It was a big week on Wall Street for several major players in the commerce space. Amazon, Alibaba, and eBay all reported earnings. Even as the global economy struggles, much of which is driven by softness in China, Alibaba’s profits doubled. And although they reported another profitable quarter, Amazon’s earnings missed, driving their stock price down. But they’re not alone. eBay is reporting a rocky road ahead which is causing their share price to drop as well. Although quarterly reports weren’t a rosey picture, commerce - especially eCommerce - is still growing strong.
With a weaker than expected earnings report, there’s no shortage of excitement with Amazon on a weekly basis. I feel like I should start the “Amazon Block” each week. They made several headlines this week regarding the question of whether or not they’d partner with PayPal, how quickly their clothing business is growing, and how their AWS business is generating nearly $2.5 billion on it’s own. I’m a PayPal user myself, but I don’t know if there’s a better check out process or easier way to buy than the one Amazon has implemented. It doesn’t sound like they’re interested in partnering any time soon, and they’re already extending their reach with payments to make it easier to use “pay with Amazon” in more and more places.
- Amazon Shares Tumble on Earnings Miss
- Amazon Rebuffs Idea of Partnering with PayPal
- Amazon's Clothing Business is Growing Faster Than You Think
Ebay is working to get back to their roots and stand out as the unique place to buy wares they were years ago. Amazon is keeping the pressure on though as Prime continues to keep people loyal to Amazon.
Alibaba is shifiting their focus back to urban China and are taking dead aim at their biggest rivals JD.com and Tencent. They don’t want to lose ground as China’s economy pulls back.
Magento is on their own again after being spun out of eBay and they’re working hard to show the world how strong their business is and can be. They have many major brands using their platform and the real strength behind Magento is their extremely passionate developer community. Magento will need to lean hard on that community to continue to move their stand alone business ahead as the likes of hosted services like Shopify and BigCommerce work to take a bite out of the higher end of the SMB space.
Jet.com is trying to beat Amazon at their own game and is now building a distribution center in Nevada. They’re a start up with a lot of cash and are looking to dethrone the king. There’s also plenty of space in the online commerce world and choice is good for consumers. It’s going to be interesting to see how Jet continues to try to grow their market share.
Turmoil continues regarding what Yahoo is going to do with their core business. While Yahoo stores were rebranded Aabaco last year, the fate of the company is still uncertain and Yahoo merchants are left with many questions about what is going to happen in the future.