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Success for retailers is about selling more stuff, right? Well, sort of. US Retail Media Networks (RMNs) drove apprximately $50 billion of revenue in 2023, and more than 3x that amount globally. This coming in at extremely high (80%+) gross margins, relative to relative modest, if not thin traditional retail margins. While Amazon drives more than 75% of that US volume, others are catching up. RMNs have changed the game of retail, and continue to do so in new and innovative ways. Take a look at McKinsey & Company's "Six secrets of unleashing the power of retail media", by Quentin George, Jack Trotter and Jon Flugstad. https://lnkd.in/eYUix8WA Other experts helping to drive innovations across this arena include Rebecca Messina, Adam Broitman

"A lot of retailers lay awake at night worried about how to stop Amazon from taking their hard earned market share. Like 'Jack and the Beanstalk', smaller retail brands need to find the one thing they can do better than ANYONE else, and "double down" on that. That's what's levels the playing field and drives exponential growth." Discover your unbeatable "brand power" and create an unfair competitive advantage!. Click on this link today to get a Complimentary PDF copy of the best seller book Radical Retail Growth - It's all you need to be successful in 2024 and beyond. #RadicalRetailGrowth #InnovativeRetailBrands #BrandExperienceManagement #FanaticalBrandLoyalty https://lnkd.in/gsNkG3AZ

Hello Everyone! This week, I will bring to you a must-read for everyone in the ecommerce industry. Winner Sells All: Amazon, Walmart, and the Battle for Our Wallets by Jason Del Rey. Here's why: 1. Deep Dive into Industry Titans: Del Rey expertly dissects the intense rivalry and strategies of two behemoths - Amazon and Walmart. This is not just a tale of competition, but a lesson in adaptability, innovation, and consumer-centricity. 2. Real-World Case Studies: The book isn't just theory. Packed with real-world examples, it serves as a practical guide on what works and what doesn’t in today’s ecommerce landscape. 3. Evolution of Retail: Witness the transformation of brick-and-mortar Walmart, striving to conquer the digital frontier, and digital-first Amazon expanding its footprint into physical retail. This duality offers rich insights into where the future of retail might be headed. 4. Behind-the-scenes Access: Del Rey’s access to insiders, executives, and key players offers a unique and raw perspective, bringing depth to the narrative that you won’t find in regular news articles. 5. Universal Lessons: Even if you're not directly in ecommerce, the strategies and tactics explored in this book offer valuable insights for anyone interested in business, competition, and strategy. In a world where ecommerce is rapidly evolving, understanding the moves and motivations of its biggest players is invaluable. "Winner Sells All" offers this and much more. Dive in and stay ahead of the curve! #BookRecommendation #Ecommerce #BusinessStrategy #RetailEvolution

Hello LinkedIn community! This week, I will bring to you a must-read for everyone in the ecommerce industry. Winner Sells All: Amazon, Walmart, and the Battle for Our Wallets by Jason Del Rey. Here's why: 1. Deep Dive into Industry Titans: Del Rey expertly dissects the intense rivalry and strategies of two behemoths - Amazon and Walmart. This is not just a tale of competition, but a lesson in adaptability, innovation, and consumer-centricity. 2. Real-World Case Studies: The book isn't just theory. Packed with real-world examples, it serves as a practical guide on what works and what doesn’t in today’s ecommerce landscape. 3. Evolution of Retail: Witness the transformation of brick-and-mortar Walmart, striving to conquer the digital frontier, and digital-first Amazon expanding its footprint into physical retail. This duality offers rich insights into where the future of retail might be headed. 4. Behind-the-scenes Access: Del Rey’s access to insiders, executives, and key players offers a unique and raw perspective, bringing depth to the narrative that you won’t find in regular news articles. 5. Universal Lessons: Even if you're not directly in ecommerce, the strategies and tactics explored in this book offer valuable insights for anyone interested in business, competition, and strategy. In a world where ecommerce is rapidly evolving, understanding the moves and motivations of its biggest players is invaluable. "Winner Sells All" offers this and much more. Dive in and stay ahead of the curve! #BookRecommendation #Ecommerce #BusinessStrategy #RetailEvolution

McKinsey estimates that Amazon would suffer substantial quarterly losses without retail media margin. Il eCommerce is a money-losing proposition in its current form without unbundling the components of retail including media, logistics and technology. The challenge facing RMN providers is that the bulk of dollars is driven by search. Amazon and Walmart excel in this area, commanding 80%+ of RMN investments. How will the rest of retail innovate to compete for additional RMN dollars? #ecommerce #retailmedia #RMN #retailinnovation #nrf2024

Back in 1999, we thought e-commerce would change everything. Just one warehouse to ship from seemed like the ultimate efficiency. Turns out it's not that simple. And thinking multiple warehouses can solve the problem? That's not always true. Here's why: This multi-warehouse strategy faces the same old problem in retail — managing inventory effectively. Predicting what people will buy and where they'll buy it is notoriously tough. Even Amazon is wrestling with this, struggling like traditional retailers have for years. So, what's the answer? We need to get better at predicting demand so we can place products closer to where people actually buy them. It's tough, no doubt. But it's the challenge we've got to meet. P.S. – There is a better way to bring all your data together to make proper business decisions. Take a look in this 5-minute micro-demo: https://lnkd.in/gQUiB-9E

Real-Life shock: get ready for an unbelievable story! 🤯 I recently spoke with a CEO of an e-commerce brand on Amazon, and he mentioned they never experience out-of-stock scenarios. This was surprising, as we have never encountered someone who claimed this in our discussions with thousands of brands. When I asked for more details, he explained that they increase prices significantly as inventory levels drop to reduce sales and avoid hitting zero inventory. My jaw dropped! 😲 This is someone who's supposed to understand math, economics, and market dynamics. This strategy not only shows a lack of understanding of demand elasticity but also a naive belief that he operates without competitors—ignoring that customers will switch to competitors when faced with such price hikes. This kind of misguided approach can only happen on Amazon, where brands might get away with dynamic and irresponsible pricing strategies that would never fly in the real world. #BelleAI #Ecommerce #AmazonStrategy #PricingMistakes #DemandElasticity #CompetitiveMarket

In its complaint against Amazon, the FTC accuses the online retailer of being a monopoly. Indeed, the FTC uses the term around 36 times in its lawsuit. It is easy to bandy words like monopoly around but repeating something over and over does not make it true. Amazon is certainly a large company, but that does not make it a monopoly. If anything, in a cutthroat retail market, Amazon deserves enormous praise for growing to the scale it has. And it has done this against a backdrop in which other retailers, like Walmart, have also sometimes been inaccurately accused of holding a monopoly position. That, in itself, signals the absurdity of the term. The most ironic thing of all, however, isn’t that Amazon is accused of something it is not – it’s that Amazon’s impact on retail and consumer industries is the precise opposite of what the FTC alleges. Amazon, maybe more than any other company, has democratized retail. It has provided a platform where independent sellers can compete with the big guys across all parts of the consumer landscape. Today, more than 60% of sales in Amazon’s store come from independent sellers. This past week I have spoken to a lot of Amazon sellers and the message is always the same: we couldn’t have grown and competed without Amazon. I’ve heard from small CPG businesses that could not get listed in retailers that have used Amazon to reach consumers and grow their sales. I’ve heard from candle firms that are taking on the might of giants like Bath & Body Works and Yankee via Amazon. I’ve heard from wellness companies that can expand their product lines on Amazon in a way that they cannot in mainstream retail. I’ve heard from food manufacturers whose margins are better on Amazon than they are in Costco. I’ve heard from companies who have access to tools on Amazon that they would never be able to afford on their own. This is not a story of a retailer gobbling up market share. It’s actually a story of a complete revolution in how small and independent businesses can reach the market and win. #retail #retailnews #Amazon #monopoly #antitrust #FTC #ecommerce

Is retail media on the cusp of a big shift offsite? Whilst onsite still accounts for ~84% of retail media ad spend, offsite is growing fast. "If you compare the amounts of data retailers have on consumers including people who shop in their stores, offsite commerce media starts to look like a very scalable business model for all retailers and not just Amazon." Diaz Nesamoney shares his perspective in new blog: https://lnkd.in/eWYF99Pi What are your thoughts? Let us know in the comments 👇

Finally! ESLs (electronic shelf labels) are here! In my lectures at The University of California, Berkeley, Haas School of Business I have been predicting this for 15 years. My timing was WAY WRONG. But now, Walmart has decided to put them in every store. The article fails to mention what I believe to be the biggest driver - omni-channel retailing specifically Amazon. Amazon has built and bought deep capabilities to extract margin from pricing, pretty frictionlessly given 90% of sales are online. This makes it hard for Walmart, with only about 15% of sales coming online to compete on price without giving away margin. So, ESLs are an obvious way to close this gap....if customers accept them. For customer acceptance, there is a lot to unpack. For example, what if prices change while you are in the store, with a product already in your cart? On-line it is easy, you get a price change in-cart notice. But in the store it's a different story. They will likely start changing prices nightly but they need to start changing them during the day to to reflect demand, store traffic, inventory, and even weather. How do you think customers will react? Will WMRT's bottom line operating margin go up without loosing significant customers (top line)? My take is that this is necessary experimentation that probably wont' work great at first, despite Walmart's reputation for operational rigor, but will give way to new margin enhancement strategies and grow EBITDA. Do you want to slow down check-out to manage this situation? https://lnkd.in/gF_xsSRJ