Amazon.com has been beta testing its in-house made ads on Apple's iOS platform for several months, Bloomberg reported Thursday, in a move that is described as ecommerce giant's growing efforts to grab a chunk of the $129 billion digital advertising market that is currently dominated by Google and Facebook. Bloomberg's report added that Amazon plans to introduce a similar ad product on Google's Android platform later this year. From the report: Amazon has emerged as a fast-growing challenger in the digital advertising market since it captures 50 percent of all online sales in the US. Amazon's digital advertising market share will grow to 8.8 percent this year from 6.8 percent in 2018, according to EMarketer Market-leader Google will see its share slip to 37.2 percent from 38.2 percent. Selling more video ads opens a new revenue opportunity for Amazon's advertising division, which mostly sells space featuring brand logos, product photographs and descriptions that are the equivalent of digital billboards. Video ad spots are similar to television commercials and can deepen the power of promotion.

An anonymous reader shares a report: The explosion of Amazon's private-label products -- batteries, baby wipes, jeans, tortilla chips, sofas -- has prompted concern that the world's biggest online retailer could use its clout to promote these house brands at the expense of merchants selling similar products on the web store. The issue even surfaced in Senator Elizabeth Warren's recent proposal to break up big technology companies. Turns out most Amazon-branded goods are flops that don't threaten other businesses at all, according to Marketplace Pulse. In a study, the New York e-commerce research firm examined 23,000 products and found that shoppers aren't more inclined to buy Amazon brands even when the company elevates them in search results. The study suggests popular political and media narratives about Amazon's market power are overblown, despite the company capturing 52.4 percent of all online spending in the U.S. this year, according to EMarketer.

The study used sales rankings and the number of customer reviews as indicators of sales volume for different products, including Amazon's own brands and brands sold exclusively on the site. Amazon's success has been limited to basic products like batteries where shoppers are inclined to seek generic alternatives to save money, the study found. But when competing against such categories as apparel, where household names have an entrenched position, such Amazon brands as "A for Awesome" children's wear don't stand out, the study found.

Amazon's physical Dash buttons are no more. The e-commerce giant has stopped selling its tap-to-order Dash buttons as of February 28th. From a report: If you still proudly use a Dash button (or a few dozen), don't worry: Amazon plans to continue supporting new orders through existing Dash buttons so long as the public keeps using them. So what killed the Dash button's future? Well, by Amazon's telling, the device was a victim of its own success, since it helped nudge forward the concept of the connected home to what it is today. Daniel Rausch, an Amazon vice president who helped grow the Dash program from its start, said that back in early 2015, when the Dash button first came out, there were far fewer options for connected home gadgets. Amazon workers were trying to figure out a way "to make shopping disappear" for grocery list items like paper towels and printer ink and whatever else is pretty not-fun to go out and buy, Rausch said.

Amazon says it hopes to make 50 percent of all shipments to customers with net zero carbon in the next 11 years as part of an initiative it's calling Shipment Zero. From a report: It also announced that it'll share a report detailing its companywide carbon footprint -- along with "related goals and programs" -- later this year, and that it'll continue to use customer feedback to "enable" and "encourage" its supply chain partners to reduce their environmental impact. The initiative builds on the Seattle retailer's ongoing work to minimize its contributions to greenhouse gases, Dave Clark, senior vice president of worldwide operations at Amazon, explained in a blog post.

Amazon currently has over 200 scientists, engineers, and product designers dedicated to "inventing new ways" to "leverage [its] scale" for the "good of customers and the planet," he said, and has engaged in an "extensive" project over the past two years to develop a model that provides internal teams with data to help them identify ways to reduce carbon use.

An anonymous reader shares a report: For years, India has wanted foreign companies to thrive in the country. When the Bharatiya Janata Party (BJP) took power in 2014, one of its early major pushes was to formulate plans and structure incentives to attract foreign investment. In 2015, Prime Minister Narendra Modi unveiled plans to liberalize the foreign investment rules. He also visited the U.S. and met with top Silicon Valley executives, nearly all of whom subsequently expanded their commitments in India. It further introduced lofty incentives to encourage companies to participate in Make in India and Digital India, a set of state-run initiatives to drive job growth in the nation.

[...] But over the past year, in the run-up to the general elections in May, the Indian government has unveiled -- and in many cases, enforced -- a wave of sweeping changes. It now dictates how foreign companies handle and make use of Indian user data and other aspects of how ecommerce platforms operate, and it is working on introducing greater oversight for technology platforms. [...] Lobby groups that represent U.S. companies and industry watchers say they see an extreme shift from the "warm, welcoming, collaborative" approach the government exhibited in 2014. "In the past year or so, the engagement has been combative, with abrupt, disruptive policy changes that are being held without consultation, and, unusually, with absolutely no room for negotiation or even deadline extensions -- as we saw with data localisation and FDI in ecommerce," Prasanto K Roy, a technology and policy analyst, told VentureBeat. The story also looks at how much revenue Silicon Valley companies that count India as one of their biggest markets is generating there. Spoiler alert: it's very little.

An anonymous reader writes: Amazon and Walmart have been dealt a big blow in India, one of their most important markets, after the local government today declined a request to extend the deadline for the implementation of revised rules regarding how foreign ecommerce platforms sell goods and conduct business in the country. The local government, which revised its ecommerce policies late December, prohibit Amazon and Flipkart from selling goods from companies in which they have a stake. The two companies were hoping the Department of Industrial Policy and Promotion, the government agency that issued the revised policies, would extend the February 1 deadline. But efforts to gain more time were unsuccessful. (At around 6:50 p.m. local time -- 8.20 a.m. Pacific, the government said it won't be extending the deadline.)

Under the current laws, foreign-owned ecommerce companies are not allowed to sell directly to customers (in other words, to operate under an inventory-based model of ecommerce). Instead, they can only provide a marketplace that acts as "an information technology platform" and serves as a facilitator between "buyer and seller." To bypass this restriction, both Amazon and Flipkart, which sold a majority stake to Walmart last year, have acquired stakes in some of the biggest third-party sellers in the country. For instance, Amazon owns stake in parent companies of Cloudtail India and Appario Retail, while Flipkart until recently controlled WS Retail, the largest seller on its platform. The local government's revised policies fixed that loophole.

Starting at 1.30 am Friday local time, several Amazon-owned products, including select Echo smart speakers, as well as some travel bags, batteries, and chargers under Basics brand, have become unavailable on Amazon's website.

By selling more products of its own, Amazon is becoming a competitor to the outside manufacturers it hosts on its platform -- and that's worrying regulators around the world. From a report: Governments have rarely tried to rein in Amazon's ambitions, allowing it to avoid most of the recent scrutiny directed at other large tech platforms. But the increased focus on Amazon's house-brand offerings suggests it may now be Amazon's turn. Driving the news: Amazon built a robust business as a participant in its own marketplace when it saw growth stall in stateside e-commerce, which is why holiday shoppers might have seen Amazon-owned brands like Happy Belly for food or Solimo for household goods when they browsed the site last year. It created more "private label" products, from its AmazonBasics line to brands for fashion and furniture, that are in-house versions of things others sell on the site. It struck deals with outside manufacturers to sell their products exclusively. Critics say Amazon uses its sales data to find fruitful areas where it can produce generic versions of already-popular products.

Amazon has a new way to prevent thieves from stealing packages. In early 2019, Amazon will offer to deliver packages right into your garage, the company announced Monday at CES. The service is called Key for Garage, and joins Amazon's Key for Home and Key for Car services. From a report: Key for Garage, like Key for Home, requires some additional hardware. You'll need a $80 Chamberlain myQ Smart Home bridge, which will let Amazon talk to your garage door opener so that it can be opened by a delivery person. Folks who already own that hub will be able to use it. You'll also need an Amazon Prime subscription. Unlike Key for Home, you don't need a camera to record the delivery. This method of delivery might be welcomed by people who didn't like Key for Home (previously simply known as Amazon Key), which didn't always work well if you had dogs at home, didn't want to let Amazon into your house, or had an alarm system.

The Indian government dealt a surprise blow on Wednesday to the e-commerce ambitions of Amazon and Walmart, effectively barring the American companies from selling products supplied by affiliated companies on their Indian shopping sites and from offering their customers special discounts or exclusive products. From a report: If strictly interpreted, the new policies could force significant changes in the India strategies of the retail giants. Amazon might have to stop competing with independent sellers and end its offerings of proprietary products like its Echo smart speakers in India, its top emerging market. For Walmart, which spent $16 billion this year to buy 77 percent of Flipkart, India's leading online retailer, the new rules could hamper its strategy of selling clothing and other products under its own private brands and prevent it from using its supply-chain expertise and clout with retailers to drive down prices for Indian consumers.

[...] The government posted the changes, which go into effect Feb. 1, without warning on Wednesday evening in New Delhi, while much of the business world in both countries was on vacation. [...] Prime Minister Narendra Modi of India initially courted foreign companies to invest more in the country after his 2014 election victory, but his administration has turned protectionist as his party's re-election prospects have dimmed in recent months. Mr. Modi has increasingly sought to bolster Indian firms and curb foreign ones through new policies, including one that requires foreign companies like Visa, Mastercard and American Express to store all data about Indians on computers inside the country.

A top Amazon executive privately advised the Trump administration on the launch of a new internet portal that is expected to generate billions of dollars for the technology company and give it a dominant role in how the US government buys everything from paper clips to office chairs. From a report: Emails seen by the Guardian show that the Amazon executive Anne Rung communicated with a top official at the Government Services Authority (GSA) about the approach the government would take to create the new portal, even before the legislation that created it -- known to its critics as the "Amazon amendment" -- was signed into law late last year. Amazon and the Trump administration appear to have an antagonistic relationship because of the president's frequent Twitter attacks on the Amazon founder, Jeff Bezos, who also owns the Washington Post. But the behind-the-scenes lobbying by Amazon officials underscores how the company has quietly amassed an unrivalled position of power with the federal government.

The 2017 correspondence between Rung -- a former official in the Obama administration credited with transforming the federal government's procurement policies before she joined Amazon -- and Mary Davie at the GSA, offers new insights into how Amazon has used key former government officials it now employs -- directly and as consultants -- to gain influence and potentially shape lucrative government contracts. It has not yet been determined which companies will build the US government's new e-commerce portal, but Amazon is widely expected to take on a dominant role, giving it a major foothold in the $53bn market for federal procurement of commercial products.

Fascinating article on The Verge on the many ways Amazon Marketplace, the ecommerce giant's the company's third-party platform, sellers sabotage each other and defraud customers, and how Amazon is run its own government, so to speak -- with its own rules that its suppliers have no choice but to follow. And, of course, sellers have little choice but to continue with Amazon. The story starts with this anecdote: framing a seller for false advertising by buying fake five-star reviews for their products. Select excerpts from the report: For sellers, Amazon is a quasi-state. They rely on its infrastructure -- its warehouses, shipping network, financial systems, and portal to millions of customers -- and pay taxes in the form of fees. They also live in terror of its rules, which often change and are harshly enforced. A cryptic email like the one Plansky received can send a seller's business into bankruptcy, with few avenues for appeal. Sellers are more worried about a case being opened on Amazon than in actual court, says Dave Bryant, an Amazon seller and blogger. Amazon's judgment is swifter and less predictable, and now that the company controls nearly half of the online retail market in the US, its rulings can instantly determine the success or failure of your business, he says. "Amazon is the judge, the jury, and the executioner."

They say revenge is a dish best served cold. But for Mark Rober, it's much sweeter served smart, smelly and covered in glitter. From a report: The former NASA engineer-turned-YouTube star has received plaudits online after designing a booby trap to avenge all those who've fallen victim to a new wave of neighborhood crime: doorstep delivery theft. Rober spent six months combining GPS tracking, cameras, fart spray and glitter in an elaborate and amusing mechanism after discovering thieves had stolen an Amazon delivery from his doorstep.

In a video posted on his channel, the 38-year-old, who helped design the U.S. space agency's Curiosity Rover, said his engineering experience left him well-placed to "take a stand" after dismissive police left him feeling "powerless." "If anyone was going to make a revenge ... package and over-engineer the crap out of it, it was going to be me," said Rober, who spent nine years with NASA.

Amazon is rethinking its strategy around some items it sells which it calls internally "Can't realize a profit" -- or "CRaP" for short, according to the Wall Street Journal. From the report: Inside Amazon, the items are known as CRaP, short for "Can't Realize a Profit." Think bottled beverages or snack foods [Editor's note: the link may be paywalled; alternative source]. The products tend to be priced at $15 or less, are sold directly by Amazon, and are heavy or bulky and therefore costly to ship -- characteristics that make for thin or nonexistent margins. Now, as Amazon focuses more on its bottom line in addition to its rapid growth, it is increasingly taking aim at CRaP products, according to major brand executives and people familiar with the company's thinking.

In recent months, it has been eliminating unprofitable items and pressing manufacturers to change their packaging to better sell online, according to brands that sell on Amazon and consultants who work with them. One example: bottled water from Coca-Cola Co. Amazon used to have a $6.99 six-pack of Smartwater as the default order on some of its Dash buttons, a small device that allows for automatic reordering with a single press. But in August, after working with Coca-Cola to change how it ships and sells the water, Amazon notified Dash customers it was changing that default item to a 24-pack for $37.20.

Buyers return a huge number of packages they buy from Amazon and other e-commerce sites, so much so that retailers are sometimes left with little choice but to get rid of large swaths of inventory at a cost. Last year, customers in the U.S. returned about $351 billion worth of items that they had purchased from brick-and-mortar retailers and online stores, according to estimates by National Retail Federation. CNBC: There's a good chance that the $100 printer, the $300 wide-screen monitor, or the $170 router you recently bought from Amazon weren't supplied to the e-commerce giant by their original manufacturers. In fact, the order may have been fulfilled by someone like Casey Parris, who resells items that customers previously returned to retailers. Based in Florida, Parris spends about five hours each day visiting thrift stores and scanning auction and liquidation websites for interesting items, he told CNBC. Sometimes he finds auto parts, other times it's a pair of sneakers, and occasionally he purchases printer cartridges -- all with the goal of reselling them.

Walter Blake, who lives in Michigan, does the same. For years, he's been selling electronic items on Amazon that he acquires from a network of places. Blake and Parris are part of a growing cottage industry where dealers acquire discarded items at very low prices, only to resell some of them back on Amazon and eBay at a premium.

It's an ad duopoly battle. From a report: Facebook is starting to test search ads in its search results and Marketplace, directly competing with Google's AdWords. Facebook first tried Sponsored Results back in 2012 but eventually shut down the product in 2013. Now it's going to let a small set of automotive, retail, and ecommerce industry advertisers show users ads on the search results page on mobile in the US and Canada.

They'll be repurposed News Feed ads featuring a headline, image, copy text, and a link in the static image or carousel format that can point users to external websites. Facebook declined to share screenshots as it says the exact design is still evolving. Facebook may expand search ads to more countries based on the test's performance.

Unwanted gifts arrive after friends click on promotions tucked into wish lists. From a report: Kima Nieves recently received two Aveeno bath-time sets and a box of Huggies diapers through her baby registry on Amazon. The only problem? The new mother didn't ask for the products, or even want them. Instead, Johnson & Johnson and Kimberly-Clark each paid Amazon.com hefty sums to place those sponsored products onto Ms. Nieves's and other consumers' baby registries. The ads look identical to the rest of the listed products in the registry, except for a small gray "Sponsored" tag. Unsuspecting friends and family clicked on the ads and purchased the items, assuming Ms. Nieves had chosen them. "Very sneaky," said the 28-year-old health-care analyst from Fredericksburg, Va. "That's friends' and family's money going somewhere we didn't approve of."

Amazon in recent years has charged into advertising, building the third-largest digital ad business in the U.S. after Alphabet's Google and Facebook, according to eMarketer. Its ad revenue is on pace to double this year, to $5.8 billion, eMarketer estimates. As Amazon has monetized more space on its website, shoppers are increasingly encountering sponsored ads. Amazon is "starting to see how far they can push things," said Harry Brignull, a U.K.-based consultant who specializes in spotting web-design tactics that get people to click on something. Amazon's sponsored ads have appeared in its baby registries for more than a year. Responding to a Wall Street Journal inquiry about the ads, an Amazon spokeswoman declined to comment on criticism that the ads are deceptive, but said the retailer is now phasing out the sponsored listings. "We're constantly experimenting with new ways to improve the shopping experiences for customers," she said.

The 2018 holiday season is predicted to be a bumper year for e-commerce, helped by economic forces like lower unemployment and underlying trends like an ever-growing proportion of shoppers opting to spend their money online, and specifically on mobile devices. From a report: Thanksgiving, a day when brick-and-mortar stores tend to be closed, is a big one for online spending, and so far it's off to a flying start. Adobe, which puts out real-time analytics tracking e-commerce sales, said that as of 10am ET, $406 million had already been spent online today -- growth of 23.2 percent on 2017. Adobe tracks e-commerce transactions across 80 of the top 100 US online retailers and says its analytics are based on over 1 trillion visits to retail sites and 55 million SKUs.

At this rate, Adobe said it believes that sales today will total a record $3.5 billion, versus $2.9 billion a year ago. Notably, this is revised up from figures Adobe put out earlier this month, when it projected $3.1 billion in sales today. It's the first day of the "big five" for holiday shopping. Figures from Internet Retailer research predict that the total amount that will be spent over the period between Thanksgiving and Cyber Monday will be $21.6 billion. While rising tides might lift all boats, the biggest will reap the most rewards: it estimates that Amazon will account for nearly one-third of all sales.

Days before Amazon announced the cities it had picked for its HQ2, CEO Jeff Bezos had to address a separate but related concern among employees: Where is all this headed? At an all-hands meeting last Thursday in Seattle, an employee asked Bezos about Amazon's future. Specifically, the questioner wanted to know what lessons Bezos has learned from the recent bankruptcies of Sears and other big retailers. From a report: "Amazon is not too big to fail," Bezos said, in a recording of the meeting that CNBC has heard. "In fact, I predict one day Amazon will fail. Amazon will go bankrupt. If you look at large companies, their lifespans tend to be 30-plus years, not a hundred-plus years." The key to prolonging that demise, Bezos continued, is for the company to "obsess over customers" and to avoid looking inward, worrying about itself. "If we start to focus on ourselves, instead of focusing on our customers, that will be the beginning of the end," he said. "We have to try and delay that day for as long as possible." Bezos' comments come at a time of unprecedented success at Amazon, with its core retail business continuing to grow while the company is winning the massive cloud-computing market and gaining rapid adoption of its Alexa voice assistant in the home.

Amazon plans to split its second headquarters evenly between two locations rather than picking one city for HQ2, WSJ reported Monday, citing a person familiar with the matter, a surprise decision that will spread the impact of a massive new office across two communities. From the report: The driving force behind the decision to build two equal offices in addition to the company's headquarters in Seattle is recruiting enough tech talent, according to the person familiar with the company's plans. The move will also ease potential issues with housing, transit and other areas where adding tens of thousands of workers could cause problems. [...] The report, published Monday, did not specify the locations Amazon is exploring, but on Sunday, the newspaper had reported that the ecommerce giant was in late-stage discussions with Crystal City in Virginia, Dallas and New York City. [The aforementioned link may be paywalled; here's an alternative source.]

An anonymous reader shares a report: Amazon cracked down on fake reviews two years ago by prohibiting shoppers from getting free products directly from merchants in exchange for writing reviews. It was a major turning point for the world's largest online retailer, which had previously seen "incentivized reviews" as a key way for consumers to discover new products. Amazon changed course because it realized some merchants were using such reviews to game its search algorithm, undermining faith in the customer feedback that helps drive e-commerce.

Amazon instead used its "Vine" program, in which Amazon serves as a middleman between prolific Amazon reviewers and vendors eager for exposure. Amazon would still allow freebies in exchange for feedback so long as there was no direct contact between its retail partners and reviewers, theoretically lessening the chance of quid-pro-quo. Amazon would select shoppers eligible for the program, and Amazon vendors would pay a fee and provide free products to participate. But there was an important group excluded from the Vine program: independent merchants who supply about half the goods sold on the site.

Now those excluded merchants and review watchdogs are alleging Amazon is guilty of the review manipulation the company said it was trying to prevent. Amazon uses Vine extensively to promote a fast-growing assortment of its own private-label products, distributing free samples to quickly accumulate the reviews needed to rise in search results and boost shopper faith in making a purchase. It gives Amazon a big advantage when introducing its own brands over third-party merchants who are more vulnerable to Amazon's private-label competition than prominent brands already in stores.