Ecommerce Briefs: Amazon Shipping, Kohl’s Collaboration, Teen Shopping

In”Ecommerce Briefs,” I tackle developments and news that affect online merchants. In this installment, I will report on Amazon’s expansion into logistics and shipping; the achievement of the yields partnership between Amazon and Kohl’s; and where teens like to shop.

Amazon Shipping

Based on TJI Research, Amazon is expanding its logistics and shipping services. With Amazon Shipping, sellers that are encouraged by Amazon can print shipping labels using their existing Amazon tools and dashboards. Sellers can then send from their warehouses directly to clients, not through Amazon’s fulfillment centers.

Amazon will pick up packages from vendors’ warehouses each weekday and send them to Amazon customers seven days a week. Amazon Shipping is now operational for invited sellers with warehouses in the greater Los Angeles, Chicago, New York, and New Jersey areas.

Amazon has told these sellers it can reach most U.S. destinations via ground within five calendar days. This interval means that Amazon Shipping isn’t used for many Prime orders. But, Amazon Shipping is equipped to fulfill Seller Fulfilled Prime shipments to customers who reside within a 2-day ground-shipping radius from engaging seller warehouses.

This new service is an incremental step in Amazon’s attempt to improve its logistics. The target is to reduce sellers’ reliance on third party providers like UPS and FedEx. Currently, Amazon produces about 10 percent of its orders, based on data from solutions-provider ShipMatrix. The U.S. Postal Service manages about 62 percent of Amazon’s orders; UPS produces between 21 and 26 percent; and FedEx is about 8 to 10 percent, based on ShipMatrix. I have addressed the rivalry among delivery and logistics suppliers, and this latest move appears to be an escalation in Amazon’s effort to diminish third-party participation.

Amazon hasn’t commented on this new initiative other than to say it is always experimenting with new ways to deliver orders to customers more quickly.

Amazon, Kohl’s

When Kohl’s announced in late 2017 it was partnering with Amazon to take returns from 82 of its Los Angeles and Chicago retail shops, it obtained a skeptical reception. Now it appears that the decision was a good one. Earlier this month Earnest Research published the results of its analysis of Kohl’s Chicago-area retail shops.

Earnest Research compared various metrics from 2017 (prior to the alliance ) with 2018 results for Chicago shops and the remainder of america. It found that earnings growth for Kohl’s Chicago places was more than 10 percent in 2018, compared with 5% elsewhere in the nation. The amount of transactions increased 6 per cent in Chicago versus a 2-percent reduction elsewhere. The acquisition of new clients in the Chicago area rose 9 percent in 2018 compared to 1 percent in the rest of the nation.

Revenue growth for Kohl’s Chicago places was more than 10 percent in 2018, compared with 5% elsewhere in the nation. The amount of transactions increased 6 per cent in Chicago versus a 2-percent reduction elsewhere. The acquisition of new clients in the Chicago area rose 9 percent in 2018 compared to 1 percent in the rest of the nation. Source: Earnest Research.

Kohl’s was gambling that people who returned Amazon items in its stores would remain and store and the results appear to confirm this.

Kohl’s enlarged the return places in August 2018 from 82 shops to just over 100 (from 1,158 nationwide shops ), with plans to expand even more. However, Amazon announced it will close all its 87 pop-up kiosks situated in Kohl’s, malls, and Whole Foods at the end of the month.

Teen Shopping

Twice annually investment bank Piper Jaffrey plays a”Taking Stock with Teens” research study, which details discretionary spending trends and brand preferences amongst 8,000 adolescents (typical age of 16) across 47 U.S. states.

According to the latest poll, 70 percent of respondents said that they preferred Instagram for shopping and recommendations. Instagram includes a 90-percent penetration rate among 14- to 18-year-olds, according to the study. Snapchat comes in second place with just fewer than 50 percent of teenagers preferring the website for outreach. Just 20 percent of teenagers opted for hearing from brands on Twitter, and only about 12 percent favored Facebook.

Amazon tops the list for favorite shopping websites, with 50 percent of teenagers saying it is their favorite shopping site — up from 44 percent last spring. Nike came in a distant second at 5 per cent. Overall teenager spending increased 6 percent from drop 2018 and 1 percent from a year ago.

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