"amazon" entries

Commerce Weekly: Best Buy wants to end showrooming, Google wants to start

Google's stores, Best Buy's online price match, Amazon's retail domination strategies, and Square's Business in a Box.

Google takes on brick-and-mortar; Best Buy takes on ecommerce

GoogleLogoThe Google retail store rumor ignited again this week. Seth Weintraub reported at 9to5Google that “[a]n extremely reliable source has confirmed to us that Google is in the process of building stand-alone retail stores in the U.S.” to be opened in time for the 2013 holiday season. The Wall Street Journal’s Amir Efrati followed with confirmation from “people familiar with the matter,” though one of those people said it wouldn’t happen this year.

Across the board, analysts seem to think it’s a good idea. Alyson Shontell at Business Insider noted that as Google becomes more of a hardware company — with its Android devices, Google Glass, and self-driving cars — analysts say it’s time for Google to work on its brand image, which will require consumer interaction, something the company hasn’t done much of up to this point. Google executives seem to agree — Weintraub reported that retail store plans started to solidify along with plans to offer Google Glass to mainstream consumers. “The leadership thought consumers would need to try Google Glass first hand to make a purchase,” Weintraub wrote. “Without being able to use them first hand, few non-techies would be interested in buying Google’s glasses (which will retail from between $500 to $1,000).”

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Commerce Weekly: Google targets Amazon’s shopping platform

Google buys Channel Intelligence, digital wallets continue an uphill battle, and "social commerce" boosts ecommerce.

Google acquires Channel Intelligence, pursues Amazon shoppers

GoogleLogoIn a recent post at Wired, Marcus Wohlsen took a look at the success of Google’s switch last fall to all-paid product listings — such as the top result for a search for iPhone 5 — and how it fits in to Google’s plans to compete against Amazon on the shopping front.

Chris Lien, CEO of Marin Software, noted to Wohlsen that shoppers either start their searches at Amazon or at Google and that Amazon has been encroaching on Google’s turf as it becomes more of a “commerce search engine.”

In order to compete, Wohlsen writes, Google is establishing itself as a place not only to research products, but also to buy them. Lien says Google likely doesn’t intend to start its own warehouses, but rather to “package the sale from search to checkout” and let merchants take it from there. Marin Software marketing VP Matt Lawson told Wohlsen, “What you’re going to see [Google] do is do everything they can to enable marketers to sell through their platform.”

This week, Google took a major step in that direction with its acquisition of Channel Intelligence (CI) for $125 million. In a post at Forbes, TJ McCue describes CI as specializing in product ecommerce, offering data-driven services aimed at increasing online sales, and he highlights one of the company’s most successful products — the CI Where-to-Buy button.

Engadget’s Donald Melanson updated his report on the acquisition with a statement Google released regarding the purchase:

“We want to help consumers save time and money by improving the online shopping experience. We think Channel Intelligence will help create a better shopping experience for users and help merchants increase sales across the web.”

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Commerce Weekly: Isis Wallet/NFC payments struggle for a foothold

Cashwrap brings Isis to iPhone, Target's price match goes year-round, and Shopgate makes products the point of sale.

Here are a few stories that caught my attention in the commerce space this week.

NFC-enabled Cashwrap case equips iPhone with Isis

At the 2013 International CES this week, Incipio and AT&T announced the launch of Cashwrap, an NFC-enabled iPhone case that equips iPhones with the Isis Wallet, currently only available for NFC-compatible Android phones. According to a post at 9to5Mac, the case will be available in March and will cost $59.99 to $69.99.

9to5Mac shot a short video of the product from the CES show floor (the Cashwrap representative mistakenly indicates the case will support iPhone 5 — at launch, it will support iPhone 4 and 4S):

When Isis launched in October, some questioned the viability of the payment platform and whether or not it was addressing a real problem. In a report at Consumer Reports, Jeff Blyskal concluded: “Isis, like Google Wallet, still seems to require a lot of work and needless complexity for the questionable convenience of paying by cell phone.” Now, on top of the complexity and questionable convenience of NFC payment, iPhone users must not only attach an appendage to the phone, but fork over a not-so-insignificant amount of cash — all for a payment platform that’s only available in Salt Lake City and Austin, and only at select retailers.

At Telecoms.com, Elliott Holley covered a recent report by financial research firm Celent that says the issues NFC payment technology has faced thus far are only going to be compounded in 2013 and that NFC payment solutions will be overshadowed — perhaps ultimately replaced — by cloud-based wallets. Celent senior analyst and author of the report Zilvanas Bareisis told Holley that not only is using the technology still much more difficult than swiping a credit card, but in markets such as the U.S., “the infrastructure bill is huge and convincing retailers and merchants is difficult.”

Holley highlights a key insight from the Celent report:

“Part of the problem for NFC digital wallets is that while the physical POS world is dominated by cards and the mobile equivalent is to have payment credentials inside the phone and sent to the POS via NFC, the online world is dominated by cloud-based wallets such as PayPal. That makes it difficult to bridge the online-offline convergence of customers who use their mobiles while shopping to read product reviews, compare prices and order online, or pick up an item from a local store, according to Celent.”

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Commerce Weekly: Same-day delivery war heats up

The same-day delivery battle, NFC in vending machines, and Google as information central for holiday shoppers.

Here are a few stories that caught my attention in the commerce space this week.

The high price of instant gratification

The Wall Street Journal’s Greg Bensinger took a look this week at the e-commerce same-day delivery trend, a service eBay, Wal-Mart and Google have been experimenting with in order to better compete with Amazon, which has offered same-day service in select locations since 2009.

The obvious benefit for e-commerce retailers is being able to improve the customer experience — providing the convenience of online shopping with the instant gratification of brick-and-mortar shopping. The biggest obstacle is cost. EBay, for example, has hired couriers, paying $12.50 per hour and 55 cents per mile, Bensinger reports, but only charges $5 to deliver a minimum $25 order. Industry analyst Kerry Rice told Bensinger, “Retailers are clearly subsidizing this service to improve the customer experience. Amazon created this monster and everyone has had to jump on board to compete.”

Amazon operating at a loss to draw consumers into its ecosystem is pretty par for its business model, and its deep pockets mean companies are going to have to get creative to successfully compete. Wal-Mart is perhaps in the best position not only to compete with Amazon on this front, but perhaps even overtake and lead the same-day delivery field. Walmart.com chief executive Joel Anderson highlighted for Bensinger Wal-Mart’s advantage: “We have 4,000 Wal-Mart stores and local goods within five miles of most customers.” Each store basically serves as an online distribution center, a scale that Amazon could be challenged to meet, even taking into account its aggressive distribution center expansion plans.

In related news, Google reportedly shelled out more than $17 million to buy Canadian locker storage startup BufferBox this week. As many outlets reported, Google may be positioning itself to compete against Amazon’s Locker delivery service, which allows customers to have goods delivered to secure pick-up stations rather than home addresses.

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Commerce Weekly: Targeting Amazon

Strategic brick-and-mortar retail campaigns to battle Amazon, Square ends NYC taxi pilot, and Isis prepares for launch.

Here are a few stories that caught my attention in the commerce space this week.

Strategic maneuvers aimed at Amazon

Best Buy LogoRetail competition against Amazon is starting to heat up coming into the holiday shopping season. On the heels of Wal-Mart’s recent moves to square off against Amazon, two other big box brick-and-mortar retailers have announced strategies targeting the Internet retail giant.

Ann Zimmerman reports at The Wall Street Journal that Best Buy not only will price match with Amazon this holiday season, but will also offer free delivery for products that are out of stock. Target has its sights set against Amazon as well. In a report on Target’s planned holiday strategy, Natalie Zmuda at AgeAge notes that tactics include “a price-match guarantee against a group of competitors that includes popular online retailers such as Amazon.” Target also is using QR codes in its holiday campaign to combat “showrooming” on the top 20 selling toys.

In somewhat related news, the US Post Office also is making moves into the e-commerce market. Victoria Stilwell reports at Bloomberg that starting in November, the US Post Office will begin testing its same-day delivery program, called Metro Post, in the San Francisco market. The service is aimed at local physical retailers, which could in turn give them a leg up against Internet retailers like Amazon. Stilwell reports that to participate in the Metro Post test, retailers need 10 or more physical locations throughout the US, with one or more within the test market boundaries.

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Commerce Weekly: Will NYC taxis get Square?

Square cab fares, Wal-Mart looks to beat Amazon to the same-day punch, and a major player update in the mobile payments war.

Here are a few stories that caught my attention in the commerce space this week.

Square may be courting cabs

Square not only is gearing up to launch in Starbucks stores in November — it may also be looking to enter the New York City taxi cab market. Ryan Mac reports at Forbes this week that negotiations may be underway:

“Late Monday, private company expert PrivCo said that the San Francisco-based startup and the city of New York will be announcing an official partnership with the city of New York to implement Square’s payment systems across the city’s cabs. If negotiations are completed as expected, said New York City-based PrivCo, the partnership may be announced as early as this month.”

Mac reports that neither Square nor New York City’s Taxi & Limousine Commission (TLC) would confirm that a deal was in place, but he notes Square has been testing iPad credit card swipers with TLC since March.

As to its forthcoming foray into Starbucks, Lisa Baertlein at Reuters reports that further innovations are in the works even ahead of the launch. At launch, customers will be able to pay for a coffee by having a barcode scanned off a smartphone, but plans are already in the works to use Square’s GPS to identify a customer in a Starbucks location, who can then pay by giving his or her name to the cashier. Also, Cliff Burrows, president of Starbucks’ Americas region, told Baertlein that by summer 2013, customers will have the option and ability to tip using the technology.

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Four short links: 18 September 2012

Four short links: 18 September 2012

Rapture of the Nerds, Amazon Maps API, 3D Printer Queues, and the New Aesthetic

  1. The Rapture of the Nerds (Charlie Stoss, Cory Doctorow) — available for download and purchase under a CC-A-NC-ND license.
  2. Amazon Maps API — if there is an API layer of general use to developers, Amazon will build it. They want to be the infrastructure for the web. Tim identified “the Internet Operating System”, and Amazon figured out how to put a pricetag on every syscall.
  3. Hoektronics — open source 3d printer queue management. (via Daniel Suarez)
  4. The Machine Gaze (Will Wiles) — Converging, leapfrogging technologies evoke new emotional responses within us, responses that do not yet have names. (via James Bridle)

The many sides to shipping a great software project

An interview with Shipping Greatness author Chris Vander Mey.

Chris Vander Mey, CEO of Scaled Recognition, and author of a new O’Reilly book, Shipping Greatness, lays out in this video some of the deep lessons he learned during his years working on some very high-impact and high-priority projects at Google and Amazon.

Chris takes a very expansive view of project management, stressing the crucial decisions and attitudes that leaders need to take at every stage from the team’s initial mission statement through the design, coding, and testing to the ultimate launch. By merging technical, organizational, and cultural issues, he unravels some of the magic that makes projects successful.

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Publishing News: Amazon continues its trek toward total retail domination

Luring students, looking at publishing's ecosystem, and using big data for big publishing.

Here are a few stories that caught my attention in the publishing space this week.

Amazon targets students with print textbook rentals

In headline news this week, Amazon expanded its digital textbook rental program to include analog books. Students can now rent physical paper textbooks, complete with prior students’ scribbles, for less than buying a used book (in many cases). Sean Ludwig at VentureBeat reports that most textbooks rent for $30 to $60 and are rented for the typical 130-day semester.

According to Amazon’s FAQ on the program, shipping in both directions is pretty easy to get for free: rentals are eligible for free Super Saver Shipping on orders over $25 and are also eligible for Prime free Two-Day shipping for Prime subscribers. Students can also sign up for the Amazon Student program and get six months of free Prime Two-Day shipping, then get a Prime membership at a discounted rate of $39 per year (the “adult” version of Prime is $79 per year). Amazon will conveniently autosubscribe student members to adult memberships upon graduation. Sounds a lot like those “free” credit cards that came with swag during my college days, designed to suck you in from the get-go.

Which brings me to Martin Sosnoff’s look over at Forbes at Amazon’s path to becoming the “Wal-Mart of the Internet.” Sosnoff writes:

“The Amazon story is about scale and momentum in general merchandise sales, here and abroad. I don’t care how many Kindles they deliver or their burgeoning downloads in books, music, video games and streaming of films. All this activity is designed to suck you into buying TV sets, washing machines, even disposable diapers and bottled water by the case.”

Or as O’Reilly publisher and GM tweeted in relation to Sosnoff’s post, “Books are nothing more than roadkill on Amazon’s highway to total retail domination.” So as publishers are frantically trying to find innovative ways to compete against Amazon, Amazon is just using publishing, in all its variations, as a means to an end.

Which brings me to Jim Tanous’ post at The Mac Observer, looking at ebook DRM: one possible positive outcome of this one-sided publishing battle against Amazon is the potential eradication of DRM. As Mathew Ingram pointed out last December at GigaOm, publishers “handed Amazon and Apple the stick of digital-rights management, which the two companies are now using to beat them.” And publishers are starting to come around to understand that DRM isn’t just locking content away from pirates (which it doesn’t do anyway), but that it’s locking content in to closed platforms, ala Amazon Kindle.

After looking at the new StoryBundle platform that give readers a bundle of books for whatever price they want to pay, all DRM-free, Tanous writes: “I was struck by how the DRM-free nature of the books mirrors a growing trend by publishers and independent authors to make their products easily available on multiple platforms and escape the stranglehold they fear Amazon holds on the market.”

Tanous looks at the overall trend, including fantasy publisher Tor’s removal of DRM from its catalog earlier this year and publishers like O’Reilly and Double Dragon that don’t use DRM. He notes that removing DRM removes the constraints on “customer mobility between providers and platforms” and that publishers’ recognition of this and subsequent changes to distribution and sales models, such as StoryBundle’s model, “will not only be good for consumers but for the overall health of the eBook market as well.”

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Commerce Weekly: Starbucks gives Square’s mobile payment a big push

Square and Starbucks unite, same-day delivery from eBay and checking in on the mobile wallet wars.

Here are a few stories that caught my attention in the commerce space this week.

Square gets Starbucks, cash and Howard Schultz

SquareSquare announced a new partnership with Starbucks this week. Peter Ha at TechCrunch reports:

“Beginning this fall, Square will begin processing all U.S. credit and debit card transactions at participating Starbucks stores across their 7,000 locations. Pay with Square users will be able to find a nearby Starbucks in the Square Directory from their iPhone or Android smartphone.”

Ha notes in his post that as part of the partnership, Starbucks also is ponying up $25 million in series D funding for Square and offering up its CEO, Howard Schultz, to serve on Square’s board of directors.

Harry McCracken points out in a post at Time Techland the partnership will put Square in a much better position to compete on the mobile payment front. McCracken writes:

“At the moment, Pay with Square is accepted at around 40,000 locations — mostly neighborhood businesses such as independent coffee shops, restaurants and beauty salons. The agreement with Starbucks will put it in a major nationwide chain for the first time, and therefore puts it in closer competition with Google Wallet, which is already accepted at Home Depot, Office Depot, Starbucks rival Peet’s, Macy’s, RadioShack, 7-Eleven and other major merchants.”

Another important aspect of the agreement is that Starbucks will promote other local Pay with Square merchants “from within a variety of Starbucks digital platforms, including the Starbucks Digital Network and eventually the Starbucks mobile payment application.” As Ha notes in his post, “this catapults Square into the mainstream consciousness for the millions of drones who drop by their local Starbucks on the way to work.”

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