eTailer Performance, Ad Acquisition, Competing with Amazon
eTailers See Mixed Growth This Quarter
Our quarterly eTailer report showed mixed eCommerce growth across eBay, Wayfair, Alibaba, and Etsy, though the outlook from these companies did improve slightly for the balance of 2019. Negative impacts to growth included trade war concerns, new eCommerce tax regulations, and slowing advertising spend. Going forward, eTailers are looking to drive profitability through expanding core offerings such as advertising, payments, and private label. International opportunities are also included in growth strategies, specifically for Alibaba and Etsy. Additionally, eTailers are seeing continued increases in mobile sales, both through websites and apps, often representing more than half of business.
Amazon Acquires Portions of Sizmek
On Friday of last week, Amazon announced it was acquiring Sizmek Ad Server and Sizmek Dynamic Creative Optimization (DCO). Both Sizmek groups will initially operate separately from Amazon Advertising. This move will help advance Amazon’s advertising capabilities from a reporting and data perspective and position the company more competitively against advertising rivals.
Amazon Sparks Delivery Competition Among eTailers
Many eTailers responded to Amazon’s 1-day shipping announcement in late April, detailed in the chart.
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