Zulily vs amazon

Zulily vs amazon DEFAULT

AmazonHoliday SeasonOnline RetailPricing PracticesShopper BehaviorWalmartzulily

Oct 03, 2019

by George Anderson

Who’s the low-price leader? Zulily is — at least that’s what the flash sales site’s management team seems to believe. That would explain why the online seller announced the launch of a new price comparison tool pitting its prices on like items with Amazon.com and Walmart, as well as a guarantee that it would match the prices of those two competitors should they somehow have a lower price.

Research conducted by Wakefield Research found that 38 percent of American consumers viewed Walmart as having the lowest prices. Twenty-seven percent thought Amazon offered the lowest prices. Zulily, however, claims that its site’s new price comparison feature shows it to have lower prices on identical products 97 percent of the time.

In launching its price comparison feature, Zulily is looking to become part of the shopping research process heading into the holidays. The company points to two Google studies to support its decision: one shows that 59 percent of online shoppers are doing more comparison shopping than in the past, and another that found 90 percent use more than one channel when shopping for gifts.

Zulily, which was acquired by QVC in 2015, claims that Wakefield found that its prices were 24 to 30 percent lower than those offered by Amazon or Walmart on the same items in 16 separate product categories.

“We are confident that we provide shoppers the best deal. Pricing is so easily obfuscated across the web. When you think about saving $5-$10 on an item, and purchasing multiple items, per order, which many of our customers do, that’s meaningful to a household budget at scale,” said Jeff Yurcisin, president of Zulily, in a statement.

Zulily’s price comparison feature will appear on the pages of its website and app displaying products also sold by Amazon and/or Walmart. The flash sales site will have a UPC code matched to identical items sold by the two larger rivals with prices from those sites appearing alongside Zulily’s offer. In cases where Zulily has a higher price, it will match the lower offer from either competitor.

DISCUSSION QUESTIONS: Will Zulily succeed in capturing customers from Amazon and/or Walmart during the upcoming holiday season by way of its price comparison tool and match guarantee? Will this strategy benefit Zulily in its competition with other retailers?

Please practice The RetailWire Golden Rule when submitting your comments.

Braintrust

"Getting into a price war with Amazon and Walmart is a bad idea anytime, but provoking that war heading into the holidays is like wearing a meat suit to a lion convention."

"News alert: there’s always someone cheaper, always. Does anyone believe any retailer saying anything is the lowest price?"

"Playing the price game is a one-trick pony – you may get a short term bump, but the long-term consequences can be devastating."

Sours: https://www.retailwire.com/discussion/zulily-thinks-it-can-beat-amazon-and-walmart-on-price/

Zulily says it's cheaper than Walmart and Amazon on 97% of items, and it's launching a new pricing tool to prove it

  • Starting Wednesday, Zulily's site will list prices advertised by competitors Walmart and Amazon alongside its own pricing. 
  • Zulily CEO Jeff Yurcisin said the move is part of a broader goal to increase transparency for shoppers.
  • Two-thirds of shoppers think Walmart and Amazon offer the cheapest prices online, but Zulily beats their prices on 97% of identical items, according to Zulily, which cited a study conducted for the company by Wakefield Research.
  • Visit Business Insider's homepage for more stories.

The flash-sales site Zulily is taking aim at retail giants Walmart and Amazon with a new price-comparison tool.

Starting Wednesday through December 19, Zulily's site will list prices advertised by competitors Walmart and Amazon alongside its own pricing for identical items, the company said. If Zulily's price isn't the lowest on any particular item, the company will match the cheapest price advertised by its rivals.

Zulily CEO Jeff Yurcisin said the move is part of a broader goal to bring more transparency to the retail industry.

"So right on that price tag — right next to where the customer would push 'add to cart' — we are showing the most competitive up-to-date price from Amazon or Walmart," Yurcisin, a former Amazon and Shopbop executive, told Business Insider. "Just think about how crazy this is ... welcoming in the big retail giants, the global giants, into your store and putting their price right next to your price tag. That's effectively what we're doing."

Zulily wants to make it easier for shoppers to compare prices

Two-thirds of shoppers think Walmart and Amazon offer the cheapest prices online, but Zulily beats their prices on 97% of identical items, according to Zulily, which cited a study conducted for the company by Wakefield Research.

Zulily is typically $5 to $10 cheaper per item than Walmart and Amazon, according to Yurcisin. 

Zulily keeps prices low, in part, by saving on shipping costs. The company doesn't place vendor orders until the close of a flash sale, which typically lasts 72 hours. Then Zulily places a large, single order based on customer purchases.

That order is shipped to Zulily, which in turn ships out customers' individual purchases.

This process from purchase to delivery can take as long as two weeks, which might seem like an eternity for some shoppers in contrast to the one- and two-day shipping guarantees offered by Walmart and Amazon.

"Amazon delivers an amazing service for specific use cases, but it's transactional commerce, optimized for super-fast shipping," Yurcisin said. "We've chosen a different path."

That path is rooted in discovery and inspiration — rather than search results — with a steady flow of about 100 flash sales per day, he said.

Zulily customers are willing to wait a few more days or even weeks for their purchases to arrive in exchange for that experience, as well as the extra savings the site offers, he added.  

"On average, we're talking $5 to $10 [in savings] per item," Yurcisin said. "This matters. It's 2019 and real wages are flat. Everyone doesn't need that item in hours or a day in a relatively inefficient — from a cost perspective — way of delivery."

If you have information to share about Zulily, contact this reporter at [email protected]

Sours: https://www.businessinsider.com/zulily-targets-walmart-amazon-with-new-pricing-tool-2019-10
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Jeff Yurcisin spent 14 years rising up the ranks of Amazon.

But now, as the president of discount shopping site Zulily, he’s trying to expose one of Amazon’s Achilles’ heels.

Zulily is introducing a feature on Wednesday that aims to show online shoppers how much cheaper its prices are than Amazon’s or Walmart’s.

The comparison will show up on thousands of Zulily product pages each day, as long as the exact item is also sold by either Amazon or Walmart.com. In testing, Zulily says it found it had a lower price than the two large competitors 97 percent of the time.

One caveat: The majority of items Zulily sells are still unique goods that aren’t sold on the bigger competitors’ sites, so shoppers will still often land on a Zulily product page that doesn’t have a comparison. And another: Zulily’s shipping fees start at $5.99 while Amazon and Walmart customers get free shipping on certain orders.

Still, the move is a bold one since it’s unclear how Amazon or Walmart will respond. They could choose to start price-matching Zulily or, worse, they could undercut the smaller competitor simply to prove a point.

Either way, the move comes at a critical juncture for nine-year-old Zulily, which has struggled to regain the popularity and relevance it held as an e-commerce darling that was once worth $9 billion; it sold to QVC owner Qurate Retail Group for just $2.4 billion a short time later. This summer, Zulily carried out layoffs, and revenue shrank 13 percent in its most recent financial quarter.

The company originally rode the wave of consumer interest in flash-sale and daily-deal sites, which offered steep discounts to drive impulse buying during limited-time sales. Zulily’s target audience was moms and shoppers who originally gravitated to the idea of discovering new clothing and other items almost every day that were marked down as much as 70 percent.

But models like Zulily’s became less popular as tons of new deal sites flooded consumers’ email inboxes, while competition and a post-recession economic turnaround led to less quality excess inventory to go around.

As Zulily grew, it was forced to supplement the core of its catalog, which came from boutique brands, with goods from big national brands to attract a larger customer base.

While that meant Zulily started to carry more goods that bigger competitors sell, it has worked to at least beat them on price. How? The brands Zulily works with are often willing to offer steep discounts in exchange for unloading excess inventory or simply selling a large volume of items in a very short period of time.

Zulily also saves on shipping costs by not offering delivery speeds that are anywhere close to Amazon’s or Walmart’s.

Yurcisin joined Zulily from Amazon in the summer of 2018. At Amazon, he most recently oversaw the company’s efforts to develop and launch its own fashion brands.

Yurcisin is not the first former Amazon executive to go after the Seattle-based giant’s prices. Marc Lore worked for several years at Amazon after selling Diapers.com’s parent company Quidsi to Jeff Bezos’s company for $545 million. But when he launched a competitive site, Jet.com, a few years later, his shopping site displayed Amazon’s higher prices front and center.

Within a few months, though, Jet’s business model had changed and it was forced to scrap the practice.

Sours: https://www.vox.com/recode/2019/10/2/20894008/amazon-walmart-zulily-best-price-comparison

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