Paul Tepfenhart

Amazon Dominates Home Furnishings Market as Walmart Struggles to Keep Up Amid Growing Consumer Demand for Discounts. 👉 Amazon is becoming dominant in the furniture and home furnishings market, holding nearly three times Walmart's market share. 👉 Amazon's market share continues to increase while Walmart's is declining. 👉 Amazon is doing everything possible to drive up its share of spending in the category, including launching its first-ever "Big Spring Sale" event, offering up to 40% off select home products. 👉 Consumers are looking for deals, as economic challenges limit shoppers' purchasing power, and both Amazon and Walmart have seen success with their savings events. 👉 Walmart is looking to drive revenue in other ways, such as integrating AI features into its app to improve the online shopping experience and selling its AI-powered truck Route Optimization software to other companies. #amazon #walmart #ecommerce #retail #homegoods

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Buybuy Baby Leverages Expert Curation and Omnichannel Approach to Differentiate Itself from Retail Giants. 👉🏽 Buybuy Baby is focusing on its specialty selection and an omnichannel approach to compete against retail giants like Amazon. 👉🏽 The retailer is leveraging consumers’ trust in its brand and expertise in the baby category to differentiate itself from larger competitors. 👉🏽 By offering specialty, curated experiences, and products, Buybuy Baby aims to provide guidance and ease the overwhelming choices for new parents, unlike platforms such as Amazon. 👉🏽 Despite having brick-and-mortar stores, the retailer uses digital platforms to reach more customers nationwide and facilitate the in-store shopping experience. 👉🏽 Buybuy Baby plans to expand to new markets, launch new products and services, grow its digital business, and use artificial intelligence to improve its processes in the upcoming year.

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USDC E-Commerce Quarterly data is out. Q1 2024 E-Commerce grew 8.5% vs the previous year. E-Commerce at Amazon grew 11% and 22% at Walmart, so the most other retailers didn't have a great quarter. E-Commerce for the quarter represented 22% of Core Retail Sales (retail minus restaurants, automobiles , and gas). Core Retail grew 3.8% YoY, and Core Bricks and Mortar grew 2.55% (without e-commerce). As you can see E-Commerce shot up in Q1 2020 (pandemic) The denominator of these ratios matters a lot... I'd argue Core Retail is the most informative, but you can also look at E-Com Revenue without a ratio. https://lnkd.in/ggeSbBEv

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Despite stiff competition, Amazon is well on its way to capturing over 40% of the US eCommerce market. 📊 Key Stat: According to a February 2024 forecast, Amazon will account for 40.4% of US retail e-commerce sales, totaling $491.65 billion this year. 💡 Insights from the article 1️⃣ Amazon will make up just 6.6% of US retail sales despite its eCommerce dominance. This share is expected to grow to 7.0% in 2025 as more spending shifts to eCommerce. 2️⃣ Over the next two years, Amazon’s market share will increase in 8 out of 10 product categories. The exceptions are home improvement (due to established retailers) and auto (due to Tesla and Carvana). 3️⃣ Among major US retailers, Walmart is growing its eCommerce sales faster than Amazon, with a growth rate of 13.6% compared to Amazon’s 10.5%. Walmart's lead in digital grocery could pose an increasing threat to Amazon as the category matures.

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AI luminary Dr. Andrew Ng is Amazon’s newest Board of Director member https://buff.ly/4adRBAe if you want to know where Amazon is headed with AI, you should brush up on Dr. Ng's POV around Agentic AI https://buff.ly/4axHqqS

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Walmart's CFO recently shed light on its strategy to challenge Amazon's dominance in eCommerce. Walmart is positioning itself as a formidable challenger to Amazon's long-standing dominance. Recent statements by Walmart CFO John David Rainey at the Evercore ISI Consumer & Retail Conference reveal the company's strategic approach to capturing a larger online retail market share. At the heart of Walmart's strategy is its Walmart+ membership program, which mirrors Amazon Prime in offering free deliveries and member-exclusive pricing. This program has proven to be a game-changer for the retail giant: ➡️ Higher Customer Value: Walmart+ members spend twice as much as average Walmart customers. ➡️ Changing Shopping Patterns: Members shop more frequently with smaller, often single-item orders. ➡️ Delivery Preference: Delivery has surpassed pickup as the preferred option, indicating a shift in consumer behavior towards convenience. These trends closely resemble the factors that propelled Amazon to its current position as the U.S.'s largest online retailer, suggesting that Walmart is successfully replicating key elements of Amazon's success formula. Walmart's focus on e-commerce is yielding significant results: ➡️ 6% increase in overall revenue to $161.5 billion last quarter ➡️ 21% growth in e-commerce sales ➡️ Expectation of profitability in the e-commerce division within two years ➡️ Sam's Club is already profitable in e-commerce The competition between e-commerce giants has primarily centered on delivery speed. While Amazon boasts that 60% of Prime orders in major U.S. cities arrive the same or the next day, Walmart is rapidly catching up. This focus on quick delivery aligns with broader industry trends, as evidenced by: ➡️ Average delivery times decreased from two weeks in January 2020 to less than three days in May 2023 ➡️ Target's $100 million investment in expanding next-day deliveries ➡️ Even clothing brands optimizing for faster delivery times

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Amazon has launched a new grocery delivery service that is less expensive than its existing offering. This move is seen as an attempt to compete with Instacart, a popular grocery delivery service #amazon #grocery #delivery #prime 1️⃣ Prime members and customers with a registered EBT card can get a low-cost monthly subscription with unlimited grocery delivery on orders over $35 from Whole Foods Market, Amazon Fresh, and other local grocery and specialty retailers. 2️⃣ The subscription costs $9.99 per month for Prime members and $4.99 per month for customers with a registered EBT card. 3️⃣ The subscription includes one-hour delivery windows at no extra cost where available, unlimited 30-minute pickup on orders of any size, and priority access to Recurring Reservations for a weekly grocery order. 4️⃣ The subscription pays for itself in as little as one delivery order per month from Whole Foods Market or one delivery order per month from Amazon Fresh for under $50. 5️⃣ Subscribers will also have unlimited delivery for orders over $35 from local grocery and specialty retailers like Cardenas Markets, Save Mart, Bartell Drugs, Rite Aid, Pet Food Express, Mission Wine & Spirits, and more where available.

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Technology is a powerful tool, but it can also be a source of misunderstanding and fear if not communicated properly. As CISOs, it is our duty to demystify and educate others about the advancements and impact of technology in our world. Clear and thoughtful communication about AI can help bridge the gap between perception and reality to shape a better future. #TechCommunication #PowerOfWords #FutureOfAI

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How Amazon uses AI to send less packaging to customers Amazon's Package Decision Engine is an AI model that optimizes packaging for customer purchases, preventing damage and simplifying deliveries. Amazon's Package Decision Engine is an AI model that determines the most efficient packaging for each item, reducing the use of cardboard boxes, air pillows, tape, and mailers. This model helps Amazon meet its sustainability goals faster, reduce packaging, make deliveries more efficient, and ensure product protection. Since 2015, it has avoided over 2 million tons of packaging material worldwide. Amazon aims to reduce packaging waste as part of its sustainability efforts. However, selecting the most efficient packaging for its vast product catalog and regional and country-specific offerings can be challenging. Amazon associates used physical testing to optimize packaging, but human efforts were insufficient for sustainability. The Package Decision Engine automates this process, allowing associates to focus on other sustainability challenges. The Package Decision Engine is a machine learning model that uses computer vision to analyze each item's dimensions, defects, and packaging. It detects the presence of bags or boxes, exposed glass, and other features. The model also uses natural language processing to gather text-based data from each item and collects information in real-time from customer feedback through Amazon's Online Returns Center and other channels. #ai #packaging #sustainability #ecommerce #amazon https://lnkd.in/g5wA-upy

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🌟 DON’T MISS OUT! Join us TODAY as we dive deep into the future of retail with AI in our insightful #cnwebinar, "Silent Signals: How AI Hears What Customers Don’t Say" @ 2pm ET // 11am PT!, discover how AI is transforming consumer product discovery and purchasing. 🎉 Secure your spot here: https://hubs.ly/Q02y7sjX0 Learn how behavioral AI creates real-time experiences based on actions, not just profiles. You will explore current AI applications, strategies for authentic connection with all visitors, and how real-time AI boosts revenue and performance. Learn from our panel of experts about new strategies for authentic engagement with all website visitors. Don't miss it! SPEAKERS: • Julie Evans, VP & CMO, Omaha Steaks • Jane-E Yamamoto J., Senior Director, Ecommerce, Forever 21 • Michael Challinger, CEO, Houzer • Jason Seeba, CMO, Session AI • Moderated by: Scott Silverman, Co-Founder, CommerceNext #cnwebinars #customerloyalty #ecommerce #retail #growth #AI #BehavioralAI

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The eCommerce world is still digesting the news of Amazon's planned launch of a low-cost section that will compete with Temu and Shein. Now is a great time to consider the potential ramifications of this move. ➕ Potential Upsides for Amazon: ⏫ Market Expansion: Temu has grown significantly in the budget-conscious online shopping segment. Amazon could tap into this market, attracting new customers who are primarily focused on price. ⏫ Diversification: Amazon already dominates various e-commerce categories. Adding a budget-focused platform diversifies its portfolio and reduces reliance on any single market segment. ⏫ Competitive Advantage: Amazon's existing infrastructure (warehouses, logistics, customer service) could give it an edge in providing fast and reliable delivery, even for low-cost items. ⏫ Data Collection: A new platform provides Amazon with valuable insights into customer behavior and preferences in the budget shopping space, which can inform future business strategies. ⏫ Advertising Revenue: A new platform opens up opportunities for increased advertising revenue as vendors compete for visibility. ➖ Potential Downsides for Amazon: ⏬ Brand Dilution: Amazon is known for its wide selection and (sometimes) higher prices. A budget-focused platform might dilute its brand image or confuse consumers. ⏬ Operational Challenges: Managing a low-cost platform might require different sourcing, logistics, and customer service strategies, adding complexity to Amazon's operations. ⏬ Cannibalization: If customers shift to the lower-priced option, the new platform could remove sales from Amazon's marketplace. ⏬ Regulatory Scrutiny: A new platform might attract additional antitrust scrutiny, as regulators already worry about Amazon's dominance in e-commerce. ⏬ Profitability: Low-cost items often have lower profit margins. Balancing profitability with competitive pricing could be a challenge. 💡 Additional Considerations: Vendor Relationships: Amazon must cultivate relationships with vendors willing to offer products at competitive prices while maintaining quality. Customer Experience: Maintaining a positive customer experience on a budget platform while offering low prices will be crucial for long-term success.

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Green Retail Consulting is your ultimate partner for informed and unbiased #retail system selection and implementation. Technology is transforming how we operate every day. Across stores, digital and #SupplyChain verticals, it's crucial to align your operations with tech that not only complements your mission but propels your strategy to new heights. But how can you make the right choices? Look no further - we're here to guide you. Our cornerstone? An independent perspective. We don't just follow trends; we analyze your specific needs to help you discover the most effective solutions. Before suggesting any #tech, we take the time to understand your retail strategy, your priorities and your goals. If you're ready to empower your retail strategy with the right tech, reach out to our team today. Let's chart a more productive, profitable journey for your retail business together. https://lnkd.in/eU9uFYsy #merchandising #digital #innovation

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Amazon had a very strong Q1 #amazon #ecommerce Revenue Growth: - Amazon’s net sales increased by 13% to $143.3 billion in the first quarter of 2024, compared to $127.4 billion in the same period last year. - Excluding the impact of foreign exchange rate changes, net sales still increased by the same percentage compared to Q1 2023. - The North American segment saw a 12% year-over-year increase in sales, reaching $86.3 billion. - The International segment also grew, with a 10% year-over-year increase in sales, reaching $31.9 billion (or 11% excluding foreign exchange rate changes). Amazon Web Services (AWS): - AWS, Amazon’s cloud computing unit, reported $25.0 billion in sales during Q1 2024, representing a 17% year-over-year growth. - The reacceleration of AWS’s growth rate is attributed to its AI capabilities, and it is now on track to achieve an impressive $100 billion in annual revenue. Operating Income: - Operating income surged to $15.3 billion in Q1 2024, compared to $4.8 billion in the same period last year. - The North American segment’s operating income reached $5.0 billion, while the International segment turned around from a loss to $0.9 billion in operating income. - AWS continued to perform well, with an operating income of $9.4 billion. Net Income: - Amazon’s net income soared to $10.4 billion in Q1 2024, or $0.98 per diluted share, compared to $3.2 billion (or $0.31 per diluted share) in Q1 2023. This quarter’s net income includes a pre-tax valuation loss of $2.0 billion from the common stock investment in Rivian Automotive, Inc. Cash Flow and Free Cash Flow: - Operating cash flow increased significantly by 82% to $99.1 billion for the trailing twelve months, compared to $54.3 billion in the same period last year. - Free cash flow improved to an inflow of $50.1 billion for the trailing twelve months, compared to an outflow of $3.3 billion in the previous year. - Various measures of free cash flow also showed substantial improvements. Business Chatbot “Q”: - Amazon announced the full rollout of its business chatbot, Q, to enhance employee productivity at work. - Despite regulatory challenges, Amazon remains optimistic and expects net sales between $144 billion and $149 billion during the second quarter of 2024

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At $139.00, is the annual Amazon Prime membership still worth it for most people? In this piece, the author takes us through deciding whether to renew an Amazon Prime membership; the user contemplates the $12.61 monthly cost against the benefits received, including free two-day shipping, easy returns, and digital credits for delayed deliveries. They appreciate the value of Prime Video, especially for exclusive sports content, and the convenience of free, unlimited photo storage on Amazon's cloud. However, they find certain perks like Amazon Music and Prime Day deals less impactful. Despite this, the user decides to renew but plans to closely monitor their usage in the coming year.

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Wow, huge news from AiFi Inc. this week! Curious if we'll see more deals of this size over the next few years. In short: while AiFi announced in March 2023 that they were selected as Intuit Dome's autonomous checkout vendor, what they're really doing is deploying 40+ stores including a few that use RFID for merchandise. This goes to show what a great fit the technology is for stadiums, but it's also impressive since it demonstrates deployment speed and the ability to scale. I've seen some companies in this space take about a year from their initial press release to the opening of just *one store*. That's too slow. It sounds like in this case it'll be about a year and a half from their press release to the opening of 40+ stores. And it also means that Intuit Dome is the first stadium to use autonomous checkout for virtually every concession stand. More from Paul Kapustka and Stadium Tech Report 👇 https://lnkd.in/gW2WfYNN

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Walmart Embraces the Metaverse to Captivate Gen Z Shoppers #walmart #amazon #retail #metaverse To attract younger shoppers, Walmart has launched Walmart Realm – a new digital shopping experience. It features virtual stores created with popular social media personalities. The goal is to appeal to Gen Z, who use social media for shopping ideas. The three virtual environments on Walmartrealm (.) com showcase fashion and beauty products. This shows that Walmart is committed to embracing the virtual world and creating engaging e-commerce experiences. Research shows that 68% of Gen Z consumers look for products on social media, and 22% of them end up buying something—the highest rate across all generations. Moreover, 3 out of 4 Gen Z consumers plan to make purchases on social media, compared to less than half of the overall sample. Additionally, nearly 40% of Gen Z consumers use TikTok and Instagram to discover products instead of using traditional search engines like Google. Walmart's Chief Marketing Officer, William White, says, "We're embracing innovation at Walmart with e-commerce experiences designed for the virtual world." This places Walmart at the forefront in retail, using social media influencers and digital experiences to attract and keep the attention of Gen Z. As Walmart and Amazon compete for the spending of younger shoppers, we will see how other large retailers respond. Walmart Realm's success could set a new standard for attracting Gen Z consumers in the digital age. It will be exciting to see how the retail landscape continues to change in the years to come.

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Check out this insightful assessment by Dan Berthiaume on the state of Just-Walk-Out/Grab-and-Go models. Rich McMahon and I came to similar conclusions in a recent LinkedIn discussion. With years of experience in the industry, we see things not just as they are, but as they can and should be. Keep up with the latest developments in the industry by following our posts. #JustWalkOut #GrabAndGo #RetailTech

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AI rapidly evolving... after chatgp , now updates from Google...

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Grocery Delivery Wars: Amazon / Whole Foods is coming in hot. As digital retail continues to grow like wild fire… Amazon joins Walmart and Target with its own a delivery subscription. Is it enough to get Amazon and Whole Foods back in the race? Here is Amazon now stacks up against the other delivery giants. WALMART. -Leverages it’s own in-house delivery service. -Unique value thru express delivery hours (from 6am). -Rapidly expanding drone delivery with Wing and Zipline. -Free delivery with Walmart+ for $12.95/mo. TARGET. -Home delivery with Shipt (acquired in 2017). -Intermediate ‘Sortation Centers’ for faster fulfillment. -Free home delivery with Target Circle 360 at $99 per year. AMAZON. -Delivery thru w/ AMZ Fresh, Whole Foods, etc. -Piloting drone delivery in multiple locations. -Discounts and incentives for EBT & SNAP shoppers. -Free unlimited grocery delivery for Prime customers at $9.99/mo. Is this enough to get Amazon into the grocery delivery game? It’s hard to tell at this point, but… Brands using Whole Foods Retail Media may get an added velocity boost. ——— 🔹Driving shelf turn in Kroger, Whole Foods, Albertsons, Costco, Walmart, Sprouts, and More 🔹DM me or book an appointment for help! #ecommerce #retailmedia #retailvelocity #retail #cpggrowth #instacart #cpg #tradespend

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