Amazon, Shopify and others are feeling the sting of slowing online sales in early 2022. It’s likely transitory as physical and online retail rebalance for what could be a lengthy recovery.
Even though social sites are being leveraged by more sellers as sales channels and under bad stock market news, marketplaces are thriving and their business remains strong.
For the PYMNTS report, “Online Sellers: The Future is Multi-Channel,” we surveyed over 300 online merchants with revenues of at least $500,000, deriving 40% or more of their revenue from marketplace sales. Steps. Let’s look at three telling data points.
- 61% of online sellers say they have increased their marketplace usage over the past year.
Of the two profiles of sellers defined in our research — “marketplace addicts” who make up to 75% of their sales through marketplaces, and marketplace-native businesses, who generate more than 75% of their sales on marketplaces — both groups have increased their usage over the past year.
Among large multi-product merchants, 68% increased market usage over the previous year, “as did 68% of businesses that earn more than $100 million a year. The statistics are especially similar among new businesses. : 69% have increased their online presence in the last year, while only 54% of companies in business for 20 years or more have done the same.
- 42% of online sellers operate through four or more marketplaces.
With only 7% of online sellers of either type making 100% of sales in a single marketplace, the trend among sellers is diversification of sales channels, as the data shows.
“Proprietary websites and social media are the most common non-market channels for these businesses: 61% of omnichannel sellers use proprietary websites to sell their products, and 58% use social media,” according to the study, which also revealed that 75% of all sellers list with Amazon.
- 92% of sellers say analytics is their most used marketplace service
It would be easy to think that Fulfillment By Amazon (FBA) logistics is the service most used by online sellers, but our research reveals that sellers are more interested in metrics, looking at what sells, what doesn’t. not sell and other salient issues. impacting inventory decisions and more.
“In addition to building customer reach using marketplaces, PYMNTS research found that customer analytics is the most common service used by sellers across all segments to help them reach more customers. potential buyers, with 92% of sellers surveyed doing so,” according to the study.
See the study: Online sellers: the future is multi-channel
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Shopify (SHOP)
Shopify (NYSE:STORE) is a Canadian e-commerce company that provides an online platform for businesses to sell products. It has grown exponentially since its inception and now “Shopify merchants run over 1,000,000 businesses in 175 different countries”.
Shopify offers over 500,000 themes and apps to help users build their stores that are easy to customize. The company also provides support services, such as search engine marketing and optimization services and payment processing through Shopify Payments.
Shopify is the platform of choice for many startups. It provides a useful service that allows people to monetize their work quickly. Those who yearn for independence and quick success have jumped on board and become successful merchants. Shopify has seen explosive growth since the pandemic hit, giving those with an entrepreneurial dream a way to make it happen.
However, just like other tech stocks, SHOP stock has been experiencing a downturn since the start of the year. You can attribute this to a shortfall, general pessimism in the markets, and the expensive $2.1 billion acquisition of a logistics startup. Delivery man. Therefore, you can add it to your portfolio at a high discount.
Cathie Wood Stocks: Tesla (TSLA)
You’re here (NASDAQ:TSLA) has done very well in the automotive industry, positioning itself as a leader in the electric vehicle (EV) sector.
Tesla’s success story can be traced to Elon Musk, who became its CEO in 2008 after co-founding PayPal with Peter Thiel. Musk built Tesla’s reputation by investing in different projects, including SpaceX.
Cathie Wood is a longtime supporter of Tesla. He takes first place for her ARK Innovation ETF (NYSEARC:ARKK). Although ARK sold about 15,000 Tesla shares from its fund, it is still a large position in its overall holdings.
Coinbase Global (COIN)
Coinbase global (NASDAQ:PIECE OF MONEY) is a United States-based company that offers an online platform for people to buy and sell digital coins such as Bitcoin (BTC-USD) and Ethereum (ETH-USD). It also provides wallet services for storing cryptocurrencies. It is one of the most popular cryptocurrency exchanges in the world due to its ease of use and the wide range of cryptocurrencies it offers.
Coinbase has been criticized for its lack of regulation on its platform. However, Cathie Wood is a longtime supporter of Coinbase Global and the crypto space. A few days ago, Cathie Wood reaffirmed her faith in the company, buying over half a million shares despite COIN’s stock plummeting sharply.
On this list of stocks from Cathie Wood, there are few companies as risky as Coinbase. The fortune of the company is intimately linked to the value of digital assets. Therefore, only invest money that you can afford to lose as it is a very volatile asset.
Cathie Wood Stocks: Roblox (RBLX)
Roblox (NYSE:RBLX) is a multiplayer online platform where users can create games, play games with friends, or explore the vast world of Roblox. It’s a great place for kids to learn coding, teamwork, and many other skills. The games are built with HTML5, which users can play on both computers and mobile devices.
Due to the Covid-19 pandemic, Roblox has seen a huge spike in usage as people shelter in place.
However, with schools opening and people returning to their normal lives, usage is decreasing and this is having a massive impact on the share price. However, Roblox is interesting as a long term play on games.
The global digital media market has grown exponentially over the past decades and many industries have taken advantage of it. Gaming is the industry that generates the most revenue in the digital media market. If you’re looking for a long-term investment with an optimistic return, consider buying RBLX stock.
Zoom (ZM)
Zoom (NASDAQ:ZM) has revolutionized the way people communicate and collaborate since its inception in 2011. The company’s goal is to make video conferencing as easy and natural as possible. Zoom is an AI-powered video conferencing platform that helps you connect with colleagues or clients. It can help you find information, present ideas, or have fun with your friends on a conference call.
It’s no surprise that Zoom has done very well during the pandemic. The offices still had to function. Therefore, companies had to adopt a flexible business model. In turn, the business reaped profits and revenue. However, it is interesting to note that the company also continued to perform well after the pandemic.
Zoom tripled its revenue in FY21. GAAP operating revenue was $1.063 billion in the most recent fiscal year, compared to $659 million from the prior year period. Therefore, the company has merit as a long-term investment, so it makes it onto this Cathie Wood stock list.
Cathie Wood Stocks: General Motors (GM)
General Motors (NYSE:GM) is a company that has been around since 1908 and is now the largest automaker in North America. It was founded by William C. Durant, who had a vision of making cars affordable for the masses. It has managed to become one of the most recognizable brands in America.
Some investors were surprised when Cathie Wood bought 158,187 shares of GM. However, GM is taking some very interesting steps that investors should be aware of. The company is investing $35 billion in electric and autonomous vehicles from 2020 to 2025.
With continuous innovation and a consumer focus, General Motors has had an exciting journey over the past decades. It’s safe to say it’s in a much better position than other EV companies. To put it into perspective, GM sold about 6.3 million vehicles in 2021, compared to Tesla, which delivered 936,222.