Amazon’s Vision: Whole Foods as Urban Distribution Centers

After acquiring Whole Foods in 2017 for $13.7 billion, Amazon.com Inc. has been working to more deeply integrate its new physical grocery stores into its online retail business. Amazon, the world’s largest online retailer, has a vision that ties together the physical and the digital. Currently, the company is searching for larger Whole Foods locations to serve as grocery stores that double as urban distribution centers to enhance the efficiency of online order deliveries, according to a source close to the project.

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Internal Numbers Reveal the Success of Amazon Prime Video

For the first time, numbers are available to demonstrate how Amazon’s original video strategy is paying off. Thanks to internal documents read by Reuters, the general public can see evidence that Amazon’s top shows enticed over 5 million people to sign up for its Prime shopping membership by 2017. Using video to create shoppers is a key to Amazon’s strategy, and chief executive Jeff Bezos has been open about that approach. In total, Amazon’s U.S. audience for video (original and licensed) is about 26 million. Continue reading Internal Numbers Reveal the Success of Amazon Prime Video

Ghostery Goes Open Source and Intros New Business Model

Ghostery, an ad blocker recommended by Edward Snowden, just published all its code on GitHub. The company was acquired last year by Cliqz, “the first browser with integrated privacy protection,” including anti-tracking and anti-phishing. Ghostery’s revenue model has been hard to understand for some users, who opt-in to share data about the ad trackers they find on the web. Ghostery then sells that data to e-commerce websites and other companies, a seeming incongruity with its stated mission. Continue reading Ghostery Goes Open Source and Intros New Business Model

Facebook, Google Improve Transparency After P&G Cuts Ads

Last year, Procter & Gamble cut its digital advertising by more than $200 million, after its call for transparency wasn’t satisfactorily answered. The company, whose brands include Crest, Pampers and Tide, believed that much of the spending on digital ads was not effective and that it could find more productive means of reaching consumers. The company cut $100 million in last year’s June quarter, for $100 million, with $100 million more from July through December, and included “several big digital players.” Continue reading Facebook, Google Improve Transparency After P&G Cuts Ads

Trump Administration, 35 States Oppose Online Tax Exemption

The Trump administration has joined numerous state officials entreating the Supreme Court to overrule a 1992 case that exempts online sellers from adding taxes to their prices. Arguments on the 1992 case, Quill Corp. v. North Dakota, begin next month. South Dakota is leading the group asking the court to overrule the precedent-deciding case; it is joined by 35 states, the District of Columbia, organizations representing retailers, and, now, the Trump administration. Opposing are catalog mailers and online sellers. Continue reading Trump Administration, 35 States Oppose Online Tax Exemption

Walmart Builds Its Own Cloud Computing Farm to Rival Amazon

In five years, Walmart invested millions of dollars in six giant server farms that now account for 80 percent of its cloud capacity. The move has enabled the company to keep up with its burgeoning growth for the last three quarters. Most retail businesses rent cloud computing, but Walmart’s determination to best Amazon led to its decision to build its own cloud network. With this internal network, the company can leverage all its customer data, be competitive with its prices and control inventory and other key functions. Continue reading Walmart Builds Its Own Cloud Computing Farm to Rival Amazon

Amazon Plans to Launch New Delivery Service for Businesses

Amazon plans to launch “Shipping with Amazon,” a delivery service that will start in Los Angeles and cater to the independent merchants that sell on its site. The company intends to expand the service to additional cities and businesses over time. But analysts conclude that Amazon would have to spend tens of billions of dollars, and buy thousands of trucks, hundreds of planes and create thousands of sorting centers to scale out to the national level and handle millions of packages daily. Continue reading Amazon Plans to Launch New Delivery Service for Businesses

Amazon and Apple Turn Up the Heat in the Audiobook Market

According to the Association of American Publishers, in the first eight months of 2017, based on data from 1,200 publishers, revenue from audiobooks grew 20 percent, compared to print books sales increasing a mere 1.5 percent and e-books losing 5.4 percent. Amazon, which bought Audible in 2008, has been the dominant player, with Audible carving out a unique and profitable portion of the market. But Apple is now attempting to take on its rival with a redesigned iBooks e-book reading application for iPhones and iPads. Continue reading Amazon and Apple Turn Up the Heat in the Audiobook Market

Amazon Prime Now Begins Delivery of Whole Foods Products

Amazon is introducing home delivery of Whole Foods products through the company’s one- and two-hour Prime Now delivery service. Initially, the program will launch for neighborhoods in select Austin, Cincinnati, Dallas and Virginia Beach areas, but Amazon plans expansion throughout the year. While the company has not offered details on the expanded rollout, it’s worth noting that it took less than three years for Prime Now to reach more than 50 global markets. However, the company’s own grocery delivery arm AmazonFresh scaled back delivery in some areas last year. Continue reading Amazon Prime Now Begins Delivery of Whole Foods Products

Alphabet, Amazon and Apple Post Record-Breaking Quarters

Alphabet, Amazon and Apple recorded glowing quarterly financial results for Q4 2017, for a combined market value of over $2 trillion. Apple’s revenue rose 13 percent to $88.29 billion, in part due to the iPhone X. Alphabet marked its 32nd consecutive quarter of revenue growth of 20 percent or more, and a 38 percent increase in revenue to $60.5 billion, with $1 billion per quarter profit in cloud computing. Amazon built beyond its core market, with the largest cloud-computing business, a Hollywood studio and the purchase of Whole Foods. Continue reading Alphabet, Amazon and Apple Post Record-Breaking Quarters

Awesomeness Delivers DreamWorksTV on Amazon Channels

Digital media company Awesomeness has launched DreamWorksTV on Amazon Channels, marking the first time DreamWorksTV is transitioning to another online platform (it launched on YouTube in 2014 and currently has more than 3.7 million subscribers). The channel, targeting viewers aged 6-12, will offer kids’ programming and original content exclusively for Prime members via Amazon Channels, the e-commerce giant’s a la carte TV service. The DreamWorksTV streaming OTT offering will run $4.99 per month following a 7-day free trial period.

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Amazon Plans to Compete in Advertising, Narrows HQ2 Sites

For the last five years, Amazon’s average profit margins remained at 1 percent, and founder Jeff Bezos counseled patience. Amazon Web Services, its profitable cloud services business, drove shares up to $1,300, and now BMO Capital Markets raised its Amazon price target to $1,600 per share. That’s because Bezos’ end game is becoming clearer: a marketing platform that takes advantage of Amazon’s immense audience. Some analysts believe its shares could reach $2,000, making it the first company with a $1 trillion market value. Meanwhile, Amazon continues plans for its second headquarters. Continue reading Amazon Plans to Compete in Advertising, Narrows HQ2 Sites

Artec 3D Demonstrates Fast and Accurate 3D Scanning at CES

Artec 3D is a Luxembourg-based manufacturer of 3D scanning hardware and software with offices in Moscow and Santa Clara, California. At CES 2018, the company demonstrated its $25,800 professional 3D scanner dubbed Artec Leo. With the handheld scanner’s built-in processor, there is no need for an external computer, “making 3D scanning as easy as taking a video.” The company claims that its 80 fps 3D reconstruction rate makes its device “the fastest professional handheld 3D scanner on the market.” The Leo offers a large field of view for accurately scanning and processing large scenes and objects. Continue reading Artec 3D Demonstrates Fast and Accurate 3D Scanning at CES

Study Shows Consumers Worldwide Are Warming to AR, VR

According to new research released at CES this week, consumers are warming to the idea of virtual and augmented reality, but their interests are more focused on practical daily applications than gaming. Harris Interactive conducted a study for Accenture across 19 countries and learned that 47 percent of online consumers would be interested in using AR or VR headsets to play games, while percentages jumped into the 50s and 60s regarding consumers interested in learning about travel and new skills, visualizing how clothing would fit, and shopping for household items and furniture. Continue reading Study Shows Consumers Worldwide Are Warming to AR, VR

Brands Face the Challenges, Promises of AR/VR Experiences

Industry execs gathered for a CES panel to discuss the challenges brands are now facing with AR and VR. According to NorthSouth Studios chief executive Bill Newell, the most impactful events for AR in 2017 were Apple and Google’s introduction of AR development kits. But he acknowledged that convincing big brands to consider AR or VR projects is still a major challenge for the creators of those experiences. At the agency Firstborn, senior vice president business planning Gabe Garner says his company is always honest about the return on investment, which won’t match up with traditional media. Continue reading Brands Face the Challenges, Promises of AR/VR Experiences