The Clyde platform was created to meet the needs of eCommerce companies, but those needs continue to evolve and adapt quickly. To stay abreast of the latest trends and developments within the space, we’ve invested time and resources to remain well read on the subjects that matter most to our customers. Check in on this weekly “conversation” to read, watch and listen to stories that are shaping the eCommerce industry.
Holiday Promotions Are On The Move
Last year, COVID lockdowns and safety protocols forced the hand of major retailers across the country. In lieu of offering their annual in-person Black Friday deals, retailers quickly closed their doors and moved their best sales promotions online. Consumers adapted to the new eCommerce playing field quickly, driving up eCommerce spending by 44% in 2020. That spike has provided retailers with enough confidence to willingly close their doors on Thanksgiving, instead of waiting for health and safety news surrounding the Delta Variant.
A growing list of major retailers like Walmart, Target, Kohl’s and Best Buy have all confirmed closures on Turkey Day, and have begun announcing new holiday season promotional plans. But the elephant in the room for Q4 remains Amazon. The retail giant dropped one of its gravity-altering Prime Days into mid-October last year. Because of its massive success, there remains buzz that Amazon will once again double-down on Prime Day. “Adobe Analytics tracked $10.4 billion in sales over last year's October event, and $11 billion during the Prime Day 2021. That means an October event remains an incredibly lucrative prospect for the retailer, and now that it knows interest is sustainable throughout the year we may be entering a new era of the double Prime Day,” wrote Tabitha Baker of TechRadar last month.
Should Amazon pull the trigger on an October Prime Day, industry analysts believe retailers will be scrambling to move up their holiday sales to keep pace. “Prime Day is no longer just a day for people to purchase cheap items on Amazon,” wrote CNBC’s Annie Palmer earlier this summer. “Quite frankly, it has completely altered the retail calendar.”
Online Retailers' Wait For Tax Relief Continues
The U.S. Supreme Court case, South Dakota v. Wayfair Inc., ruled that states can require out-of-state companies to collect sales taxes on online transactions, even if those sellers have no retail store, office, warehouse or other physical presence in the state. For thousands of online businesses that meant the onerous task of compliance.
As a result, lobbyists have attempted to sway Congress to streamline and simplify the tax ramifications for online businesses by creating national sales tax legislation. Brian Johnson of The Vogel Group, a lobbyist for ACMA (American Catalog Mailers Association), has kept close tabs on Congressional interest in creating new rules. “Tax issues just aren’t prevalent enough for a lot of committee members to have staff that have a deep understanding of the issue,” Johnson told Digital Commerce 360. “We spend a lot of time educating around this issue, the history of the Wayfair case, and the complexities businesses are still facing.” He did note that six members of Congress had petitioned the General Accounting Office to update its 2017 study on the cost of sales tax collection. But as of today that request has not been responded to by the GAO.
The Small Business Boom
National Public Radio’s podcast “The Indicator” recently detailed the small business boom. The latest business formation numbers were just released and the entrepreneurial momentum remains strong. Americans started over 440 thousand businesses in June 2021. The sixteen-month period from March 2020 to June 2021 marks a record high for business startups. Which factors are responsible for this wave of entrepreneurs? Listen to find out!
RetailX Returns To Chi-Town
From discovering what's next in the world of retail tech to connecting with the most innovative and influential leaders in the space, RetailX promises to delivery a can't-miss experience for those that make it out to the Windy City. If you're headed to Chicago and want to meet with Clyde, click here or stop by Booth 2009 and say hi! You can also wind down after a day at RetailX by mixing and mingling with industry professionals, your peers, and experts from EXCLUSIVE, Klaviyo, Trustpilot and Clyde. We’ll provide cocktails and appetizers on a rooftop overlooking Wrigley Field (as well as some raffles and drawings for fun prizes). This event is sure to be a home run and spaces are limited so reserve yours now!