Home » Latest News » E-commerce Daily Update (Feb 05): Jeff Bezos to Sell Amazon Shares, Shopify Unveils Semantic Search

E-commerce Daily Update (Feb 05): Jeff Bezos to Sell Amazon Shares, Shopify Unveils Semantic Search


Amazon: Jeff Bezos’s Strategic Stock Sale

  • Bezos’s Planned Share Sale: Jeff Bezos, founder of Amazon, intends to sell up to 50 million Amazon shares by January 31, 2025, valued at nearly $8.6 billion. This decision coincides with Amazon’s surging stock prices following record-breaking financial results. With Amazon’s market value reaching $1.78 trillion, surpassing Alphabet’s $1.77 trillion, Bezos, who stepped down as CEO in 2021, seems to shift his focus to his space venture, Blue Origin. Amidst global economic downturns and cost-cutting measures under current CEO Andy Jassy, Amazon’s stock has risen approximately 90% since December 2022. This sale would mark Bezos’s first since 2021 and coincides with his relocation to Florida, potentially avoiding Washington’s new capital gains tax.

Amazon: Trends Among Third-Party Sellers

EcommerceDB’s data reveals that third-party sellers on Amazon are now responsible for over 60% of the platform’s sales, a significant leap of 70% since 2011. This shift underscores the growing importance of independent sellers in Amazon’s ecosystem.

  • Most Lucrative Categories: The research identifies several categories where sellers are thriving. Beauty and personal care lead the way, with 30% of sellers in this category achieving over 21% net profit margins. Furniture and kitchen items follow closely, also offering high profitability with 30% of sellers reporting over 21% net profit margins. Apparel, shoes, and accessories rank as the third most profitable category, with 27% of sellers seeing net profit margins above 21%. Crafts and sewing, as well as electronics, round out the top five profitable categories, underlining the diverse opportunities available for sellers on the platform.
  • Popular Categories Among Sellers: In terms of popularity, home and kitchen products top the list with 35% of sellers offering these items. Beauty and personal care products are supplied by 26% of sellers, while apparel, shoes, and accessories are provided by 20%. The toys and games category is supported by 18% of sellers, and health and household items by 17%, demonstrating a broad range of interests among Amazon’s third-party sellers.
  • Categories Facing Less Interest: On the other end of the spectrum, certain categories are witnessing lower seller participation. Only 2% of sellers are involved in the musical instruments category. CDs, vinyl records, luggage, and travel gear, along with video games, each see only 4% seller engagement. Categories like computers, industrial and scientific products, collectibles and fine art, and crafts have around 5% of sellers involved. Apps and games, as well as automotive products, are offered by 8% of sellers, indicating these areas might be less saturated and could offer new opportunities.

Shopify: Enhancing User Experience with AI

  • Semantic Search for Better Results: Shopify recently launched an AI feature, Semantic Search, to provide users with more accurate search results. This advanced algorithm can interpret queries like “what to wear for skiing” and display relevant results even without exact keyword matches. This feature, currently exclusive to Shopify Plus customers, includes text and image results, expanding the search scope and improving product conversion rates. Additionally, Shopify has introduced product creation and categorization tools supporting up to 2000 variants, along with an application for variant management.

Female Health Brand Perelel: Funding Milestone

  • Perelel’s Successful Funding Round: Direct-to-consumer female health brand Perelel has completed a $6 million Series A funding round, bringing its total funding to $12.1 million. Supported by Unilever, Willow Growth, and Selva Ventures, Perelel focuses on providing health products for women’s various life stages. With a product line of 19 vitamins sold through subscription services, the brand has seen a revenue increase of over 200% since its inception and aims to expand its team and develop new products.

Global Updates

  • The ‘Big Brother Brazil’ Effect: Collaboration with the reality show ‘Big Brother Brazil’ has significantly increased the search for fashion accessories on Mercado Libre’s platform. Featured products from over 20 brands have witnessed a surge in interest, with items like floral headpieces and feather earrings gaining popularity. This partnership has led to an 18-fold increase in searches for specific accessories, reflecting the show’s impact on consumer trends.
  • Korea’s E-commerce Surge: The Korean Statistical Office reported a 8.3% increase in online shopping transactions in 2023, reaching a record high of approximately $170.8 billion. Sales in online services, including travel and electronic coupons, have notably increased. Despite a slight decline in electronics sales, overall, the market has seen significant growth, with mobile transactions comprising 73.82% of total e-commerce sales. Additionally, Korea’s direct overseas purchases hit a new high, with China surpassing the USA as the top shopping destination for Koreans.

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