The program that enables marketplace sellers to offer Prime shipping without the use of Amazon’s warehouses had several changes announced this week that increased performance requirements fewer sellers will be able to meet. The company has also removed pages describing the program from search engines.
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Amazon is testing a change to its search suggestions that adds a link to the related brand's store page. Branded searches like "adidas" have "adidas store on amazon" as an option. Crucially, unbranded searches like "men's running shoes" also have a suggested brand store.
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U.S. e-commerce grew 44.5% in the second quarter, the fastest growth in over two decades, lifting e-commerce share of total retail to 16.1%. According to the Department of Commerce, retailers generated $211 billion in online sales in the second quarter compared to $146 billion a year ago.
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Every year at least tens of billions of dollars worth of goods are sold directly from China to consumers in the US and elsewhere. Without the excitement, attention, and venture capital other parts of e-commerce have received, it is this quiet industry capturing the profits. It didn’t exist before 2010.
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After experiencing all-time high negative seller reviews in May, Amazon has recovered to levels seen before the pandemic started. Seller reviews are the best indicator of Amazon shopper sentiment since they capture as much as ten million opinions a month.
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Walmart has started showing sponsored product ads as the first and second search results. The company has previously taken a stance against putting ads above organic results but appears to be drifting away from that to grow the advertising business.
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Amazon is struggling to accept some inventory shipments in time, which is causing products to sell out, leading to a drop in search rankings and quantity restrictions. The previously predictable inventory cycle with known restrictions and fees has become unpredictable.
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For the first time, in the second quarter, Amazon’s fastest-growing business segment was the marketplace. Revenue from transaction and fulfillment fees was up by an all-time-high 53% in the quarter, indicating strong sales by the marketplace sellers.
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Shopify’s Gross Merchandise Volume (GMV) for the second quarter was $30.1 billion compared to eBay’s $27.1 billion. For the first time, Shopify processed more transaction volume than eBay. Shopify is not a marketplace directly comparable to eBay; however, like all e-commerce companies, they compete for the same customers.
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Walmart marketplace has surpassed 50,000 sellers, doubling in size from July 2019. The partnership with Shopify, announced on June 15th, has accelerated its growth, bringing over 5,000 new sellers during the six weeks since.
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