Tag Archives: ecommerce

Walmart Launches Walmart+ Membership

Walmart has announced a new service called Walmart+, an annual membership service which will give shoppers free delivery of groceries and other products. Walmart+ will cost $98/year and offers free delivery of food and other items from nearby stores “as fast as same-day.” However, shipping is free only is orders are at least $35.

Walmart stores carry about 160,000 items which qualify for free shipping. And, when the online store is added, Walmart offers roughly 35 million products. Other Walmart+ perks are expected to expand to a gas discount at Walmart gas stations and the ability to skip checkout lines in stores by paying by mobile phones.

Will this be a significant rival to Amazon Prime? Amazon Prime has been around since 2005 and already has an estimated 150 million subscribers around the world. Prime is definitely an attraction for shoppers and Amazon offers not only free shipping, but free videos, original entertainment content, music, books, and more. It has certainly been a reason why Amazon has grown to a dominant ecommerce market position. Amazon carries more than 12 million products, and when that is expanded to its Amazon Marketplace sellers, reaches 350 million products.

Where will you shop?

Group Activities and Discussion Questions:

  1. Poll students: Who has Amazon Prime? Who shops online from Walmart?
  2. Show video: Video: https://youtu.be/U1p1RDxhvps
  3. Divide students into teams. Have each team compare the attributes of Amazon Prime and Walmart+. (Can include: price, services, products, shipping, and more.)
  4. Next, have each team build a chart comparing the strengths and weaknesses of each company.
  5. Optional: Include Target in the analysis, even though it does not (yet) have a membership service.
  6. Should Target also offer a membership service similar to Prime and Walmart+?

Source:  Associated Press; New York Times; Wall Street Journal; other news sources

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Direct-to-Consumer Air Conditioner

It’s summer (finally)! People are leaving their houses and enjoying the warmer weather. Well, not everyone enjoys summer heat – many older apartments and houses lack central air conditioning and depend either on fans or in-window air conditioners. While many home technology devices are sleek looking and high-tech, the lowly room air conditioner has remained unchanged for decades, retaining its distinct lack of style.

July air conditioners aims to change that. The new direct-to-consumer (DTC) brand takes a fresh look at the design of in-window units and is positioning itself as a design item in addition to being an effective appliance. It’s struck a nerve with consumers; within the first five days of announcing a wait list for the product, there were more than 3,000 people waiting in (virtual) line. Early ordering also lowers the cost of the units by 25% and guarantees a summer delivery.

There are two units of power: 6,000 BTUs (cools up to 250 sq. ft.) is $349 and 8,000 BTUs (cools up to 350 sq. ft.) is $399. The unit is square, sleek and uses a simple installation process. The customer first inserts a frame to lock in the window, then slides in the unit until it clicks into place. The front of the unit is a solid panel that comes in white, light blue, gray, and ash wood that consumers can switch out and customize to match their decor. July can be controlled via WiFi and scheduled to turn on at a desired time as well as controlled with voice commands.

Ready for summer?

Group Activities and Discussion Questions:

  1. Discuss the importance of clearly defining a target market.
  2. Show July: https://july.ac/
  3. For the July Air Conditioner product, who is the target market?
  4. Divide students into teams and have each team develop a profile of a target market for July. Include demographics, psychographics, behaviors, values, attitudes, etc.
  5. Based on the target market profile, what makes this product unique for these customers?
  6. July is a DTC brand – meaning it is not sold in stores. What are the considerations for this brand as it works to reach prospective customers?
  7. How is July positioning its products compared to the standard in-window air conditioners?

Source: Ad Week; Fast Company; Gear Patrol

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Why Buy Clothes? Rent Them Instead!

Do you have a tough time keeping up the latest fashions? Or, an even tougher time paying for the new designer clothes you covet? Despair no more. Instead of buying, try renting your clothes!

Renting clothes is a new way to spruce up wardrobes without breaking the bank. While there are a number of subscription-based services such as Rent the Runway, traditional retailers are also entering the new market, including options to rent clothes from Bloomingdales’, Banana Republic, Urban Outfitters, and more. Consumers are not limited to just renting clothing – some retailers rent shoes, jewelry, and handbags, too. And, lest you think this is just for women, a number of companies rent clothing and accessories to men as well.

The clothing rental industry, while still relatively new, is also quite large and still growing. According to research firm GlobalData, the clothing rental industry is roughly $1 billion today, and is projected to grow to $2.5 billion by 2023. Not too shabby (chic).

The sharing economy industry is still establishing itself for consumers who are not interested in owning, but still want access to new brands and services. After all, consumers already rent apartments, homes, cars, bikes, and furniture. Now we can add clothing to the list.

What will you wear?

Group Activities and Discussion Questions:

  1. Discuss the sharing economy. What is it; what drives it; what should we watch?
  2. Show a video overview of clothing rental: https://youtu.be/7OKLqBZoOYY

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