AuthorTopic: Official Death of Retail Thread: Life Without Walmart  (Read 26204 times)

Offline RE

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🏬 Amazon abruptly stopped buying goods from third-party sellers
« Reply #240 on: March 08, 2019, 12:29:29 AM »
Even Bozos is feeling the pinch.

RE

https://qz.com/1567934/amazon-sellers-panic-after-the-company-reportedly-canceled-orders/

REUTERS/David W Cerny


Amazon stopped taking orders.
CAVEAT VENDITOR

Amazon abruptly stopped buying goods from third-party sellers
By Alison Griswold6 hours ago

Amazon is reportedly going cold turkey on thousands of vendors.

The e-commerce behemoth has canceled orders with many wholesalers, pushing them instead to sell directly to consumers on its marketplace, Bloomberg reported today (March 7). Having vendors sell directly to customers is a better arrangement for Amazon because it can charge merchants for services like storing and shipping products and take a commission on each transaction, plus it avoids the risk of buying inventory that doesn’t sell.

The shift in strategy comes as several of Amazon’s core businesses have slowed. For the fourth quarter of 2018, Amazon reported 12.5% year-over-year growth in its online stores segment, significantly slower than the 19.7% annual growth rate it posted in the 2017 fourth quarter. Third-party seller services, Amazon’s business of making money from services provided to merchants who sell on its marketplace and commissions on those sales, brought in $13.4 billion in revenue in the quarter that ended Dec. 31, 2018, but also posted its slowest growth of the year.

Forcing more sellers onto the marketplace could help Amazon revive those numbers, especially in the third-party seller services segment. Meanwhile, Amazon is investing heavily in its own private-label brands, and others that are sold exclusively on its site. Many of those brands will ultimately compete against merchandise currently purchased by Amazon from third-party sellers, which might also be a reason why the company is eager to shift those third-party sellers to its marketplace.

The company’s new stance has put some sellers in a tight spot, Bloomberg reported, as they source their products from manufacturers months before actually selling them. Attendees at this week’s ShopTalk retail conference reportedly said Amazon abruptly and without explanation stopped submitting regular orders for products the previous week. That could leave those sellers with no other option than to sell their wares on Amazon’s marketplace for now.

“If you’re heavily reliant on Amazon, which a lot of these vendors are, you’re in a lot of trouble,” Dan Brownsher, CEO of e-commerce consulting business Channel Key told Bloomberg. “If this goes on, it can put people out of business.”
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Offline azozeo

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Re: 🏬 Amazon abruptly stopped buying goods from third-party sellers
« Reply #241 on: March 08, 2019, 05:34:18 AM »
Even Bozos is feeling the pinch.

RE

https://qz.com/1567934/amazon-sellers-panic-after-the-company-reportedly-canceled-orders/

REUTERS/David W Cerny


Amazon stopped taking orders.
CAVEAT VENDITOR

Amazon abruptly stopped buying goods from third-party sellers
By Alison Griswold6 hours ago

Amazon is reportedly going cold turkey on thousands of vendors.

The e-commerce behemoth has canceled orders with many wholesalers, pushing them instead to sell directly to consumers on its marketplace, Bloomberg reported today (March 7). Having vendors sell directly to customers is a better arrangement for Amazon because it can charge merchants for services like storing and shipping products and take a commission on each transaction, plus it avoids the risk of buying inventory that doesn’t sell.

The shift in strategy comes as several of Amazon’s core businesses have slowed. For the fourth quarter of 2018, Amazon reported 12.5% year-over-year growth in its online stores segment, significantly slower than the 19.7% annual growth rate it posted in the 2017 fourth quarter. Third-party seller services, Amazon’s business of making money from services provided to merchants who sell on its marketplace and commissions on those sales, brought in $13.4 billion in revenue in the quarter that ended Dec. 31, 2018, but also posted its slowest growth of the year.

Forcing more sellers onto the marketplace could help Amazon revive those numbers, especially in the third-party seller services segment. Meanwhile, Amazon is investing heavily in its own private-label brands, and others that are sold exclusively on its site. Many of those brands will ultimately compete against merchandise currently purchased by Amazon from third-party sellers, which might also be a reason why the company is eager to shift those third-party sellers to its marketplace.

The company’s new stance has put some sellers in a tight spot, Bloomberg reported, as they source their products from manufacturers months before actually selling them. Attendees at this week’s ShopTalk retail conference reportedly said Amazon abruptly and without explanation stopped submitting regular orders for products the previous week. That could leave those sellers with no other option than to sell their wares on Amazon’s marketplace for now.

“If you’re heavily reliant on Amazon, which a lot of these vendors are, you’re in a lot of trouble,” Dan Brownsher, CEO of e-commerce consulting business Channel Key told Bloomberg. “If this goes on, it can put people out of business.”


This is a GYNORMOUS tell... This tells me that our money supply is about to change. Bozos needs to lose the pocket change mom & pops during the reset.

When BigJeff circles the wagons, somethings a foot in bizness  :coffee:
« Last Edit: March 08, 2019, 06:20:27 AM by azozeo »
I know exactly what you mean. Let me tell you why you’re here. You’re here because you know something. What you know you can’t explain, but you feel it. You’ve felt it your entire life, that there’s something wrong with the world.
You don’t know what it is but its there, like a splinter in your mind

Offline azozeo

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There’s a very good reason why they named it AMAZON!
« Reply #242 on: March 08, 2019, 06:37:34 AM »


Just like Walmart was used to take over the American retail industry after it was incorporated in October of 1969, Amazon was actually established to completely dominate the Internet-based retail industry, which it has successfully done.

    As of January 31, 2019, Walmart has 11,348 stores and clubs in 27 countries, operating under 55 different names.[1]

Not only did Walmart put hundreds of thousands of “mom and pops” out of business across America, the retail giant greatly diminished both access and choice for the shopper in the pre-Internet Age.
Amazon

Do you really think that the very name — A M A Z O N  — wasn’t chosen with purposeful design?

Not only is this joint C.I.A.-Corporate venture a stone-cold black operation, it’s also a massive psyop that only gets bigger by the day.

http://stateofthenation2012.com/?p=117984
I know exactly what you mean. Let me tell you why you’re here. You’re here because you know something. What you know you can’t explain, but you feel it. You’ve felt it your entire life, that there’s something wrong with the world.
You don’t know what it is but its there, like a splinter in your mind

Offline azozeo

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Official Death of Retail - Uber & LYFT are losers....
« Reply #243 on: March 09, 2019, 02:10:15 PM »

Legend has it that in 1929, businessman Joseph Kennedy, the father of the future president, realized it was time to get out of the stock market when the shoeshine boy started offering him trading tips.

I had my own such moment a couple of years back when I started hearing people say they were selling their cars because “it’s cheaper to take Uber everywhere!”

It wasn’t that I doubted them, mind you. I just started to wonder about the math.


https://www.washingtonpost.com/opinions/uber-and-lyft-are-losing-money-at-some-point-well-pay-for-it/2019/03/05/addd607c-3f95-11e9-a0d3-1210e58a94cf_story.html?noredirect=on&utm_term=.6647ea058e2d
I know exactly what you mean. Let me tell you why you’re here. You’re here because you know something. What you know you can’t explain, but you feel it. You’ve felt it your entire life, that there’s something wrong with the world.
You don’t know what it is but its there, like a splinter in your mind

Offline RE

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🏪 E-Commerce is Wiping Out Mall Retailers One by One. Here’s the Data
« Reply #244 on: March 14, 2019, 05:05:37 AM »
So what's wiping out Amazon?

RE

https://wolfstreet.com/2019/03/13/e-commerce-is-wiping-out-mall-retailers-one-by-one-heres-the-data/

E-Commerce is Wiping Out Mall Retailers One by One. Here’s the Data
by Wolf Richter • Mar 13, 2019 • 54 Comments • Email to a friend   
Department store sales hit a new record low in the data going back to 1992.


E-commerce sales in the fourth quarter soared 12.1% from a year ago to a new record of $132.8 billion (seasonally adjusted), the Commerce Department reported this morning. For the whole year 2018, e-commerce sales blew through the $500-billion level for the first time, reaching $513.6 billion, up 14.2% or $64 billion from a year ago.

Not seasonally adjusted, e-commerce in Q4 jumped to $158.5 billion, 11.2% of total retail sales. E-commerce sales have doubled over the past five years.

E-commerce includes sales by the online operations of brick-and-mortar retailers, such as Macy’s, Walmart, and Best Buy, along with the sales of online-focused retailers, from small operations all the way up to Amazon.

People still say that e-commerce accounts for only 11.2% of total retail sales and therefore doesn’t matter. But this metric is misleading because e-commerce doesn’t yet seriously compete with a number of retailers, including gasoline stations, new and used auto dealers, and grocery and beverage stores. These three categories alone account for 52% of all brick-and-mortar sales.

Where the e-commerce bloodbath takes place is in other categories, including – with some choice casualties in parentheses:

    Department stores (Sears Holdings, Bon-Ton Stores)
    Book stores (see Borders, B. Dalton, Waldenbooks)
    Video stores (Blockbuster),
    Music stores (Tower Records)
    Hardware and hobby (Orchard Supply Hardware)
    Toy stores (Toys ‘R’ Us)
    Jewelry and accessory stores (Claire Stores)
    Sporting goods stores (Sports Authority)
    Electronics and appliance stores (Circuit City, CompUSA)
    Clothing and clothing accessory stores (Limited Stores, Pacific Sunwear, Aeropostale)
    Shoe stores (Payless Shoe Source)

The chart below shows who is winning this race. The blue line represents sales at these mall stores, and the red bars represent e-commerce sales. Note how resistant online sales were during the Great Recession: They dipped, but only briefly, and then continued soaring. But sales at mall stores took a deep dive during the Great Recession and have still not recovered from it, and will never recover from it:


Sales at these mall-based stores that are under attack from e-commerce fell to $159 billion (seasonally adjusted) in Q4 2018, a level they’d first reached in Q4 2005, while e-commerce sales soared to a new record of $132.8 billion. And the above chart is not even adjusted for inflation! E-commerce is killing these stores, one after the other:

Department store sales have plunged 37% since their peak in 2001 — not adjusted for inflation! — to $37.1 billion in Q4 2018, a new record low in the data going back to 1992. These are the stores that anchor malls. The sector is populated by the brick-and-mortar stores of Macy’s, bankrupt Sears, soon-to-be bankrupt J.C. Penney, liquidated Bon-Ton Stores, and Nordstrom whose booming online sales were already one-third of its total sales in Q4, while its brick-and-mortar sales declined.

The chart below of sales at department stores going back to 1992 shows an industry that is slowly dying – not because Americans are “tapped out,” but because the mall-store business model, and particularly, the department-store business model is being obviated bit by bit, year after year, by e-commerce:


Store-closings by retail chains, and malls losing their anchor stores, are now a painful routine. The largest mall landlord in the US, Simon Property Group, said in the last earnings call that the company’s president is sitting on “his 200th unsecured creditors committee.” That’s how many bankruptcies and restructurings SPG’s tenants have gone through so far.

Sales at electronics and appliance stores, despite the booming business in electronics and appliances, have dropped 11.3% over the past 10 years to $24.4 billion in Q4, as much of it has migrated to online operations, including to the successful online operations of brick-and-mortar retailers such as Best Buy.

Americans have figured out that buying a large-screen TV or a dishwasher is easier and often cheaper online, with delivery and installation – same issues as with a local store – included. And buying smaller electronics online has become normal years ago.

Retailers that have decided to carve out a future for themselves have invested heavily in their online operations, including in their fulfillment and delivery operations. Many of them are succeeding in these efforts. This isn’t about Amazon – this is about thousands of small and large retailers that are making this transition successfully. It has taken two decades to get this far, and it will take many more years to play out completely. And those that fail to make the transition will fall by the wayside.

Nordstrom just did a surprising thing that other major retailers keep a secret: It disclosed how its own booming online sales, now one-third of its total sales, eat its brick & mortar sales. But it’s a matter of survival. Read…  The Biggest Retailers Are Too Scared to Disclose this Data. But Nordstrom Just Did
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