Show News Stories 11-19-2017

For Your Eyes only News Stories ~~~~~~ Ecommerce Enterprise Radio Show November 19, 2017 8:30 pm EDST 1

Walmart’s latest deal confirms the death of the middle class, as Walmart is partnering with Lord & Taylor and its many designer fashion brands to its website, the companies announced Monday. The deal is the latest in a series of moves by Walmart designed to target wealthy shoppers, which the retail giant has historically ignored in favor of customers at the opposite end of the in- come spectrum. “We see customers on our site searching for higher-end items, and we are expanding our busi- ness online to focus on adding specialized and premium shopping experiences, starting with fashion,” Denise Incandela, the head of fashion for Walmart US e-commerce, said in a statement. Walmart wants to turn its website into a “premium fashion destination,” she said. The new Lord & Taylor site will launch on Walmart.com in spring 2018. Customers may be able to pick up and return Lord & Taylor items at Walmart stores as part of the deal, according to the Wall Street Journal. Lord & Taylor will also continue to operate its own site separate from Walmart. Walmart’s race for higher-income shoppers began earlier this year with its $3 billion acquisition of Jet.com, which attracts a younger and wealthier group of shoppers than Walmart. The retailer has also been snatching up trendy retailers like Bonobos, ModCloth, Moosejaw, and Shoebuy. The acquisitions have all been part of a plan designed to “elevate the Walmart.com brands,” Walmart e-commerce CEO Marc Lore said in October.2 To next page -------->>

The retailer’s strategy of aiming for customers at the high end of the spectrum highlights thewidening gap between wealthy and poor Americans and the disappearance of the middle class,which was once the most sought-after class of income-earners in the country.When Walmart was founded in 1962, the middle class in America was thriving.“From postwar to about the late 1970s, you wanted to be in the mid-tier of retail. That is whereeverybody was making a fortune, including WalmartThen from 1980 onward, you wanted to pick a side, because it started to become clear that themiddle class was evaporating. Contributing to this trend were the deterioration of union jobs,the shift of manufacturing jobs overseas, and the growth of the knowledge economy that led toa boom in high-skilled jobs.After the 2008 Recession, several other factors aggravated the problems facing mid-tier retail-ers. Consumers started saving more money, and mall traffic plunged along with spending onapparel and accessories.People started shifting their spending from durable goods to experiences, travel, and restau-rants. Consumers also started dealing with higher fixed expenses from increasing technologyand healthcare costs.That’s why today, both high-end retailers and discount retailers are thriving — or at least surviv-ing — while companies that relied heavily on middle-class spending, like Macy’s, Sears and J.C. Penney, are closing hundreds of stores. 3

PayPal’s CEO on Venmo: Don’t Mess Up the ‘Special Magic’ Until recently, PayPal CEO Dan Schulman was best known in Silicon Valley as the New Jersey newcomer who liked to wear cowboy boots. These days he’s more renowned for his leadership of PayPal—one of few dotcom-era darlings that not only survived but flourished. Since coming on board to run the newly independent company, (after splitting from eBay) Schulman has made some shrewd bets. Opening up PayPal’s platform so that other big players, like Facebook And acquisitions that predate Schulman’s arrival are also showing impressive growth under his guidance. In particular, Venmo, a peer-to-peer payments app popular with millennials, is starting to deliver on its ­promise. Schulman recently announced plans to roll it out to millions of merchants. That’s important because most of Venmo’s estimated 10 million regular ­users don’t pay transaction fees—but merchants will, so PayPal can convert its popularity into more revenue. Schulman says all of these factors will help ­PayPal build on its already impressive growth. During a interview with Schulman an interviewer asked: Let’s start with Venmo. I think a lot of peo- ple still wonder, “How does it make money?” I’ll give you the simplest analog: PayPal in its early days was a peer-to-peer service. Then it was bought by eBay, and it became a payment method for eBay. And then it started moving off eBay, and now 87% of our volume is merchant services outside of eBay.4 To next page -------->>

Venmo [also] started as a peer-to-peer service, or really more of a social payments “experience,”because everyone tags their stuff and puts in little notes and emojis—90% of [transactions] areshared [on Venmo’s news feed].Wow, did you just say 90% of Venmo transactions are public?Yes, it’s really a social experience. People open the app to see what their friends are doing, wherethey’re going, who they’re hanging out with. The next step logically is to open up the applicationto more functionality. So if you use it today, you know that you can split things easily, you can payyour rent. But wouldn’t it be nice to be able to use your Venmo to buy things, too, and then to splitthat purchase or to tell your friends about it?So we have now opened the ability for 2 million merchants in the U.S. to accept Venmo. That’s ex-actly how we monetized PayPal, and that’s exactly what we’re going to do with Venmo.Does the social aspect of Venmo open the door to other revenue streams, like advertising?Possibly. There’s a special magic to Venmo. We do pretty much no advertising around it. Its growthis all viral. There’s a network effect right now because it’s so big that you just want people to be apart of it so you can send them money.I want to be very careful with the experience. I think the experience needs to be in keeping with theVenmo philosophy, and it’s got to be fully delightful for those who are using it. Monetizing by creat-ing more value for a Venmo user makes a ton of sense to me. But other forms of monetization thatare more intrusive, like in advertising or something like that, the jury is really still out for me.We have 17 million merchants. We have 218 million consumers. Our net new accounts are growing To next page -------->> 5

U.S. Postal Service reports financial loss for 11th straight year The U.S. Postal Service reported a financial loss Tuesday for the 11th straight year, citing declining mail volume and costs of its pension and health care obligations even as it pre- dicted another strong holiday season of package deliveries. It pleaded for more freedom to raise stamp prices to help keep pace with consumer de- mand for ever-quicker deliveries from online shopping. Postmaster General Megan J. Brennan said, “We cannot generate enough revenue or cut enough costs to pay all of our bills.” The 2017 loss came after a double-digit increase in package delivery was unable to offset drop-offs in letter mail, which makes up more than 70 percent of total postal revenue. Mail volume fell by roughly 5 billion pieces, as people in the digital age rely more on email for online bill payments. The Postal Regulatory Commission will issue a decision in the coming weeks that could give the Postal Service more flexibility to raise prices beyond the rate of inflation, marking the biggest change in its pricing system in nearly a half-century. The price of a first-class stamp, now 49 cents, is slated to increase by one penny in Janu-6 To next page -------->>

ary because of inflation. The Postal Service, an independent agency, is trying to stay financially afloat as it seeks to invest billions in new delivery trucks to get packages more nimbly to American homes. With the holiday season approaching, Brennan said, the Postal Service added hours to include early morning and evening package deliveries and was expanding service on Sun- days. More recently, it began a pilot program this holiday season to provide cheap next- day service with packages delivered Sundays to people’s homes. Without help, “our financial results will continue to deteriorate and likely at an accelerated rate,” said the Postmaster General “The Postal Service continues to win e-commerce customers, grow our package delivery business and increase market share, compared to rivals UPS and FedEx. “No other ship- per delivers as many e-commerce packages to the home.” To become financially stable, the Postal Service is also urging Congress to provide it relief from the mandate to prefund retiree health benefits. 7

Move over, minimalism: wabi-sabi will be the No. 1 decor trend of 2018 Sleek, sparse minimal interiors might photograph well, but they can also be a pain to keep tidy in real life. After all, messiness is an inevitable part of everyday life, and our homes should be inviting and encourage play – not instill fear at the thought of a spill. If you’ve never quite been able to get on board with the pared-back, minimal homes that have dominated Pinterest for the last few years, Etsy’s in-house trend forecaster Dayna Isom Johnson says the No. 1 trend for 2018 is made for you. Wabi-sabi is a Japanese worldview that celebrates imperfection, and Johnson says it’ll be big in the home decor space. “No matter your per- sonal style, there is one key factor to nailing this trend for your home design: Find the beauty in the not-so-perfect,” she tells Elle Decor. “Ac- cepting the idea that your home does not have to be showroom-ready is all it takes. Keep it real, be authentic, and be happy that for once you don’t have to make your bed to be cool.” Now that’s a trend we can get behind.8 To next page -------->>

Try these simple, achievable decorating tips to embrace wabi-sabi at home: 1. Handmade pottery: Search for decorative accents like vases and trays with organic lines and imperfections. 2. Style in odd numbers: Avoid symmetry at home, and style accessories in odd numbers. 3. Layer linen sheets: Good news for people who hate ironing sheets – wabi-sabi celebrates an undone, lived-in look. Opt for soft, wrinkled linen sheets over pressed percale sheets. Get the latest on home decor trends, design ideas, shopping guides and food news, and take a look inside your favorite celebrity homes on Do- maineHome.com. 9

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Notice for Etsy Sellers: When you creating a sale , please note that FREE SHIPPING is the default. YOU ... turn it off otherwise your item will ship for free. Pantone Color Institute Releases Spring 2018 Fashion Color Trend Report For New York Fashion Week Multi-faceted palette broadens opportunity for self-expression with 12 call-out shades and 4 seasonal classics CARLSTADT, N.J., September 6, 2017 – Pantone LLC, an X-Rite company and the global authority on color and provider of professional color standards for the design industries, today announced the PANTONE® Fash- ion Color Trend Report Spring 2018 edition for New York Fashion Week. Published for the fashion industry by the Pantone Color Institute, a trend forecasting and color consultancy, the report features the top colors we can expect to see from fashion designers on the runway for the upcoming spring collections. With the use of color gaining in importance, the PANTONE Fashion Color Trend Report Spring 2018 edition features the top 12 colors for men’s and women’s fashion, highlighting a more multi-faceted color story that ex- pands the opportunity for self-expression. For the first time this year, the report also includes four classic colors, which transcend seasons and provide structure to any wardrobe. “As consumers continue to embrace color, designers are recognizing the need to show more color in their collec- tions.” says Leatrice Eiseman, Executive Director of the Pantone Color Institute. “In order to reflect the consum- ers’ ongoing fascination with color, we broadened the direction for Spring 2018 to show where hues are headed by including 12 outstanding call out colors as well as four spring classics.”14 To next page -------->>

Along with this recognized freedom to explore and experiment with more color, experts at the Pantone Color In- stitute note that fashion, and the people who interact with it, no longer want to limit themselves by following tra- ditional color guidelines. Untypical spring shades that make for complex and original combinations expand the opportunity for self-expression and communicate the consumer desire to experiment with color all year round. The palette for Spring 2018 is a perfect reflection of this new sentiment. About the Spring 2018 NYFW Color Palette: “The color palette showcases an appreciation for the complexity and distinctiveness of color and the expression of it, which is something that evolves and can be played with,” said Eiseman. “Consumers need more variety, and this expanded palette embraces the lack of gender and seasonal borders we are seeing within the fashion indus- try.” PANTONE 13-0646 MeadowlarkThe bold and lively Meadowlark, a confident and outgoing bright yellow shade highlights the spring 2018 season, glistening with joy and illuminating the world around us. PANTONE 17-1563 Cherry TomatoImpulsive Cherry Tomato is a tempestuous orangey red that exudes heat and energy. Demanding attention, this courageous, never to be ignored shade is viscerally alive. PANTONE 16-4132 Little Boy BlueWith the expectation of the clear blue sky, Little Boy Blue is no longer for little boys only. Suggestive of expansiveness and continuity, this azure blue shade reassures us with its promise of a new day. PANTONE 18-1440 Chili OilSeasoned yet season-less, Chili Oil is an earthy brown based red that adds flavorful definition to the spring 2018 palette. PANTONE 14-3207 Pink LavenderPink Lavender is a soft and romantic violet rose that charms with its soothing sense of quiescence. PANTONE 15-1520 Blooming DahliaWith its seemingly suggestive scent, the subtly alluring Blooming Dahlia beckons us with its understated appeal. PANTONE 16-5533 ArcadiaHinting at retro yet at the same time modern, Arcadia is a cooler, cleaner take on green; its tinge of blue undertone takes us into a new direction for the spring 2018 season. PANTONE 18-3838 Ultra VioletConveying originality and ingenuity, the magical Ultra Violet is a distinctive and complex purple shade that fascinates and intrigues. PANTONE 18-1028 EmperadorThe rich chocolate infused brown Emperador adds strength and substance to the 15

The Looming Chinese Guillotine For U.S. Ecom- merce Companies The author of this article says, that his company has been has been looking to buy an ecommerce business for the past last year. In the course of studying the busi- ness climate they came to the following conclusion: U.S. based ecommerce com- panies are going to see a lot of headwind in the coming years, and you better figure out how to defend yourself before the looming overseas guillotine falls. Here are the details of what I have learned, and the phases of ecommerce evolution that have enabled this situation. PHASE 1: ONLINE RETAILERS KILL OFFLINE RETAILERS After the first wave of ecommerce companies like eBay hit the market in the late 1990’s, it was clearly only a matter of time before the offline brick and mortar re- tailers would succumb to death’s grip. Gone are Blockbuster, Borders, Circuit City, CompUSA, Linens N Things and Sports Authority, etc. And as we know, this trend affects the big boys too, like Macy’s and WalMart too. PHASE 2: AMAZON REDEFINES ECOMMERCE MERCHANDISING Amazon quickly learned that there was a lot more product for sale than could pos- sible be designed and managed by one company.16 To next page -------->>

They realized their core strength was marketing to a huge base of consum- ers and doing warehousing and distribution in mass. So, what better to do than open up their platform to millions of product sellers, both large and small And what a move that turned out to be; today, it is estimated that 40-50% of all consumer product searches on the internet now begin at Amazon.com, not Google.com or eBay. We are now in … PHASE 3: COUNTERFEITS START TO KILL U.S. ONLINE RETAILERS Now, an ecommerce startup no longer needs expensive investments in peo- ple, systems, warehouses or marketing; they simply need to design a prod- uct (typically manufactured by an overseas partner) … or BE that overseas manufacturer … get the product over to an Amazon warehouse, let Amazon do their magic, and sit back and collect checks for doing hardly any work. Literally, two kids in a garage figure out best selling products on Amazon to knock off, from freely available Amazon sales data sources, and they gen- erate $2-$4MM in revenues ($500K-$1MM in profits) in a year or two after launching. 17