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This Week in eCommerce: April 20 – 24

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This week in eCommerce; following their recovery from a security breach, online marketplace eBay’s outlook is topping estimates. The eCommerce company took a hit after a data breach and a curb in organic traffic, but revenue for their second quarter is expected to be between $4.4 billion to $4.5 billion, a positive note ahead of its split from PayPal that will finalize in Q3. Garett Camp, Co-Founder of Uber, is taking on the world of eCommerce with his new start-up “Operator”. The application will synthesis the digital and physical worlds by using a combo of algorithms and human assistants to let consumers directly send messages and requests for items to merchants. One of Amazon’s biggest kept secrets will be revealed this week. Up until this week the value its Amazon Web Services has remained unknown, but now that the segment has reached a specific level the information will be made public. It is known, however that AWS is the largest public cloud platform; estimates are in the billions of dollars. A new deal with week will bring together two major companies in the eCommerce space, Netsuite and Bronto. Both companies are used by multiple retailers in Internet Retailer’s Top 500 Guide. For all the details from this week’s eCommerce newsmakers, read-on below!

eBay Tops Outlooks

eBay Inc. profit outlook tops estimates as marketplace unit recovers

Source: Financial Post

Even the great suffer. eBay got hit by a data breach not long ago and are now reported to be seeing some recovery. After the security risk was discovered, eBay users were forced to changes passwords – an arduous task for today’s fast-moving users – and caused Google to curb traffic to the site through a search change. Revenue for the marketplace’s second quarter of the year is expected to sit somewhere between $4.4-4.5 billion. Many had cause for concern following eBay’s separation from PayPal, the recent recovery offers some calm. eBay hopes that the recovery following the security breach and the Google search curb will make the online marketplace more favourable among consumers when the split finally come into effect in Q3. Net income for the eCommerce giant in the first quarter rose to $626 million, but competition is stiff for the marketplace, with Amazon giving them a run for their money.

Uber eCommerce

Here’s How Uber’s Co-Founder Is Going to Take on Amazon and eBay


Garrett Camp, Co-Founder of Uber, is ready to take on the world of eCommerce with his next big idea. This his technological prowess and innovative thinking, Camp is going to try to synthesize the digital and physical world, to make it easier for consumers to shop in both. Using a combination of algorithms and actual humans (whoa), Camp will bring them together to connect consumer and retailer worker to make shopping an even better experience. He likes the experience to “Siri, but with a human at the other end”. The app called “Operator”, will let shoppers exchange messages and send requests for items to participating merchants. User profiles will be tailored to each consumer using the app, with a “But It Now” button built into the app to make spending a breeze. Despite his success in the past, this doesn’t guarantee a future for Operator as Camp’s product will be going tête-à-tête with eCommerce giants like eBay, Amazon, and Camp is banking on the human part of his business giving him the inside edge over complex algorithms, however this will add to his start-up’s expenses. So far no retail partners have been named.

One of Amazon’s biggest Secrets

Amazon is about to reveal one of its biggest secrets—the size of its cloud business


There’s no doubt that Amazon’s Web Services has revolutionized the industry, with the cloud business greatly influencing the creation of software and and tech start-ups. AWS has grown to the point now that the segment will have to start reporting their revenue earnings. As of right now, no one is in on how big Amazon Web Services is however we can speculate as the segment was once reported under Amazon’s ” “North America—Other” category as having generated $5.4 billion in revenue in 2014. Many different Wall Street firms have estimated AWS’s worth, Cowen and Company believes AWS revenue to be $5.9 billion in 2015! AWS is the biggest public cloud platform, ahead of Microsoft and Google with usage growing 90% year-over-year in the fourth quarter of 2014. At the time of this posting, the numbers are speculated to be revealed after the market closes April 23.

With their Powers combined…

NetSuite will acquire email service provider Bronto Software

Source: Internet Retailer

A new deal announcement this week brings together a major eCommerce software provider and online marketing firm; NetSuite and Bronto. This mergers is relatively big, as Netsuite Inc. is used by top retailers – listed in Internet Retailer’s Top 500 Guide – including Bed Bath and Beyond, Groupon Goods, and for it’s well-known order management system. Over 3,000 retailers, bother B2B and B2C, use the eCommerce services provided by NetSuite. Bronto is used by retailers including JustFab Inc., Nasty Gal Inc. and Both companies will continue to operate separately but plan to add to both of their teams. The deal between the two companies closes Q2 of 2015.

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