Posts

Jeff Bezos: Amazon Echo is just the 'beginning of a golden era' (AMZN)

Amazon CEO Jeff Bezos spoke on stage about machine learning and more
Source: Business Insider

Jeff Bezos: Amazon Echo is just the 'beginning of a golden era' (AMZN)

Amazon CEO Jeff Bezos spoke on stage about machine learning and more
Source: Business Insider

Medicaid spending could skyrocket after a federal ruling on hepatitis drugs

The drugs can cost between $83,000 and $95,000 for a full course of treatment.
Source: Business Insider

Medicaid spending could skyrocket after a federal ruling on hepatitis drugs

The drugs can cost between $83,000 and $95,000 for a full course of treatment.
Source: Business Insider

UK retailers are concerned about shipping costs for e-commerce

Same Day ShippingBII

This story was delivered to BI Intelligence “E-Commerce Briefing” subscribers. To learn more and subscribe, please click here.

Retailers in the UK are hesitating to open up e-commerce shops over concerns related to handling shipping costs — particularly for returns, according to a report from Barclaycard cited by InternetRetailing.

In fact, 22% of retailers actively choose not to sell online because of the delivery and returns process, despite the rise in e-commerce sales in the UK.

Specifically, these fears are being compounded by “serial returners” — consumers who purchase more than they actually need online with the intention of returning what they do not like or what does not fit:

  • 19% of UK consumers order multiple versions of a product online, and then decide which items they want to keep and which they want to return.
  • 38% of these “serial returners” would be less likely to keep up the practice if retailers standardized clothing and shoe sizes, which vary across retailers.
  • Meanwhile, 57% of UK online retailers say that returns have a negative impact on the day-to-day operations of business and they have to find other ways to recover the costs of return shipping.

The e-commerce market in the UK totaled $166 billion in 2015, accounting for 27% of all retail sales, according to a separate article from InternetRetailing. That sales number is expected to grow 11% year-over-year (YoY) in 2016, meaning that businesses lagging in opening online stores will likely be negatively impacted.

One way to ease the fears of return shipping is to sell online and offer click-and-collect services, which are already widely popular in the UK. Seventy-two percent of UK shoppers are already using click-and-collect at a variety of retailers, according to a report from Cybertill cited by Forbes. This fulfillment option requires shoppers to pick up their purchased items at a physical retail location, thereby removing the need for covering return shipping on either the part of the business or the consumer.

These concerns arise at a time when consumers are becoming less willing to wait for their goods. Online shoppers are increasingly expecting their goods to arrive within one or two days, or even on the same day. And retailers who do not fulfill these demands could lose those customers.

Cooper Smith, senior research analyst for BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on same-day delivery that takes an exhaustive look at this market and sizes the percentage of people who will purchase goods to be delivered the same day.

The report uncovers the demographics of same-day delivery customers, the markets where these services have the best chance of taking off, and assesses how each of the many new same-day delivery entrants compares to the others. It also looks at the technology that really could make getting a package delivered to your door hours after you order it a common phenomenon.

Here are some of the key points from the report:

  • USE: BI Intelligence estimates that 2% of shoppers living in cities where same-day delivery is offered have used such services. In dollar terms, we estimate that roughly $100 million worth of merchandise will be delivered via same-day fulfillment this year in 20 US cities.
  • CONSUMER EXPECTATIONS: Consumer interest in same-day delivery is already fairly high. Four in 10 US shoppers said they would use same-day delivery if they didn’t have time to go to the store, and one in four shoppers said they would considering abandoning an online shopping cart if same-day delivery was not an option.
  • DEMOGRAPHICS: The most common same-day delivery shopper fits a very specific profile — millennial, highly likely to be male, urban-dwelling, and young. The products people want delivered same-day are also fairly niche.
  • BARRIERS: Despite all the competition in the same-day delivery market, it still won’t be easy to get people to pay for these services. 92% of consumers say they are willing to wait four days or longer for their e-commerce packages to arrive.

In full, the report:

  • Estimates the market for same-day delivery from 2013-2018, including the percentage of people who will use these services and the total sales volume
  • Looks at the most likely same-day delivery customers and the cities where these individuals are concentrated
  • Unpacks the kinds of goods people are likeliest to order for same-day delivery
  • Lays out how the different same-day delivery services stack up against each other in terms of prices, location, and selection
  • Considers the barriers that could keep same-day delivery from ever becoming a mainstream preference among consumers
  • Identifies the technology that could make same-day delivery cost-effective and commonplace

To get your copy of this invaluable guide, choose one of these options:

  1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
  2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the shift toward same-day delivery.


Source: Business Insider

UK retailers are concerned about shipping costs for e-commerce

Same Day ShippingBII

This story was delivered to BI Intelligence “E-Commerce Briefing” subscribers. To learn more and subscribe, please click here.

Retailers in the UK are hesitating to open up e-commerce shops over concerns related to handling shipping costs — particularly for returns, according to a report from Barclaycard cited by InternetRetailing.

In fact, 22% of retailers actively choose not to sell online because of the delivery and returns process, despite the rise in e-commerce sales in the UK.

Specifically, these fears are being compounded by “serial returners” — consumers who purchase more than they actually need online with the intention of returning what they do not like or what does not fit:

  • 19% of UK consumers order multiple versions of a product online, and then decide which items they want to keep and which they want to return.
  • 38% of these “serial returners” would be less likely to keep up the practice if retailers standardized clothing and shoe sizes, which vary across retailers.
  • Meanwhile, 57% of UK online retailers say that returns have a negative impact on the day-to-day operations of business and they have to find other ways to recover the costs of return shipping.

The e-commerce market in the UK totaled $166 billion in 2015, accounting for 27% of all retail sales, according to a separate article from InternetRetailing. That sales number is expected to grow 11% year-over-year (YoY) in 2016, meaning that businesses lagging in opening online stores will likely be negatively impacted.

One way to ease the fears of return shipping is to sell online and offer click-and-collect services, which are already widely popular in the UK. Seventy-two percent of UK shoppers are already using click-and-collect at a variety of retailers, according to a report from Cybertill cited by Forbes. This fulfillment option requires shoppers to pick up their purchased items at a physical retail location, thereby removing the need for covering return shipping on either the part of the business or the consumer.

These concerns arise at a time when consumers are becoming less willing to wait for their goods. Online shoppers are increasingly expecting their goods to arrive within one or two days, or even on the same day. And retailers who do not fulfill these demands could lose those customers.

Cooper Smith, senior research analyst for BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on same-day delivery that takes an exhaustive look at this market and sizes the percentage of people who will purchase goods to be delivered the same day.

The report uncovers the demographics of same-day delivery customers, the markets where these services have the best chance of taking off, and assesses how each of the many new same-day delivery entrants compares to the others. It also looks at the technology that really could make getting a package delivered to your door hours after you order it a common phenomenon.

Here are some of the key points from the report:

  • USE: BI Intelligence estimates that 2% of shoppers living in cities where same-day delivery is offered have used such services. In dollar terms, we estimate that roughly $100 million worth of merchandise will be delivered via same-day fulfillment this year in 20 US cities.
  • CONSUMER EXPECTATIONS: Consumer interest in same-day delivery is already fairly high. Four in 10 US shoppers said they would use same-day delivery if they didn’t have time to go to the store, and one in four shoppers said they would considering abandoning an online shopping cart if same-day delivery was not an option.
  • DEMOGRAPHICS: The most common same-day delivery shopper fits a very specific profile — millennial, highly likely to be male, urban-dwelling, and young. The products people want delivered same-day are also fairly niche.
  • BARRIERS: Despite all the competition in the same-day delivery market, it still won’t be easy to get people to pay for these services. 92% of consumers say they are willing to wait four days or longer for their e-commerce packages to arrive.

In full, the report:

  • Estimates the market for same-day delivery from 2013-2018, including the percentage of people who will use these services and the total sales volume
  • Looks at the most likely same-day delivery customers and the cities where these individuals are concentrated
  • Unpacks the kinds of goods people are likeliest to order for same-day delivery
  • Lays out how the different same-day delivery services stack up against each other in terms of prices, location, and selection
  • Considers the barriers that could keep same-day delivery from ever becoming a mainstream preference among consumers
  • Identifies the technology that could make same-day delivery cost-effective and commonplace

To get your copy of this invaluable guide, choose one of these options:

  1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
  2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the shift toward same-day delivery.


Source: Business Insider

China's manufacturing is on a bit of a roll

Business activity is expanding in China, but at a slower rate than we’re used to.
Source: Business Insider

China's manufacturing is on a bit of a roll

Business activity is expanding in China, but at a slower rate than we’re used to.
Source: Business Insider

JEFF BEZOS ON PETER THIEL: 'Seek revenge and you should dig two graves, one for yourself' (AMZN)

The Amazon CEO spoke on stage on Tuesday night and touched on the disagreement between Silicon Valley billionaire investor Peter Thiel and Gawker Media.
Source: Business Insider

JEFF BEZOS ON PETER THIEL: 'Seek revenge and you should dig two graves, one for yourself' (AMZN)

The Amazon CEO spoke on stage on Tuesday night and touched on the disagreement between Silicon Valley billionaire investor Peter Thiel and Gawker Media.
Source: Business Insider

Samsung Pay may launch in-browser payments (AAPL, GOOG, GOOGL)

Mobile Payments ChartBII

This story was delivered to BI Intelligence “Payments Briefing” subscribers. To learn more and subscribe, please click here.

Samsung is reportedly considering launching a new app, called Samsung Pay Mini, for online and mobile web transactions, according to sources who spoke to ET News.

The app, which will initially be available in South Korea, could launch as early as June and would work on both iOS and non-Samsung Android devices as well as with Samsung phones, according to Reuters.

For context, Apple is also rumored to be developing browser-based support for Apple Pay that could launch later this year. 

In-browser payments are a logical next step for mobile wallet vendors.

  • Browser-based payments get higher conversion rates. Conversion rates on mobile devices are just 1.43%, compared with 4.66% on PC — because of frictions associated with smaller screens and slower connection speeds. Bringing mobile payments features to the browser will help the companies that offer them take a greater share of digital spending. 
  • Ubiquity is also key. While in-store payments accounted for nearly 93% of US retail sales in 2015, payment methods are most useful when they can be used everywhere and that ubiquity increases the potential for habitual usage as well. Samsung has confirmed plans to add in-app purchasing and is exploring additional use cases such as virtual reality payments. 

Adding browser-based payments will increase Samsung Pay’s competitive advantage over Android Pay. Samsung Pay has a wider in-store acceptance network than Android Pay because it is accepted at both magnetic-stripe-based and NFC-enabled POS terminals. Adding web-based payment functionality increases that acceptance and give users a digital option — Android Pay already offers an in-app purchasing option.

Browser-based payments aside, it will be interesting to see if Samsung Pay will be offered as a payments method in Google Play, Alphabet’s app store. 

Mobile payments on the whole are becoming more popular, but they still face some high barriers, such as consumers’ continued loyalty to traditional payment methods and fragmented acceptance among merchants. But as loyalty programs are integrated and more consumers rely on their mobile wallets for other features like in-app payments, adoption and usage will surge over the next few years.

Evan Bakker, research analyst for BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on mobile payments that forecasts the growth of in-store mobile payments in the U.S., analyzes the performance of major mobile wallets like Apple Pay, Android Pay, and Samsung Pay, and addresses the barriers holding mobile payments back as well as the benefits that will propel adoption.

Here are some key takeaways from the report:

  • In our latest US in-store mobile payments forecast, we find that volume will reach $75 billion this year. We expect volume to pick up significantly by 2020, reaching $503 billion. This reflects a compound annual growth rate (CAGR) of 80% between 2015 and 2020.
  • Consumer interest is the primary barrier to mobile payments adoption. Surveys indicate that the issue is less the mobile wallet itself and more that people remain loyal to traditional payment methods and show little enthusiasm for picking up new habits.
  • Integrated loyalty programs and other add-on features will be key to mobile wallets taking off. Consumers are showing interest in wallets with integrated loyalty programs. Other potential add-ons, like in-app, in-browser, and P2P payments, will also start fueling adoption. This strategy has been proved successful in China with platforms like WeChat and Alipay.

In full, the report:

  • Forecasts the growth of US in-store mobile payments volume and users through 2020.
  • Measures mobile wallet user engagement by forecasting mobile payments’ share of their annual retail spending.
  • Reviews the performance of major mobile wallets like Apple Pay and Samsung Pay.
  • Addresses the key barriers that are preventing mobile in-store payments from taking off.
  • Identifies the growth drivers that will ultimately carve a path for mainstream adoption.

To get your copy of this invaluable guide, choose one of these options:

  1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
  2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of how mobile payments are rapidly evolving.


Source: Business Insider

Samsung Pay may launch in-browser payments (AAPL, GOOG, GOOGL)

Mobile Payments ChartBII

This story was delivered to BI Intelligence “Payments Briefing” subscribers. To learn more and subscribe, please click here.

Samsung is reportedly considering launching a new app, called Samsung Pay Mini, for online and mobile web transactions, according to sources who spoke to ET News.

The app, which will initially be available in South Korea, could launch as early as June and would work on both iOS and non-Samsung Android devices as well as with Samsung phones, according to Reuters.

For context, Apple is also rumored to be developing browser-based support for Apple Pay that could launch later this year. 

In-browser payments are a logical next step for mobile wallet vendors.

  • Browser-based payments get higher conversion rates. Conversion rates on mobile devices are just 1.43%, compared with 4.66% on PC — because of frictions associated with smaller screens and slower connection speeds. Bringing mobile payments features to the browser will help the companies that offer them take a greater share of digital spending. 
  • Ubiquity is also key. While in-store payments accounted for nearly 93% of US retail sales in 2015, payment methods are most useful when they can be used everywhere and that ubiquity increases the potential for habitual usage as well. Samsung has confirmed plans to add in-app purchasing and is exploring additional use cases such as virtual reality payments. 

Adding browser-based payments will increase Samsung Pay’s competitive advantage over Android Pay. Samsung Pay has a wider in-store acceptance network than Android Pay because it is accepted at both magnetic-stripe-based and NFC-enabled POS terminals. Adding web-based payment functionality increases that acceptance and give users a digital option — Android Pay already offers an in-app purchasing option.

Browser-based payments aside, it will be interesting to see if Samsung Pay will be offered as a payments method in Google Play, Alphabet’s app store. 

Mobile payments on the whole are becoming more popular, but they still face some high barriers, such as consumers’ continued loyalty to traditional payment methods and fragmented acceptance among merchants. But as loyalty programs are integrated and more consumers rely on their mobile wallets for other features like in-app payments, adoption and usage will surge over the next few years.

Evan Bakker, research analyst for BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on mobile payments that forecasts the growth of in-store mobile payments in the U.S., analyzes the performance of major mobile wallets like Apple Pay, Android Pay, and Samsung Pay, and addresses the barriers holding mobile payments back as well as the benefits that will propel adoption.

Here are some key takeaways from the report:

  • In our latest US in-store mobile payments forecast, we find that volume will reach $75 billion this year. We expect volume to pick up significantly by 2020, reaching $503 billion. This reflects a compound annual growth rate (CAGR) of 80% between 2015 and 2020.
  • Consumer interest is the primary barrier to mobile payments adoption. Surveys indicate that the issue is less the mobile wallet itself and more that people remain loyal to traditional payment methods and show little enthusiasm for picking up new habits.
  • Integrated loyalty programs and other add-on features will be key to mobile wallets taking off. Consumers are showing interest in wallets with integrated loyalty programs. Other potential add-ons, like in-app, in-browser, and P2P payments, will also start fueling adoption. This strategy has been proved successful in China with platforms like WeChat and Alipay.

In full, the report:

  • Forecasts the growth of US in-store mobile payments volume and users through 2020.
  • Measures mobile wallet user engagement by forecasting mobile payments’ share of their annual retail spending.
  • Reviews the performance of major mobile wallets like Apple Pay and Samsung Pay.
  • Addresses the key barriers that are preventing mobile in-store payments from taking off.
  • Identifies the growth drivers that will ultimately carve a path for mainstream adoption.

To get your copy of this invaluable guide, choose one of these options:

  1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
  2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of how mobile payments are rapidly evolving.


Source: Business Insider