Amazon has ceased purchases of ads at the top of Google search results, a much-prized position for which advertisers and retailers pay handsomely to place eye-catching images. Google runs online auctions for these slots, dubbed products listing ads (PLAs) and Amazon, which began bidding in late 2016, found itself in competition with rival Walmart there. On April 28, Merkle, a marketing firm that analyzes Google Shopping ad data, first noticed that Amazon was missing from those coveted slots. Two sources confirmed the news. Continue reading Amazon Stops Purchasing Competitive Google Shopping Ads

Sources say Amazon is making a move that threatens PayPal and banks that issue credit cards: passing discounts it gets on credit-card fees to retailers that use its online payment service. In doing so, Amazon is sacrificing short-term profitability to boost the fortunes of its payments system. JPMorgan Chase, Citigroup, Visa, Mastercard and payment processors First Data and Stripe Inc. partake in the $90 billion per year swipe fee industry, about 2 percent of a typical credit card purchase or 24 cents for debit. Continue reading Amazon’s Plan to Lure Retailers to Amazon Pay via Discounts

Walmart is negotiating to acquire a majority stake in Flipkart, India’s leading e-retailer; sources say the deal could “be announced soon” although “exact terms are not yet final and the talks are fluid.” Flipkart would be valued at $20 billion, according to two of the sources, and Walmart hopes to purchase at least a 60 percent stake in the company. Although buying a majority stake in Flipkart would open up a vast new market for Walmart, which is in heated competition with Amazon, some analysts say the move is risky. Continue reading Walmart in Talks to Buy Into Indian E-Commerce Site Flipkart

Amazon announced that it plans to raise the price of its annual Prime membership from $99 to $119 in the U.S. The move marks the first increase since 2014 when the shipping and entertainment membership program cost $79 per year. New subscribers will pay $119 a year starting May 11, while the new fee will apply to current members beginning with renewals on June 16. Amazon CEO Jeff Bezos recently revealed that Prime has more than 100 million global members. The company surprised investors this week with news that it had more than doubled its quarterly profits to $1.6 billion. Continue reading Amazon Will Raise the Price of Prime Membership Next Month

Amazon is rolling out an in-car delivery service that allows its delivery drivers to deposit packages in the trunks of specific vehicles. That’s similar to the feature introduced last year that lets drivers drop off packages inside customers’ homes. Taking another step into its customers’ lives is a risky move in an atmosphere where privacy concerns are paramount. Still, Amazon vice president of delivery technology Peter Larsen says customers “love features like keyless guest access” and that “in-car delivery … gives customers that same peace of mind.” Continue reading Amazon Launches In-Car Delivery, Testing Privacy Boundaries

Adobe recently released its “2018 State of Digital Advertising” report, which indicates that 74 percent of marketers believe they are now serving consumers relevant ads. However, only 8 percent of today’s consumers agree that digital ads delivered to them are “always relevant,” and 27 percent find the online ads “often relevant.” Meanwhile, the report also suggests that new customers are three times as likely as existing customers to be driven by social media to visit a retailer. Adobe found that connected TV sites, on-demand streaming, and mobile retail are areas experiencing significant growth. Continue reading Adobe Experience Cloud Collects Data for Digital Ad Analysis

Google recently launched Shopping Actions, a new program to help retailers compete with Amazon, the world’s largest online retailer. The program allows companies to list “products across Google Search, in its Google Express shopping service, and in the Google Assistant app for smartphones and on smart speakers, like the Google Home,” reports TechCrunch. It offers a universal cart no matter what device shoppers are using and Google earns money via a pay-per-sale model. The program is now open to any retailer in the U.S.

Continue reading Google’s New Shopping Actions Aid Competition with Amazon

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.

Continue reading Amazon’s Vision: Whole Foods as Urban Distribution Centers

According to a 2017 report from the Recording Industry Association of America, revenue for recorded music in the U.S. grew 16.5 percent last year to a retail value of $8.7 billion. “We‘re delighted by the progress so far,” explained RIAA CEO Cary Sherman, “but to put the numbers in context, these two years of growth only return the business to 60 percent of its peak size  —  about where it stood ten years ago  —  and that’s ignoring inflation.” Variety reports: “Like 2016, the boost came primarily from the rapid growth in paid music subscriptions to services like Spotify, Amazon, Apple Music, Tidal, Pandora and others, which grew by more than 50 percent.” Streaming represented nearly two-thirds of music revenue last year. Continue reading Streaming Accounts for Nearly Two-Thirds of Music Revenue

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

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

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 “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

Walmart’s tech incubator, Store No. 8 recently purchased Spatialand, a small virtual reality startup that specializes in software tools designed for transforming existing media content into immersive experiences. The acquisition is part of Walmart’s plans to create future shopping experiences for store locations and websites. Spatialand founder Kim Cooper and 10 employees will join Walmart; Store No. 8 principal Katie Finnegan will serve as interim CEO. Financial terms were not revealed. Continue reading Walmart Acquires VR Startup With Eye on Future of Shopping

Physical CDs are still selling well, although the U.S. has seen sales down by 18.5 percent. But Best Buy and Target have just taken steps that may hasten the demise of physical media. Best Buy, which was once the biggest music seller in the U.S., has told its music suppliers that it plans to pull CDs from its stores on July 1. The company will continue to carry vinyl records for two years, fulfilling a promise made to vendors. Meanwhile, Target is now telling music suppliers it will sell CDs on a consignment basis. The move would also impact sales of movies, TV shows and other video content on DVD. Continue reading Best Buy to End CD Sales, While Target Adjusts Sales Model