The 80/20 of eCommerce - Nov 3rd, 2023
Gary Huang
Founder and Host of the 7 Figure Seller Summit, Founder of 80/20 Sourcing, E-Commerce Entrepreneur
We are already in November and the end of 2023 is only 2 months away.? Now’s a good time to check how you are doing with your goals for this year.??
It’s like running a marathon and sometimes towards the end your legs may cramp up.??
Recently a friend ran the Tokyo marathon and he towards the final miles his legs starting cramping up.? He mentally told his legs, not this time and he willed himself and his legs to keep going to cross the finish line before he collapsed on the ground.?
How is your business doing and what do you need to do to end 2023 on a high note??
Meanwhile In this week’s 80/20 of Ecommerce
US holiday spending to climb 3%-4% over 2022, NRF predicts
Holiday shopping in the U.S. is expected to be busier this year, with the National Retail Federation (NRF) predicting sales could grow by 3% to 4%. We might see people spend as much as $966.6 billion! This is kind of like how things were before the pandemic when people spent more because they had extra help from the government.
The boss of the NRF, Matthew Shay, thinks this is a good sign and says that people have enough money saved up to spend on holiday gifts. Also, online shopping is really catching on, and compared with last year it's expected to increase by 7% to 9% to a total of between $273.7 billion and $278.8 billion.
“It is not surprising to see holiday sales growth returning to pre-pandemic levels,” NRF President and CEO Matthew Shay said. “Overall household finances remain in good shape and will continue to support the consumer’s ability to spend.”
Takeaway: Get ready for a strong Q4!
In September 2023, the Adobe Digital Price Index (DPI) reported a 4.6% decrease in online prices compared to the previous year, marking the thirteenth consecutive month of year-over-year deflation and a 41-month record low. This index, which tracks over 100 million SKUs across 18 product categories from one trillion visits to retail sites, indicated that prices fell in 12 of the 18 categories. Notably, significant drops were observed in key discretionary categories such as appliances, electronics, and computers, with year-over-year decreases of 7.6%, 11.9%, and 12.2% respectively.
The month-over-month data also showed a general price decline of 0.6%, although the computer category did see a slight increase of 0.4%. The persistent downward trend in online prices suggests a shift in the e-commerce landscape that could be tied to broader economic factors influencing consumer spending and retailer pricing strategies.
The full category price table follows below.
Takeaway:?
E-commerce entrepreneurs should be aware of the declining online prices, especially in discretionary categories, indicating a competitive and price-sensitive market. It's crucial to reassess pricing strategies and value propositions to maintain profitability amidst these shifts. Understanding these trends is essential for strategic planning, especially with the upcoming holiday season.
Source: Amazon
Amazon has decided to shut down its two clothing stores, Amazon Style, to put more effort into selling clothes online. Before this, Amazon had also closed its bookstores and some other shops that didn't sell food. Amazon says that having stores is still important, but right now, they want to make their grocery stores like Amazon Fresh and Whole Foods Market even better. The Amazon Style stores tried to use cool technology to suggest clothes that shoppers might like, but people found the stores a bit confusing and not that great for shopping for clothes.
Critics said that the stores didn't really have a special something to make customers want to come back, even though they looked nice inside and sold popular brands. Since there were only two Amazon Style stores, closing them isn't a huge deal for Amazon, but it does show that Amazon is taking a step back from stores that don't sell food. On the other hand, Amazon is doing really well selling clothes online without the need for physical stores.
Takeaway:?
For those who sell online, what Amazon is giving us a big hint. It shows that it's super important to have a good website and online store where people can buy your stuff. Amazon's move tells us that we should focus on what we're good at and make sure our online business is strong. We need to make sure that the things we sell are exactly what online shoppers are looking for and that they understand why our products are cool. Amazon is sticking to what it does best online, and we should think about doing the same thing to make our products really stand out on the internet.
领英推荐
Amazon has unveiled a new AI-powered image generation tool at the #unboxed2023 event according to Jeffrey Cohen . This tool is designed to help brands and partners create images easily, without needing a lot of money or technical skills. It works by taking a product image and using natural language instructions to create different scenes, like lifestyle pictures or seasonal settings. This is important because ads that have images showing the product being used in real life can get 40% more clicks than ads with just the product.
The tool is still in beta, which means Amazon is testing it out, but it promises to make it much cheaper and easier for brands to create ads that look good and perform well. Amazon is thinking big with AI, adding this tool to others they've shared before, aiming to give brands powerful ways to make a lot of ads quickly and without a fuss.
Takeaway: For online sellers, this new tool from Amazon could be a game changer. It shows how important it is to have ads that stand out with cool images that show what it's like to use your product. Sellers should keep an eye on this tech because it could save them time and money on making ads. Right now, this tool is just for some people to try in the US, but if you're interested, you can talk to your Amazon contact to learn more about getting into the beta test.
Checkout how it works on Youtube: https://www.youtube.com/watch?v=89OubJGcUx0&feature=youtu.be
[REPLAY] Japan Import law changes: What Amazon sellers need to know going into 2024
Business, as we know, is always evolving. And right now, if you’ve got your sights set on selling in Amazon Japan, there are some vital changes you need to be aware of.
?? Since Oct 1, 2023, the rules on how foreign companies can send their products to Japan have changed.
?? If you’re still using the old methods, you might end up not following the new Japanese customs laws.
?? Here’s what you will learn:
?? Latest on Japan Import Rules: What’s new and what you must know.
?? Import Models for Japan: The different ways to send your products, with the good and bad of each.
?? Save on Taxes: Tips to ensure you’re not overpaying.
?? Best Import Strategies: Tailored advice for your business setup.
?? Meet our Expert Speaker:
We’re thrilled to have Toshitaka Inoue from Yunige Corporation? . With a decade of experience in Japan’s import and export scene, he’s the go-to person for advice on expanding e-commerce businesses into the Japanese market.
Joining us on the panel:
Toshitaka Inoue, Japan import expert from Yunige
Gary Huang, Founder of 7-Figure Seller Japan Mastermind, and your host?
Watch here: https://youtu.be/WSqp6cp0btc
Have a great weekend
Gary
?? Helping Amazon Brand Owners Launch, Scale, and Exit for Millions Through Strategic Consulting | CEO and Founder of Black Label Advisor | x1 Amazon Exit | Texan | Featured: Forbes, CNN, Bloomberg
1 年The trillion in forecasted spend blew my mind. Americans are hungry for deals like never before!
Founder and Host of the 7 Figure Seller Summit, Founder of 80/20 Sourcing, E-Commerce Entrepreneur
1 年Jeffrey Cohen