After speaking with Eric Best, Chairman and CEO of Mercent, and Scot Wingo, CEO of ChannelAdvisor this week we learned the following:
- We’re only one month in and same-station numbers have not been completely crunched yet, but overall data indicates e-commerce in Q210 is growing faster than Q110. Positive for Amazon and eBay.
- Retailers are aggressively increasing their spend on search advertising as their businesses improve and confidence in a continued recovery increases. Positive for Google.
- US retailers with significant overseas exposure are concerned with the state of the Euro given Greece and other debt issues that have emerged recently. Given economic uncertainty and FX volatility many are unclear how Q2 results will fall into place (they have to report in US dollars so exchange rates impact results).
- Google has released a lot of new features recently that help drive sales for retailers and many are starting to view the company on par with e-commerce marketplaces like Amazon and eBay in terms of the ability to drive sales. Positive for Google. Negative for Amazon and Ebay.
Channel Advisor and Mercent manage online operations for a large number of e-commerce companies. As a result the companies’ results can provide insight into the overall e-commerce market.
Important Takeaway: The data suggests Amazon and Ebay’s Q2 guidance is characteristically conservative (investors were hoping for more). Given volatility in the Euro (and continued weakness in many European economies), the companies could very well be setting a low bar in case there are serious currency fluctuations or some European economies become increasingly weak.
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