eCommerce is killing Walmart :( (8)
Hi Stackers
In the last few years we are talking a lot about eCommerce and how fast this Vertical has grown.
did you ever thought or even imagined that while you promote eCommerce offers you are killing Wallmart and other Moster size companies???
Its not really matter if you promote these products from a specific network, doing drop shipping, or even hold stocks of your own products.
you are helping to shape the "new World" of commerce.
Here is a great article that not only talks about eCommerce but also shows clearly how what we are doing is changing the world, at least the world of those "old Dogs" companies CEO's
make sure you check all the links as there are gold nuggets hiding there.
Direct-to-consumer brands are changing the way we buy -- and the old dogs are nervous
In the past few years, we’ve seen an explosion of digital marketing-heavy companies that sell and ship their products “directly to your door.” You know, the Warby Parker’s and Blue Aprons of the world.
But, these newcomers aren’t just slick advertising and millennial-friendly branding, they’re a huge shift in the way we buy products -- and big consumer packaged goods companies are sweating.
“It’s the Warby Parker of...”
First came SaaS (“the Salesforce of…”), then came the gig economy (“the Uber of…”), now it’s direct-to-consumer.
If an industry exists, chances are there’s a D2C company “disrupting” it: Gillette’s share of the US men’s razor business fell from 70% in 2010 to just 54% in 2016, thanks to the rise of competitors like Dollar Shave Club and Harry’s.
Mattress companies like Leesa, Casper, and Purple have doubled their market share in the past year, and meal kits, according to Axios, are projected to grow 10x.
Bye-bye “big box”
In the old-school model, brands design, produce, and market their products, then rely on wholesalers and big box stores like Walmart, Best Buy, Target or -- more recently -- Amazon, to reach the end consumer.
But these days, even fledgling brands can oversee the entire sales cycle -- and, in turn, the customer experience from discovery to delivery. That means they not only own all the revenue from the products they sell, they own the customer.
Why now?
Mainly because of the rise in highly targeted advertising via Facebook and other social platforms, which make it easy for small companies to reach their perfect customer from anywhere.
According to Salesforce's latest digital advertising report, 95% of advertisers use demographic data along with location information and interests to target prospects.
And it’s only increasing: according to the report, next year 66% of digital ad spend will go to web platforms that allow custom targeting, like YouTube, Facebook, and Instagram. Because who needs friends when you can have mattress discounts?
Source: The Hustle
finding the right product to promote is the key to a great start, knowing how to promote the product is the key to success, knowing who to partner with is the key to scale and generate big profits.
if you are looking for unique eCommerce products to promote World wide, feel free to contact me any time.
email - guy@affiliaXe.com
Skype - affiliaXeguy
“By 2020, brick and mortar retail spaces will be little more than showrooms.” – Eddie Machaalani & Mitchell Harper, Co-CEOs of Bigcommerce
“The sooner we drop the ‘e’ out of ‘e-commerce’ and just call it commerce, the better.” – Bob Willett, former President of Best Buy International and CIO of Best Buy
Ecommerce disrupted the brick&mortar shop business long time ago already. But right now, there seems to be a new trend going on ... I talked with a guy who owns a rather big local ecom store, selling mobile phones and accessories, games and gaming equipment, navigation devices and software etc ... They had to start opening small shops in shopping malls across the country in order to stay in business.
According to their research, people want to buy certain goods from local stores and not online, due to guarantee and they want to have the product RIGHT now, not waiting for courier delivery. But they don't want to pay the regular brick&mortar prices. So the tactic they chose was to price the goods higher by the fee of delivery. In most cases it's just 3 eur or so, so even when customers look up the prices online to compare, they see it's only slightly more expensive so they buy it in the store directly. At the same time, they use these small shops as delivery points for online orders.
It seems to work well for them, since they started to grow again. I guess this is a direction many standard retailers will have to take.
Not sure Wal-Mart is dying anytime soon.
It is a $300 billion company and its stock price is up almost 100% in the past year.
eCom may be destroying companies like Sears, but Walmart seems to be doing just fine.
eCommerce is Killing ToysRus
in this post i have written about the struggle Wallmart is having.
this had a domino effect and i have now read that the biggest and most familiar Toy company is about to close all the US branches by next week.
"After scrambling to keep its bankruptcy reorganization plan alive, Toys R Us is reportedly preparing for liquidation."
taking into consideration that if ToysRus will fall, sooner than later the other "smaller" companies will follow along.
Examples:
That's terrible news for the two biggest publicly traded toy companies. Investors are clearly preparing for the worst. Shares of Hasbro fell 3.5% Friday morning while Mattel plunged 7%.
Smaller toy company Jakks Pacific fell nearly 5% too. Canada's Spin Master, which owns the popular line of Hatchimals toys, was down about 3% as well on the Toronto Stock Exchange.
and not to forget that Leggo reported its first sales drop in thirteen years earlier this week. So these are clearly tough times for the toy makers.
Source: http://abc7chicago.com/business/toys...?sf184126130=1
Just like in any other market - if one fall another will take his place.
this is a really great times for eCommerce marketers, as the future for online looks a lot more brighter than the "future" of offline retailers.
(we can see this also in IL - a lot of the fashion companies that have stores in malls are having difficulties and are about to shut down, that in parallel to the rise in eCommerce activity in Israel.
according to Aliexpress stats Israel is in the top 3 Geo's) Asos and other online shops are having a big boom and just a week ago one of the biggest Online Fashion brand came to israel to meet with several comapnies in order to check how to penetrate the Israel market (also met with affiliaXe)
so... what will be the future of eCom ?--------> is going to be AWESOME!!!!!!
want to get the hottest eCommerce products to promote, you know what you have to do....
contact me or any of affiliaXe reps here, and we will be happy to help you earn more from your traffic.
whats your thoughts on Offline Vs Online? would love to read other marketers angles on this.
Originally Posted by cmdeal
Blockbuster:
http://www.ibtimes.com/sad-end-block...tition-1496962
"The Sad End Of Blockbuster Video: The Onetime $5 Billion Company Is Being Liquidated As Competition From Online Giants Netflix And Hulu Prove All Too Much For The Iconic Brand"
Compaq Computers:
Compaq was the first to re-engineer the IBM personal computers for the mass market. The company became the number one seller of IBM-compatible personal computers during the 1990s and held on to that status until Hewlett-Packard bought the company for $25 million in 2001. By that point, Compaq had lost sales to Dell Computer. It was also losing money on its acquisition of Digital Electronics Corporation.
Hewlett-Packard discontinued the Compaq line in 2013.
Kodak:
Kodak dominated the photography market before the advent of digital cameras. The company declared bankruptcy in 2012 and sold many of its patents. Though it re-emerged in 2013, Kodak remains small, with a market capitalization of $399 million.
Kodak’s decline resulted from its focus on film, even though it purchased digital photo company Ofoto. Kodak used the company to promote printing images at home instead of sharing images online.
Industry experts also say that Kodak missed the transition of photography to smartphones, which allows people to email images instead of printing them, which further eroded its dominance.
Radio Shack:
Radio Shack went bankrupt twice, in 2015, and most recently on March 8th, 2017. It opened in 1921, selling radio supplies to ships, and evolved into a mail-order electronics store, as well as a retail operation. The company prospered from sales to CB radio enthusiasts in the 1970s, and introduced a successful personal computer, the TRS-80. Radio Shack didn’t follow up with any successful computers, and its cell phone kiosks made signing up for phone service complex and cumbersome.
The company tried to move into selling its products online, but it had trouble competing with Amazon.
Tower Records:
It’s hard to remember when buying music meant driving to a store and browsing bins of records and CDs. Tower Records had stores throughout the Unites States and Europe, as well as Tokyo.
Due to rising competition from the likes of Wal-Mart and Target, Tower Records took on $110 million in debt as a way to finance expansion through more stores. Then Napster captured the imagination of music buffs by offering online file sharing, and iTunes began selling digital downloads. As the CD went the way of the dinosaurs, Tower found it difficult to adjust to the digital marketplace, and declared bankruptcy in 2004 and again in 2006.
and the list is long, in any of these companies if you asked the employees or the mid management if the company is facing bankruptcy, I believe their answers will be quite the same :
Originally Posted by cmdeal
just read the comments on FB news:
"What a shame to see Toys R Us go out of business. It’s priceless to see the looks on children’s faces when they go into the store and see all the toys."
" love the store. I love the idea of the store. Toys are eternal"
(along with Blaming President Trump, and talking how much the CEO earned).
so the questions are - where are all the shoppers (hint: soon to be Users) will get their Toys.
will they just go to Walmart/Target, Amazon/Ebay or to your eCom store????
and how much of all these changes are triggered by us? are we (does of us who are parents) allowing our children to be "stuck" on the phone all day long, getting them to play more Online than with "good old Toys" and by that helping "kill" more stores like ToysRus?
who will be Next? will it be Lego? Walmart? Target?
is it just a matter of Market changes or it all depend if Amazon would like to get into new markets and kill the Native habitat?
I think you're looking at this in the wrong way. Ecomm can kill some businesses, but it's not a must and it's not the only factor either.
Some business models are guaranteed to end at some point, be it due to new technology, poor management or whatever else.
Kodak for example, failed to ride the digital tech wave ... but many others did not, check Canon for example. Kodak made a bad decision and went to shit.
Same with Nokia, that missed the smartphone trends ...
Retail operations selling some goods can and will die because of ecommerce. ToysrUs could be a good example ... they are selling the same fucking toys for years, I swear that whenever I enter a that store with the idea of buying some toys for my kids ... I can't find anything that I'd buy. It's all branded crap left and right, superhero figures, nemo, frozen Elsa ... same BS in all the stores. There is no uniqueness in these toys, it's so easy to order them online, you don't need to see them in real life. This is what is killing them IMO, they sell the same crap over and over, same toys that you can buy in any online store.
But there are goods you can't just buy online ... actually you can, but it's a hassle, so there will always be place for such goods to be sold in regular brick&mortar stores ... shoes, lingerie, certain types of clothing etc ...
Then there are companies like LEGO that you mentioned ... they can't die because of ecomm ... not saying they cannot die from other reasons, but it wont be ecomm. Lego is an original product, no other competitor comes even close and take this from a father of 3 kids who bough a car worth of legos 
All toy ecom stores are selling legos too. They might be seeing a decline in sales, but that's normal in any market, there are growth periods and decline periods .. doesnt have to mean that a market is in big trouble, these cycles are natural.
Ecom is definitely disrupting many business areas, some will survive, some will not ... it's a lot about who can adapt to the new trends. Like always
https://www.youtube.com/watch?v=WdYtoj4KSeU
Gary Vaynerchuk - Innovate or Die
no need for more words.
Yes obviously eComm is killing brick-and-mortar stores but this is also why, for example, WalMart acquired jet.com. I recall Target also acquired an eCommerce site as well but I forget the name. These "Old Dogs" have so much money and many new dog employees that they can't fall.
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