Published on: July 27, 2022
• Edge by Ascential is out with its annual 2022 Future of Marketplaces Report, projecting that "third-party online marketplaces will be the largest and fastest-growing retail channel globally. The report anticipates that third-party sales through online marketplaces will add $1.3 trillion in sales over the next five years and that by 2027 the four largest global online marketplaces - Amazon, Alibaba, Pinduoduo and JD.com - will be responsible for $4.3 trillion in global sales, up from $2.5 trillion today … Other major US retailers, such as Walmart, have been increasingly looking to court third-party sellers to their ecommerce platforms in order to diversify their product offerings and supply chains."
Some additional report highlights:
"Alibaba will continue to be the global leader in retail from 2022-2027, growing total net GMV sales (ecommerce and bricks and mortar) in 2027 to $1.5 trillion. Amazon will be the second-largest online retail marketplace with $1.2 trillion in total net GMV sales in 2027 … Third-party sales through marketplaces will be the largest and fastest-growing retail channel globally, adding $1.3 trillion in sales over the next five years …
forecasts show that third-party online sales will account for 38% of total global retail sales growth (2022-2027) … By 2027, the four largest global online marketplaces–Amazon, Alibaba, Pinduoduo and JD.com–will be responsible for 66.5% of global ecommerce sales by 2027 (taking into account first-party and third-party sales)."
• Reuters reports that United Parcel Service (UPS) will not increase the number of packages it delivers for Amazon, saying that it will focus on shipments with greater ROI.
Amazon is UPS's biggest customer.
UPS CEO Carol Tome' said the company would be enforcing its maximum package agreement with Amazon: "We've contractually agreed on what makes sense for us versus what makes sense for them. That means that the volume and revenue for Amazon is coming down."
Reuters writes that while Amazon's own delivery service "is growing fast and could eventually compete head-to-head with UPS, Amazon still depends on UPS to deliver millions of packages to homes.
"Meanwhile, UPS is racing to revive the business-to-business shipments that were its bread and butter before the pandemic. It has made slow progress on that front because corporations have reeled in spending and workers are reluctant to return en masse to office buildings."
• CNBC reports that "Amazon is raising prices for its Prime subscription service in the U.K. and across Europe as the e-commerce giant grapples with the effects of rising inflation … Amazon blamed the price rises on 'increased inflation and operating costs,' along with higher expenses tied to faster delivery and content production for its Prime Video streaming service."
According to the story, "In the U.K., Amazon is set to hike the annual price of a Prime membership to £95 ($114), up from £79, representing a 20% jump. The changes will take effect Sept. 15. The company is enforcing even steeper price increases in European markets.
"In France, the price of an annual Prime membership is going up to 69.90 euros ($70) from 49 euros, a 43% increase. German Prime members can expect a 30% hike in their annual Prime prices to 89.90 euros, up from 69 euros.
"The move follows similar price hikes Amazon announced in the U.S. In February, the company said it would raise the price of its annual Prime membership for Americans to $139 from $119, the first such increase to its discount loyalty program in the U.S. since 2018."