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  • 🌀Shopify launches Shopify Magic. Can it charm entrepreneurs?

🌀Shopify launches Shopify Magic. Can it charm entrepreneurs?

Plus: Can Amazon Business win B2B commerce the same way it did with B2C?

Happy Sunday! Welcome to the MarketMaze newsletter, where we bring you the latest news, statistics, and analysis from the E-commerce & Marketplace space so you can stay ahead of the curve. Each week, we'll send you an email covering all the information you need, and it will take just a few mins to read.

Today's write-up is 1,853 words, a 6-minute read.

This week’s highlights:

1. 📰News: Shopify launches Shopify Magic. Can it change the way entrepreneurs operate?

2. 📊Stat: Can Amazon Business win B2B commerce the same way as it did with B2C?

3. 📖Headlines: Shopify, Amazon, TikTok, Aliexpress, Allegro, Shein, StockX, Zalando, DoorDash, Getir, Wolt, Glovo, Deliveroo, Etsy and more!

4. 😲Mazes: German Marketplace dominance for small kitchen appliances, Food couriers work very irregularly, Disagreement between UK customers and stores on delivery options

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1. 📰 News of the week

Shopify launches Shopify Magic, an AI built directly into Shopify. Can it charm entrepreneurs?

  • Shopify, the popular e-commerce platform, unveiled free-to-use AI features called Shopify Magic during the recent Summer ’23 Edition event (a twice-annual showcase of the latest products and innovations). These AI tools are designed to save merchants time on administrative tasks, such as generating customized blog posts, drafting answers to customer questions, creating AI-driven email campaigns, and writing product descriptions.

  • Tools introduced at the event include, among others:

    • Shopify Sidekick which is basically like an e-commerce-tuned version of ChatGPT

Image Credits: Shopify

  • Marketplace Connect that allows merchants to sell from Shopify on multiple marketplaces like Amazon, Walmart, and eBay

  • Shopify Collective to help merchants branch into B2B sales. Merchants can now source new products from brands they love on Shopify that will ship directly to the merchant’s customer and launch cross-selling in just a few clicks

  • More features for B2B on Shopify to support merchants in selling wholesale (e.g. volume pricing and company account requests)

  • Shopify Credit is a new business credit card to assist merchants in managing finances and offer up to 3% cash back on eligible purchases

Image Credits: Shopify

📓Comments:
Shopify President Harley Finkelstein sees AI as the central theme behind these developments, empowering entrepreneurs to gain a significant advantage for their businesses. The goal is to help small merchants grow faster and assist established businesses with their operational challenges.

While the ROI of AI features like Shopify Magic remains unclear for small business owners, Shopify's efforts to simplify e-commerce tasks and integrate AI capabilities are seen as beneficial for merchants. The platform aims to become a comprehensive business hub, reducing reliance on third-party apps for its users.

Deep dive → Shopify | TechCrunch | TechCrunch
2. 📊 Stat of the week

Can Amazon Business win B2B commerce the same way it did with B2C?

  • The pandemic had a profound impact on the growth of e-commerce, including B2B marketplaces, which saw significant expansion.

  • Amazon Business emerged as a dominant player in the B2B marketplace arena, accounting for the majority of sales among nearly 500 U.S.-based B2B marketplaces. Its gross merchandise value skyrocketed from $25 billion in 2020 to approximately $35 billion in 2022, with third-party merchants contributing more than half of its revenue.

  • In 2012, Amazon introduced its B2B marketplace as "Amazon Supply" before rebranding it as "Amazon Business" in 2016. It expanded its operations to Europe in 2016, starting with Germany, and later entered the U.K. in 2017. Presently, it also serves customers in France, Italy, Spain, India, and Japan. Despite closing a wholesale grocery distribution center (Amazon Distribution) in late 2022, India remains Amazon Business's second-largest market after the United States.

  • Amazon is now offering its "Business Prime Duo" feature for free to Amazon Business customers who are also Amazon Prime members. This membership combines buying tools and exclusive business-only pricing for select items, along with complimentary business delivery. The benefits of Business Prime Duo include free one- and two-day delivery on a vast selection of items, as well as same-day delivery for eligible products in 90 metropolitan areas across the United States. Additionally, members can access analytic insights through survey tools.

  • To compete with Amazon, Walmart launched its B2B marketplace called Walmart Business, focusing on office supplies, furniture, food, and electronics. It offers Walmart Business+ at $98 per year, providing business customers with various benefits, including free shipping with no minimum order, free delivery from stores on orders over $35, spending analytics, and 2% in rewards on purchases over $250.

📓Takeaway:
As the B2B ecommerce landscape continues to evolve, both Amazon and Walmart are vying for a larger share of the market by offering innovative features and services to attract and retain business customers.

3. 📖 Headlines of the week

🛒 Mass merchant marketplaces

  • 🇬🇧 Amazon offers concessions to UK antitrust watchdog. Amazon offered commitments to the U.K. Competition and Markets Authority after Britain’s competition watchdog raised concerns about the U.S. e-commerce giant’s treatment of third-party sellers. Deep dive → CNBC

  • 🇺🇸 TikTok’s online marketplace for the US could launch in August. According to a report from The Wall Street Journal, TikTok’s online marketplace will store and ship a variety of products from sellers based in China, including clothes, kitchen gadgets, and electronics. Deep dive → The Verge | The Wall Street Journal

  • 🇦🇺 Wish deepens its investment in Australia through a partnership with Singapore Post. Customers can now expect their orders to arrive in less than 2 weeks (vs 3 weeks previously), and will be able to trace their package from the moment it leaves the warehouse to the time it arrives on their doorstep. Deep dive → GlobeNewsWire

  • 🇧🇷 Aliexpress launches a program to support new sellers in Brazil. The marketplace will have booths and exclusive presentations and is offering a three-month cashback program for new sellers. AliExpress’s commitment to supporting Brazilian sellers is evident through its lower and more competitive commission rates compared to the national market average. Deep dive → Claytoncountryregister

  • 🇵🇱 Allegro to enable shipments to the Czech Republic for Polish sellers via InPost. Service to be enabled since September to be extended to more countries. Allegro Localy launched an agricultural market. Users can now sell machines, agricultural inputs, and grain seeds. Deep dive → Propertynews | Tabletowo

  • 🇵🇱 Empik obtained PLN 300 million in financing, potentially for takeovers. Deep dive → Portal Spożywczy

😲 Maze of the week

German Marketplace dominance for small kitchen appliances

36% market share of Marketplaces and Fulfiment by Amazon in Germany for small kitchen appliance (up from 24% in 2020!)

👗 Fashion marketplaces

  • 🌎 Shein revealed record first-half net profits driven by U.S. sales momentum. Gross Merchandise Volume (GMV) in Brazil has nearly doubled, approaching $100 million, accounting for over a third of the local total GMV. The platform currently has 6,000 active sellers in Brazil. Deep dive → cnbc | btimesonline

  • 🌎 StockX aims to establish itself as a global player. StockX claims that 50% of the products sold by 1.5M sellers come from outside the United States, and that 25% of its 12 million buyers are located beyond its domestic market. In total, the platform claims to have recorded 40 million transactions in 2022. Deep dive → FashionNetwork

  • 🇬🇧 Lamoda integrated adtech beeline platform. The platform allows sellers and brands selling on Lamoda to attract more buyers: advertising is targeted at target users and leads them from external resources to the Lamoda website - to the seller's or brand's product. Deep dive → Comnews

  • 🇩🇪 Zalando pilots save now pay later in cooperation with Savrr. With Save-now-buy-later, customers get a savings account set up for a specific online shop in order to save on desired items and receive a return on the savings when they reach the target they set themselves. Deep dive → InternetWord | Savrr

🍔 Food marketplaces

  • 🇪🇺 Getir trying to close funding, pulls out of Spain, Italy and Portugal. Getir will continue its operations in the U.K., U.S., Germany, the Netherlands, and Turkey which currently account for the majority (96%) of its revenues. Deep dive TechCrunch

  • 🇮🇳 Swiggy launched a credit card. The credit card will offer customers a 10% cash back on spending on Swiggy and 5% across over 1,000 partnered platforms. Deep dive → TechCrunch

  • 🇸🇬 foodpanda and TabSquare jointly to deliver AI-powered solutions to digitalize dining experiences in restaurants across Asia. The companies intend to help restaurants digitize their ordering, payment, and customer engagement-related processes. Deep dive Foodpanda

  • 🇩🇪 Wolt drivers sue Wolt for withholding wages. 2 drivers were hired by subcontractor Mobile World in Berlin. It is estimated that up to 120 couriers may have been denied wages after being recruited through subcontractors. Deep dive → Morningstaronline

  • 🇬🇧 Deliveroo is working to raise awareness of its delivery subscription plan Deliveroo Plus, with a campaign promoting a 60-day free trial of the service that aims to be hassle-free with no hidden terms and costs, according to a statement by the brand. Deep dive → Marketing interactive

  • 🇪🇸 Glovo could be closing the Glovo Concepts which created virtual restaurants. Glovo will have to redeploy around thirty workers. Deep dive Ara.cat

😲 Maze of the week

Food couriers work very irregularly

4 hours per week are spend on average on delivery by couriers working for DoorDash. 72% of Dashers average even less than that

📦Various marketplaces

  • 🌎 Etsy tests a new Local Shipping badge to boost sales and promote sustainability. Etsy plans to explore similar badge implementations in international markets in the near future. On top of that, Etsy is changing photos to square format on sellers’ pages in early August. Deep dive → eseller365 | eseller365

  • 🇦🇺 Beer Fans, Australian beer marketplace, is set to expand its offering to New Zealand, launching a local website next month. Beer Fans says it is dedicated to “fostering connections” between these local breweries and a global audience of beer enthusiasts. Deep dive → Inside Retail

  • 🇨🇳 Tencent-Backed used car marketplace Taoche seeks $200M in fresh funds. Several second-hand car marketplaces in China have recently been considering first-time share sales Deep dive → Finance Yahoo

  • 🇬🇧 Superdrug launched new accessibility features to make online shopping more inclusive. The Assist Me Tool enables user-triggered accessibility enhancements and allows customers to interact with the website based on their individual needs and preferences. Deep dive → Internetretailing

  • 🇮🇹 Leroy Merlin to double down on the marketplace in Italy. Marketplace processed 1.1M transactions based on 716 sellers. Deep dive → Bricomagazine

😲 Maze of the week

Disagreement between UK customers and stores on delivery options

83% of retailers believe they offer a wide range of delivery options yet just 48% consumers agree with this. As consequence up to £31.5bn of sales could be lost due to delivery options in UK.

Free resources:
- Top10 reports on marketplaces
- Top150 European marketplaces (soon!)

That’s all. See you next week!

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Author

Artur Stańczuk is a Chief Strategy Officer at Packhelp, the leading European packaging marketplace. Previously worked ~8 years at Bain & Co. In the past, Digital Transformation Director at the leading Polish convenience chain Żabka and Entrepreneur that co-launched 3 start-ups

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