It’s no secret Amazon, the e-commerce giant has invested heavily in its own fulfillment operations. Increasingly, its Marketplace selling, even more than its own retail operations, appears to be the targeted beneficiary of those efforts. At the moment those investments are taking a toll: In its most recent quarter, logistics costs nearly wiped out profits. But that is also expanding Amazon’s reach, particularly through its Marketplace, and last year’s numbers portend further expansion this year.
Lana Elie is the founder of Floom, launched in February 2016 and pipped as one of the top 20 start-ups to watch this year. Floom is an online marketplace where London-based florists can upload their creations for customers to buy. Having previously worked on global campaigns for brands including Nike, Burberry and Gucci, female entrepreneur Elie left her high-powered job to turn her idea for Floom into a reality.
Between them, they’ve raised millions of dollars in venture funding. They’ve built game-changing e-commerce platforms, apps, and bots. They’ve launched exciting new products across categories as varied as upscale denim, healthy pet food, and nontoxic lube. They’re pioneers of the subscription economy. They’re figuring out what a transparent supply chain looks like in the age of mobile shopping. And they range in age from just 19 to 29. Meet the millennials reinventing retail and ecommerce.
China-based investment management firm Hillhouse Capital will funnel $250 million into California-headquartered e-commerce platform solutions provider Magento to help its growth in Asia. The capital infusion will also facilitate the company’s marketing and client support, new product innovation and future acquisitions.
Selling through another company’s online marketplace can be a good way to build brand exposure and sales, and even more so when the marketplace provides sellers with data on sales volume across multiple products and categories. Classic Accessories, a manufacturer of outdoor equipment coverings, is uncovering what buyers want through a new e-marketplace by selling through the BuildDirect.com marketplace to consumers as well as businesses. It has compiled data on customer demand that has enabled it to better plan its production and the product assortments it distributes to hundreds of wholesalers and retailers.
Amazon has just launched a test version of a new P2P marketplace in India, which will allow consumers in the country to sell their used items via Amazon’s online retail platform. As of now, the service is only operational in the city of Bangalore. The online marketplace plans to attract consumers using other P2P online marketplaces by also covering the logistics process. After a transaction is completed, Amazon will pick up, box and ship items to the buyer. Sellers will pay Amazon per-item fees based on each item’s value.