GoodsFox Weekly(US online grocery sales decrease in 2023)

This is our regularly GoodsFox weekly news about ecommerce market,here are the most noticeable events happening this week !

01.US online grocery sales decrease in 2023

U.S. online grocery sales in 2023 reached $95.8 billion, according to annualized results from the monthly Brick Meets Click/Mercatus Grocery Shopper Survey.

That’s a 1.2% decline from 2022, which Brick Meets Click and Mercatus attributed primarily to a decline in order frequency among online grocery shoppers. The data shows that U.S. online grocery sales decreased from 2021 to 2022, then again from 2022 to 2023. Online grocery sales had dropped to $97.0 billion in 2022 from $97.6 billion in 2021.

According to Brick Meets Click and Mercatus, the data is based on more than 21,000 survey responses collected in each of those years from adults, 18 years and older, who participated in the household’s grocery shopping. They define the term “grocery” as product categories commonly found in a conventional grocery store across fresh and packaged products.

“These annual results show that 2023 was very challenging for grocery retailing as higher prices chipped away at household purchasing power even though inflation has slowed considerably since its peak in 2022,” said David Bishop, partner at Brick Meets Click. “Despite the challenges, Pickup continues to prove its appeal to shoppers, even without the benefits of expanded availability and/or aggressive promotions that aided Delivery in 2023.”

Source:Digitalcommerce

02 Amazon launches generative AI tool to answer shoppers’ questions

Amazon is rolling out an artificial intelligence tool that can answer shoppers’ questions about a product, a spokesperson confirmed, as the company continues to experiment with generative AI.

The new feature in Amazon’s mobile app prompts users to ask questions about a specific item. It then returns an answer within a few seconds, primarily by summarizing information collected from product reviews and the listing itself.

“We’re constantly inventing to help make customers’ lives better and easier, and are currently testing a new feature powered by generative AI to improve shopping on Amazon by helping customers get answers to commonly asked product questions,” Maria Boschetti, an Amazon spokesperson, said in an email.

The feature could keep shoppers from scrolling through pages of reviews or reading through a listing to find information about a product.

Source:CNBC

03 Shein's IPO plan faces more challenges

Shein might face a roadblock in its path to an initial public offering in the U.S.

China’s internet regulating body, The Cyberspace Administration of China (CAC), is investigating the apparel retailer’s data and supply chain practices, The Wall Street Journal reported. That could have implications for Shein’s plans for an IPO in the U.S. The fast-fashion retailer reportedly filed for the move confidentially in November. A CAC investigation, however, could delay an IPO for months or remove the option altogether. Shein must wait on permission from Beijing before pursuing a U.S. IPO.

Under the CSRC rules, a host of authorities such as the National Development and Reform Commission, which supervises foreign holdings in local firms, the cybersecurity regulator and others may get involved in approving offshore IPO applications.

That is likely to lead to more uncertainty, as some agencies have divergent priorities, such as national security or data protection, bankers have said.

Source:Ruter

A company is subject to the Chinese listing rules, even if it is headquartered offshore, if 50% or more of its operating revenue, profit, total assets or net assets are generated in mainland China and it also meets one of these two criteria; the main parts of its business activities are conducted in the country or; senior managers are mostly Chinese citizens or domiciled on the mainland.

Shein is No. 2 in Digital Commerce 360’s ranking of ecommerce retailers in Asia by online sales. The online apparel retailer was valued at $66 billion in May when it closed its latest funding round. Shein reportedly reached $2.5 billion in income in 2023, according to Bloomberg.

04. IRobot Stock Plummets As EU Moves To Block Takeover By Amazon

IRobot (IRBT) stock plunged on Friday on news that antitrust regulators in Europe plan to block Amazon.com's (AMZN) planned purchase of the Roomba vacuum cleaner maker.

The Wall Street Journal reported late Thursday that the European Union's competition watchdog intends to block Amazon's $1.7 billion bid to buy iRobot. Competition officials from the European Commission, the bloc's executive body, have rejected the deal and now will submit their recommendation for formal approval from the commission's 27 top political leaders.

The commission is unlikely to overrule the recommendation, the Journal said. The government body has a Feb. 14 deadline for its final decision.

European regulators have expressed concern that Amazon's purchase of iRobot would restrict competition in the market for robot vacuum cleaners

On the stock market yesterday, iRobot stock tumbled 26.9% to close at 17.26. Meanwhile, Amazon stock rose 1.2% to 155.34.

Amazon announced its plan to buy iRobot in August 2022 for $61 per share in an all-cash transaction. The terms of the deal were modified in July 2023 so that Amazon would pay $51.75 per share in cash for iRobot.

IRobot stock hit an all-time high of 197.40 in January 2021. That was during the Covid pandemic when consumers splurged on home electronics.

Source:Investor.com

05.Amazon’s latest layoffs hit its Buy with Prime unit

Amazon is laying off about 30 employees in its Buy with Prime unit, CNBC has learned, as it continues to look for ways to trim costs.

The cuts affect fewer than 5% of staff in the Buy with Prime division, Amazon said. Buy with Prime is a service that lets online stores offer the same two-day shipping benefits available to Prime subscribers. Amazon has expanded the program since its launch in April 2022, including tie-ups with Shopify and Salesforce.

Amazon didn’t say how many staffers are in its Buy with Prime segment.

Amazon has cut more than 27,000 jobs across the company as part of rolling layoffs that began in late 2022. Job reductions have continued this year, with Amazon letting go staffers in its Prime Video, MGM, Twitch, Audible and Amazon Pay units last week. Other tech companies including Google, Discord, Xerox and Unity have also announced layoffs since the start of the new year.

Source：Bloomberg

Amazon said it’s assisting Buy with Prime employees who were laid off in finding new roles elsewhere within the company. Employees will continue to receive their pay and benefits for at least 60 days, and they will be eligible for a severance package.

Conclusion

The above is the content of GoodsFox weekly.Whether you are looking for a new product to start your online business or a great product to add to your existing store, you can find inspiration from these products. You can also use Goodsfox to track the sales trends and ad creatives of these products and others. By doing so, you can stay ahead of the competition and catch the wave of the market demand.