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L’Oreal’s virtual make-up testing technology ModiFace will soon offer Amazon shoppers the opportunity to try on lipsticks using live videos on mobile or through selfies. 

The French beauty company announced the contract with Amazon on Tuesday, saying it will provide the testing beyond its own products, covering thousands of lipsticks available on the e-commerce site. 

L’Oreal bought ModiFace in March 2018 to help grow online beauty sales and also collaborated with Facebook to bring the augmented reality makeup experience to users via Facebook Camera. 

“We are excited to team up with ModiFace to make shopping for cosmetics online even easier by offering customers the ability to virtually try-on before they buy,” Nicolas Le Bourgeois, head of Amazon Beauty said.

“With this new AI-powered virtual experience, Amazon customers can now conveniently try-on thousands of lipstick products, save photos on their devices to share with friends and ultimately purchase with greater confidence –wherever they are, whenever they want, with products delivered right to their doorstep. This launch is another important milestone in our vision to be the best possible place for customers to discover and buy beauty products online.”

The service will launch in the United States and Japan in mid-2019 and is limited to lipsticks for now.

Technology companies have raised more than $US15 billion on US exchanges this year, data shows. Uber Technologies' $US8.1 billion offering topped the list of start-ups tapping public market investors after years of private ownership. Performances have been mixed, as Uber and ride-sharing rival Lyft both have traded below their IPO prices, while shares in both Pinterest and Zoom Video Communications have jumped.

Peloton was founded in 2012, pitching an at-home spin bike for a hefty price tag of about $US2000, plus a monthly subscription of $US40. When it first launched, investors often scoffed at the company's prospects, seeing it purely as a fitness-equipment maker and citing the high price of the product as a potential hurdle to growth.

Rather than compete with companies such as SoulCycle, which made a name for itself building out studio locations where a single class costs more than $US30, Peloton has one cycling studio where it films its content and members can attend live classes. SoulCycle submitted paperwork for an initial public offering in 2015, only to withdraw it three years later.

Some of Peloton's early backers include Tiger Global and Uber CEO Dara Khosrowshahi. It raised $US550 million in a funding round last year led by venture capital firm TCV that valued that company at $US4.15 billion.

Along with Peloton, the second half of 2019 is likely to herald several more multibillion-dollar tech listings, including WeWork. Food-delivery pioneer Postmates Slack Technologies is taking its own route to go public on June 20, choosing a direct listing rather than a traditional IPO.

Amazon Fashion has just released the first collection from an influencer as part of its new shopping experience, The Drop.

For the next 30 hours, customers will be able to purchase pieces made on-demand from the collection designed by influencer Paola Alberdi via the Amazon app or mobile browser. The Drop collections are available in more than 100 countries and regions. 

Fashionistas are encouraged to sign up for Amazon text alerts, as the next Drop influencer collaboration could be released at any time. Other influencers slated to design future collections include Emi Suzuki, Sierra Furtado, Leonie Hanne and Patricia Bright.

“Influencers are able to turn their creativity and style into beautifully designed collections that capture the latest street style trends from around the world,” said a statement from Amazon. 

“Amazon Fashion is excited to enable influencers to be designers and bring fresh Fashion assortments directly to customers via The Drop.”

Amazon Fashion is also offering Staples By The Drop, wardrobe staple pieces to complement the influencer collections.

“I am beyond grateful to Amazon for entrusting me to be the first influencer to launch The Drop, their innovative new shopping experience. I have worked hard for many years to create a brand that is true to myself and did the same with this collection,” said Alberdi. 

“Fashion can be so expensive but my belief is that it should not have to be expensive to feel beautiful. The primary goal of my collection is simply to help women feel good about themselves. I’m so excited to share these pieces with the world!”

Other retail brands have been tapping into the power of influencers and collaborating with them on collections for some time, such as Nordstrom, which is currently selling the Cupcakes and Cashmere range from fashion blogger and designer, Emily Schuman. 

When the department store engaged with influencer Arielle Charna in 2017, her collection reportedly brought in $1 million in sales in less than 24 hours, according to an article from Fashionista.

Sellers are once again alarmed at perceived moves to hustle them onto the Marketplace — but that might be good for everyone.

Vendors that to varying degrees depend on Amazon for their wholesale revenue were once again shaken last week by indications that the e-commerce giant might be culling its supplier base within its first-party — aka retail — operations.

Rumors and questions swirled after a Bloomberg report of a "purge" of smaller wholesalers. According to the report, vendors with annual sales of less than $10 million are being shunted to the Amazon Marketplace, "although that will vary by category," Bloomberg reported, citing its discussions with "three people familiar with the plan." 

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Amazon denied that characterization, both to Bloomberg and to Retail Dive.​ In an interview with Retail Dive, an Amazon spokesperson said that moving to the Marketplace, which now accounts for over half of goods sold, is often a choice made by the brands themselves.

"We informed Bloomberg prior to publication of their article that their sources and story are wrong," the Amazon spokesperson told Retail Dive in an email. "We review our selling partner relationships on an individual basis as part of our normal course of business, and any speculation of a large-scale reduction of vendors is incorrect. Like any business, we make changes when we see an opportunity to provide customers with improved selection, value and convenience, and we do this thoughtfully and considerately on a case-by-case basis."

According to firms that work with Amazon sellers, however, pressure on sellers to move from operating as wholesalers to selling directly through Amazon’s third-party marketplace is indeed happening. "Like most things that are so consequential, it will happen in stages. I believe it’s already started, we’re already seeing it happening," John Ghiorso, founder and CEO of Orca Pacific, a full-service Amazon agency, told Retail Dive in an interview. "I also don’t think that anyone’s going to know when it's done."

While the press coverage suggests that vendors might drop off a cliff, any shift will likely be gradual and could come through indirect action, according to experts who work with sellers. Those familiar with how Amazon's model works say a reduction on any scale could be accomplished at least in part through new rules and requests that might force a company to ditch Amazon's first-party operations, known as "Vendor Central" or "1p."

In recent weeks, for example, some sellers were given 60 days notice to enroll in Amazon’s brand registry, which requires a trademark, according to Fahim Naim, a former category manager at Amazon and now founder and CEO of e-commerce growth consulting firm eShopportunity.com, who works with sellers on both the vendor and direct to consumer seller platforms. A requirement like that could effectively knock out several brands, either because obtaining a trademark is time-consuming or because the seller’s name can't be trademarked for some reason, he said.

Furthermore, any time a seller moves from the 1p platform, whatever the reason, it can take time, which puts sales at risk. Per Amazon rules, already wholesaled goods must be depleted at Amazon’s warehouses before third-party Marketplace sales can begin, according to companies working with sellers on both marketplaces.

The notice in some cases may not even be that direct, according to Ghiorso. "The easiest way to know is, if you were a vendor and you didn’t have Amazon reach out to renegotiate the terms this year — you’re not staying on 1p," he said.

Uncertainty, fear — and the upside

Among many of the vendors that depend on Amazon's purchase orders for a significant portion of their sales, letters like the one stipulating brand registry signup or other indications of change, along with the press reports, are fomenting uncertainty and fear, according to agencies that work with sellers.

Last week's report came just a couple of months after Bloomberg reported a similar clear-out Bloomberg reported a similar clear-out by Amazon of sellers that the e-commerce giant said was meant to weed out those dealing in counterfeits. This round, the timing is especially thorny in light of the holidays, which, for suppliers and retailers, are officially looming.

"It's terrifying because there's not much time till Q4 — I do think it’s going to be chaotic," Naim told Retail Dive in an interview. "At Amazon, there are so many different teams involved and it's not an easy change. I think Amazon expected to have this change happen a while ago."

While change is always difficult, especially amid so much uncertainty, for most vendors there's likely an upside to moving to the third-party marketplace, according to those firms working with them. 

"There will be short term pain. If you were on Vendor Seller for over a decade with six-figure P.O.'s and you've lived on this rhythm, it can take four months, all of a sudden, without any stable money coming in," Naim said. "But many of those brands will be very happy one year from now. In the long run, one year, two years from now, as long as they can make it through, they’re going to be happier."

Indeed, Naim and others at such companies said that many if not most brands will find that operating as a third-party seller is actually an improvement because their margins are likely to be higher and because they have access to customer information that Amazon doesn't share with its wholesalers.

"The advantage of selling directly to Amazon was that it’s really easy. Now you just lost your biggest customer," Ethan McAfee, CEO and founder of Amazon outsourcing partner​ Amify, told Retail Dive in an interview. "The good news is that there was demand for $10 million of your product widgets when Amazon was selling it, and there’s still going to be $10 million of demand when you’re selling it."

The win-win

It's fairly well established that Amazon gets more for less effort out of its Marketplace channel, collecting fees for its platform, warehousing, fulfillment and shipping without taking on the inventory risk. In its move to function less like a retailer, the company may also be wary of implications from lawmakers and antitrust advocates that it controls too much of the market, as when it backed off from requiring Marketplace sellers to offer their cheapest prices on Amazon. 

But Marketplace's benefits don't only flow one way, experts say. There's already a strong inclination among smaller Amazon wholesalers to consider the third-party marketplace instead. A survey of brands selling on Amazon from marketplace commerce platform Feedvisor, for example, found that more than 81% of wholesale brands indicated they want to move to the Amazon Marketplace. ​

"The growing interest from brands in this expansion stems from a collective desire to get in front of a large audience with their broader catalog, increase their competitive presence, and have more control over their pricing and inventory," Feedvisor President and COO Dani Nadel told Retail Dive in an email. "However, moving to the 3P marketplace is not without its challenges. Amazon is a dynamic, complex marketplace that requires reputation management, agile operations, and brand visibility in order to be successful. This may require skills that wholesale brands may not yet possess."

That demand has stepped up since March, according to Amify's McAfee. "We’re getting a lot of calls largely from people who say we haven’t been cut off yet but we’re fearful and want to become proactive, for when we can no longer count on Amazon for those large purchase orders."

Firms like Amify, Feedvisor, eShopportunity.com and Orca Pacific all stand to gain from the move. While some larger sellers may have the in-house capability to accomplish the many tasks that come with operating as a third-party seller, a brand partner can be essential to those that don't, those companies say.

"I understand that it can be scary. The important thing for the 1p seller to keep in the mind is that they need to transition their business from 1p to 3p, and that is different from starting a 3p business," Ghiorso said. "I think long term in the aggregate this is actually better for everybody. I think it’s better for the customer, I think it’s better for suppliers and it’s better for Amazon."

New Zealand shoe manufacturer and retailer Ziera is expanding its e-commerce presence, transforming its range and boosting its leadership team to accommodate its growth plans.

The brand, which combines technology and fashion to create women’s shoes, will now be sold through the online retailer The Iconic’s marketplace channel. 

Ziera also has a new head of product design – Rosie Jamieson, who has more than 20 years’ experience in footwear creation, much of it in her native UK with brands such as Hush Puppies, Sacha London, Hotter and other leading fashion retailers. 

Andrew Robertson, the third generation of his family to run Ziera since it was founded in 1946, is now chairman and has appointed Martin Bremner as chief executive. Bremner was previously chief executive of Super Liquor Holdings and is a change management specialist, having helped transform a range of companies in New Zealand and offshore.

“These developments are all part of the transformation Ziera is undergoing,” Robertson said. “We are evolving from a traditional bricks-and-mortar speciality retailer to a digital-first omnichannel business, and Martin is leading the charge on our growth strategy.”

Since Bremner joined late last year, Ziera’s online sales have increased by 33% and the website is now its single biggest ‘store.’  About 70% of turnover is generated in Australia.

This is supplied content and not commissioned or paid for by NBR.

eCommerce navigation and exploration has remained largely unchanged in recent years, even as retailers have scrambled to pinpoint more effective and personal ways to engage their customers in the process of product discovery.

This is likely why there’s been no shortage of hype surrounding voice search technology, despite ample grounds for skepticism: A recent report found only two percent of people with Alexa-equipped devices have made purchases through voice search this year, highlighting the vast gulf between expectations for the technology and the reality of its usefulness.

Even as developers and retailers fine-tune their voice search products and strategies in hopes of capturing a market filled with promise, a growing realisation has emerged that eCommerce search must account for more than what words simply can’t capture alone.

Enter visual search technology.

Much more sophisticated than text-best search, visual search uses an image as its query for results by analysing how a variety of components such as colors, form, and objects come together. Pioneers like Microsoft’s Bing have been experimenting with visual search functions as early as 2009, even sunsetting its product in 2012 due lack of accuracy. But with the launch of both Google Lens and Pinterest Lens, consumers are ready to ride a new wave in visual search, inspiring older plays like Bing to revamp its technology.   

With a newfound ability to conduct visual searches based on parts of an image via cameras and augmented reality applications at greater levels of confidence, Pinterest now sees 600,000,000 visual searches on its platform every month. Contrary to voice, there’s a significant user base ready to embrace visual search tools in ways that will drive engagement and purchases in relevant sectors like fashion, beauty, home design, and more – with Generation Z as the linchpin of the revolution.

Digital natives disrupting search

As digital natives, it’s no surprise members of Gen Z are attuned to the benefits of visual search – in fact, they’re craving the kinds of experiences the technology can provide.

Avid users of social media, the nature in which they maintain relationships and connect with the world around them is intrinsically image-driven – and with millennials and Gen Z slated to dominate retail, it’s this visual-savvy cohort that has the power to reshape eCommerce experiences in a big way. Take Snapchat’s recent partnership with Amazon, a new feature codenamed “Eagle” which allows users to scan an object or barcode from directly within the app to surface a product’s details (or similar items) on the commerce giant’s site.

Considering forecasters expect mobile to account for 48 percent of all retail site visits over the upcoming 2018 holiday season, retailers have been working assiduously to optimise their sites for mobile. And in their hunt to offer consumers the most authentic, personalised interactions possible, visual search will ultimately become a game-changer in a retailer’s arsenal when it comes to driving deeper engagement with shoppers, connecting consumers with the products they want via the channels they love.

Highly tailored search tools are already reaping dramatic rewards, like in the case of Pinterest, a site made popular by millennials and Gen Z which leverages a smartphone camera and machine learning applications to match customers to objects and designs for a rich product discovery experience. After acquiring Kosei back in 2015 to help them better understand and categorise images, over time, Pinterest saw its monthly visual searches increase 140 percent between February 2017 and February 2018, surging from 250 million to 600 million. And with current features like ‘Shop the Look’ and plans to monetise visual search within its paid advertising package, there’s no doubt retailers will soon wise up to the chance at modernising their strategies.

Looking towards the future

Visual search is on the ascent, but in order for it to chart a new path in eCommerce during 2019, key hurdles must be cleared first.

While prime visual shoppers constitute a fairly young population whose choices are shaped by ever-changing digital trends, celebrities, and influencers, the older generation is less inclined to pull out their cameras and snap their way into shopping carts. Long-term sustainability makes visual search a clear performer given the growing predominance of digital natives and their influence on technology in the marketplace, but brands must find ways to also resonate with other demographics.

Moreover, while sectors like fashion are well-suited for visual search, retail industries like electronics, automotive, and other industrial eCommerce sectors who typically target shoppers according to brand loyalty may pass over the bells and whistles. So, while visual search will continue to grow in importance, the opportunity won’t be a one-size-fits-all for retailers. 

Make no mistake, text-based search isn’t going the way of the dinosaurs, and voice search may well see significant improvements in the years to come. But visual search is set to become an indispensable piece of the eCommerce puzzle, already driving meaningful results with Gen Z shoppers, whose influence and adoption of the unique technology makes it highly relevant to key sectors. The sooner retailers adapt their strategies to the diverse marketplace of today and tomorrow, the better-positioned they’ll be to not merely succeed but thrive.

New Zealand women’s shoe brand Ziera has appointed a new CEO and chairman to transform the business into a digital-first omnichannel retailer.

Ziera has announced a new partnership with The Iconic to grow its e-commerce presence, which will make it less reliant physical locations. The retailer plans to have fewer high street stores but offer higher quality service in the top locations is retains.

“We will always have flagship stores on the ground where customers can come in, check out the range and get fitted properly,” said Ziera chairman Andrew Robertson. 

“But, once we have customised their footprint, their details can be stored online and they can then also buy with confidence from one of our digital channels.”

In addition to its partnership with The Iconic, Ziera has also forged an exclusive trading relationship with Foot Mechanics, a New Zealand-based podiatry business, which will offer a core Ziera range at its 17 clinics as well as  online.

This relationship will make Foot Mechanics one of Ziera’s largest wholesale partners in New Zealand. 

Additionally, three of the brand’s stores will close in July as a result of expiring leases – Bridge Road in Melbourne, Garden City in Brisbane, and Orange in New South Wales – further pushing the brand to embrace online capabilities. 

New direction, new leadership

The retailer has appointed a new chairman in Robertson, a new chief executive in Martin Bremner, and a new head of product design in Rosie Jamieson.

Bremner was previously chief executive of Super Liquor Holdings, and has helped businesses through similar transformational periods before. Since Bremner joined in 2018, Ziera’s online sales have grown by approximately 33 per cent, and has become it’s biggest “store”. 

Jamieson has more than two decades of experience in footwear creation, having previously worked at Hush Puppies, Sacha London, and Hotton. According to the brand, her involvement has seen the “reinvention” of the Ziera range. 

“Exciting times lie ahead of Ziera as we transform our business into an omnichannel retailer that provides customers with a convenient and easy experience, allowing them to shop however and whenever they choose,” Robertson said.

Ms Holgate's sales team urged her to try and get a photograph with Chinese president Xi Jinping at the high profile summit of global leaders, in a bid to boost Blackmores' sales in China. At the time, the company was generating sales of under $1 million for the year despite spending around $10 million in the country on staff and marketing.

Speaking at the expo with Chinese fortune cookies provided at the entrance and a koala mascot dressed in Australia Post livery, Ms Holgate outlined her advice to small businesses looking to export to China and South East Asia.

Push for small business exports

Australia Post's research shows 60 per cent of Australian businesses which sell online don't sell overseas. Of those that do export overseas, only 15 per cent sell to China with most selling to the United Kingdom, United States and New Zealand.

"If I am frustrated about anything its that there are incredible opportunities not just in China," Ms Holgate said. "We are in the best possible space and yet we still don’t have enough Aussie companies really expanding in the region."

With Australia Post's revenue from letters continuing to plunge, falling 10 per cent to $1.1 billion for the second half of 2018, ecommerce is increasingly important for the post office as well as small businesses.

Annette Carey, Australia Post's executive general manager for for international services, said exports from Australian businesses are "absolutely critical" to Australia Post.

"You have domestic ecommerce and Australia Post has a really strong network," she said. "We are using that internationally as a hook with our Australia Post Global business and strategy to integrate into our Australia Post Global platform to offer us the best lines in China."

Ms Holgate said while the China Australia Free Trade Agreement is "very important" it doesn't assist small businesses with the restrictions going through China's ports.

"Health products, food products trust me you cannot get those products simply into the retail market," Ms Holgate said. "To sell into the retail market often they say you have to test your product on animals. There is a fantastic opportunity in the retail market but the biggest opportunity is through the free trade zones."

Ms Holgate warned small businesses not to discount their products.

"Do not fall in a trap to the wonderful Chinese distributor who wants to invest in your business because he is just going to buy your stock and discount it," she said. "You fall into a world of pain. Don't make the same mistakes some of us have already done. Keep your price at a premium."

Ms Holgate recommended small businesses engage Chinese university students studying in Australia.

"You don't have to spend a fortune on consultants," she said. "We are small and medium businesses, we have to use our cash carefully. Just go down to the local university and you will find fantastic young people with all the skills and knowledge. Don't waste your money on marketing agencies get yourself some students who know how to use WeChat."

She also plugged Australia Post's joint venture with China Post as a simple way to export to China.

"We are the only company in Australia that has a joint venture with the Chinese government," she said. "We now have customs inside the warehouses and the ports. This is a significant benefit to anyone trying to bring product into the country."

Lessons from Blackmores

Ms Holgate recommended businesses look to poach staff from Austrade and said when she was at Blackmores she recruited the head of Austrade for China.

"Steal from Austrade and EFIC [Export Finance and Insurance Corporation] and your business will go a long way," she said. "These organisations are full of very good people."

Ms Holgate established Blackmores as a wholly owned foreign entity ('WOFE') to enter China, a structure she descried as "worth the pain".

My honest view was you have to persevere and stay there and keep investing in the challenging times as well as the good times.

Christine Holgate

"I personally am not into big joint ventures, not in life or business, it is hard enough being married to someone," she said. "Imagine how hard it is having a JV in a foreign country. Going the WOFE route is the route to go."

Ms Holgate also touched on the challenges Blackmores faced when in 2016 the Chinese government tightened restrictions on health and food products, including the company's infant formula, with little warning or notice.

"That was an interesting moment in time," she said. "My honest view was you have to persevere and stay there and keep investing in the challenging times as well as the good times."

Diversification is important Ms Holgate said.

"Don't put all your eggs in the China basket," she said. "I just think it is a huge opportunity, it does take huge perseverance."

The consumer watchdog has accused online retailer Kogan.com of jacking up prices just ahead of a cut-price, year-end promotion, and has launched legal action.

Announcing Federal Court action, the Australian Competition & Consumer Commission alleged Kogan.com ads for 10 per cent discounts in June 2018 were misleading, because the company had increased the prices of more than 600 products immediately before the promotion, in most cases by at least 10 per cent.

Kogan.com has denied the allegations and says it will defend the case. Kogan shares slumped on the news, closing down 6.4 per cent at $5.85.

“We allege that Kogan’s advertisements were likely to have caused consumers to think they were getting products below their usual prices,” ACCC commissioner Sarah Court said.

“In fact, Kogan had inflated product prices which we say created a false impression of the effective discount.”

Kogan.com sells electronics as well as mobile, internet and insurance products online. The company also announced in November that it would start offering home loans.

In examples in its statement of claim, the ACCC alleges that an Apple MacBook was selling for $2099 ahead of the promotion before the price rose to $2449 the day before the sale kicked off. By July 2, the price had allegedly dropped back down to $2149.

A Nikon D7500 camera was allegedly selling for $1799 before the price hit $1949 in time for the promotion, before a reduction below the original price to $1789 by July 2.

The ACCC alleges that a Garmin Edge 820 was $599 before the price lifted to $629 during the promotional period, ahead of a price drop to $549 — below the original price — by July 2, when the promotion had ended.

Kogan.com said it strongly denied the allegations and that it would defend the proceedings.

The retailer said the ACCC action ignored critical facts about online retailing, adding the advertising was drafted specifically to avoid the type of confusion alleged by the watchdog.

“Kogan.com is disappointed that the ACCC has nevertheless decided to issue proceedings against Kogan.com — a highly pro-competitive company that benefits consumers,” it said.

The retailer said it gained no material financial benefit as a result of the promotion.

It added: “Kogan.com does not expect any adverse change to its ongoing promotional activities as a result of this matter.”

The ACCC alleges that Kogan.com breached Consumer Law when it made false or misleading statements about a 10 per cent discount promotion between June 27 and 30 last year, when shoppers could get a discount on most products by using a discount code.

The ACCC also alleges that towards the end of the promotional period, Kogan.com advertised “48 hours left!” and “Ends midnight tonight!” to give the impression that consumers only had a limited time to purchase items at those prices. However, Kogan.com had reduced the prices to pre-promotion levels shortly after the promotion ended, it said.

“Businesses must not make claims to consumers about discounts or sales unless they are offering genuine savings,” Ms Court said.

According to the ACCC filing: “The harm that was or was likely to have been suffered by consumers includes the loss, or serious distortion, of genuine consumer choice. Kogan’s conduct may also have unfairly disadvantaged its competitors.”

The ACCC said it was seeking penalties, injunctions, declarations, corrective notices and costs from Kogan.

US technology behemoths Google, Facebook, Microsoft, Amazon and Twitter will join forces as part of an unprecedented push against the sharing of terrorist content in the aftermath of the Christchurch massacre.

In a nine-point agreement released overnight, the first of its kind, the competing multi-billion dollar businesses pledge to reconsider livestreaming safeguards and to work together to develop tools to improve the detection of extremist violent content.