Morning Brew - ☕ NayPal

Searching for answers as to why Amazon doesn’t accept PayPal.
January 06, 2023

Retail Brew

Bluecore

Hello. You know how they say alcohol as an industry is recession-proof? Well, looks like we might have to rethink that theory. Prominent beer brands in the US are now complaining about a dip in their sales as inflation-pinched consumers are pulling back on purchasing their favorite cans and pints. Oh well, at least retailers have broken Dry January resolutions to look forward to.

In today’s edition:

—Andrew Adam Newman, Katishi Maake, Max Knoblauch

PAYMENTS

FSQ (Frequently Searched Questions): Why doesn’t Amazon accept PayPal?

A Google search page where the top item is "why doesn't amazon accept paypal" Google

When Google autocompletes search queries about retail brands, it offers a glimpse of what most confounds customers. This new feature looks for answers.

In 2000, before Elon Musk and Peter Thiel became known for flummoxing media consumers, they co-founded a payments company that aimed to be such a friend to consumers that they put “pal” in its name.

Today, PayPal—which reports serving more than 430 million account holders and merchants in more than 200 markets—has become synonymous with e-commerce. And yet, the biggest retailer in the world, Amazon, doesn’t accept PayPal.

Amazon states on its website that PayPal is among a list of payments it does not accept, a list that also includes checks, cash, and EBT cash benefits.

But consumers aren’t primarily googling to ask if Amazon takes PayPal; they’re googling to ask why it doesn’t.

SorryPal: A member of Amazon’s press team, Deniz Sonmez, responded with a statement that gave no clear answer to our question.

“Our goal is to meet the needs and preferences of every Amazon customer,” the statement, which made no mention of PayPal, read in part. “We’re always listening to customer feedback to improve our shopping experience—and that includes the payment methods we accept in our stores.”

Asked again to explain why Amazon does not accept PayPal in a follow-up email and phone call, Sonmez declined to elaborate.

PayPal, similarly, declined to respond directly to the question of why it’s not accepted at Amazon but did note that the PayPal debit card and cashback Mastercard can be used as a workaround. (More on this below.)

Amazoff: There are two popular theories—cited, among other places, by Insider—about why PayPal is not a payment option on Amazon.

  • From 2002 to 2015, PayPal was owned outright by Amazon rival eBay, and both eBay and Amazon may have been disinclined to partner with a competitor.
  • Amazon has its own third-party payment method, Amazon Pay, which could be considered a direct competitor to PayPal.

Keep reading here.—AAN

        

TOGETHER WITH BLUECORE

Sneak a peek at ’23 trends

Bluecore

The ink on your New Year’s resolutions isn’t even dry, so how could we already have access to such future-forward info? Because the holiday shopping season gives us helpful hints on what’s to come in retail.

Bluecore gathered all these insights for their Black Friday and Cyber Monday retail marketing report, then funneled them into this interactive data story. Check it out to see where the retail industry is trending, uncover handy data, and determine which campaigns and strategies are primed to meet new demand.

You’ll learn how to connect with new shoppers, convert them quicker, and—maybe most importantly—how to keep ’em coming back.

Work smarter, not harder, folks. Keep the holiday momentum going and create new revenue opportunities in this brand-new year by peeping Bluecore’s interactive data story.

DATA

Brand name

Pink Crocs piled on cash Francis Scialabba

They grow up so fast. Inflation gripped retail last year, but a number of brands whose products play nice with consumers’ wallets saw a payoff.

Morning Consult aggregated the top 20 brands with the sharpest rise in purchasing consideration last year, and how that played out across generations. The rankings are determined by measuring the growth in customers who said they would consider purchasing from a brand over the course of the year.

Inflation defined 2022, which meant shoppers were buying fewer of their favorite products and they were less willing to experiment. However, a handful of brands—especially in food and beverage—were able to stand out from the rest of the pack, which could inform who will dominate 2023.

Of the 1,689 brands examined this year, Crocs saw the second-highest purchase consideration among US adults.

  • You might have believed Gen Zers were fueling the Crocs craze, but that was the only age demographic not in the top 20 for growth this year.
  • Morning Consult says that Crocs is able to dabble with trendier styles and looks without alienating its core audience, who appreciate the shoe for its comfort and functionality.

Food and beverage brands saw a lot more purchase consideration last year. A handful of the top 20 include Stōk, Great Value cream cheese (yes, you read that correctly), Gatorade Fit, Chobani, Häagen-Dazs, Frito Lay, and the infamous Four Loko.

  • For many of these brands, their low price points are the explanation for their growth.

“The food and beverage category tends to do well in economically tense times, which means this year, Gen Xers are responding positively to efforts from a number of brands in the category,” Emily Moquin, food and beverage analyst at Morning Consult, said in the report. “What’s more, our data shows Gen Xers’ healthy-eating intentions are waning under the weight of inflation.”

Keep reading here.—KM

        

RETAIL

Taking a bath

Bed Bath & Beyond bankruptcy Photo Illustration: Dianna “Mick” McDougall, Source: Getty Images

“Big January-in-the-Northeast vibes out of Bed Bath & Beyond yesterday, as the company announced in a public filing that it has ‘substantial doubt’ about its ability to continue and could potentially file for bankruptcy,” writes Morning Brew’s Max Knoblauch:

BBBY expects to report a 33% sales decline compared to Q3 last year (which included Black Friday). The company anticipates losses to reach $385.8 million…and warned that it may not have cash for suppliers and lease agreements in the coming months.
What happened? Maybe shoppers are just less impressed by towels these days. But the retailer also committed numerous own goals, such as replacing big brands with private labels amid supply-chain snarls.

Read the whole story here on Morning Brew.

        

FROM THE CREW

The Crew

Abercrombie & Fitch isn’t who they used to be. Check out this case study from Marketing Brew examining how Abercrombie changed its brand image from exclusive to inclusive, met their target demo where they are, and used influencers of all types to gain a new (and renewed) customer base and audience. Download your copy here.

SWAPPING SKUS

Today’s top retail reads.

Fast and the furious: Accelerated production rates are impacting the once high-quality consumer goods that would last for years, including everything from apparel to kitchen appliances and personal tech gadgets. (Vox)

Out of town: New legislation and rising costs are pushing clothing brands to look outside of manufacturing hubs in the US like Los Angeles for their production needs. (Bloomberg)

New horizons: Hit by near-constant supply-chain issues, several American companies are pulling back from production in Asia and instead looking to Laredo—a Texas border city poised to become the center of global trade. (the New York Times)

WHAT ELSE IS BREWING

  • The US added 223,000 jobs in December as the unemployment rate dipped.
  • UK retailers are poised for weakened consumer demand in 2023 despite above-average sales during the holiday season.
  • Morphe makeup, once valued at $2 billion, will close all of its US stores.
  • Samsung signaled a 69% drop in Q4 profits amid a pullback in demand.
  • Everlane will lay off 17% of its corporate workforce to improve profitability.

FRIEND OR FAUX?

Three of the stories below are real...and one is most definitely not. Can you spot the fake?

  1. Hefty released a “Snack Scarf” lined with secret pockets to help smuggle snacks from a party.
  2. A poorly rated restaurant in Florida is offering diners a chance to win over $100,000 for exclusively ordering and eating its scallops every day for a year.
  3. Equinox has banned New Year’s resolution members as part of its January campaign.
  4. A Minneapolis restaurant was slammed with a cease and desist order by Smucker’s for selling round, crustless sandwiches.

Keep reading for the answer.

FRIEND OR FAUX? ANSWER

Hmm, exclusively eating scallops at a poorly rated restaurant? Sure…sign us up for a dose of food poisoning.

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Written by Andrew Adam Newman, Katishi Maake, and Max Knoblauch

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