Barry J O'Gorman’s Post

Welcome back to the office America, there’s a new sheriff in town. Is it Temu? By Spencer Soper -Amazon has a new strategy to compete with Chinese ecommerce upstart Temu. -Temu has taught Amazon.com Inc. an important lesson: US shoppers can be patient if it saves them money. -News broke last week that Amazon is planning a low-priced store for apparel and home goods shipped directly to US shoppers from China, signaling that the ecommerce giant is taking seriously the threat posed by discounters like Temu and Shein. -Amazon helped change the way people shop by building a vast network of warehouses designed to stockpile products and quickly send them to customers. -That model requires products manufactured in China to be shipped by sea in bulk to the US and trucked to warehouses around the country. -The upside is that products are close to shoppers, enabling delivery in just a day or two. Amazon has been investing in sharpening that delivery advantage over rivals with warehouses closer to consumers to increase the number of products they’ll receive quickly. -That’s not what Chinese rivals like Temu have been doing, in part because they can’t afford to compete with such a cost-intensive strategy.

Price sensitivity is about to face a new test. With Amazon.com stepping into the ultra-competitive discount retail space, we're about to see how consumer behaviors shift. Just as JD.com's pivot to Temu-like stores last year drove significant growth through low-cost, trendy products and social commerce, Amazon's move will require careful analysis. Shopper insights teams must closely monitor how these pricing strategies and promotions impact consumer purchasing decisions. JD.com has shown the power of leveraging advanced analytics and appealing to price-sensitive consumers. Now, it's Amazon's turn to see if it can replicate this success. #Ecommerce #RetailTrends #JDcom #Amazon #ConsumerBehavior #DiscountRetail #PriceSensitivity #ShopperInsights #SocialCommerce #DigitalTransformation #MarketAnalysis https://lnkd.in/gWiRebj7

𝐈𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐢𝐧𝐠 𝐒𝐜𝐚𝐦𝐚𝐳𝐨𝐧 𝐒𝐮𝐛-𝐏𝐫𝐢𝐦𝐞 – 𝐀𝐦𝐚𝐳𝐨𝐧 𝐣𝐨𝐢𝐧𝐬 𝐭𝐡𝐞 𝐝𝐚𝐫𝐤 𝐬𝐢𝐝𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐟𝐨𝐫𝐜𝐞 That’s what I came across reading what Redditors think about this newest change that will take place this autumn. Amazon will create an online storefront focused on selling dirt-cheap goods shipped directly from China instead of Amazon’s warehouses. 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐬' 𝐩𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞 - they are excited about having more access to more affordable shopping goods while enjoying Amazon’s reliable delivery options and customer service. A lot of them mention that the goods sold were “crap from China” anyway, just sold at a higher markup so they see this change as a great opportunity to save money in this inflationary economy. 𝐀𝐦𝐚𝐳𝐨𝐧 𝐬𝐞𝐥𝐥𝐞𝐫𝐬’ 𝐩𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞 - they are concerned about the negative impact this will have on their market share. Another concern is that they’ll face more counterfeit and low-quality products from the competition. 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐩𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞 - some analysts think this is a smart move by Amazon to counteract competition from Temu and Shein, and others are concerned about the sustainability of small businesses that sell on Amazon. 𝐀𝐦𝐚𝐳𝐨𝐧’𝐬 𝐩𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞: 𝐈𝐟 𝐲𝐨𝐮 𝐜𝐚𝐧’𝐭 𝐛𝐞𝐚𝐭 𝐭𝐡𝐞𝐦 – 𝐣𝐨𝐢𝐧 𝐭𝐡𝐞𝐦. What is your perspective? https://lnkd.in/dXZDjTwp

Amazon AWD vs. 3PLs: It's not just about cost. Too many e-commerce businesses get caught up in comparing storage fees and shipping rates, but miss the BIG picture when it comes to logistics. Here are a few questions that can make all the difference: **Where are your customers... tomorrow? ** If expansion is on the horizon, can your logistics keep pace? Is your brand just about the product, or the whole experience? How much control do you need over the unboxing moment? Is 'fast enough' really good enough? Could specialized logistics give you an edge competitors aren't even thinking about? Logistics isn't a line item in your budget, it's a strategic lever for growth. What experiences are you missing out on by NOT making the most of it? #onlineshopping #retail #ecommerce

Breaking news: Amazon is starting to copy Temu! More in the publication. The source is Reuters. I highly advise my contacts to read and follow what Ed Sander writes about the development of Chinese e-commerce and business. Because the info about what really is happening in China and Asia is insufficient in Europe (and the western world at all) many people still think that things there are happening a bit stupidly by methods outdated 30 years ago. I also advise my e-commerce customers to copy what Temu is doing in logistics, in customer acquisition strategies and in customer interactions. And, also, people, learn that Temu is only a daughter company of Pinduoduo, and it's leader Colin Huang is a global visioneer with very interesting business philosophy, who is comparable with leaders like Steve Jobs and Jeff Bezos. I'll soon write my comprehensive opinion on how Temu succeeded and gained it's huge market share. Follow my publications if you're interested.

This differentiation is thanks to factors including pricing, profits, and ownership, writes Seetharaman G in this week's Trade Tricks. Click the link in the comments. ------- #TheKen #Blinkit #Instamart #Amazon #QuickCommerce #ECommerce

"Amazon to launch discount section with direct shipping from China" The picture below was taken by Tobias Kühn at this week's —Future Retail conference. It shows a slide I normally use at the end of my keynote. It warns that the biggest danger of Temu is that we might underestimate what the parent company, Pinduoduo, is capable of. Alibaba has lost about 45% market share since 2013. About half of that went to Pinduoduo, which launched in 2016. After the established e-cm platforms like Alibaba's Taobao/Tmall and JD.com first dismissed (laughed) Pinduoduo, they realised how successful it was (studied). Then they came with copycat platforms like Taote and Jingxi. Last year, after these largely failed, they implemented new policies on their main platforms to ensure inexpensive goods. Many of these policies were copied from Pinduoduo (want to be...). Although the overlap between Amazon and Temu visitors has been said to be limited (<10%), Amazon is now already in 'phase 3' of wanting to be Temu. Reuters reports: "Amazon.com plans to launch a section on its shopping site featuring cheap items that ship directly to overseas consumers from warehouses in China, the Information reported on Wednesday, citing slides shown to Chinese sellers." "The new marketplace, Amazon's most aggressive response to the growth of bargain sites like Temu and Shein, will offer unbranded fashion, home goods and daily necessities, according to the slides, and the products will be delivered between 9 to 11 days to customers, the report said." Meanwhile, leading European e-com trade organisations still claim that "Many sellers from [China] are able to keep their prices low because they do not adhere to European rules for safety, sustainability, and returns." If we don't realise that prices are low because of temporary subsidising by the e-commerce platforms (not the Chinese government), automated tendering systems and extreme efficiencies in the supply chain, we are totally missing the point. Shoddy quality and disregarding legislation are very real but not the major reasons for the low prices. If we refuse to be willing to understand the new business models of Chinese webshops, we have already lost the battle. Amazon has already laughed, studied and wants to be ... how about you?

https://lnkd.in/ea79dKhw? Amazon is in an annoyingly tricky position here: for a long time, they were able to treat fast shipping and low prices as complementary objectives, both of which benefited from having more Prime subscribers, a denser fulfillment network, and better tools for predicting and managing demand. But this made them gradually worse at serving the needs of customers who were willing to wait a week or two in exchange for saving a few dollars on a transaction. To a company that pays close attention to customer-level profitability metrics—and Amazon was quite early to emphasizing a subscription/membership model compared to other online retailers—these price-sensitive customers were not the ideal market to target. But there aren't many consumers left who haven't at least considered Amazon, and whether those new customers end up being Prime subscribers in a few years or not depends heavily on whether Amazon is cheaper than Temu for the next purchase they plan to make.

Big news in the e-commerce world! Amazon Launches Temu-Inspired Discount Section with Direct Shipping from China! Amazon is set to launch a new discount section offering unbranded products directly shipped from China. This move is a strategic response to the growing popularity of platforms like Temu and Shein. Key highlights: ▪ Wide Selection: Unbranded items in fashion, home goods, and more. ▪ Affordable Prices: Increased product selection at lower prices. ▪ Direct Shipping: Products shipped directly from China within 9-11 days. While this aims to enhance customer experience, it raises significant questions for U.S.-based sellers already competing with low-priced Chinese brands. Will U.S. sellers be able to participate, or will this new section exacerbate existing challenges? I'm eager to see how Amazon navigates this development and what it means for sellers globally. What are your thoughts on this new direction? https://lnkd.in/dqyqJgnA

WOW most famous ecommerce website needs to take a "follower" approach to counter competition from some Chinese giants. I am curious how it will pan out for Amazon as it might create temptations for its existing users and possibly affect AVB. https://on.ft.com/4cGtpbj #Amazon #ABV #ecommerce #competition #strategy #discounts