Here are the top stories that caught our attention in the last week. Sign up to the weekly Tambo newsletter to receive our news summary straight into your inbox every Sunday ⬆️
Kroger opens a marketplace
Kroger (one of the biggest US supermarkets) is expanding its ship-to-home service through a marketplace strategy that will initially source more than 50,000 products from third-party sellers. The move will double Kroger Ship’s current online assortment, with plans to eventually expand it further.
Kroger’s focus is on offering speciality foods that would also interest the high-value shoppers. Natural and organic foods have been a big seller for Kroger in recent years, with more than $2 billion in annual sales and new line extensions coming from its Simple Truth brand. The company has also been able to capitalize on rising digital sales across its pickup and delivery platforms, with e-commerce sales rising 92% in the most recent quarter.
Amazon to Pass on UK Digital Tax to Sellers in Fees Hike
Amazon is to increase seller fees next month, saying it will no longer absorb the UK’s digital services tax after talks with the government failed to progress.
Amazon said it had taken on the impact of the digital services tax — a two per cent levy on the firm’s annual revenues — since it was announced, but would now pass on that cost to its customers. It did the same in France last year, after the country passed a three per cent digital tax on technology businesses with yearly revenues of more than €750m.
The move will affect Amazon’s referral fees, fees for Fulfilment by Amazon —which includes storage, where sellers use Amazon as a logistics partner for their products — and multi-channel fulfilment fees. The fee increase will come into effect on 1 September 2020.
Amazon integrates Twitch into the Prime Family of brands
Amazon has renamed its premium Twitch offering as it attempts to focus on its Prime subscriptions and build stronger links with the ecosystem.
Live-streaming service Twitch Prime – which offered users extra features in return for a subscription – will now be known as Prime Gaming. The change will bring it in line with other services in Amazon’s Prime line-up, such as Prime Video and Prime Reading.
In another move to monetise the traffic into Twitch, Amazon is working on extending their advertising platform into the service, giving advertisers access to a younger demographic.