This week we found a whole mix of interesting articles buzzing about news in the eCommerce community. Our Weekly Wrap Up features a compilation of articles covering various topics surrounding the world of eCommerce. To view this week’s top stories, check out the links in the summary below!
The U.S Senate has approved the Marketplace Fairness Act that would authorize 45 states and the District of Columbia, to force online retailers to collect sales tax. Current federal law exempt retailers from collecting taxes in states where an online retailer has no physical presence such as stores or distribution centres. How does this impact e-retailers? Online retailers fear the extra cost at check out will scare away shoppers. Corey Frons, CEO of eBuilb Inc. says, “If all of a sudden, instead of seeing a total price of $100 and free shipping, [the shopper] now sees an $8 tax added on, she’s likely to think twice about it.” Could online sales taxes increase bounce rate and shopping cart abandonment?
First Twitter then Facebook and now you can add Instagram to the mix. Next year, Instagram will turn itself into a viable advertising platform. Instagram will face the dual challenge of creating a valuable place for brands to advertise while making sure they can maintain the needs of its user base. Currently, Instagram is exploring ways to allow brands to advertising using the app’s search functionality.
Kmart aired the first holiday ad of the season promoting the company’s layaway service. Consumers took to Kmart’s Facebook page, complaining about the early arrival of the Christmas commercial. In response, the company responded saying “We’re just really excited for the holidays, and layaway!”. Last year, Kmart aired its first holiday ad on October 28th.
American Eagle Adds New Distribution Centre for Growing eCommerce Sales and Shipments
American Eagle Outfitters plans to open a new distribution centre in Pennsylvania in order to accommodate increasing orders and shipments from eCommerce sales. The newest distribution centre will place American Eagle Outfitters on par with the company’s eCommerce growth. The distribution centre will be located in Hazelton, PA and is scheduled to be operational by July 2015 with over 600 employees.