos from still images.

Additionally, new generative AI-powered ad formats, including short-form product videos and Virtual Try-On for apparel ads, aim to make ads more interactive and engaging, driving more effective retail marketing strategies.

📱 Amazon unveils new shoppable ad formats

Amazon introduced three new interactive ad formats for streaming TV: shoppable carousel ads, interactive pause ads, and interactive trivia ads. These formats aim to boost product page views and conversion rates, enhancing the shopping experience on Amazon's streaming channel.

Following the addition of ads on Prime Video in early 2024, these innovations help brands engage more effectively with customers, leveraging Amazon's extensive customer data to drive seamless shopping experiences.

🏬 Wayfair opens its first large-format store

Wayfair is opening its first large-format store near Chicago, providing a tactile shopping experience for home goods. The 150,000-square-foot store offers a diverse range of products, from furniture to kitchen cabinetry, and features an on-site restaurant.

This move reflects the broader trend of online-only brands establishing a physical presence to complement their digital operations, enhancing customer engagement and sales. Wayfair plans to open additional large-format stores in the future, aiming to create a nationwide footprint.

💰 European Cross-Border ecommerce surges to €237 Billion

The European cross-border ecommerce market reached €237 billion in 2023, a 32% increase from the previous year. German online stores led the market with €43 billion, while France and Spain saw significant increases. However, the UK experienced a slight decline.

Despite these gains, the GMV of the top 500 European online stores fell by 18% due to economic instability and competition from US and Chinese brands. Ikea topped the list with €5.2 billion in cross-border sales.

Want to conquer new markets? Watch this on-demand webinar for a roadmap for cross-border selling.

🇿🇦 Amazon launches marketplace in South Africa

Amazon has launched its online shopping service in South Africa, offering same-day and next-day delivery with over 3,000 pickup points and free delivery for first orders and those over 500 rand ($27.07). This new platform, Amazon.co.za, allows shoppers to browse a wide selection of local and international brands across 20 product categories.

“As South Africa experiences a surge in online shopping, Amazon aims to build strong relationships with local businesses to reach millions of customers, enhancing its regional presence. We’re proud at ChnanelEngine to have an integration with all Amazon marketplaces around the globe, including Amazon South Africa.”

Mitchel Droge, Global Manager Channel Partnerships

🇿🇦 Saudi Arabia's ecommerce market to surpass $44 billion by 2030

Saudi Arabia's ecommerce market, which earned over $10 billion in 2023, is set to grow rapidly, reaching $30 billion by 2027 and $44 billion by 2030. This growth is driven by the Vision 2030 strategy, aiming to boost the digital economy and expand non-oil sectors.

Significant investments and regulatory reforms, including streamlined licensing and enhanced customer service requirements, are creating a secure and efficient ecommerce environment, supporting the growth of small and medium-sized enterprises.