Orchard Brands goes global with Borderfree
Beverly, Mass. – Orchard Brands, a multichannel retailer of apparel and home products focused on consumers older than 50, has partnered with Borderfree for global e-commerce. Through its partnership with Borderfree, Orchard Brands’ 13 unique online storefronts are now available to international shoppers in more than 100 countries and territories worldwide.
Borderfree’s global e-commerce platform will enable international shoppers to have access to the same brands as their American counterparts, with local currency pricing and one checkout across all Orchard Brands sites.
“Introducing international shipping continues to position Orchard Brands as the global leader in serving the lifestyle needs of the internet’s fastest-growing group of shoppers, men and women ages 50 and over,” said Orchard Brands co-president Bill Bass. “We are excited to offer our endless options for active living to this growing market overseas, as well.”
Report looks at price war between Amazom.com and Walmart.com
New York — A new index called the Price Perception Index provides insight into digital pricing strategies. The index, created by e-commerce startup Bommerang Commerce, measures how retailers optimize prices to attract buyers, compete with other retailers and build their business on a mix of profit margins and volume.
The first Price Perception Index looks at the complex competition between Amazon.com and Walmart.com.
"Competitive pricing has moved beyond weekly adjustments and price matching," said Guru Hariharan, founder of Boomerang Commerce. "The PPI sheds light on the complexity and the speed at which retailers adjust their pricing to drive buyers and revenue."
Amazon undercuts Walmart's prices by 4% on the most popular products, while Walmart is following a price matching policy with 63% of its products at the same price as Amazon's. Additionally, analysis shows that Amazon has a sophisticated pricing strategy to own a majority of the SKUs for the most popular items and undercut 3rd party resellers on those products. Third-party resellers offer more products in the lower demand product areas.
Other findings in the report:
• Retailers split products into three groups (popular or head products, core products, and tail products) and price each of those differently by category;
• Savvy retailers test pricing on popular products well in advance of the holiday season dropping the price by as much as half to measure customer response;
• During the holidays prices rise on tail products, the products consumers tend to add to a purchase such as a phone case or HDMI cables;
• Amazon's shipped and sold products are generally 2.5% less than the same products at Walmart while Amazon third-party sellers, offer those same products for 9.7% more than Walmart;
• While Walmart price matches Amazon on 63% of the items, Amazon is able to drive lower prices on the most popular products and obtain a much lower overall PPI (-2.5% vs. +0.49%);
• PPI by category can vary greatly and each retailer optimizes prices in the categories where it excels e.g. Amazon focuses on Home Audio vs. Walmart focuses of Auto
Boomerang Commerce, founded by Amazon veteran Guru Hariharan, makes software that tracks prices on shopping sites that compete with its clients, then recommends price changes dynamically. The company was recognized by the National Retail Federation and chosen as one of the top two Digital Commerce Startups of the year at NRF’s Big Show 2015.
E-commerce spending to top $300 billion in 2015
New York — E-commerce in the United States in 2015 will top the $300 billion mark for the first-time ever, according to Forrester Research’s principal analyst Sucharita Mulpuru.
“This is big news,” Mulpuru said during a presentation at the National Retail Federation’s annual “Big Show” conference.
Mulpuru noted that e-commerce spending for holiday 2014 (November and December) totaled approximately $90 billion, which equaled roughly one-third of the entire online retail bucket for the year. Cyber Monday, in particular was a blockbuster, with the single day generating $2 billion in sales.
“But it still pales next to China’s Singles Day, which generated $11 billion in sales, with $9 billion going through Alibaba alone,” Mulpuru added.