In 2016, more than 20 years after Amazon’s founding and 10 years since Shopify launched, it would have been easy to assume e-commerce penetration (the percentage of total retail spend where the goods were bought and sold online) would be over 50%.
But what we found was shocking: The U.S. was only approximately 8% penetrated — only 8% for arguably the most advanced economy in the world!
We’ve had a close eye on the rate of e-commerce penetration globally ever since. Despite e-commerce growth skyrocketing over the past year, the reality is the U.S. has still only reached an e-commerce penetration rate of around 17%. During the last 18 months, we’ve closed the gap to South Korea and China’s e-commerce penetration of more than 25%, but there is still much progress to be made.
It’s clear that we are still in the early days of this megatrend and it is our strong conviction that it is inevitable that we will get to a point where at least half of every retail dollar is spent online over the next decade.
Below are five key predictions for what this road to further penetration will hold.
D2C retail will accelerate as merchants seek independence
Marketplaces have forged the path for e-commerce adoption among merchants of all sizes. They have raised significant capital and made the necessary investments in payments and logistics infrastructure, often subsidizing the consumer experience with free shipping or discounts to get them comfortable buying online.
The balance of power has shifted toward merchants, who previously didn’t have the picks and shovels to build their own e-commerce capabilities.
In recent years, merchants have pursued options aside from these marketplace aggregators. They have sought independence, opting to pay 5%-10% of their gross merchandise value (GMV) on their own technology infrastructure rather than paying the 6% to 45% (average of about 15%) in marketplace fees. Most importantly, they have prioritized owning the relationship with their end customers, given that customer loyalty and lifetime value is becoming ever more important in a hypercompetitive online market.
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Amazon’s AWS logs third outage this month, affecting Slack, Epic Games Store, Asana and more
Amazon’s crucial web services business AWS is experiencing problems today, with issues affecting services like Slack, Imgur, and the Epic Games store for some users. It’s not looking good if you’re working from home, with some Slack users unable to view or upload images, and work management tool Asana also hit by the outages. As of 6:13 AM PST, Amazon said it had restored power to affected servers, but users may still experience issues going forward.
In an incident update, Slack said its services were “experiencing issues with file uploads, message editing, and other services.” Asana said the problems constituted a “major outage,” with “many of our users unable to access Asana.” Epic Games Store said “Internet services outages” were “affecting logins, library, purchases, etc.”
It’s the third time in as many weeks that problems with AWS have had a significant effect on online services. Two incidents earlier this month involving AWS ended up knocking out a huge array of platforms and products, taking out streaming sites like Netflix and Disney Plus as well as smart home devices like security cameras from Ring and Wyze.
Today’s outages seem less widespread but still notable, with some users unable to access services entirely and others merely experiencing intermittent faults. DownDetector.com shows reports of issues with the platforms mentioned above, as well as news aggregator Flipboard, online learning site Udemy, dating app Grindr, streaming service Hulu, and IoT services from Honeywell, Life360, and Samsung’s SmartThings.
The official AWS service health dashboard blamed the issues on power outages in a single data center, affecting one Availability Zone (USE1-AZ4) within the US-EAST-1 Region. At 6:13 AM PST, the company said it had restored power to the data center and was making progress recovering the affected instances. However, users will likely continue to notice the effects of these outages for a while longer while systems are updated and restored.
Update Wednesday, December 22nd, 8:36AM ET: Updated story to add responses from affected services.
Update Wednesday, December 22nd, 9: 34AM ET: Updated story to note that AWS has restored to power to the affected data center.
The NLRB decision against Amazon was correct and shows the need for stronger labor laws
The National Labor Relations Board (NLRB ruled last month that Amazon had cheated to defeat a high profile union organizing campaign.
It found that Amazon violated federal labor laws during its anti-union campaign at a Bessemer warehouse, Ala. earlier this year. This will result in a do-over election.
The NLRB criticized Amazon’s “flagrant disregard” for federal union election rules and stated that the management had “essentially highjacked” the process and given the impression that it was in control of the outcome.
Last week, Kirsten Swingingen, the head of the virulently antiunion Coalition for a Democratic Workplace, published a misleading op ed in The Hill about the NLRB ruling.
Let’s first be clear about the reasons why Amazon was ordered to rerun its election by the NLRB.
According to the op-ed, Amazon installed a mailbox in order to make voting easier. However, the NLRB repeatedly told Amazon that it couldn’t have onsite voting. After the company pushed for it, and then unsuccessfully appealed against the NLRB decision. In a stunning act of arrogance, Amazon’s top managers ignored these clear instructions and forced the United States Postal Service to install an onsite mailbox just before the election period. A senior USPS manager stated that this was the first instance in his many decades of service when it had set up a “cluster mailbox” for a single customer due to the upcoming NLRB elections.
After being told by the USPS to not place stickers on the mailbox, Amazon covered the mailbox with a marquee with large slogans. The USPS replied, ” Surprise” when asked how he felt about Amazon’s disregard for clear instructions. Moreover, the NLRB discovered that Amazon’s management engaged in illegal monitoring of workers’ voting intentions.
These charges are serious, considering the overwhelming evidence of illegal activity. It would be surprising if NLRB did not reverse the tainted election. This would be a message to employees that the law doesn’t apply to them if they have the wealth, resources and ability to bully them if it was in the way of Amazon’s illegal conduct.
The NLRB Hearing officer and its Atlanta-based Regional director made the decision to reverse the tainted vote. Neither of these people are political appointees – instead, they are career lawyers or “former employees” as the op ed misleads. Swearingen instead resorts to misleading tropes regarding “Big Labor” in order to describe a small, but determined union, the Retail Wholesale & Department Store Union. This union is up against Amazon, one of the most powerful and wealthy corporations on the planet. Bessemer was not the first to find Amazon guilty of illegal anti-union behavior. The NLRB found Amazon in violation of its laws.
It is important to correct a blatant lie about the Protecting the Right to Organize legislation (PRO Act), currently pending before the U.S. Senate. Incorrectly, the op-ed states that the PRO Act “potentially eradicates secret ballot elections” but allows for “card certification” of unions. This is essentially recognizing unions only after authorization cards are signed by the majority of workers, as practiced in many rich democracies.
To be clear, the Pro Act does not mention card check certification. The author created this provision to support her extreme anti-union views. The PRO Act would ban mandatory anti-union “captive audience” meetings- forcible listening sessions. According to Amazon’s own testimony, these were conducted thousands of times at Bessemer. It also imposes harsher penalties on corporations like Amazon who violate workers’ right to choose a union.
The op-ed also states that “Big Labor… succeeded in pushing Democrats to include PRO Act policies into the budget reconciliation bill.” However, the bill only contains the PRO Act provision. This includes the much-needed financial sanctions for corporations such as Amazon that repeatedly violate workers rights.
The NLRB was right to reverse the Bessemer election that was fundamentally tainted due to Amazon’s conduct. The Bessemer campaign demonstrates that the NLRB needs to have more options. As it stands, the law is too toothless for a massively powerful, incredibly wealthy, and frequently illegal corporate bully. The Senate should immediately pass the PRO Act.
Amazon Alexa SEO Tools Is Closing
Alexa.com announced that it will be retiring its marketing services after 25 years. Founded in 1996, Alexa was subsequently acquired by Amazon in 1999. It was initially known for providing rankings based on traffic measured through a toolbar but Alexa eventually expanded to provide a full suite of marketing products including site auditing and backlink checking.
Screenshot From Alexa Content Marketing
Alexa.com provides a full suite of search marketing tools. However what it’s mainly known for is their Alexa Rank.
Alexa Rank is a metric that offers a measurement of site popularity.
In the early 2000s the data was collected via an Alexa toolbar that users downloaded and surfed with. The toolbars collected web traffic information from the users which fed into the Alexa Rank site popularity metric.
Web publishers could also install a script on their site that reported traffic which could then be used to raise their Alexa Rank scores.
The Alexa Rank scores were generally viewed with suspicion because some people claimed that installing the toolbar and visiting ones own sites could result in dramatically raising the Alexa Rank score.
Another criticism of Alexa Rank was that the data was more relevant for Asian countries than in English speaking countries. This was based on the rumor that the Alexa toolbar use base was heavily weighted towards users in Korea and not users in English speaking countries like the United States, Canada, Australia, New Zealand and the UK.
The negative reputation of Alexa Rank and anything offered by Alexa was sealed by 2005.
One search marketer in a 2005 forum discussion remarked:
“Isn’t it time for Amazon to throw in the towel on Alexa? For a company that does so many things well, Alexa is really a blight on their reputation. Why would they want to be associated with such garbage.”
Nevertheless, use of the Alexa Rank metric continued to be used by a dwindling amount of search marketers.
For example, to this day there are some companies that offer affiliate programs and use Alexa Rank to determine the popularity of potential affiliate partners and will not accept affiliates whose websites do not reach a minimum Alexa Rank popularity threshold.
Alexa Was More Than A Site Popularity Ranking Metric
It might come as a surprise to many that Alexa offered a complete suite of search marketing and analytics programs.
For some reason the Alexa suite of online marketing tools, which included a backlink checker, was almost kept as a secret, with apparently no outreach to the search marketing community or seemingly no promotional activity to speak of.
Alexa crawled the entire Internet and for many years provided snapshots of the Internet to Archive.org. It’s backlink information was extensive.
Because of that it was able to offer services like showing which backlinks competitors have in common, including as many as ten competitors at a time.
Screenshot Of An Alexa Backlink Information Page
The Alexa $149/month plan offered:
- Content Exploration
- Competitive Content Analysis
- Topic Research
- Top Publishers by Topic
- Competitive Analysis
- Competitor Keyword Matrix
- Keyword Difficulty Tool
- Keyword Share of Voice
- Organic Keywords
- Paid Keywords
- Site Audits
- On-Page SEO Checker
- Competitor Backlink Checker
- Backlink Checks
- Audience Analysis
Alexa announced that it will all be going away on May 1, 2022.
The announcement was short and with no explanation as to what led to the decision.
“Twenty-five years ago, we founded Alexa Internet. After two decades of helping you find, reach, and convert your digital audience, we’ve made the difficult decision to retire Alexa.com on May 1, 2022.
Thank you for making us your go-to resource for content research, competitive analysis, keyword research, and so much more.”
Alexa offered a powerful suite of SEO and marketing tools and it’s sad to see them go away.
Many people didn’t know about the tools and perhaps it might still be around if it had been promoted better.
Official Alexa.com Announcement
Your Audience Isn’t Really Interested in ‘Just the Facts’ Anymore [Rose-Colored Glasses]
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