I know several others have already figured this out but wanted to share this as well for those who have not. After owning Bitcoin outright for years, dabbling in the CME futures market, and investing in MicroStrategy last year, I have determined that for most investors wanting Bitcoin exposure, purchasing shares of MSTR is actually a smarter decision then owning Bitcoin outright or using CME futures for leverage. MSTR is a marginable security typically allowing you to own up to 2X the amount of your equity, which means you get 2 times the potential returns (minus principal and interest) and the margin requirements remain fixed at the initial purchase price of your stocks. Although margin requirements on the CME roughly give you 3x purchasing power, there are some issues that make it less attractive. You will need to roll contracts over typically monthly or quarterly, which adds additional tax considerations. Bitcoin price drawdowns, which will happen, will become much riskier to your position at 3x leverage, and as the value of Bitcoin increases, the margin requirements on the CME also increase with it, meaning that as the value of Bitcoin increases you can not add more futures positions without crossing over the current margin requirement if you were initially close to it. When owning MSTR stocks, as the price of Bitcoin increases and MSTR with it, you can add to the position using your increased margin loan allowance. Any leveraged position is subject to calls and liquidation, so you will need to plan for those risks. MicroStrategy is also continuously adding more bitcoin to its portfolio which means your exposure becomes greater over time. You do not get this with CME futures. Additionally, if in event that BTC dries up on exchanges, proxies such as MSTR may be one of the only other available alternatives to gain exposure to the asset outside of ETFs or derivatives, making it even more valuable. For this bull run, I believe this is the move.
Monday, July 15, 2024
Taming the Dragon: Mastering Bitcoin Transactions with Our QR Code API
https://www.bitcoinqrcodemaker.com/bitcoin-qr-code-maker-api-and-widgets/
Once upon a time, in a land teeming with digital gold and virtual riches, there was a mighty dragon named Bitcoin. This dragon was not easily tamed, for it required great skill and knowledge to master its intricate and fiery nature. Many adventurers embarked on quests to harness the power of Bitcoin, but only a few succeeded. Among the bravest was a clever group of developers who wielded a secret weapon: the Bitcoin QR code generator API from bitcoinqrcodemaker.com.
Enter the Dragon: The World of Bitcoin Transactions
In this fantastical realm, Bitcoin transactions were like treasures hidden in a labyrinth. The labyrinth was filled with long, convoluted wallet addresses that required meticulous attention to detail. One wrong step, and the treasure could be lost forever. Adventurers needed a way to simplify their journey, to make the path clear and the treasure easily accessible. This is where the Bitcoin QR code generator API came into play.
The Magic of QR Codes
QR codes are like enchanted keys that unlock the complexity of Bitcoin transactions. They transform lengthy wallet addresses into simple, scannable images. Just point your device, scan the QR code, and voila! The transaction is initiated without the risk of error. It's the difference between navigating a treacherous maze and strolling down a clear, open path.
The Power of the Bitcoin QR Code Generator API
Our Bitcoin QR code generator API is the magic spell that every adventurer needs. Let's delve into its features and discover why it's the ultimate tool for taming the Bitcoin dragon:
- Effortless Integration: The API is designed for easy integration into any application or website. Whether you're a seasoned developer or a novice coder, you'll find it straightforward to incorporate into your projects.
- Instant QR Code Generation: Speed is of the essence when dealing with dragons. Our API generates QR codes instantly, ensuring that you can complete transactions swiftly and efficiently.
- Customization Options: Every adventurer has their unique style. Our API offers customization options, allowing you to create QR codes that match your brand or personal preference.
- Robust Security: Taming a dragon requires trust. Our API ensures the highest level of security, protecting your transactions and data from any malicious threats.
- Reliable Support: Every hero needs a guide. Our dedicated support team is here to assist you with any questions or issues, ensuring that your journey is smooth and successful.
The Hero's Journey: How to Use the Bitcoin QR Code Generator API
Embarking on the quest to tame the Bitcoin dragon is simpler than you might think. Here's a step-by-step guide to using our Bitcoin QR code generator API:
- Acquire the API Key: Visit bitcoinqrcodemaker.com and sign up to receive your API key. This key is your magical artifact, granting you access to the power of QR code generation.
- Integrate the API: Follow the provided documentation to integrate the API into your application or website. Our detailed guides and examples will help you get started in no time.
- Generate QR Codes: Use the API to generate QR codes by providing the necessary parameters, such as the Bitcoin wallet address and any customization options you desire.
- Deploy and Share: Once your QR codes are ready, deploy them on your platform and share them with your users. They can now initiate Bitcoin transactions with a simple scan.
The Treasure: Benefits of Using Bitcoin QR Codes
The true treasure lies not just in mastering the dragon but in the myriad benefits that come with using Bitcoin QR codes:
- Efficiency: QR codes streamline the transaction process, saving you time and effort. No more manually entering long wallet addresses.
- Accuracy: Reduce the risk of errors and ensure that transactions are completed correctly. QR codes eliminate the chance of mistyped addresses.
- Convenience: Make Bitcoin transactions accessible to everyone, even those who may not be familiar with the technical details. QR codes make the process user-friendly.
- Security: Enhance the security of your transactions by using encrypted QR codes that protect sensitive information.
Tales from the Crypt: Real-World Applications
The adventures don't end here. The Bitcoin QR code generator API has numerous real-world applications, each offering its own set of exciting possibilities:
- E-commerce: Online retailers can use QR codes to facilitate quick and secure Bitcoin payments, enhancing the shopping experience for their customers.
- Charitable Donations: Non-profits and charitable organizations can accept Bitcoin donations through easily scannable QR codes, making it simple for donors to contribute.
- Personal Transactions: Individuals can use QR codes to send and receive Bitcoin among friends and family, making personal transactions hassle-free.
- Events and Meetups: Organizers of crypto events can use QR codes for ticket purchases and merchandise sales, streamlining the entire process.
The Final Chapter: Why Choose Our Bitcoin QR Code Generator API?
In the epic saga of Bitcoin, choosing the right tools can make all the difference between success and failure. Our Bitcoin QR code generator API stands out for several reasons:
- Proven Reliability: Our API is trusted by countless adventurers who have successfully tamed the Bitcoin dragon.
- Cutting-Edge Technology: We continuously update and improve our API to ensure that it remains at the forefront of innovation.
- Unwavering Support: Our support team is always ready to assist you, providing guidance and solutions whenever you need them.
Join the Quest: Start Taming the Dragon Today
The Bitcoin dragon awaits, and with our QR code generator API, you're equipped with the ultimate weapon to tame it. The path to mastering Bitcoin transactions has never been clearer or more accessible. So why wait? Embark on your adventure today and discover the power of our Bitcoin QR code generator API.
Visit bitcoinqrcodemaker.com to start your journey. With our API at your side, you'll be ready to conquer the complexities of Bitcoin and emerge victorious. The treasure is within your grasp—take the first step and unlock the magic of QR codes.
E-commerce Industry News Recap 🔥 Week of July 15th, 2024
Hi r/ecommerce - I'm Paul and I follow the e-commerce industry closely for my Shopifreaks E-commerce Newsletter. Every week for the past two years I've posted a summary recap of the week's top stories on this subreddit, which I cover in depth with sources in the full edition. Let's dive in to this week's top e-commerce news...
STAT OF THE WEEK: 40% of U.S. households are expected to shop on Amazon's Prime Day this week. More than half of Prime Day 2024 shoppers will likely be comparing prices on other retailers but still buying on Amazon. — According to a survey by Numerator
Etsy is attempting to go back to its roots and reclaim its original mission to support artisans and crafters, while still providing a sales platform for non-handmade goods. The company posted a policy update on Tuesday, noting that in place of its “handmade” and “vintage” labels, it will instead be categorizing products as Made by a seller, Designed by a seller, Sourced by a seller, & Handpicked by a seller. In addition to the product category updates, Etsy launched a new marketing campaign that'll feature Etsy sellers and their products in TV commercials, billboards, and social-media content in the U.S. and U.K. I think this is a brilliant way to humanize the buying experience on the platform — shopping with a real artisan as opposed to shopping with a fictitious private label brand name on Amazon. It's also bringing back its Etsy up virtual seller conference and launching Etsy Design Awards to honor the work of sellers.
Wix added the ability for merchants to customize their checkout forms, providing a more tailored experience for customers. Merchants can now add custom fields, customize the layout of checkout, adjust field settings, control the visibility of custom fields via conditional rules, and pass on custom field data to emails, thank you pages, and order pages.
More than 200 cryptocurrency domains registered with Squarespace have been identified at risk after the company was found to be under a massive DNS hijacking attack. By hijacking DNS functionality, hackers can redirect users to malicious websites or gain unauthorized remote access to an organization’s servers and steal sensitive data. The attack began Thursday with two websites of blockchain projects — Compound and Celer Networks — and then later researchers found that it impacted around 220 others. The incident is being blamed on the recent migration of 10M domains from Google Domains to Squarespace after the acquisition deal last September.
Meanwhile across the Canadian border, Shopify had nearly 174,000 customers' info leaked on a web hacking forum last week. Shopify denies that its servers were hacked and gave the following statement: “Shopify systems have not experienced a security incident. The data loss reported was caused by a third-party app. The app developer intends to notify affected customers.” Shopify declined to confirm the number of customers impacted or what the particular third-party app is that got hacked. That'd be a nice thing to know for the users of that app, don't you think?
Certain Amazon sellers lost their Buy Box status ahead of Prime Day after the company's algorithms found their items being sold for less on Target's website during its Target Circle Week promo, which ended July 13th. The problem for sellers resulted from a change in how Target promoted deals for Circle Week. In the past, Target would show the percentage discount off the regular price, while leaving the listed price the same. However this year, Target showed the item's actual sale price after the discount, which meant it was re-indexed by Amazon's pricing algorithms. Sellers took their concerns to Target, which then adjusted the Circle Week discounts on some listings to say “See price in cart” in order to skirt Amazon's pricing algorithms.
Indiegogo launched a new e-commerce offering called IndieShop, which allows users to purchase products developed via crowdfunding. The platform is now live on the Indiegogo site, after launching in Beta in May, and currently features 40+ products. Almost a decade ago, Indiegogo launched its InDemand offering, which allows creators to sell their products as pre-orders after crowdfunding is complete and manage customers using the site’s platform. This allows creators to continue driving revenue through the platform after they hit their goal and while the product is in production. The difference between InDemand and Indieshop is that with Indieshop, the products are in-stock and ready-to-ship. Now Indiegogo can take aspiring brands through the entire sales cycle from crowdfunding to pre-orders to selling live once the product is ready.
Chinese e-commerce vendors are struggling for survival as sales growth slows and price pressure rises due to shopping platforms competing with aggressive policies to attract customers, as reported by Reuters. Lu Zhenwang, a Shanghai-based e-commerce operator who sells items for small vendors, said, “The good times for e-commerce are over. This year there is fierce competition and I don't think a lot of sellers will survive another three years.” Lu said the operating environment is poor because the rise in e-commerce sales has created what is known in Chinese as the “neijuan” effect — working harder for smaller returns. He told Reuters, “There is no growth in sales, because there are no new customers and the average income of people is not rising like 10 years ago. There is only competition, between platforms, between sellers. This is the new normal for the e-commerce industry in China.”
The Reuters article focused on sellers getting squeezed, but it's not any better for Chinese manufacturers either right now in the country. Between Temu's aggressive price negotiations with manufacturers, and Shein's allegedly requiring factories to sign loyalty oaths promising they won't sell to competitors — the ones left in the wake of these pricing and exclusivity wars are the manufacturers. Giving the buying power and reach of China's major e-commerce players — like Alibaba, JD.com, Pinduoduo, ByteDance, and Shein — manufacturers are left with a choice: Do I want to make a little bit of money selling my products at rock bottom prices or not sell anything at all? The latter, which could mean shutting down their factories.
This year at its upcoming Prime Day sales event, Amazon promotions will be pointing shoppers toward collecting packages from its network of lockers and other pick-up points like Whole Foods stores. A spokesperson told Business Insider, “Amazon wants customers to choose the delivery option that is most convenient for them,” and that the company offers “tens of thousands of package pick-up locations” in the U.S. For customers, pick-up points are convenient and oftentimes more secure, especially for those that have previously experienced porch theft. For Amazon, it's less expensive for the company to deliver multiple customer orders to one location, as opposed to making individual drops across the city at each customer's home. Plus, porch piracy costs the company money too.
E-commerce executive shake ups this week....
commercetools appointed Andrew Burton as its new CEO, effective July 8th. Burton succeeds Dirk Hoerig, co-founder and CEO of commercetools, who will remain on the board and transition to the role of Chief Innovation Officer. Burton joins commercetools from Rapid7 where he served as President and COO, growing the company from $150M ARR to over $800M.
Bold Commerce named Steven Guevarra as CFO, succeeding Stuart Henrickson, who left the company, and Brandon Briggs as head of sales and agency partnership, a new position. Bold said in a statement that Guevarra brings “more than two decades of financial experience and expertise scaling high-growth technology companies” and that Briggs, an e-commerce and technology veteran, will assist in the company's effort to build strategic partnerships.
Global-e Online promoted Tomer Gold as EVP, Head of the Channels and SMB Division, and Siddharth Jain as EVP, Technology. Gold formerly held the position of VP of Corporate Development at Global-e, while Jain is ascending from his role as Senior VP of Engineering within the company.
Elk Home appointed Anna Lee Schlueter as its new Director of E-commerce, charged with driving advancements in the company's online presence. Schlueter has served as VP and Director of Operations for the past 15 years at Jaben Holdings.
Guitar Center appointed Adolfo Rodriguez as VP, Chief Technology & Information Officer, effective July 9th. Rodriguez is responsible for the end-to-end technology vision and execution of the company and will report directly to CEO Gabe Dalporto. He most recently served at Advance Auto Parts, where he spearheaded technological advancements across the company's e-commerce, brick-and-mortar stores, and supply chain.
Hasbro Inc named Dan Rawson as global play lead for Dungeons & Dragons and D&D Beyond, its fan platform, where he will be responsible for all D2C and e-commerce operations. Rawson previously led e-commerce and SaaS businesses at Amazon and Microsoft. Hasbro named Stephanie Beal as its new chief supply chain officer. Beal has been with the company since 2022 and recently led a systems transformation to digitize planning processes across the enterprise. Hasbro also appointed Dan Shull as chief digital information officer, a newly created IT strategy position. Shull comes from REI where hew as CTO and previously held executive positions at Signet, Nike, and Borders.
Amazon's AI shopping assistant, Rufus, is now available to all U.S. customers, just in time for the company's annual Prime Day event this week. Amazon first revealed Rufus in February, but until now, it has only been accessible to a limited number of users in the app. The assistant is trained on Amazon's product catalog, customer reviews, community Q&As, and information across the web. And this is just a rumor, but I heard that Rufus is secretly in love with Alexa.
eBay launched a new dashboard for its eBay Advertising, which the company described as a “reimagined and redesigned advertising experience.” The new version has a revamped Seller Hub Marketing tab and a new Advertising tab that provides sellers with a holistic view of all campaigns so that they can make quick adjustments, as well as a section with recommendations of the day which leverage ebay.ai to uncover trends and automatically build campaigns for your listings.
Carvana introduced a new feature that highlights electric vehicles that qualify for the Clean Vehicle Tax Credit within the search results and lets legible customers apply for up to $4,000 in savings from the credit at checkout. Instead of waiting for a lower tax bill next year, customers can now get up to $4,000 savings up front, which automatically flow through to eligible customers' financing terms.
Ikea U.S. is trying to better serve the needs of its Spanish-speaking shoppers by launching a Spanish-language platform. In addition to the new online shopping experience, Spanish-speaking customers can also receive support before, during, and after their purchase with a Spanish-speaking associate when calling the support phone line. I'm kind of surprised a company that large didn't already have Spanish-language service for years now.
Costco is hiking its annual membership fees in the U.S. and Canada by $5, and raising the cost of its higher-tier membership by $10, marking the first increase since 2017. That's an increase to $65 from $60 for regular annual memberships and from $120 to $130 for “Executive Membership.” Rest assured though, the hotdog + coke combo will still sell for $1.50.
Shein logistics software is in beta testing with select supply chain customers, and cybersecurity firms are concerned over the potential for a company with close ties to China to spy on the supply chain as it grows its global logistics footprint. Dewardric McNeal, senior policy analyst at Longview Global, said, “Given the intricate nature of the U.S. and global supply chains, the potential for espionage or data gathering is a significant risk. Shein’s software could provide unprecedented access to sensitive supply chain data, which the Chinese government could seize under its laws. This exposure poses a direct threat to U.S. supply chain integrity, making it vulnerable to exploitation and manipulation.” Meanwhile Shein's like, “We don't need your secrets. We're already better at this than you.”
Walmart is offering half off Walmart+ memberships until July 18th, which funny enough, overlaps with Amazon's Prime Day on July 16th and 17th. What are the odds? Walmart+ offers free shipping with no order minimum, free grocery delivery from your local store with a minimum order of $35, savings on fuel, video streaming with Paramount+, free tire repair and road hazard warranty, returns from home, and other perks. Not bad for $49! However note that unlike Amazon Prime memberships, you can't give access to your Walmart+ to other members of your household. They'd all have to login to the same account, which has your payment info tied to it. I learned that the hard way last night when I bought a year of Walmart+, thinking I could add my parents and have them share the membership perks via their own Walmart accounts.
More than 3,000 Amazon associates at Amazon's Coventry warehouse in England voted in a historic trade union recognition ballot that could allow U.K. employees to bargain collectively for rights and pay for the first time. If the collective vote supports recognition, the GMB would be given the right to represent them in negotiations over pay and conditions in what would be the first instance of Amazon recognizing a union in the U.K.
A US judge ruled against the FTC in a challenge to its ruling banning noncompete agreements, citing the FTC's lack of “substantive” rulemaking authority. The preliminary ruling blocks enforcement of the noncompete ban against the plaintiff and other groups that were involved in the case, and signals that the FTC cannot enforce the rule.
OpenAI whistleblowers filed a complaint with the SEC, calling for an investigation into the company for allegedly requiring restrictive NDAs. The whistleblowers claim that OpenAI issued overly restrictive employment, severance, and non-disclosure agreements to its employees, which could lead to penalties against workers who raised concerns about OpenAI to federal authorities.
Marc Andreessen sent $50k in Bitcoin to an AI bot on X called the Truth Terminal, which operates semi-autonomously, with its human handler only approving its Twitter posts and deciding who it gets to interact with. After a chat with Andreessen where the investor proposed a grant, the bot created a plan of upgrades which included a personal CPU, AI model tweaks, and even a billboard. Andreessen agreed to the plan and proceeded with a $50k one-time grant.
Amazon introduced App Studio at its AWS Summit last week, a new gen AI-powered platform that allows professionals to build apps using natural language descriptions and prompts. Users can specify the app's function and the data sources it should pull from, and App Studio will produce an app that would have otherwise taken the developer days. In a demo, Amazon demonstrated how App Studio can take a request for an invoice tracking app and lay out suggestions for how it should work, which the developer can approve before creating the actual app.
WhatsApp Business is reducing rates for utility messages and raising rates for marketing messages, effective Aug 4th and Oct 4th respectively. Over the last year, users have complained about the number of WhatsApp messages increasing over the platform, resulting in spam, so the company started testing restrictions on marketing messages sent to users in India, which it now expanded globally, hoping that the restrictions and increased cost will help reduce the Spam.
Mastercard and Nuvei teamed up to hep consumers in Europe convert digital assets into fiat currency via debit, credit, and prepaid cards. The off-ramping solutions lets consumers convert supported crypto currencies into fiat currency, which they can then transfer to Mastercards without the need to go through third-party exchanges.
Amazon says it reached its goal of matching all of the electricity consumed by its operations with 100% renewable energy in 2023 — seven years ahead of schedule — — making it the largest corporate purchaser of renewable energy in the world for four years running. The company is exploring new carbon-free energy sources in efforts to meet its Climate Pledge commitment of net-zero carbon by 2040.
The EU declared that X breached its guidelines under the Digital Services Act, following an investigation into the company's advertising transparency, availability of data, and risk management. X was informed of these preliminary findings on Friday, which found three primary breaches of the DSA including its use of the Blue Check mark to receive verified status, its inability to search its advertising system, and for prohibiting researchers from independently accessing its public data.
TikTok ad spend is tapering off since March when the U.S. introduced the selloff bill that would require the company to divest the app to American ownership or be banned from the country next year. It's still growing, just slower. Ad spend was up 19% in March, 11% in April, but only 6% in May. Target reduced its spend by 30%, DoorDash by 25%, Bayer by 20%, and Procter & Gamble by 10%.
Amazon Pay India is introducing new payment methods this year including UPI, credit cards, and wallets, rather than just specializing in a single segment. The company says it sees opportunities in penetrating offline payments and smaller towns, where currently 65% of the transactions done by consumers in tier two and three cities were digital versus 75% in larger cities.
Plus 5 seed rounds, IPOs, and acquisitions of interest including Flip's acquisition of Curated, a marketplace that connects consumers with verified experts for personalized shopping advice, for $330M in stock.
I hope you found this recap helpful. See you next week!
PAUL
Editor of Shopifreaks E-Commerce Newsletter
PS: If I missed any big news this week, please share in the comments.
What's new in e-commerce? 🔥 Week of July 15th, 2024
Hi r/ShopifyeCommerce - I'm Paul and I follow the e-commerce industry closely for my Shopifreaks E-commerce Newsletter. Every week for the past two years I've posted a summary recap of the week's top stories on this subreddit, which I cover in depth with sources in the full edition. Let's dive in to this week's top e-commerce news...
STAT OF THE WEEK: 40% of U.S. households are expected to shop on Amazon's Prime Day this week. More than half of Prime Day 2024 shoppers will likely be comparing prices on other retailers but still buying on Amazon. — According to a survey by Numerator
Etsy is attempting to go back to its roots and reclaim its original mission to support artisans and crafters, while still providing a sales platform for non-handmade goods. The company posted a policy update on Tuesday, noting that in place of its “handmade” and “vintage” labels, it will instead be categorizing products as Made by a seller, Designed by a seller, Sourced by a seller, & Handpicked by a seller. In addition to the product category updates, Etsy launched a new marketing campaign that'll feature Etsy sellers and their products in TV commercials, billboards, and social-media content in the U.S. and U.K. I think this is a brilliant way to humanize the buying experience on the platform — shopping with a real artisan as opposed to shopping with a fictitious private label brand name on Amazon. It's also bringing back its Etsy up virtual seller conference and launching Etsy Design Awards to honor the work of sellers.
Wix added the ability for merchants to customize their checkout forms, providing a more tailored experience for customers. Merchants can now add custom fields, customize the layout of checkout, adjust field settings, control the visibility of custom fields via conditional rules, and pass on custom field data to emails, thank you pages, and order pages.
More than 200 cryptocurrency domains registered with Squarespace have been identified at risk after the company was found to be under a massive DNS hijacking attack. By hijacking DNS functionality, hackers can redirect users to malicious websites or gain unauthorized remote access to an organization’s servers and steal sensitive data. The attack began Thursday with two websites of blockchain projects — Compound and Celer Networks — and then later researchers found that it impacted around 220 others. The incident is being blamed on the recent migration of 10M domains from Google Domains to Squarespace after the acquisition deal last September.
Meanwhile across the Canadian border, Shopify had nearly 174,000 customers' info leaked on a web hacking forum last week. Shopify denies that its servers were hacked and gave the following statement: “Shopify systems have not experienced a security incident. The data loss reported was caused by a third-party app. The app developer intends to notify affected customers.” Shopify declined to confirm the number of customers impacted or what the particular third-party app is that got hacked. That'd be a nice thing to know for the users of that app, don't you think?
Certain Amazon sellers lost their Buy Box status ahead of Prime Day after the company's algorithms found their items being sold for less on Target's website during its Target Circle Week promo, which ended July 13th. The problem for sellers resulted from a change in how Target promoted deals for Circle Week. In the past, Target would show the percentage discount off the regular price, while leaving the listed price the same. However this year, Target showed the item's actual sale price after the discount, which meant it was re-indexed by Amazon's pricing algorithms. Sellers took their concerns to Target, which then adjusted the Circle Week discounts on some listings to say “See price in cart” in order to skirt Amazon's pricing algorithms.
Indiegogo launched a new e-commerce offering called IndieShop, which allows users to purchase products developed via crowdfunding. The platform is now live on the Indiegogo site, after launching in Beta in May, and currently features 40+ products. Almost a decade ago, Indiegogo launched its InDemand offering, which allows creators to sell their products as pre-orders after crowdfunding is complete and manage customers using the site’s platform. This allows creators to continue driving revenue through the platform after they hit their goal and while the product is in production. The difference between InDemand and Indieshop is that with Indieshop, the products are in-stock and ready-to-ship. Now Indiegogo can take aspiring brands through the entire sales cycle from crowdfunding to pre-orders to selling live once the product is ready.
Chinese e-commerce vendors are struggling for survival as sales growth slows and price pressure rises due to shopping platforms competing with aggressive policies to attract customers, as reported by Reuters. Lu Zhenwang, a Shanghai-based e-commerce operator who sells items for small vendors, said, “The good times for e-commerce are over. This year there is fierce competition and I don't think a lot of sellers will survive another three years.” Lu said the operating environment is poor because the rise in e-commerce sales has created what is known in Chinese as the “neijuan” effect — working harder for smaller returns. He told Reuters, “There is no growth in sales, because there are no new customers and the average income of people is not rising like 10 years ago. There is only competition, between platforms, between sellers. This is the new normal for the e-commerce industry in China.”
The Reuters article focused on sellers getting squeezed, but it's not any better for Chinese manufacturers either right now in the country. Between Temu's aggressive price negotiations with manufacturers, and Shein's allegedly requiring factories to sign loyalty oaths promising they won't sell to competitors — the ones left in the wake of these pricing and exclusivity wars are the manufacturers. Giving the buying power and reach of China's major e-commerce players — like Alibaba, JD.com, Pinduoduo, ByteDance, and Shein — manufacturers are left with a choice: Do I want to make a little bit of money selling my products at rock bottom prices or not sell anything at all? The latter, which could mean shutting down their factories.
This year at its upcoming Prime Day sales event, Amazon promotions will be pointing shoppers toward collecting packages from its network of lockers and other pick-up points like Whole Foods stores. A spokesperson told Business Insider, “Amazon wants customers to choose the delivery option that is most convenient for them,” and that the company offers “tens of thousands of package pick-up locations” in the U.S. For customers, pick-up points are convenient and oftentimes more secure, especially for those that have previously experienced porch theft. For Amazon, it's less expensive for the company to deliver multiple customer orders to one location, as opposed to making individual drops across the city at each customer's home. Plus, porch piracy costs the company money too.
E-commerce executive shake ups this week....
commercetools appointed Andrew Burton as its new CEO, effective July 8th. Burton succeeds Dirk Hoerig, co-founder and CEO of commercetools, who will remain on the board and transition to the role of Chief Innovation Officer. Burton joins commercetools from Rapid7 where he served as President and COO, growing the company from $150M ARR to over $800M.
Bold Commerce named Steven Guevarra as CFO, succeeding Stuart Henrickson, who left the company, and Brandon Briggs as head of sales and agency partnership, a new position. Bold said in a statement that Guevarra brings “more than two decades of financial experience and expertise scaling high-growth technology companies” and that Briggs, an e-commerce and technology veteran, will assist in the company's effort to build strategic partnerships.
Global-e Online promoted Tomer Gold as EVP, Head of the Channels and SMB Division, and Siddharth Jain as EVP, Technology. Gold formerly held the position of VP of Corporate Development at Global-e, while Jain is ascending from his role as Senior VP of Engineering within the company.
Elk Home appointed Anna Lee Schlueter as its new Director of E-commerce, charged with driving advancements in the company's online presence. Schlueter has served as VP and Director of Operations for the past 15 years at Jaben Holdings.
Guitar Center appointed Adolfo Rodriguez as VP, Chief Technology & Information Officer, effective July 9th. Rodriguez is responsible for the end-to-end technology vision and execution of the company and will report directly to CEO Gabe Dalporto. He most recently served at Advance Auto Parts, where he spearheaded technological advancements across the company's e-commerce, brick-and-mortar stores, and supply chain.
Hasbro Inc named Dan Rawson as global play lead for Dungeons & Dragons and D&D Beyond, its fan platform, where he will be responsible for all D2C and e-commerce operations. Rawson previously led e-commerce and SaaS businesses at Amazon and Microsoft. Hasbro named Stephanie Beal as its new chief supply chain officer. Beal has been with the company since 2022 and recently led a systems transformation to digitize planning processes across the enterprise. Hasbro also appointed Dan Shull as chief digital information officer, a newly created IT strategy position. Shull comes from REI where hew as CTO and previously held executive positions at Signet, Nike, and Borders.
Amazon's AI shopping assistant, Rufus, is now available to all U.S. customers, just in time for the company's annual Prime Day event this week. Amazon first revealed Rufus in February, but until now, it has only been accessible to a limited number of users in the app. The assistant is trained on Amazon's product catalog, customer reviews, community Q&As, and information across the web. And this is just a rumor, but I heard that Rufus is secretly in love with Alexa.
eBay launched a new dashboard for its eBay Advertising, which the company described as a “reimagined and redesigned advertising experience.” The new version has a revamped Seller Hub Marketing tab and a new Advertising tab that provides sellers with a holistic view of all campaigns so that they can make quick adjustments, as well as a section with recommendations of the day which leverage ebay.ai to uncover trends and automatically build campaigns for your listings.
Carvana introduced a new feature that highlights electric vehicles that qualify for the Clean Vehicle Tax Credit within the search results and lets legible customers apply for up to $4,000 in savings from the credit at checkout. Instead of waiting for a lower tax bill next year, customers can now get up to $4,000 savings up front, which automatically flow through to eligible customers' financing terms.
Ikea U.S. is trying to better serve the needs of its Spanish-speaking shoppers by launching a Spanish-language platform. In addition to the new online shopping experience, Spanish-speaking customers can also receive support before, during, and after their purchase with a Spanish-speaking associate when calling the support phone line. I'm kind of surprised a company that large didn't already have Spanish-language service for years now.
Costco is hiking its annual membership fees in the U.S. and Canada by $5, and raising the cost of its higher-tier membership by $10, marking the first increase since 2017. That's an increase to $65 from $60 for regular annual memberships and from $120 to $130 for “Executive Membership.” Rest assured though, the hotdog + coke combo will still sell for $1.50.
Shein logistics software is in beta testing with select supply chain customers, and cybersecurity firms are concerned over the potential for a company with close ties to China to spy on the supply chain as it grows its global logistics footprint. Dewardric McNeal, senior policy analyst at Longview Global, said, “Given the intricate nature of the U.S. and global supply chains, the potential for espionage or data gathering is a significant risk. Shein’s software could provide unprecedented access to sensitive supply chain data, which the Chinese government could seize under its laws. This exposure poses a direct threat to U.S. supply chain integrity, making it vulnerable to exploitation and manipulation.” Meanwhile Shein's like, “We don't need your secrets. We're already better at this than you.”
Walmart is offering half off Walmart+ memberships until July 18th, which funny enough, overlaps with Amazon's Prime Day on July 16th and 17th. What are the odds? Walmart+ offers free shipping with no order minimum, free grocery delivery from your local store with a minimum order of $35, savings on fuel, video streaming with Paramount+, free tire repair and road hazard warranty, returns from home, and other perks. Not bad for $49! However note that unlike Amazon Prime memberships, you can't give access to your Walmart+ to other members of your household. They'd all have to login to the same account, which has your payment info tied to it. I learned that the hard way last night when I bought a year of Walmart+, thinking I could add my parents and have them share the membership perks via their own Walmart accounts.
More than 3,000 Amazon associates at Amazon's Coventry warehouse in England voted in a historic trade union recognition ballot that could allow U.K. employees to bargain collectively for rights and pay for the first time. If the collective vote supports recognition, the GMB would be given the right to represent them in negotiations over pay and conditions in what would be the first instance of Amazon recognizing a union in the U.K.
A US judge ruled against the FTC in a challenge to its ruling banning noncompete agreements, citing the FTC's lack of “substantive” rulemaking authority. The preliminary ruling blocks enforcement of the noncompete ban against the plaintiff and other groups that were involved in the case, and signals that the FTC cannot enforce the rule.
OpenAI whistleblowers filed a complaint with the SEC, calling for an investigation into the company for allegedly requiring restrictive NDAs. The whistleblowers claim that OpenAI issued overly restrictive employment, severance, and non-disclosure agreements to its employees, which could lead to penalties against workers who raised concerns about OpenAI to federal authorities.
Marc Andreessen sent $50k in Bitcoin to an AI bot on X called the Truth Terminal, which operates semi-autonomously, with its human handler only approving its Twitter posts and deciding who it gets to interact with. After a chat with Andreessen where the investor proposed a grant, the bot created a plan of upgrades which included a personal CPU, AI model tweaks, and even a billboard. Andreessen agreed to the plan and proceeded with a $50k one-time grant.
Amazon introduced App Studio at its AWS Summit last week, a new gen AI-powered platform that allows professionals to build apps using natural language descriptions and prompts. Users can specify the app's function and the data sources it should pull from, and App Studio will produce an app that would have otherwise taken the developer days. In a demo, Amazon demonstrated how App Studio can take a request for an invoice tracking app and lay out suggestions for how it should work, which the developer can approve before creating the actual app.
WhatsApp Business is reducing rates for utility messages and raising rates for marketing messages, effective Aug 4th and Oct 4th respectively. Over the last year, users have complained about the number of WhatsApp messages increasing over the platform, resulting in spam, so the company started testing restrictions on marketing messages sent to users in India, which it now expanded globally, hoping that the restrictions and increased cost will help reduce the Spam.
Mastercard and Nuvei teamed up to hep consumers in Europe convert digital assets into fiat currency via debit, credit, and prepaid cards. The off-ramping solutions lets consumers convert supported crypto currencies into fiat currency, which they can then transfer to Mastercards without the need to go through third-party exchanges.
Amazon says it reached its goal of matching all of the electricity consumed by its operations with 100% renewable energy in 2023 — seven years ahead of schedule — — making it the largest corporate purchaser of renewable energy in the world for four years running. The company is exploring new carbon-free energy sources in efforts to meet its Climate Pledge commitment of net-zero carbon by 2040.
The EU declared that X breached its guidelines under the Digital Services Act, following an investigation into the company's advertising transparency, availability of data, and risk management. X was informed of these preliminary findings on Friday, which found three primary breaches of the DSA including its use of the Blue Check mark to receive verified status, its inability to search its advertising system, and for prohibiting researchers from independently accessing its public data.
TikTok ad spend is tapering off since March when the U.S. introduced the selloff bill that would require the company to divest the app to American ownership or be banned from the country next year. It's still growing, just slower. Ad spend was up 19% in March, 11% in April, but only 6% in May. Target reduced its spend by 30%, DoorDash by 25%, Bayer by 20%, and Procter & Gamble by 10%.
Amazon Pay India is introducing new payment methods this year including UPI, credit cards, and wallets, rather than just specializing in a single segment. The company says it sees opportunities in penetrating offline payments and smaller towns, where currently 65% of the transactions done by consumers in tier two and three cities were digital versus 75% in larger cities.
Plus 5 seed rounds, IPOs, and acquisitions of interest including Flip's acquisition of Curated, a marketplace that connects consumers with verified experts for personalized shopping advice, for $330M in stock.
I hope you found this recap helpful. See you next week!
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-PAUL Editor of Shopifreaks E-commerce Newsletter
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