shopping

PayPal Volume Surges With Consumers Flocking to Online Shopping

(Bloomberg) — PayPal Holdings Inc. climbed after executives said a surge in digital payments on its platform in the second quarter marks an accelerating and permanent shift away from cash in the wake of the coronavirus pandemic.

The technology giant, which has been signing up consumers spooked by the virus, said Wednesday it now expects revenue to climb 25% this quarter while payments volume surges 30%. It sees full-year revenue climbing 22%.

“This is our time,” Chief Executive Officer Dan Schulman told analysts on a conference call. “We intend to seize the moment.”

Lockdowns to prevent viral infections, and the ensuing shift to online commerce, spurred people to learn how to make digital payments. That helped boost the number of net new active accounts to 21.3 million. The company said it now expects to add 70 million active accounts in the latter half of the year.

“The big competition for

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Covid Is Shaking Up Back-to-School Shopping

(Bloomberg Opinion) — School districts nationwide are beginning to announce their reopening plans for the coming academic year. The policies vary widely, with Atlanta and Los Angeles saying that school would be entirely online and, New York, the country’s largest district, opting for a mix of in-person and digital learning.

Of course, the primary tragedy of resorting to these non-traditional approaches to education amid Covid-19 is that it punishes students, who deserve a more immersive and social learning experience, and their parents, who badly need kids to be in school so they can get back to work.   

But the regional aspect of rules guiding school reopenings has another unfortunate side effect: It creates supply challenges for retailers as they try to drum up sales during the crucial back-to-school shopping season. 

Deloitte projects that $28.1 billion will be spent on back-to-school items this year, roughly flat compared to 2019.  The consultancy

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Could live stream shopping change online retail for good?

Merchants selling their products speak inside a live stream booth during Alibaba's annual Singles' Day online shopping event - Qilai Shen /Bloomberg
Merchants selling their products speak inside a live stream booth during Alibaba’s annual Singles’ Day online shopping event – Qilai Shen /Bloomberg

The shopping channel as formula has been largely unaltered since it emerged in the heady consumerism of Eighties America, hooking in thousands of viewers desperate for everything from a new fridge to a necklace.

Legions of smiling salesmen extolling the virtues of hoovers, ovens and hairdriers on the likes of QVC might feel like a throwback, but they have long proved immune to the sweeping changes wrought elsewhere by the internet age.

Now, however, the digital world is finally catching up.

Live shopping, as it is known, allows for browsers to view a far wider variety of wares through streaming.

“Think of it as a reimagination of QVC,” early adopter David Feng said during a live TV interview on Bloomberg two years ago. In 2019, Feng’s live shopping

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Ocado’s online shopping promise has too high a price tag

“Prediction is very difficult, especially if it’s about the future” is a line often attributed to Nobel-prize winning physicist Niels Bohr. But when it comes to the long-term impact of coronavirus on consumer behaviour, the stock market seems to disagree.

In the US, companies such as Zoom, Peloton and Amazon have outperformed local indices as investors bet on a homebound future for white-collar employees. In the less tech-weighted UK market, attention has focused on names such as Flutter, the £18bn online bookmaker, and £16bn grocery-technology company Ocado.

The latter’s performance has been particularly breathtaking, as the “Microsoft of retail” has risen 66 per cent year to date, versus a drop of 18 per cent for the FTSE 100. Once London’s most shorted stock, Ocado’s rally has led to almost total capitulation from bears, with its short interest now so low that no investor has reported a negative position since early

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How Ocado went from understated British grocer to an $18.4 billion tech giant, as the coronavirus pandemic confirms the future of grocery shopping is online

"Bots" are seen on the grid (or "The Hive") of Ocado's "smart platform" in Andover, Britain, on May 1, 2018.
“Bots” are seen on the grid (or “The Hive”) of Ocado’s “smart platform” in Andover, Britain, on May 1, 2018.

REUTERS/Peter Nicholls

  • As grocery stores worldwide experienced stockpiling, long lines, and health worries amid the coronavirus pandemic, millions of people turned to shopping online.

  • It has been a goldrush for the British company Ocado, an online-only grocery marketplace that also operates technology for supermarket giants worldwide.

  • Ocado was the best performing stock on the FTSE 100 in the second quarter of 2020, and, in May, Ocado raised over $1 billion to grow its services.

  • It is now betting big on its US expansion, hoping to convert Americans to grocery shopping online.

  • Huge challenges remain, though. Many Americans are still reluctant to buy food they can’t see in person, and some fear the current online pandemic-driven boom could prove a one-off.

  • Visit Business Insider’s homepage for more stories.

The coronavirus pandemic

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How Ocado went from understated British grocer to a $18.4 billion tech giant, as the coronavirus pandemic confirms the future of grocery shopping is online

"Bots" are seen on the grid (or "The Hive") of Ocado's "smart platform" in Andover, Britain, on May 1, 2018.
“Bots” are seen on the grid (or “The Hive”) of Ocado’s “smart platform” in Andover, Britain, on May 1, 2018.

REUTERS/Peter Nicholls

  • As grocery stores worldwide experienced stockpiling, long lines, and health worries amid the coronavirus pandemic, millions of people turned to shopping online.

  • It has been a goldrush for the British company Ocado, an online-only grocery marketplace that also operates technology for supermarket giants worldwide.

  • Ocado was the best performing stock on the FTSE 100 in the second quarter of 2020, and, in May, Ocado raised over $1 billion to grow its services.

  • It is now betting big on its US expansion, hoping to convert Americans to grocery shopping online.

  • Huge challenges remain, though. Many Americans are still reluctant to buy food they can’t see in person, and some fear the current online pandemic-driven boom could prove a one-off.

  • Visit Business Insider’s homepage for more stories.

The coronavirus pandemic

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Yoox Net-a-Porter CEO Federico Marchetti, E-Commerce Pioneer, on the State of Shopping

Click here to read the full article.

One business’s loss is another’s gain. When Covid-19 forced brick-and-mortar shops to close their doors this spring, a boom in online sales ensued. As a pioneer of online shopping, Federico Marchetti, CEO and chairman of Yoox Net-a-Porter Group, was well-equipped to navigate the sea change. In 2000, Marchetti founded Yoox, one of the first online-only shopping destinations, and in 2015, he drove a merger with Net-a-Porter to create the e-commerce titan that he leads today.

Marchetti is credited with introducing a number of e-tail practices that are now industry standards—from creating digital flagships for marquee brands to selling high jewelry and watches online. YNAP group—which comprises Yoox, Net-a-Porter, Mr Porter and The Outnet and was acquired by Richemont in 2018—is the e-commerce market leader, with more than 4.3 million customers in 180 countries and one billion visits to its websites annually.

More from

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Online shopping a steep learning curve for Cuba

Havana (AFP) – When Jorge Noris first tried online shopping, Cuban-style, the products he bought never turned up.

Like most people, the father of two living on the outskirts of Havana was seduced by the convenience of shopping over the internet.

However, Cuba’s catch-up with the world of e-commerce, encouraged by its communist rulers during the coronavirus lockdown, has left many users angry.

“After a month, the store called me to ask if the order had arrived,” said Noris, a 34-year-old technician. He was similarly stunned when he discovered he had to travel into the shop to be reimbursed.

Worldwide, the online food trade has been given a massive shot in the arm by the pandemic. With millions confined to their homes, online consumer activity soared by 300 percent in Italy and Spain, and 100 percent in France, according to pollsters Nielsen.

But the experience is still a novel one

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