<\/a><\/p>\n<\/p>\n\nA weekly podcast with the latest e-commerce news and events. Episode 303 is an recap of Amazon and Shopify Q1 2023 earnings.<\/p>\n <\/p>\nSubscribe<\/strong>:<\/p>\n<span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><\/iframe><\/figure>\n<p>Amazon and Shopify both reported their Q1 2023 earnings last week.<\/p>\n<p>Amazon had a strong first quarter, slightly over-shadowed by it\u2019s slowing AWS growth.<\/p>\n<p>Shopify also had strong Q1 2023 earnings although it did not achieve profitability. Shopify also announced a second reduction of headcount and announced that they were selling all of the recently acquired logistic assets.<\/p>\n<p><strong>Don\u2019t forget to like our\u00a0facebook page, and if you enjoyed this episode please write us a review on itunes.<\/strong><\/p>\n<p>Episode 305 of the Jason & Scot show was recorded on Thursday, May 4th 2023<span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 id=\"chapter\">Transcript<\/h2>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:23]<\/small>\u00a0<span title=\"0:23 - 0:25\" data-start=\"00:00:23.135\" data-end=\"00:00:25.497\" data-spk=\"0\" data-label=\"Jason\">Welcome to the Jason and Scot show,\u00a0<\/span><span title=\"0:26 - 0:39\" data-start=\"00:00:25.569\" data-end=\"00:00:38.747\" data-spk=\"0\" data-label=\"Jason\">this is episode 305 being recorded on Thursday May 4th May the 4th be with you I\u2019m your host Jason retailgeek Goldberg and as usual I\u2019m here with your co-host Scot Wingo.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:39]<\/small>\u00a0<span title=\"0:39 - 0:53\" data-start=\"00:00:38.957\" data-end=\"00:00:52.970\" data-spk=\"1\" data-label=\"Scot\">Hey Jason and welcome back Jason Scott showed listeners Happy Star Wars Day May the 4th be with you hope everyone had a great Star Wars Day Jason people can\u2019t see you but you are wearing your Jar Jar Binks cosplay.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:53]<\/small>\u00a0<span title=\"0:53 - 0:56\" data-start=\"00:00:53.295\" data-end=\"00:00:56.293\" data-spk=\"0\" data-label=\"Jason\">I kind of assumed people just assume I\u2019m always wearing that.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:57]<\/small>\u00a0<span title=\"0:57 - 1:11\" data-start=\"00:00:56.534\" data-end=\"00:01:10.715\" data-spk=\"1\" data-label=\"Scot\">You should do the whole episode and jar jar speak well said Jason what\u2019s a new at the Amazon what.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:10]<\/small>\u00a0<span title=\"1:10 - 1:23\" data-start=\"00:01:10.427\" data-end=\"00:01:22.577\" data-spk=\"0\" data-label=\"Jason\">I feel like people don\u2019t get the jar jar one I did I did do an act during covid-19 doing all this pitch theater online I did a pitch on Halloween in a Darth Vader mask.<\/span><br \/><span title=\"1:24 - 1:27\" data-start=\"00:01:23.851\" data-end=\"00:01:27.402\" data-spk=\"0\" data-label=\"Jason\">And we won the pitch so I feel like I should be doing costumes more.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:28]<\/small>\u00a0<span title=\"1:28 - 1:35\" data-start=\"00:01:27.553\" data-end=\"00:01:35.346\" data-spk=\"1\" data-label=\"Scot\">Awesome you guys intimidate them and it\u2019s called the Darth Vader intimidation closed when you wear the Vader the Vader suit.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:34]<\/small>\u00a0<span title=\"1:34 - 1:38\" data-start=\"00:01:34.151\" data-end=\"00:01:38.212\" data-spk=\"0\" data-label=\"Jason\">Exactly exactly and it had the voice changing thing and so it is.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:38]<\/small>\u00a0<span title=\"1:38 - 1:47\" data-start=\"00:01:37.924\" data-end=\"00:01:46.950\" data-spk=\"1\" data-label=\"Scot\">Honest I find your lack of faith yeah there\u2019s a lot of death lot of lot of puts you can use in a pitch.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:48]<\/small>\u00a0<span title=\"1:48 - 1:56\" data-start=\"00:01:47.785\" data-end=\"00:01:56.155\" data-spk=\"0\" data-label=\"Jason\">Yes unfortunately not a large enough chunk of the total addressable Market are Geeks.<\/span><br \/><span title=\"1:58 - 2:09\" data-start=\"00:01:58.337\" data-end=\"00:02:08.504\" data-spk=\"0\" data-label=\"Jason\">If you like is wrong I know how I got in this like funky like creative advertising world with all these I kept custody clients like I totally don\u2019t fit in.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:09]<\/small>\u00a0<span title=\"2:09 - 2:17\" data-start=\"00:02:09.208\" data-end=\"00:02:17.139\" data-spk=\"1\" data-label=\"Scot\">Yeah been a misfit toy my whole life so sir not going to stop anytime soon embrace it Jason.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:15]<\/small>\u00a0<span title=\"2:15 - 2:28\" data-start=\"00:02:14.628\" data-end=\"00:02:28.274\" data-spk=\"0\" data-label=\"Jason\">Yeah it was announced today that we won a big new client lvmh and so I like went on LinkedIn and joke that like it was largely thanks to my my stature is a luxury influencer.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:29]<\/small>\u00a0<span title=\"2:29 - 2:32\" data-start=\"00:02:28.665\" data-end=\"00:02:32.396\" data-spk=\"1\" data-label=\"Scot\">Nice congrats your tick-tocks on luxury have one the death.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:32]<\/small>\u00a0<span title=\"2:32 - 2:37\" data-start=\"00:02:32.138\" data-end=\"00:02:36.597\" data-spk=\"0\" data-label=\"Jason\">I know I know for a long time people were like why are you wasting your time with that and now they know.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:38]<\/small>\u00a0<span title=\"2:38 - 2:49\" data-start=\"00:02:37.679\" data-end=\"00:02:49.077\" data-spk=\"1\" data-label=\"Scot\">Who will we have it\u2019s been a while since we dropped a pod because we both had spring breaks and then you\u2019ve been traveling a bit so it\u2019s great to be back.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:49]<\/small>\u00a0<span title=\"2:49 - 2:54\" data-start=\"00:02:49.090\" data-end=\"00:02:54.011\" data-spk=\"0\" data-label=\"Jason\">Yeah it\u2019s super fun to catch up with you and with the audience.<\/span><br \/><span title=\"2:55 - 3:08\" data-start=\"00:02:54.774\" data-end=\"00:03:07.838\" data-spk=\"0\" data-label=\"Jason\">I feel like the last show we did was right after shoptalk so I did get to see a bunch of folks and now you know it\u2019s a treat your season is starting to heat up so I have a bunch of upcoming trips so.<\/span><br \/><span title=\"3:08 - 3:15\" data-start=\"00:03:08.078\" data-end=\"00:03:14.598\" data-spk=\"0\" data-label=\"Jason\">If listeners are going to any of these shows make sure you make a point to catch up with me and you could see the jar jar costume.<\/span><br \/><span title=\"3:15 - 3:19\" data-start=\"00:03:14.833\" data-end=\"00:03:18.990\" data-spk=\"0\" data-label=\"Jason\">In person so I\u2019m actually doing this show from.<\/span><br \/><span title=\"3:19 - 3:25\" data-start=\"00:03:19.261\" data-end=\"00:03:25.090\" data-spk=\"0\" data-label=\"Jason\">The famous Mayflower Hotel in Washington d.c. because I\u2019m in town for the.<\/span><br \/><span title=\"3:25 - 3:31\" data-start=\"00:03:25.475\" data-end=\"00:03:30.894\" data-spk=\"0\" data-label=\"Jason\">Home and Commercial products Association I\u2019m doing the keynote for their annual conference tomorrow morning.<\/span><br \/><span title=\"3:31 - 3:41\" data-start=\"00:03:31.388\" data-end=\"00:03:40.809\" data-spk=\"0\" data-label=\"Jason\">And then I\u2019m going to sap Sapphire which is their big customer show in Orlando in on May 15th if you like.<\/span><br \/><span title=\"3:41 - 3:56\" data-start=\"00:03:41.092\" data-end=\"00:03:56.054\" data-spk=\"0\" data-label=\"Jason\">There\u2019s a fair amount of our listeners that go to that show and then to fun ones that are you know core Commerce shows after that we have Commerce next by our friends Scott Silverman is in New York in June so June 20th.<\/span><br \/><span title=\"3:56 - 4:06\" data-start=\"00:03:56.397\" data-end=\"00:04:05.825\" data-spk=\"0\" data-label=\"Jason\">And I\u2019ll be doing some fun stuff stuff on stage there and then in RFC you know has their kind of future looking executive digital Summit.<\/span><\/p>\n<p><small>[4:07]<\/small>\u00a0<span title=\"4:07 - 4:21\" data-start=\"00:04:06.757\" data-end=\"00:04:20.595\" data-spk=\"0\" data-label=\"Jason\">On the beach it Tara no in Rancho Palos Verdes it\u2019s called the inner F Nexus on July 10 and all both be giving a keynote and I will also be interviewing Kara Swisher so I feel like.<\/span><br \/><span title=\"4:21 - 4:24\" data-start=\"00:04:20.993\" data-end=\"00:04:24.315\" data-spk=\"0\" data-label=\"Jason\">I\u2019m going to spend an hour just making fun of Scott Galloway with her.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[4:25]<\/small>\u00a0<span title=\"4:25 - 4:30\" data-start=\"00:04:24.760\" data-end=\"00:04:29.994\" data-spk=\"1\" data-label=\"Scot\">Nice yeah that\u2019s good the dog dog is off the porch whoo.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:30]<\/small>\u00a0<span title=\"4:30 - 4:43\" data-start=\"00:04:29.928\" data-end=\"00:04:42.865\" data-spk=\"0\" data-label=\"Jason\">Exactly I was thinking about like maybe bring a mask I\u2019ve already you know I have audio collection of a lot of my favorite Scott Galloway predictions meaning which didn\u2019t come true.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[4:43]<\/small>\u00a0<span title=\"4:43 - 4:47\" data-start=\"00:04:42.565\" data-end=\"00:04:46.585\" data-spk=\"1\" data-label=\"Scot\">Macy\u2019s Woodberry Amazon and apparel.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:47]<\/small>\u00a0<span title=\"4:47 - 4:49\" data-start=\"00:04:47.324\" data-end=\"00:04:48.760\" data-spk=\"0\" data-label=\"Jason\">But I feel like this is.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[4:48]<\/small>\u00a0<span title=\"4:48 - 4:50\" data-start=\"00:04:48.460\" data-end=\"00:04:49.998\" data-spk=\"1\" data-label=\"Scot\">Amazon to be Roadkill.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:50]<\/small>\u00a0<span title=\"4:50 - 5:03\" data-start=\"00:04:50.359\" data-end=\"00:05:03.188\" data-spk=\"0\" data-label=\"Jason\">Like Freaky Friday like so like Cara is this like super famous interviewer and I am interviewing her and we\u2019re doing it at Tara know where she started code conference so it\u2019s very topsy-turvy.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[5:03]<\/small>\u00a0<span title=\"5:03 - 5:07\" data-start=\"00:05:03.495\" data-end=\"00:05:07.352\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah just bring red tears without her trademark thing.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[5:07]<\/small>\u00a0<span title=\"5:07 - 5:12\" data-start=\"00:05:07.052\" data-end=\"00:05:12.219\" data-spk=\"0\" data-label=\"Jason\">I assume she just travels with one of her own yeah that Herman Miller red chair yeah.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[5:09]<\/small>\u00a0<span title=\"5:09 - 5:15\" data-start=\"00:05:09.462\" data-end=\"00:05:14.875\" data-spk=\"1\" data-label=\"Scot\">BYO RC okay.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[5:15]<\/small>\u00a0<span title=\"5:15 - 5:24\" data-start=\"00:05:14.948\" data-end=\"00:05:23.841\" data-spk=\"0\" data-label=\"Jason\">I actually think she\u2019s not with Vox anymore so I don\u2019t know you know she may be in withdrawn not she may have said said goodbye to the red chairs will have to ask her.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[5:24]<\/small>\u00a0<span title=\"5:24 - 5:26\" data-start=\"00:05:23.541\" data-end=\"00:05:25.608\" data-spk=\"1\" data-label=\"Scot\">Look that\u2019s that\u2019s question number one.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[5:26]<\/small>\u00a0<span title=\"5:26 - 5:39\" data-start=\"00:05:25.722\" data-end=\"00:05:39.074\" data-spk=\"0\" data-label=\"Jason\">Yeah but besides all of that we are just getting started on q1 earnings season and you know of course for most of our listeners one of the most important earnings calls happened last week.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[5:39]<\/small>\u00a0<span title=\"5:39 - 5:46\" data-start=\"00:05:39.261\" data-end=\"00:05:45.726\" data-spk=\"1\" data-label=\"Scot\">Yeah it wouldn\u2019t be a Jason and Scot show if we didn\u2019t have some Amazon news.<\/span><br \/><span title=\"5:47 - 5:54\" data-start=\"00:05:47.097\" data-end=\"00:05:53.760\" data-spk=\"1\" data-label=\"Scot\">So on April 27th which was last Thursday when we\u2019re recording this Amazon had their earnings\u00a0<\/span><span title=\"5:54 - 6:05\" data-start=\"00:05:53.556\" data-end=\"00:06:04.631\" data-spk=\"1\" data-label=\"Scot\">it was what Wall Street would call a clear beat meaning both top and the bottom line where a beat this is welcome news because Amazon\u2019s earnings have been kind of like not\u00a0<\/span><span title=\"6:05 - 6:07\" data-start=\"00:06:04.613\" data-end=\"00:06:07.190\" data-spk=\"1\" data-label=\"Scot\">not mrs. but not amazing.<\/span><\/p>\n<p><small>[6:07]<\/small>\u00a0<span title=\"6:07 - 6:17\" data-start=\"00:06:07.413\" data-end=\"00:06:17.099\" data-spk=\"1\" data-label=\"Scot\">So revenues came in two percent above consensus which is a slight beat but what got Wall Street very excited was operating income came in 57 percent above\u00a0<\/span><span title=\"6:17 - 6:25\" data-start=\"00:06:17.010\" data-end=\"00:06:25.416\" data-spk=\"1\" data-label=\"Scot\">and longtime listeners will know I usually cover the retail portion of Amazon and Jason covers the cloud or a WS part,\u00a0<\/span><span title=\"6:26 - 6:40\" data-start=\"00:06:25.561\" data-end=\"00:06:39.621\" data-spk=\"1\" data-label=\"Scot\">we\u2019re going to mix it up because I read all the reports and what was most interesting right now in kind of the world of Internet stocks the whole world has been turned upside down by chat GPT\u00a0<\/span><span title=\"6:40 - 6:49\" data-start=\"00:06:39.514\" data-end=\"00:06:48.809\" data-spk=\"1\" data-label=\"Scot\">which is put out by open AI Sam Altman startup who is partially owned and supported by Microsoft there and investor and the hole,\u00a0<\/span><span title=\"6:49 - 6:52\" data-start=\"00:06:48.924\" data-end=\"00:06:52.150\" data-spk=\"1\" data-label=\"Scot\">infrastructure runs on Azure their cloud computing,\u00a0<\/span><span title=\"6:52 - 7:01\" data-start=\"00:06:52.163\" data-end=\"00:07:01.428\" data-spk=\"1\" data-label=\"Scot\">platform this has been a huge win for Microsoft because it\u2019s enabled them to add a chat gbt like component to Bing.<\/span><\/p>\n<p><small>[7:02]<\/small>\u00a0<span title=\"7:02 - 7:06\" data-start=\"00:07:01.609\" data-end=\"00:07:05.737\" data-spk=\"1\" data-label=\"Scot\">And you know the buzz is that,\u00a0<\/span><span title=\"7:06 - 7:17\" data-start=\"00:07:05.779\" data-end=\"00:07:17.460\" data-spk=\"1\" data-label=\"Scot\">search is dead a lot of people are even speculating maybe even apps will be dead you know maybe maybe you don\u2019t really need apps on a phone if you could just talk to your phone and say hey book me restaurant reservation as\u00a0<\/span><span title=\"7:17 - 7:26\" data-start=\"00:07:17.353\" data-end=\"00:07:26.486\" data-spk=\"1\" data-label=\"Scot\">6:30 at the one of these three restaurants why do you need a nap if an AI can go to that room so there\u2019s there\u2019s a lot of people in the\u00a0<\/span><span title=\"7:26 - 7:29\" data-start=\"00:07:26.414\" data-end=\"00:07:28.836\" data-spk=\"1\" data-label=\"Scot\">Wall Street and Tech world are,\u00a0<\/span><span title=\"7:29 - 7:42\" data-start=\"00:07:28.920\" data-end=\"00:07:41.635\" data-spk=\"1\" data-label=\"Scot\">I would say there\u2019s like this wall of worry around this new innovation and this is real so chat GPT was the fastest product to 100 million users what was it Jason like four weeks or something.<\/span><\/p>\n<p><small>[7:42]<\/small>\u00a0<span title=\"7:42 - 7:50\" data-start=\"00:07:42.483\" data-end=\"00:07:50.384\" data-spk=\"1\" data-label=\"Scot\">Like an egg yeah if you see a chart it\u2019s like this a vertical wall whereas like Facebook and some of those kinds of things were previous record holders for this and it took,\u00a0<\/span><span title=\"7:51 - 7:54\" data-start=\"00:07:50.559\" data-end=\"00:07:54.128\" data-spk=\"1\" data-label=\"Scot\">you know years and so-so.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[7:54]<\/small>\u00a0<span title=\"7:54 - 7:58\" data-start=\"00:07:54.248\" data-end=\"00:07:58.160\" data-spk=\"0\" data-label=\"Jason\">Two months to a billion or 4 months to a billion users.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[7:58]<\/small>\u00a0<span title=\"7:58 - 8:05\" data-start=\"00:07:58.004\" data-end=\"00:08:05.112\" data-spk=\"1\" data-label=\"Scot\">Yeah so it\u2019s just this crazy adoption curve unlike anything we\u2019ve ever seen before so you know there\u2019s,\u00a0<\/span><span title=\"8:05 - 8:15\" data-start=\"00:08:05.197\" data-end=\"00:08:14.847\" data-spk=\"1\" data-label=\"Scot\">this was top of mind when this came out so the so while streets pretty obsessed with what\u2019s going on with the cloud also\u00a0<\/span><span title=\"8:15 - 8:19\" data-start=\"00:08:14.836\" data-end=\"00:08:19.126\" data-spk=\"1\" data-label=\"Scot\">Amazon\u2019s Cloud division has been slowing their growth it was the\u00a0<\/span><span title=\"8:19 - 8:27\" data-start=\"00:08:18.976\" data-end=\"00:08:26.745\" data-spk=\"1\" data-label=\"Scot\">you know the darling of the Amazon portfolio and now it\u2019s been slowing because as we head into this recessionary period,\u00a0<\/span><span title=\"8:27 - 8:35\" data-start=\"00:08:26.812\" data-end=\"00:08:34.971\" data-spk=\"1\" data-label=\"Scot\">also another concern is we cover this a little bit last time but Silicon Valley Bank failed we\u2019ve had all this kind of startup\u00a0<\/span><span title=\"8:35 - 8:41\" data-start=\"00:08:34.834\" data-end=\"00:08:40.981\" data-spk=\"1\" data-label=\"Scot\">craziness and a lot of those startups use cloud computing and Amazon so,\u00a0<\/span><span title=\"8:41 - 8:55\" data-start=\"00:08:41.113\" data-end=\"00:08:54.783\" data-spk=\"1\" data-label=\"Scot\">so that was what all eyes were on and you know what we saw was the growth did slow to 11 and a half percent which was less bad than what people were thinking so is kind of viewed as positive which is always one of these counter,\u00a0<\/span><span title=\"8:55 - 9:03\" data-start=\"00:08:54.820\" data-end=\"00:09:03.202\" data-spk=\"1\" data-label=\"Scot\">Wall Street all about expectations not like the real absolute numbers but 11.5 percent growth is this is this part we\u2019ve been covering this for for.<\/span><\/p>\n<p><small>[9:04]<\/small>\u00a0<span title=\"9:04 - 9:09\" data-start=\"00:09:03.539\" data-end=\"00:09:09.055\" data-spk=\"1\" data-label=\"Scot\">Years of this point five years and it\u2019s always growing north of 50%\u00a0<\/span><span title=\"9:09 - 9:22\" data-start=\"00:09:08.911\" data-end=\"00:09:21.512\" data-spk=\"1\" data-label=\"Scot\">but this time it really slowed down and they\u2019re even projecting for next quarter or slow 2011 Amazon did Jesse did talk a lot about AI there they\u2019ve talked about how they\u2019re going to do a lot of people\u00a0<\/span><span title=\"9:22 - 9:24\" data-start=\"00:09:21.506\" data-end=\"00:09:23.765\" data-spk=\"1\" data-label=\"Scot\">the other problem with Chad gbt\u00a0<\/span><span title=\"9:24 - 9:37\" data-start=\"00:09:23.717\" data-end=\"00:09:37.376\" data-spk=\"1\" data-label=\"Scot\">is it looks the prior to the prior a I think we all spend a lot of time with which was Alexa now feels wildly inferior because you\u2019re having these really robust conversations with chat gvt and Alexis can do like,\u00a0<\/span><span title=\"9:37 - 9:44\" data-start=\"00:09:37.484\" data-end=\"00:09:43.649\" data-spk=\"1\" data-label=\"Scot\">yeah it\u2019s not really like at that level of conversational AI you can\u00a0<\/span><span title=\"9:44 - 9:55\" data-start=\"00:09:43.589\" data-end=\"00:09:54.688\" data-spk=\"1\" data-label=\"Scot\">get some weather maybe play a song and a couple other little things add something it\u2019ll talk to you about do you want to reorder your dog food and yeah that\u2019s about it right so very,\u00a0<\/span><span title=\"9:55 - 10:07\" data-start=\"00:09:54.874\" data-end=\"00:10:06.664\" data-spk=\"1\" data-label=\"Scot\">Barry and then you know that used to be cool and now in a world where we\u2019re chatty be teeing it feels inferior so Amazon like Google is a little bit on their heels from this and\u00a0<\/span><span title=\"10:06 - 10:15\" data-start=\"00:10:06.496\" data-end=\"00:10:14.548\" data-spk=\"1\" data-label=\"Scot\">they basically came out and said we\u2019re going to do a lot around Alexa here and it will we\u2019re dedicated that being by far the best voice assistant,\u00a0<\/span><span title=\"10:15 - 10:29\" data-start=\"00:10:14.753\" data-end=\"00:10:29.150\" data-spk=\"1\" data-label=\"Scot\">and we\u2019ll be adding chats ubt like capabilities but then for AWS they basically said look there\u2019s all these language models out there and we\u2019re going to be neutral will have all kinds of different flavors kind of thing so whatever you want we\u2019ll have.<\/span><\/p>\n<p><small>[10:30]<\/small>\u00a0<span title=\"10:30 - 10:39\" data-start=\"00:10:29.559\" data-end=\"00:10:38.704\" data-spk=\"1\" data-label=\"Scot\">And the one of the concerns is these large language models use a ton of gpus and those are expensive.<\/span><br \/><span title=\"10:39 - 10:47\" data-start=\"00:10:38.993\" data-end=\"00:10:47.015\" data-spk=\"1\" data-label=\"Scot\">Azure is adding a ton of workloads from this and their conference call they went so far as to say.<\/span><br \/><span title=\"10:47 - 10:56\" data-start=\"00:10:47.334\" data-end=\"00:10:55.806\" data-spk=\"1\" data-label=\"Scot\">It\u2019s like accelerated growth dramatically at Azure they\u2019re getting all these loads that they would have never seen before thanks to their relationship and,\u00a0<\/span><span title=\"10:56 - 11:05\" data-start=\"00:10:55.921\" data-end=\"00:11:04.934\" data-spk=\"1\" data-label=\"Scot\">they\u2019re scaling up this gpus and so it kind of feels early and Aang\u2019s like maybe Microsoft has got like this.<\/span><br \/><span title=\"11:05 - 11:10\" data-start=\"00:11:05.205\" data-end=\"00:11:09.747\" data-spk=\"1\" data-label=\"Scot\">Bit of an advantage over both Google and they WS so,\u00a0<\/span><span title=\"11:10 - 11:22\" data-start=\"00:11:09.922\" data-end=\"00:11:21.723\" data-spk=\"1\" data-label=\"Scot\">so you know it was interesting because I\u2019m saying all that because what happened is they announced their up a little bit that day and then they announced and they were down and they\u2019ve been kind of sideways since then so and what was clear be quarter\u00a0<\/span><span title=\"11:22 - 11:32\" data-start=\"00:11:21.639\" data-end=\"00:11:31.602\" data-spk=\"1\" data-label=\"Scot\">with AWS not as bad as you would think it would be you had the numbers would say oh the stock should go up 5 to 10% but they didn\u2019t because I don\u2019t think everyone really liked,\u00a0<\/span><span title=\"11:32 - 11:37\" data-start=\"00:11:31.729\" data-end=\"00:11:36.902\" data-spk=\"1\" data-label=\"Scot\">body language around you know what\u2019s going on chat gbt and Amazon\u2019s response.<\/span><\/p>\n<p><small>[11:40]<\/small>\u00a0<span title=\"11:40 - 11:45\" data-start=\"00:11:40.226\" data-end=\"00:11:44.816\" data-spk=\"1\" data-label=\"Scot\">So that was a that was a long part but that was I thought it was kind of interesting.<\/span><br \/><span title=\"11:45 - 11:55\" data-start=\"00:11:45.159\" data-end=\"00:11:55.073\" data-spk=\"1\" data-label=\"Scot\">The whole world and like the last yeah six months has been turned upside down by this and it\u2019s always an option or that always gets my attention because this is where\u00a0<\/span><span title=\"11:55 - 12:04\" data-start=\"00:11:54.930\" data-end=\"00:12:04.400\" data-spk=\"1\" data-label=\"Scot\">unique opportunities are created for disruption and all kinds of what happens is when my favorite books is the innovators dilemma when something new like this comes along,\u00a0<\/span><span title=\"12:05 - 12:19\" data-start=\"00:12:04.538\" data-end=\"00:12:18.978\" data-spk=\"1\" data-label=\"Scot\">people that were previously the leaders have a really hard time adapting to it because they get baked into their business model so for example to pick on Google it\u2019s very hard for them to offer a chat interface on the core Google search because,\u00a0<\/span><span title=\"12:19 - 12:27\" data-start=\"00:12:19.020\" data-end=\"00:12:27.258\" data-spk=\"1\" data-label=\"Scot\">every pixel of core Google search is like so highly optimized and them hitting their numbers relies on that that real estate.<\/span><\/p>\n<p><small>[12:28]<\/small>\u00a0<span title=\"12:28 - 12:37\" data-start=\"00:12:27.823\" data-end=\"00:12:36.638\" data-spk=\"1\" data-label=\"Scot\">Basically not changing that to change that real estate and experiment with something that is expensive and not monetized is.<\/span><br \/><span title=\"12:37 - 12:45\" data-start=\"00:12:36.903\" data-end=\"00:12:45.171\" data-spk=\"1\" data-label=\"Scot\">Almost impossible you know it\u2019s it will certainly make them lose mountains of Revenue and even worse on ibadah,\u00a0<\/span><span title=\"12:45 - 12:57\" data-start=\"00:12:45.232\" data-end=\"00:12:57.039\" data-spk=\"1\" data-label=\"Scot\">so it\u2019s really kind of fascinating to Think Through the strategy here of what\u2019s everyone going to do and how do they adapt to this new world and to some extent Amazon not as bad as Google I would argue but that Amazon is a little bit of a in a pickle.<\/span><br \/><span title=\"12:57 - 12:58\" data-start=\"00:12:57.388\" data-end=\"00:12:58.037\" data-spk=\"1\" data-label=\"Scot\">Um\u00a0<\/span><span title=\"12:58 - 13:10\" data-start=\"00:12:58.133\" data-end=\"00:13:10.367\" data-spk=\"1\" data-label=\"Scot\">it got even so bad also around the same time Jeff Bezos was at Coachella and he was just out there dancing and wearing this kind of fun butterfly shirt and everyone\u2019s kind of like you know it almost felt like\u00a0<\/span><span title=\"13:10 - 13:13\" data-start=\"00:13:10.338\" data-end=\"00:13:13.384\" data-spk=\"1\" data-label=\"Scot\">fiddling while Rome burned\u00a0<\/span><span title=\"13:13 - 13:26\" data-start=\"00:13:13.270\" data-end=\"00:13:25.756\" data-spk=\"1\" data-label=\"Scot\">so a lot of people are like and then you know so Disney\u2019s CEO has come back and a lot of people are projecting that maybe we\u2019ll see a day where like a Larry Page comes back to Google and a Bezos comes back\u00a0<\/span><span title=\"13:26 - 13:31\" data-start=\"00:13:25.607\" data-end=\"00:13:31.339\" data-spk=\"1\" data-label=\"Scot\">to Amazon to it\u2019s going to be interesting to see what happens this next next three to six months are gonna be really\u00a0<\/span><span title=\"13:31 - 13:38\" data-start=\"00:13:31.285\" data-end=\"00:13:38.039\" data-spk=\"1\" data-label=\"Scot\">fun to watch in the world of large trillion-dollar internet companies to see what\u2019s going down.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[13:39]<\/small>\u00a0<span title=\"13:39 - 13:44\" data-start=\"00:13:38.646\" data-end=\"00:13:43.994\" data-spk=\"0\" data-label=\"Jason\">Oh for sure and I keep saying this but we\u2019re going to have to do another.<\/span><br \/><span title=\"13:44 - 13:50\" data-start=\"00:13:44.331\" data-end=\"00:13:49.636\" data-spk=\"0\" data-label=\"Jason\">Deep dive on AI and chechi because there are so many it\u2019s changing so,\u00a0<\/span><span title=\"13:50 - 14:04\" data-start=\"00:13:49.799\" data-end=\"00:14:03.632\" data-spk=\"0\" data-label=\"Jason\">fast and there\u2019s this whole like shift from keywords to prompts and you know like all of you know Google\u2019s intrinsic strengths are suddenly becoming weaknesses there\u2019s this interesting battle,\u00a0<\/span><span title=\"14:04 - 14:14\" data-start=\"00:14:03.740\" data-end=\"00:14:13.661\" data-spk=\"0\" data-label=\"Jason\">um between like these AI capabilities as destinations versus these AI capabilities as.<\/span><br \/><span title=\"14:14 - 14:23\" data-start=\"00:14:13.968\" data-end=\"00:14:22.969\" data-spk=\"0\" data-label=\"Jason\">Sort of infrastructure that that you add to any destination right and so you know the interesting thing about Chad gbt you can license the.<\/span><br \/><span title=\"14:23 - 14:32\" data-start=\"00:14:23.216\" data-end=\"00:14:31.916\" data-spk=\"0\" data-label=\"Jason\">The GPT for engine and build it in your own apps or your own website but 1.2 billion consumers a month,\u00a0<\/span><span title=\"14:32 - 14:39\" data-start=\"00:14:32.103\" data-end=\"00:14:38.875\" data-spk=\"0\" data-label=\"Jason\">are going to chat. Open a i.com so that\u2019s now a destination on the web that\u2019s bigger than Bing.<\/span><\/p>\n<p><small>[14:40]<\/small>\u00a0<span title=\"14:40 - 14:47\" data-start=\"00:14:39.524\" data-end=\"00:14:47.023\" data-spk=\"0\" data-label=\"Jason\">Like move more people last month went to their website opening eyes website then went to Bing and that\u2019s a,\u00a0<\/span><span title=\"14:47 - 15:00\" data-start=\"00:14:47.180\" data-end=\"00:15:00.183\" data-spk=\"0\" data-label=\"Jason\">Game Changer I get it\u2019s feels like a huge missed opportunity side note that there\u2019s not ads on that website yet I\u2019m sure I\u2019m sure that that that is coming in Italy but so there are all these like super interesting changes.<\/span><br \/><span title=\"15:01 - 15:10\" data-start=\"00:15:00.724\" data-end=\"00:15:09.653\" data-spk=\"0\" data-label=\"Jason\">I kind of feel like even if all that wasn\u2019t playing out like just the the fact that AWS is decelerating a little bit.<\/span><\/p>\n<p><small>[15:10]<\/small>\u00a0<span title=\"15:10 - 15:24\" data-start=\"00:15:10.453\" data-end=\"00:15:24.249\" data-spk=\"0\" data-label=\"Jason\">Would be the news from this earning thing and it\u2019s what everyone\u2019s talking about and it\u2019s almost a shame because it\u2019s kind of masking what otherwise like is a pretty remarkable quarter compared to like what most of their peers are likely to do.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[15:25]<\/small>\u00a0<span title=\"15:25 - 15:30\" data-start=\"00:15:24.760\" data-end=\"00:15:29.705\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah walk us through some of the highlights that you saw in the non aw site.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[15:30]<\/small>\u00a0<span title=\"15:30 - 15:44\" data-start=\"00:15:30.103\" data-end=\"00:15:44.301\" data-spk=\"0\" data-label=\"Jason\">Well so the first thing if you look at North American gmv it grew 13% in q1 so that that is a deceleration from,\u00a0<\/span><span title=\"15:44 - 15:48\" data-start=\"00:15:44.452\" data-end=\"00:15:48.231\" data-spk=\"0\" data-label=\"Jason\">their Q4 growth but like to put that in comparison.<\/span><br \/><span title=\"15:49 - 15:58\" data-start=\"00:15:48.556\" data-end=\"00:15:58.116\" data-spk=\"0\" data-label=\"Jason\">Us retail sales grew four percent in the first quarter so so you know this is kind of back to pre-pandemic levels where Amazon\u2019s growing.<\/span><br \/><span title=\"15:58 - 16:08\" data-start=\"00:15:58.495\" data-end=\"00:16:07.533\" data-spk=\"0\" data-label=\"Jason\">Despite being you know the largest or second largest retailer in the US depending on how you count growing quite a bit of water faster than the industry,\u00a0<\/span><span title=\"16:08 - 16:15\" data-start=\"00:16:07.731\" data-end=\"00:16:14.737\" data-spk=\"0\" data-label=\"Jason\">you don\u2019t normally we would we compare Amazon\u2019s growth to all retailers growth but also to all of e-commerce has growth,\u00a0<\/span><span title=\"16:15 - 16:24\" data-start=\"00:16:14.924\" data-end=\"00:16:24.436\" data-spk=\"0\" data-label=\"Jason\">so the US Department of Commerce comes out with their Q2 growth numbers in a couple weeks so May 18th I think if you want to mark your calendars will do a show and talk about that but.<\/span><br \/><span title=\"16:25 - 16:30\" data-start=\"00:16:24.659\" data-end=\"00:16:30.000\" data-spk=\"0\" data-label=\"Jason\">Just kind of interpreting the data and extrapolating.<\/span><\/p>\n<p><small>[16:31]<\/small>\u00a0<span title=\"16:31 - 16:37\" data-start=\"00:16:30.572\" data-end=\"00:16:37.019\" data-spk=\"0\" data-label=\"Jason\">U.s. e-commerce and q1\u2019s likely to grow about 10% which is kind of a recovery for e-commerce but still,\u00a0<\/span><span title=\"16:37 - 16:44\" data-start=\"00:16:37.224\" data-end=\"00:16:44.182\" data-spk=\"0\" data-label=\"Jason\">that means Amazon the largest e-commerce player out there is growing faster than the industry as a whole which is.<\/span><br \/><span title=\"16:44 - 16:51\" data-start=\"00:16:44.459\" data-end=\"00:16:51.309\" data-spk=\"0\" data-label=\"Jason\">You know typical for Amazon but you know not very typical in the rest of the world so the retail story was,\u00a0<\/span><span title=\"16:51 - 17:00\" data-start=\"00:16:51.471\" data-end=\"00:16:59.793\" data-spk=\"0\" data-label=\"Jason\">was really strong and it was driven almost exclusively by your favorite part of the retail Echo System the marketplace right it was almost all.<\/span><\/p>\n<p><small>[17:00]<\/small>\u00a0<span title=\"17:00 - 17:07\" data-start=\"00:17:00.052\" data-end=\"00:17:06.500\" data-spk=\"0\" data-label=\"Jason\">3p sales which I want to say grew 16 percent.<\/span><br \/><span title=\"17:07 - 17:16\" data-start=\"00:17:06.728\" data-end=\"00:17:15.940\" data-spk=\"0\" data-label=\"Jason\">Or fifteen percent for the quarter so so 3p continues to be a super important part,\u00a0<\/span><span title=\"17:16 - 17:24\" data-start=\"00:17:16.127\" data-end=\"00:17:24.166\" data-spk=\"0\" data-label=\"Jason\">and you know I always like to talk about the ad business ads were up 21% which is a,\u00a0<\/span><span title=\"17:24 - 17:32\" data-start=\"00:17:24.347\" data-end=\"00:17:31.906\" data-spk=\"0\" data-label=\"Jason\">a deceleration of the ads business as well just like AWS but a couple interesting things,\u00a0<\/span><span title=\"17:32 - 17:35\" data-start=\"00:17:32.087\" data-end=\"00:17:35.181\" data-spk=\"0\" data-label=\"Jason\">there\u2019s a ton of headwinds,\u00a0<\/span><span title=\"17:35 - 17:47\" data-start=\"00:17:35.271\" data-end=\"00:17:47.049\" data-spk=\"0\" data-label=\"Jason\">for traditional dip digital ads right now as the economy is getting a little more challenging you know a lot of brands are cutting back on their spinned because the privacy issues they\u2019re cutting back on a lot of the traditional digital channels,\u00a0<\/span><span title=\"17:47 - 17:55\" data-start=\"00:17:47.205\" data-end=\"00:17:54.542\" data-spk=\"0\" data-label=\"Jason\">um so you look at like metas ad business in q1 it grew three percent Google\u2019s ad business grew to percent.<\/span><\/p>\n<p><small>[17:55]<\/small>\u00a0<span title=\"17:55 - 18:00\" data-start=\"00:17:54.771\" data-end=\"00:18:00.227\" data-spk=\"0\" data-label=\"Jason\">Pinterest was the leader of those kind of traditional platforms their ad business grew five percent,\u00a0<\/span><span title=\"18:00 - 18:13\" data-start=\"00:18:00.359\" data-end=\"00:18:12.569\" data-spk=\"0\" data-label=\"Jason\">and Amazon which is has a bigger ad business than Pinterest Amazon grew 21% so that that growth you know continues to be remarkable,\u00a0<\/span><span title=\"18:13 - 18:18\" data-start=\"00:18:12.702\" data-end=\"00:18:18.002\" data-spk=\"0\" data-label=\"Jason\">um I did a quick back of the napkin estimate and I,\u00a0<\/span><span title=\"18:18 - 18:30\" data-start=\"00:18:18.158\" data-end=\"00:18:29.749\" data-spk=\"0\" data-label=\"Jason\">I know AWS generated about 5 billion dollars in earn income for the quarter the ad unit probably generated 7.1 billion dollars in earning come for the quarter so quite a bit more,\u00a0<\/span><span title=\"18:30 - 18:36\" data-start=\"00:18:29.900\" data-end=\"00:18:36.101\" data-spk=\"0\" data-label=\"Jason\">profit to the bottom line coming from that ad business then coming from from AWS,\u00a0<\/span><span title=\"18:36 - 18:43\" data-start=\"00:18:36.294\" data-end=\"00:18:42.549\" data-spk=\"0\" data-label=\"Jason\">and then you know Amazon you know as they always do they kind of pepper and some favorable stats so they talked about how.<\/span><br \/><span title=\"18:43 - 18:53\" data-start=\"00:18:42.765\" data-end=\"00:18:52.674\" data-spk=\"0\" data-label=\"Jason\">They they had 26 million customers for same-day delivery in q1 which is fifty percent growth year over year so you know you.<\/span><br \/><span title=\"18:53 - 18:58\" data-start=\"00:18:52.909\" data-end=\"00:18:57.679\" data-spk=\"0\" data-label=\"Jason\">You kind of you\u2019ve seen a lot of other retailers that as the economy has gotten kind of tough they\u2019ve kind of.<\/span><\/p>\n<p><small>[18:58]<\/small>\u00a0<span title=\"18:58 - 19:12\" data-start=\"00:18:57.962\" data-end=\"00:19:11.741\" data-spk=\"0\" data-label=\"Jason\">Ratcheted back their service level a little bit like you\u2019re seeing a lot of people starting to charge more for returns you\u2019re starting to see delivery promises get stretched out a little bit and you know Amazon is kind of.<\/span><br \/><span title=\"19:12 - 19:17\" data-start=\"00:19:11.969\" data-end=\"00:19:17.497\" data-spk=\"0\" data-label=\"Jason\">Adjusting their returns policy as well but like they\u2019re they\u2019re all in on that fast same day delivery.<\/span><br \/><span title=\"19:18 - 19:23\" data-start=\"00:19:17.738\" data-end=\"00:19:22.761\" data-spk=\"0\" data-label=\"Jason\">And it seems like consumers are continuing to embrace that.<\/span><br \/><span title=\"19:23 - 19:35\" data-start=\"00:19:23.044\" data-end=\"00:19:34.773\" data-spk=\"0\" data-label=\"Jason\">Um there\u2019s this kind of big strategic shift that they talked about Scott that I know you\u2019ve been falling which is kind of the shift from a national fulfillment model to a regional fulfillment model.<\/span><br \/><span title=\"19:35 - 19:50\" data-start=\"00:19:35.056\" data-end=\"00:19:49.760\" data-spk=\"0\" data-label=\"Jason\">And this is all about getting more efficiency so the idea is you know in the old model you placed an order and you know they ship from whatever Warehouse fulfillment center had the goods in stock so often that.<\/span><br \/><span title=\"19:50 - 19:52\" data-start=\"00:19:50.007\" data-end=\"00:19:52.434\" data-spk=\"0\" data-label=\"Jason\">Are shipping things from pretty far away,\u00a0<\/span><span title=\"19:53 - 20:06\" data-start=\"00:19:52.573\" data-end=\"00:20:05.900\" data-spk=\"0\" data-label=\"Jason\">and mold you know in a you know your your multicart order could have Goods coming from a lot of different fulfillment centers and you know this quarter the focus is really on redesigning the whole fulfillment center to optimize.<\/span><\/p>\n<p><small>[20:06]<\/small>\u00a0<span title=\"20:06 - 20:10\" data-start=\"00:20:06.466\" data-end=\"00:20:09.596\" data-spk=\"0\" data-label=\"Jason\">How many trips they have to make to your house and how many,\u00a0<\/span><span title=\"20:10 - 20:22\" data-start=\"00:20:09.777\" data-end=\"00:20:21.692\" data-spk=\"0\" data-label=\"Jason\">how much of the goods can all come from the same fulfillment center so there\u2019s a laser focus on kind of getting the inventory in each fulfillment center right for the market that it\u2019s serving,\u00a0<\/span><span title=\"20:22 - 20:33\" data-start=\"00:20:21.867\" data-end=\"00:20:32.785\" data-spk=\"0\" data-label=\"Jason\">um and the you know in their investor call the CFO was talking about how like they\u2019re starting to they\u2019re already starting to unlock.<\/span><br \/><span title=\"20:33 - 20:48\" data-start=\"00:20:33.140\" data-end=\"00:20:48.006\" data-spk=\"0\" data-label=\"Jason\">Um significant improvements in their operating margins as a result of cutting down on the amount of trips in order to serve the same amount of gmv and they think there\u2019s a lot of Headroom to continue improving math if you\u2019ve been following that kind of,\u00a0<\/span><span title=\"20:48 - 20:57\" data-start=\"00:20:48.151\" data-end=\"00:20:56.869\" data-spk=\"0\" data-label=\"Jason\">Regional shift it almost feels like the Reinventing the you know kind of against innovators dilemma they\u2019re Reinventing their whole fulfillment model despite the fact that they have the.<\/span><br \/><span title=\"20:57 - 20:59\" data-start=\"00:20:57.236\" data-end=\"00:20:59.135\" data-spk=\"0\" data-label=\"Jason\">The world\u2019s largest fulfillment model.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[21:00]<\/small>\u00a0<span title=\"21:00 - 21:12\" data-start=\"00:20:59.598\" data-end=\"00:21:12.090\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah I think this is really interesting and in some ways maybe the go Puffs the world kind of showed him how to do this ironically enough and you know and this surge of same-day delivery I think they\u2019re having.<\/span><br \/><span title=\"21:13 - 21:21\" data-start=\"00:21:12.529\" data-end=\"00:21:21.182\" data-spk=\"1\" data-label=\"Scot\">I think you know in the early days the same day delivery I remember Sebastian going ham he was SVP saying\u00a0<\/span><span title=\"21:21 - 21:35\" data-start=\"00:21:21.050\" data-end=\"00:21:35.231\" data-spk=\"1\" data-label=\"Scot\">yes he was at our conference and he said something like we just put out there to see and we were surprised by how many people use it and then you know they had data that indicated this is like five years ago that it was addictive because\u00a0<\/span><span title=\"21:35 - 21:36\" data-start=\"00:21:35.093\" data-end=\"00:21:36.289\" data-spk=\"1\" data-label=\"Scot\">you.<\/span><\/p>\n<p><small>[21:37]<\/small>\u00a0<span title=\"21:37 - 21:46\" data-start=\"00:21:36.608\" data-end=\"00:21:46.246\" data-spk=\"1\" data-label=\"Scot\">We have forget which of us going this is your zero friction addiction so once you have one of these low-friction experiences you\u2019re like yeah yeah you know of course I would like it yeah,\u00a0<\/span><span title=\"21:46 - 21:59\" data-start=\"00:21:46.403\" data-end=\"00:21:59.388\" data-spk=\"1\" data-label=\"Scot\">I\u2019m running this morning all like it the same day but that\u2019s making them for deploying a lot more of the product to be able to satisfy that demand but they have the data to do it the key is it\u2019s a you know there\u2019s,\u00a0<\/span><span title=\"22:00 - 22:14\" data-start=\"00:21:59.532\" data-end=\"00:22:13.545\" data-spk=\"1\" data-label=\"Scot\">there\u2019s this you know something like 300 million skus out there in the cloud that you can buy a small portion of those percentage-wise large sales wise is in the network of FCS and then the system learned what to,\u00a0<\/span><span title=\"22:14 - 22:22\" data-start=\"00:22:13.582\" data-end=\"00:22:21.669\" data-spk=\"1\" data-label=\"Scot\">put at the edge near you and that same day thing there\u2019s a set of skus and it\u2019s probably down to 10,000 at that point,\u00a0<\/span><span title=\"22:22 - 22:32\" data-start=\"00:22:21.826\" data-end=\"00:22:31.554\" data-spk=\"1\" data-label=\"Scot\">that they know those are the most frequently Asked seemed a things it\u2019s going to be things like toilet replenishable toiletries,\u00a0<\/span><span title=\"22:32 - 22:43\" data-start=\"00:22:31.597\" data-end=\"00:22:42.863\" data-spk=\"1\" data-label=\"Scot\">dog food for me all those types personal items Healthcare Beauty and you know it\u2019s not the it\u2019s not the Xbox or something that can kind of weight\u00a0<\/span><span title=\"22:43 - 22:49\" data-start=\"00:22:42.780\" data-end=\"00:22:48.506\" data-spk=\"1\" data-label=\"Scot\">well I guess some of that could be but you know there\u2019s plenty of stuff people are happy to wait for so,\u00a0<\/span><span title=\"22:49 - 22:56\" data-start=\"00:22:48.602\" data-end=\"00:22:55.861\" data-spk=\"1\" data-label=\"Scot\">that that edge Network allows them to Ford deploy 5 to 10,000 excuse and get them to you really fast.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[22:56]<\/small>\u00a0<span title=\"22:56 - 23:00\" data-start=\"00:22:56.450\" data-end=\"00:23:00.205\" data-spk=\"0\" data-label=\"Jason\">Yeah and I think what\u2019s interesting is that it turns out that the.<\/span><br \/><span title=\"23:00 - 23:12\" data-start=\"00:23:00.440\" data-end=\"00:23:11.857\" data-spk=\"0\" data-label=\"Jason\">The those skews that are needed for same-day delivery in Raleigh are not the same as the skills that are needed in Chicago and AI is really helping them sort of optimize.<\/span><br \/><span title=\"23:12 - 23:26\" data-start=\"00:23:12.218\" data-end=\"00:23:25.792\" data-spk=\"0\" data-label=\"Jason\">Those fulfillment centers and the numbers are actually a little bigger than your you\u2019re saying there are now like 300,000 same day skus in the system and in some markets there they have over 100,000 skus available for same-day so it y you know there.<\/span><\/p>\n<p><small>[23:26]<\/small>\u00a0<span title=\"23:26 - 23:31\" data-start=\"00:23:26.201\" data-end=\"00:23:31.363\" data-spk=\"0\" data-label=\"Jason\">They\u2019re kind of expanding from the head in skews to you know at least the chunky middle scuze.<\/span><br \/><span title=\"23:32 - 23:37\" data-start=\"00:23:31.621\" data-end=\"00:23:36.644\" data-spk=\"0\" data-label=\"Jason\">On that same day delivery and it and it seems like that\u2019s continuing to work for them.<\/span><br \/><span title=\"23:37 - 23:46\" data-start=\"00:23:36.975\" data-end=\"00:23:46.361\" data-spk=\"0\" data-label=\"Jason\">I just think it\u2019s you know again a lot of people that had you know the huge infrastructure lead the Amazon had him fulfillment centers you know would.<\/span><br \/><span title=\"23:47 - 23:59\" data-start=\"00:23:46.686\" data-end=\"00:23:58.854\" data-spk=\"0\" data-label=\"Jason\">But I find it hard to disrupt that model and pivot to a new model and it seems like you know Tim zones credit they\u2019re they\u2019re not afraid to disrupt themselves and it feels like that\u2019s kind of what they\u2019re doing here.<\/span><br \/><span title=\"23:59 - 24:05\" data-start=\"00:23:59.077\" data-end=\"00:24:04.845\" data-spk=\"0\" data-label=\"Jason\">And it seems like it least pull narrowly it\u2019s working you know they\u2019re also.<\/span><br \/><span title=\"24:05 - 24:18\" data-start=\"00:24:05.080\" data-end=\"00:24:18.396\" data-spk=\"0\" data-label=\"Jason\">Over the covid time there have been some capacity constraints and they rolled out a lot of technology to help help third-party sellers better manage their own.<\/span><br \/><span title=\"24:19 - 24:28\" data-start=\"00:24:18.624\" data-end=\"00:24:27.541\" data-spk=\"0\" data-label=\"Jason\">Capacity and you know I\u2019m hearing from third-party sellers that that is going better that they have you know are better able.<\/span><\/p>\n<p><small>[24:29]<\/small>\u00a0<span title=\"24:29 - 24:40\" data-start=\"00:24:29.314\" data-end=\"00:24:40.497\" data-spk=\"0\" data-label=\"Jason\">Predict the cost and the capacity that will be available for them and they\u2019re not getting as many unpleasant surprises as they as they kind of had had in the past of that that stuff is all interesting,\u00a0<\/span><span title=\"24:41 - 24:45\" data-start=\"00:24:40.672\" data-end=\"00:24:44.673\" data-spk=\"0\" data-label=\"Jason\">I also think Amazon\u2019s big enough that they\u2019re they\u2019re you know kind of a.<\/span><br \/><span title=\"24:45 - 24:57\" data-start=\"00:24:44.962\" data-end=\"00:24:57.022\" data-spk=\"0\" data-label=\"Jason\">A good surrogate for for the actual consumer economies at this point and so is interesting you know they talked about the Americans can consumer and you know the North America was where a lot of Amazon\u2019s growth was.<\/span><br \/><span title=\"24:57 - 24:58\" data-start=\"00:24:57.293\" data-end=\"00:24:58.073\" data-spk=\"0\" data-label=\"Jason\">Um\u00a0<\/span><span title=\"24:58 - 25:10\" data-start=\"00:24:58.290\" data-end=\"00:25:09.755\" data-spk=\"0\" data-label=\"Jason\">They they had a statement that they\u2019re continuing to see the US consumer is being conscious that she\u2019s definitely moderated her spending on discretionary categories,\u00a0<\/span><span title=\"25:10 - 25:15\" data-start=\"00:25:09.894\" data-end=\"00:25:15.253\" data-spk=\"0\" data-label=\"Jason\">she\u2019s trading down to more value oriented eizan\u2019s.<\/span><\/p>\n<p><small>[25:16]<\/small>\u00a0<span title=\"25:16 - 25:30\" data-start=\"00:25:15.747\" data-end=\"00:25:30.492\" data-spk=\"0\" data-label=\"Jason\">You know there continues to be healthy demand for Staples and you know I think we heard similar things from other big retailers like Wal-Mart and Target so that kind of felt in line but what was interesting was Europe.<\/span><br \/><span title=\"25:31 - 25:44\" data-start=\"00:25:30.739\" data-end=\"00:25:44.301\" data-spk=\"0\" data-label=\"Jason\">The growth is much slower but it was a significantly higher beat versus expectations than North America was and they had kind of an interesting editorial on Europe they said that,\u00a0<\/span><span title=\"25:44 - 25:48\" data-start=\"00:25:44.488\" data-end=\"00:25:48.165\" data-spk=\"0\" data-label=\"Jason\">European demand while cautious came in better than expected,\u00a0<\/span><span title=\"25:48 - 26:02\" data-start=\"00:25:48.334\" data-end=\"00:26:01.896\" data-spk=\"0\" data-label=\"Jason\">we see customer confidence increasing with inflation tickling down in the EU and that\u2019s kind of at odds with a bunch of other retailers that that are competing in Europe that are still you know kind of talking about,\u00a0<\/span><span title=\"26:02 - 26:14\" data-start=\"00:26:02.082\" data-end=\"00:26:14.359\" data-spk=\"0\" data-label=\"Jason\">the consumer Demand Being really repressed in Europe and the European consumer really struggling due to even higher inflation then then what consumers are experiencing here in North America so,\u00a0<\/span><span title=\"26:15 - 26:21\" data-start=\"00:26:14.557\" data-end=\"00:26:21.287\" data-spk=\"0\" data-label=\"Jason\">um it either sounds like Amazon\u2019s having a better go of it than a lot of other retailers in Europe,\u00a0<\/span><span title=\"26:21 - 26:31\" data-start=\"00:26:21.468\" data-end=\"00:26:30.535\" data-spk=\"0\" data-label=\"Jason\">or Amazon is being the first one to sort of see the economy turning a little more favorable in Europe so.<\/span><br \/><span title=\"26:31 - 26:33\" data-start=\"00:26:30.752\" data-end=\"00:26:33.419\" data-spk=\"0\" data-label=\"Jason\">I kind of found that interesting.<\/span><\/p>\n<p><small>[26:42]<\/small>\u00a0<span title=\"26:42 - 26:45\" data-start=\"00:26:41.965\" data-end=\"00:26:44.728\" data-spk=\"0\" data-label=\"Jason\">Yeah well again you know the.<\/span><br \/><span title=\"26:45 - 26:54\" data-start=\"00:26:44.999\" data-end=\"00:26:54.181\" data-spk=\"0\" data-label=\"Jason\">Historically like Europe is smaller than North America for Amazon but it you know because it\u2019s smaller it was growing faster but you know there have been more.<\/span><br \/><span title=\"26:54 - 27:09\" data-start=\"00:26:54.433\" data-end=\"00:27:09.396\" data-spk=\"0\" data-label=\"Jason\">Challenges supply chain disruptions there\u2019s more uncertainty in a lot of the European economies and so you know it\u2019s like for global companies I\u2019m particularly brands that do business everywhere.<\/span><br \/><span title=\"27:10 - 27:18\" data-start=\"00:27:09.703\" data-end=\"00:27:18.037\" data-spk=\"0\" data-label=\"Jason\">Um that European softness has been a challenge the one outlier of all that is luxury so it does feel.<\/span><br \/><span title=\"27:18 - 27:29\" data-start=\"00:27:18.289\" data-end=\"00:27:28.697\" data-spk=\"0\" data-label=\"Jason\">Like kind of a bifurcated economy that like luxury can you know is actually kind of bounce back in Europe and is continuing to do pretty pretty well worldwide while.<\/span><br \/><span title=\"27:29 - 27:34\" data-start=\"00:27:29.316\" data-end=\"00:27:33.654\" data-spk=\"0\" data-label=\"Jason\">High inflation is hurting a lot more of the kind of staple Industries a lot more.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[27:35]<\/small>\u00a0<span title=\"27:35 - 27:43\" data-start=\"00:27:34.598\" data-end=\"00:27:42.962\" data-spk=\"1\" data-label=\"Scot\">Having Survived the Great Recession of 08 and 09 at Chow buzzer the weird thing about the data was the luxury segment accelerated\u00a0<\/span><span title=\"27:43 - 27:50\" data-start=\"00:27:42.909\" data-end=\"00:27:50.402\" data-spk=\"1\" data-label=\"Scot\">you have to have the the wealthy folks do find during economic downturns turns out.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[27:50]<\/small>\u00a0<span title=\"27:50 - 28:00\" data-start=\"00:27:50.420\" data-end=\"00:27:59.728\" data-spk=\"0\" data-label=\"Jason\">Yeah this was a weird one in that like that\u2019s for that was for sure true where the demand was shifted in unusual ways because often you have a lot of.<\/span><br \/><span title=\"28:00 - 28:05\" data-start=\"00:27:59.956\" data-end=\"00:28:04.847\" data-spk=\"0\" data-label=\"Jason\">Really wealthy consumers are also tend to be really mobile consumer so you have,\u00a0<\/span><span title=\"28:05 - 28:13\" data-start=\"00:28:05.046\" data-end=\"00:28:13.476\" data-spk=\"0\" data-label=\"Jason\">historical you\u2019d have a lot of really wealthy people from China that would go to France and buy a lot of luxury goods and in covid of course nobody was going anywhere so there was this huge,\u00a0<\/span><span title=\"28:14 - 28:28\" data-start=\"00:28:13.549\" data-end=\"00:28:27.646\" data-spk=\"0\" data-label=\"Jason\">spike in luxury goods in China so like the overall worldwide demand for luxury was very high but there were these weird mismatches where the demand was not coming from the markets that it typically came from and now it feels like it\u2019s.<\/span><br \/><span title=\"28:29 - 28:33\" data-start=\"00:28:28.554\" data-end=\"00:28:33.414\" data-spk=\"0\" data-label=\"Jason\">Reverting more it\u2019s starting to revert to more traditional.<\/span><\/p>\n<p><small>[28:37]<\/small>\u00a0<span title=\"28:37 - 28:41\" data-start=\"00:28:36.768\" data-end=\"00:28:40.607\" data-spk=\"0\" data-label=\"Jason\">So there was a another interesting earnings call this morning.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[28:41]<\/small>\u00a0<span title=\"28:41 - 28:49\" data-start=\"00:28:41.161\" data-end=\"00:28:49.092\" data-spk=\"1\" data-label=\"Scot\">Yeah so Shopify came out with their earnings and they\u2019ve had just kind of set the stage.<\/span><br \/><span title=\"28:49 - 28:57\" data-start=\"00:28:49.489\" data-end=\"00:28:57.174\" data-spk=\"1\" data-label=\"Scot\">In the during covid they were Off to the Races and they\u2019ve had a really hard time in the last year kind of in that\u00a0<\/span><span title=\"28:57 - 29:07\" data-start=\"00:28:57.085\" data-end=\"00:29:06.993\" data-spk=\"1\" data-label=\"Scot\">post covid era as they invested so much and then covid the e-commerce growth reverted to the mean as you\u2019ve been,\u00a0<\/span><span title=\"29:07 - 29:20\" data-start=\"00:29:07.012\" data-end=\"00:29:19.546\" data-spk=\"1\" data-label=\"Scot\">so good at pointing out and they thought it would just continue up into the right and so they did about a ten percent reduction in force I think is a year ago maybe a little longer,\u00a0<\/span><span title=\"29:21 - 29:34\" data-start=\"00:29:20.610\" data-end=\"00:29:34.449\" data-spk=\"1\" data-label=\"Scot\">and so then this morning they came out and they beat Lowered Expectations to put this in perspective of their growth has slowed to 25% and they were consistently growing well north of 50% so they\u2019re they\u2019re definitely,\u00a0<\/span><span title=\"29:35 - 29:39\" data-start=\"00:29:34.605\" data-end=\"00:29:39.484\" data-spk=\"1\" data-label=\"Scot\">this was good for a while there were kind of Contracting but now at least they\u2019re back to growth they are losing money but\u00a0<\/span><span title=\"29:39 - 29:51\" data-start=\"00:29:39.461\" data-end=\"00:29:51.244\" data-spk=\"1\" data-label=\"Scot\">they should get back to profitability here in a quarter or two but the big surprise was you know if you recall they were going to take on Amazon and they started really building out some fulfillment\u00a0<\/span><span title=\"29:51 - 30:00\" data-start=\"00:29:51.172\" data-end=\"00:30:00.137\" data-spk=\"1\" data-label=\"Scot\">and they bought a couple companies to do that and started building out this whole infrastructure called Shopify fulfillment Network or sfm.<\/span><\/p>\n<p><small>[30:00]<\/small>\u00a0<span title=\"30:00 - 30:06\" data-start=\"00:30:00.312\" data-end=\"00:30:05.810\" data-spk=\"1\" data-label=\"Scot\">So they announced on the call today that they\u2019re just basically abandoning that whole strategy and\u00a0<\/span><span title=\"30:06 - 30:19\" data-start=\"00:30:05.690\" data-end=\"00:30:19.457\" data-spk=\"1\" data-label=\"Scot\">the assets they previously bought an aggregate for over two billion dollars they sold to a company called Flex port for a billion so that had to hurt so basically a billion dollar loss on the strategy\u00a0<\/span><span title=\"30:19 - 30:26\" data-start=\"00:30:19.319\" data-end=\"00:30:25.808\" data-spk=\"1\" data-label=\"Scot\">and they basically said you know the future is AI and that\u2019s where we\u2019re going to put our effort,\u00a0<\/span><span title=\"30:26 - 30:36\" data-start=\"00:30:26.007\" data-end=\"00:30:36.252\" data-spk=\"1\" data-label=\"Scot\">and then when they sell this unit there also some people go with that but they\u2019re also announced they\u2019re doing at 23% that would include some of those people it\u2019s not it\u2019s not entirely clear.<\/span><\/p>\n<p><small>[30:36]<\/small>\u00a0<span title=\"30:36 - 30:45\" data-start=\"00:30:36.469\" data-end=\"00:30:44.550\" data-spk=\"1\" data-label=\"Scot\">How many will be core Shopify versus the people leaving with the sfn I think it\u2019s.<\/span><br \/><span title=\"30:45 - 30:49\" data-start=\"00:30:44.893\" data-end=\"00:30:48.600\" data-spk=\"1\" data-label=\"Scot\">Relatively small you know I don\u2019t think that\u2019s happened was like this huge.<\/span><br \/><span title=\"30:49 - 31:01\" data-start=\"00:30:49.022\" data-end=\"00:31:00.751\" data-spk=\"1\" data-label=\"Scot\">People operation like you have an Amazon anyway so they\u2019re going to reduce headcount by 11,000 people 29k so from 11,000 29k,\u00a0<\/span><span title=\"31:01 - 31:06\" data-start=\"00:31:00.853\" data-end=\"00:31:05.552\" data-spk=\"1\" data-label=\"Scot\">so about 23% reduction these things are always kind of.<\/span><\/p>\n<p><small>[31:06]<\/small>\u00a0<span title=\"31:06 - 31:15\" data-start=\"00:31:06.472\" data-end=\"00:31:15.185\" data-spk=\"1\" data-label=\"Scot\">Little tricky emotionally because you feel for those people that are losing their jobs and found out this morning that\u2019s going to be no fun,\u00a0<\/span><span title=\"31:15 - 31:20\" data-start=\"00:31:15.311\" data-end=\"00:31:19.547\" data-spk=\"1\" data-label=\"Scot\">but then Wall Street loves a good reduction for us because that means more profits oh,\u00a0<\/span><span title=\"31:20 - 31:32\" data-start=\"00:31:19.614\" data-end=\"00:31:31.649\" data-spk=\"1\" data-label=\"Scot\">the stock this is a huge win for the stock because Wall Street has hated hated hated this idea if you take this super high margin software business and you layer in a super low margin fulfillment business,\u00a0<\/span><span title=\"31:32 - 31:35\" data-start=\"00:31:31.764\" data-end=\"00:31:35.399\" data-spk=\"1\" data-label=\"Scot\">so you know Wall Street this is part of the innovators dilemma,\u00a0<\/span><span title=\"31:35 - 31:47\" data-start=\"00:31:35.460\" data-end=\"00:31:46.997\" data-spk=\"1\" data-label=\"Scot\">once you\u2019ve baked your margins in at 85% or whatever you can\u2019t then go to Wall Street and say we\u2019re going to bring that down 15% 270 because we\u2019re going to be fulfillment and that\u2019s a,\u00a0<\/span><span title=\"31:47 - 31:54\" data-start=\"00:31:47.033\" data-end=\"00:31:53.865\" data-spk=\"1\" data-label=\"Scot\">yeah 30% margin business your blend that in with our 85 you get us to 70 or whatever it is,\u00a0<\/span><span title=\"31:54 - 31:58\" data-start=\"00:31:53.950\" data-end=\"00:31:58.450\" data-spk=\"1\" data-label=\"Scot\">so so Wall Street was very happy to see them abandoned us,\u00a0<\/span><span title=\"31:59 - 32:08\" data-start=\"00:31:58.589\" data-end=\"00:32:07.998\" data-spk=\"1\" data-label=\"Scot\">it does raise the question one of the reasons they got in this is you and I talked a lot about Shopify versus Amazon and you know the same time.<\/span><br \/><span title=\"32:08 - 32:13\" data-start=\"00:32:08.227\" data-end=\"00:32:13.425\" data-spk=\"1\" data-label=\"Scot\">Amazon is raising the bar on e-commerce we just talked about this two same day,\u00a0<\/span><span title=\"32:14 - 32:22\" data-start=\"00:32:13.641\" data-end=\"00:32:22.462\" data-spk=\"1\" data-label=\"Scot\">Shopify was going to arm the rebels so that they could at least keep up with two day now they\u2019re abandoning that you know there\u2019s gonna continue to be,\u00a0<\/span><span title=\"32:23 - 32:29\" data-start=\"00:32:22.577\" data-end=\"00:32:28.531\" data-spk=\"1\" data-label=\"Scot\">yeah this could be a big moment in history where Shopify messes up and you know.<\/span><\/p>\n<p><small>[32:29]<\/small>\u00a0<span title=\"32:29 - 32:41\" data-start=\"00:32:28.820\" data-end=\"00:32:41.144\" data-spk=\"1\" data-label=\"Scot\">What\u2019s a I going to solve if you have this great product recommendation or something that doesn\u2019t show up for five days in Amazon eats the Shopify Merchants lunch because they just are better at Logistics\u00a0<\/span><span title=\"32:41 - 32:48\" data-start=\"00:32:41.133\" data-end=\"00:32:48.463\" data-spk=\"1\" data-label=\"Scot\">so this is this is a big decision throwing in the towel and it\u2019s going to be interesting to see,\u00a0<\/span><span title=\"32:48 - 32:56\" data-start=\"00:32:48.482\" data-end=\"00:32:55.897\" data-spk=\"1\" data-label=\"Scot\">if this is wise or not I obviously lean towards I don\u2019t think this is going to be a great in decision for him.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[32:57]<\/small>\u00a0<span title=\"32:57 - 32:59\" data-start=\"00:32:56.636\" data-end=\"00:32:59.388\" data-spk=\"0\" data-label=\"Jason\">Yeah it is tricky.<\/span><br \/><span title=\"33:00 - 33:14\" data-start=\"00:32:59.731\" data-end=\"00:33:13.539\" data-spk=\"0\" data-label=\"Jason\">The you know I would also mention there\u2019s this so I you know scary service from Amazon looming on the Shopify Horizon that it\u2019s not clear Shopify his really declared what they want they\u2019re going to do with yet which is the.<\/span><br \/><span title=\"33:14 - 33:25\" data-start=\"00:33:13.798\" data-end=\"00:33:24.848\" data-spk=\"0\" data-label=\"Jason\">The by with prime service which is you know in in effect to use that really solid Amazon Fulfillment Network even when you sell stuff on Shopify.<\/span><br \/><span title=\"33:25 - 33:35\" data-start=\"00:33:25.095\" data-end=\"00:33:34.956\" data-spk=\"0\" data-label=\"Jason\">And so you know maybe they\u2019re they\u2019re dumping on the Shopify fulfillment Network stuff in there just gonna see the Fulfillment Amazon we\u2019ll have to see.<\/span><br \/><span title=\"33:35 - 33:45\" data-start=\"00:33:35.263\" data-end=\"00:33:44.925\" data-spk=\"0\" data-label=\"Jason\">Um I do I\u2019ve decided to correct one thing you said like Shopify is huge on talking about e-commerce regress to the mean.<\/span><br \/><span title=\"33:45 - 33:57\" data-start=\"00:33:45.436\" data-end=\"00:33:56.534\" data-spk=\"0\" data-label=\"Jason\">That\u2019s actually not true right get when they talk about that they\u2019re talking about the ratio of e-commerce sales to retail sales and it\u2019s partly true for that.<\/span><br \/><span title=\"33:57 - 34:06\" data-start=\"00:33:56.835\" data-end=\"00:34:06.016\" data-spk=\"0\" data-label=\"Jason\">That you know we kind of went from 14 or 15 percent of all sales being online to 17 or 18 percent and we bounced back down to 15%.<\/span><br \/><span title=\"34:06 - 34:18\" data-start=\"00:34:06.245\" data-end=\"00:34:18.149\" data-spk=\"0\" data-label=\"Jason\">Um you know that that shape varied while we you know depending on the category so image digitally immature categories like Grocery and Automotive had kind of a permanent Spike whereas,\u00a0<\/span><span title=\"34:18 - 34:22\" data-start=\"00:34:18.299\" data-end=\"00:34:21.959\" data-spk=\"0\" data-label=\"Jason\">like apparel you know had kind of a temporary bump.<\/span><\/p>\n<p><small>[34:23]<\/small>\u00a0<span title=\"34:23 - 34:34\" data-start=\"00:34:22.518\" data-end=\"00:34:33.604\" data-spk=\"0\" data-label=\"Jason\">In absolute dollars e-commerce is way bigger than before the pandemic e-commerce is 90% up from from 2019 and so when when they kind of use that.<\/span><br \/><span title=\"34:34 - 34:40\" data-start=\"00:34:34.079\" data-end=\"00:34:39.589\" data-spk=\"0\" data-label=\"Jason\">As an excuse for the layoffs I would say like don\u2019t buy it right like that.<\/span><\/p>\n<p><small>[34:41]<\/small>\u00a0<span title=\"34:41 - 34:55\" data-start=\"00:34:40.713\" data-end=\"00:34:55.465\" data-spk=\"0\" data-label=\"Jason\">There\u2019s a lot more demand for digital Goods than there were in 2019 and Shopify isn\u2019t laying people off because that demand has receded like throwing people off because they haven\u2019t perfectly figured out what the right business model is and from my standpoint.<\/span><br \/><span title=\"34:56 - 35:09\" data-start=\"00:34:55.796\" data-end=\"00:35:09.172\" data-spk=\"0\" data-label=\"Jason\">They\u2019re still a little dyslexic on who they\u2019re even trying to serve they still have all this language around you know serving the small Independent Business the mom-and-pop and arming the rebels and all that but like you know when you listen all the success stories in their earnings calls.<\/span><br \/><span title=\"35:10 - 35:20\" data-start=\"00:35:09.587\" data-end=\"00:35:19.574\" data-spk=\"0\" data-label=\"Jason\">It\u2019s it\u2019s Staples it\u2019s why it\u2019s it\u2019s you know it\u2019s it\u2019s bigger or midsize specialty retailers that are moving to the platform,\u00a0<\/span><span title=\"35:20 - 35:21\" data-start=\"00:35:19.700\" data-end=\"00:35:21.250\" data-spk=\"0\" data-label=\"Jason\">it\u2019s not the rebels I,\u00a0<\/span><span title=\"35:21 - 35:36\" data-start=\"00:35:21.407\" data-end=\"00:35:36.008\" data-spk=\"0\" data-label=\"Jason\">Kendall Jackson and Kendall Jenner and Staples are not the rebels and so I don\u2019t know like I think they like that that narrative but like I\u2019m not sure they\u2019ve come a perfectly aligned their product offering to the.<\/span><br \/><span title=\"35:36 - 35:45\" data-start=\"00:35:36.279\" data-end=\"00:35:44.998\" data-spk=\"0\" data-label=\"Jason\">The companies that are like driving the bulk of their gmv growth and when they you know do focus on the long tail Mom and Pops.<\/span><br \/><span title=\"35:45 - 35:54\" data-start=\"00:35:45.251\" data-end=\"00:35:53.837\" data-spk=\"0\" data-label=\"Jason\">It really makes that gmv number kind of office gated because there\u2019s so much churn over there right and they go or gmv went up 25%.<\/span><br \/><span title=\"35:54 - 36:07\" data-start=\"00:35:54.108\" data-end=\"00:36:06.619\" data-spk=\"0\" data-label=\"Jason\">Was that because like all your customers are thriving and they\u2019re all growing or is it because you just added way more companies that will have a nine-month mortality rate than you then you did the quarter before.<\/span><\/p>\n<p><small>[36:09]<\/small>\u00a0<span title=\"36:09 - 36:16\" data-start=\"00:36:08.884\" data-end=\"00:36:16.131\" data-spk=\"0\" data-label=\"Jason\">So I think it\u2019s like I definitely like there\u2019s a lot of strong,\u00a0<\/span><span title=\"36:16 - 36:23\" data-start=\"00:36:16.204\" data-end=\"00:36:22.567\" data-spk=\"0\" data-label=\"Jason\">sort of advantages and and experiences still in the Shopify ecosystem and.<\/span><br \/><span title=\"36:23 - 36:31\" data-start=\"00:36:22.807\" data-end=\"00:36:30.901\" data-spk=\"0\" data-label=\"Jason\">Feel like shot pay is getting some traction the shop app has got a lot more traction than I originally predicted and now there are some legitimate.<\/span><br \/><span title=\"36:31 - 36:38\" data-start=\"00:36:31.208\" data-end=\"00:36:38.274\" data-spk=\"0\" data-label=\"Jason\">Marketplace features in there there\u2019s a lots of things going for them I certainly would not write them off but I do think.<\/span><br \/><span title=\"36:39 - 36:45\" data-start=\"00:36:39.417\" data-end=\"00:36:45.161\" data-spk=\"0\" data-label=\"Jason\">Like in the next couple of quarters we need to see some more clarity about like what they want to be and where their growth is really going to come.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[36:46]<\/small>\u00a0<span title=\"36:46 - 36:56\" data-start=\"00:36:46.081\" data-end=\"00:36:56.284\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah it\u2019s going to be we\u2019ll be tracking it closely on the show as we have them so it\u2019s going to be interesting to see I don\u2019t think either of us had this in our predictions though sadly.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[36:57]<\/small>\u00a0<span title=\"36:57 - 37:09\" data-start=\"00:36:56.669\" data-end=\"00:37:08.843\" data-spk=\"0\" data-label=\"Jason\">Yeah no I mean I was definitely caught by I never thought this Acquisitions made sense but I certainly thought that you know they would hold on to him longer so I don\u2019t know I guess if you\u2019re an investor like.<\/span><br \/><span title=\"37:09 - 37:15\" data-start=\"00:37:09.083\" data-end=\"00:37:14.797\" data-spk=\"0\" data-label=\"Jason\">Like once you realize it was the wrong decision like there\u2019s probably something good about like cutting bait quickly instead of trying to.<\/span><br \/><span title=\"37:15 - 37:20\" data-start=\"00:37:15.369\" data-end=\"00:37:20.140\" data-spk=\"0\" data-label=\"Jason\">Drag it around drag it out longer just because you you don\u2019t want to own up to the mistake.<\/span><br \/><span title=\"37:22 - 37:36\" data-start=\"00:37:22.375\" data-end=\"00:37:35.523\" data-spk=\"0\" data-label=\"Jason\">So anyway that feels like a pretty good recap of the two big earnings there\u2019s a you know a bunch of the traditional retailers will be record reporting over the next four weeks and of course we\u2019ll have US Department of Commerce data,\u00a0<\/span><span title=\"37:36 - 37:38\" data-start=\"00:37:35.571\" data-end=\"00:37:37.554\" data-spk=\"0\" data-label=\"Jason\">including q1 e-commerce.<\/span><br \/><span title=\"37:38 - 37:46\" data-start=\"00:37:37.789\" data-end=\"00:37:46.141\" data-spk=\"0\" data-label=\"Jason\">Later this month so lots of reasons to have another new show and I still do think we got to get that.<\/span><br \/><span title=\"37:46 - 37:52\" data-start=\"00:37:46.364\" data-end=\"00:37:51.561\" data-spk=\"0\" data-label=\"Jason\">That large language Model A I show on the on the books.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[37:52]<\/small>\u00a0<span title=\"37:52 - 37:58\" data-start=\"00:37:51.988\" data-end=\"00:37:57.588\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah we will we\u2019re through our vacation period and we should have some time to lay that down\u00a0<\/span><span title=\"37:57 - 38:09\" data-start=\"00:37:57.420\" data-end=\"00:38:09.240\" data-spk=\"1\" data-label=\"Scot\">and Jason you\u2019ve got a keynote tomorrow and you got some slides to work on buddy so we\u2019re going to make this a short one in the pantheon of Jason and Scot show lengthy episodes.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[38:09]<\/small>\u00a0<span title=\"38:09 - 38:14\" data-start=\"00:38:09.042\" data-end=\"00:38:14.281\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah we\u2019ll give it a few minutes back to our listeners and I will go write a keynote for tomorrow.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[38:15]<\/small>\u00a0<span title=\"38:15 - 38:20\" data-start=\"00:38:14.648\" data-end=\"00:38:20.338\" data-spk=\"1\" data-label=\"Scot\">Awesome it\u2019s always good when you\u2019re up against deadlines so you\u2019re going to crush it.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[38:20]<\/small>\u00a0<span title=\"38:20 - 38:26\" data-start=\"00:38:20.345\" data-end=\"00:38:25.668\" data-spk=\"0\" data-label=\"Jason\">I feel like the one thing I have going for me is the present the content will be very Timely.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[38:26]<\/small>\u00a0<span title=\"38:26 - 38:30\" data-start=\"00:38:26.258\" data-end=\"00:38:30.013\" data-spk=\"1\" data-label=\"Scot\">Good yep fresh like.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[38:30]<\/small>\u00a0<span title=\"38:30 - 38:43\" data-start=\"00:38:29.713\" data-end=\"00:38:43.305\" data-spk=\"0\" data-label=\"Jason\">Awesome Scott thinks every very much everyone for listening as always enjoyed the show we sure would love it if you jump on iTunes and give us that five star review and until next time happy commercing!<\/span><\/p>\n<\/div>\n<p><p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weekly podcast with the latest e-commerce news and events. Episode 303 is an recap of Amazon and Shopify Q1 2023 earnings. Subscribe: ????? Amazon […]<\/p>\n","protected":false},"author":1,"featured_media":1121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-9365","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcasts"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/9365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=9365"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/9365\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/1121"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=9365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=9365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=9365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
A weekly podcast with the latest e-commerce news and events. Episode 303 is an recap of Amazon and Shopify Q1 2023 earnings.<\/p>\n
<\/p>\nSubscribe<\/strong>:<\/p>\n<span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><\/iframe><\/figure>\n<p>Amazon and Shopify both reported their Q1 2023 earnings last week.<\/p>\n<p>Amazon had a strong first quarter, slightly over-shadowed by it\u2019s slowing AWS growth.<\/p>\n<p>Shopify also had strong Q1 2023 earnings although it did not achieve profitability. Shopify also announced a second reduction of headcount and announced that they were selling all of the recently acquired logistic assets.<\/p>\n<p><strong>Don\u2019t forget to like our\u00a0facebook page, and if you enjoyed this episode please write us a review on itunes.<\/strong><\/p>\n<p>Episode 305 of the Jason & Scot show was recorded on Thursday, May 4th 2023<span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 id=\"chapter\">Transcript<\/h2>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:23]<\/small>\u00a0<span title=\"0:23 - 0:25\" data-start=\"00:00:23.135\" data-end=\"00:00:25.497\" data-spk=\"0\" data-label=\"Jason\">Welcome to the Jason and Scot show,\u00a0<\/span><span title=\"0:26 - 0:39\" data-start=\"00:00:25.569\" data-end=\"00:00:38.747\" data-spk=\"0\" data-label=\"Jason\">this is episode 305 being recorded on Thursday May 4th May the 4th be with you I\u2019m your host Jason retailgeek Goldberg and as usual I\u2019m here with your co-host Scot Wingo.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:39]<\/small>\u00a0<span title=\"0:39 - 0:53\" data-start=\"00:00:38.957\" data-end=\"00:00:52.970\" data-spk=\"1\" data-label=\"Scot\">Hey Jason and welcome back Jason Scott showed listeners Happy Star Wars Day May the 4th be with you hope everyone had a great Star Wars Day Jason people can\u2019t see you but you are wearing your Jar Jar Binks cosplay.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:53]<\/small>\u00a0<span title=\"0:53 - 0:56\" data-start=\"00:00:53.295\" data-end=\"00:00:56.293\" data-spk=\"0\" data-label=\"Jason\">I kind of assumed people just assume I\u2019m always wearing that.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:57]<\/small>\u00a0<span title=\"0:57 - 1:11\" data-start=\"00:00:56.534\" data-end=\"00:01:10.715\" data-spk=\"1\" data-label=\"Scot\">You should do the whole episode and jar jar speak well said Jason what\u2019s a new at the Amazon what.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:10]<\/small>\u00a0<span title=\"1:10 - 1:23\" data-start=\"00:01:10.427\" data-end=\"00:01:22.577\" data-spk=\"0\" data-label=\"Jason\">I feel like people don\u2019t get the jar jar one I did I did do an act during covid-19 doing all this pitch theater online I did a pitch on Halloween in a Darth Vader mask.<\/span><br \/><span title=\"1:24 - 1:27\" data-start=\"00:01:23.851\" data-end=\"00:01:27.402\" data-spk=\"0\" data-label=\"Jason\">And we won the pitch so I feel like I should be doing costumes more.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:28]<\/small>\u00a0<span title=\"1:28 - 1:35\" data-start=\"00:01:27.553\" data-end=\"00:01:35.346\" data-spk=\"1\" data-label=\"Scot\">Awesome you guys intimidate them and it\u2019s called the Darth Vader intimidation closed when you wear the Vader the Vader suit.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:34]<\/small>\u00a0<span title=\"1:34 - 1:38\" data-start=\"00:01:34.151\" data-end=\"00:01:38.212\" data-spk=\"0\" data-label=\"Jason\">Exactly exactly and it had the voice changing thing and so it is.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:38]<\/small>\u00a0<span title=\"1:38 - 1:47\" data-start=\"00:01:37.924\" data-end=\"00:01:46.950\" data-spk=\"1\" data-label=\"Scot\">Honest I find your lack of faith yeah there\u2019s a lot of death lot of lot of puts you can use in a pitch.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:48]<\/small>\u00a0<span title=\"1:48 - 1:56\" data-start=\"00:01:47.785\" data-end=\"00:01:56.155\" data-spk=\"0\" data-label=\"Jason\">Yes unfortunately not a large enough chunk of the total addressable Market are Geeks.<\/span><br \/><span title=\"1:58 - 2:09\" data-start=\"00:01:58.337\" data-end=\"00:02:08.504\" data-spk=\"0\" data-label=\"Jason\">If you like is wrong I know how I got in this like funky like creative advertising world with all these I kept custody clients like I totally don\u2019t fit in.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:09]<\/small>\u00a0<span title=\"2:09 - 2:17\" data-start=\"00:02:09.208\" data-end=\"00:02:17.139\" data-spk=\"1\" data-label=\"Scot\">Yeah been a misfit toy my whole life so sir not going to stop anytime soon embrace it Jason.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:15]<\/small>\u00a0<span title=\"2:15 - 2:28\" data-start=\"00:02:14.628\" data-end=\"00:02:28.274\" data-spk=\"0\" data-label=\"Jason\">Yeah it was announced today that we won a big new client lvmh and so I like went on LinkedIn and joke that like it was largely thanks to my my stature is a luxury influencer.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:29]<\/small>\u00a0<span title=\"2:29 - 2:32\" data-start=\"00:02:28.665\" data-end=\"00:02:32.396\" data-spk=\"1\" data-label=\"Scot\">Nice congrats your tick-tocks on luxury have one the death.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:32]<\/small>\u00a0<span title=\"2:32 - 2:37\" data-start=\"00:02:32.138\" data-end=\"00:02:36.597\" data-spk=\"0\" data-label=\"Jason\">I know I know for a long time people were like why are you wasting your time with that and now they know.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:38]<\/small>\u00a0<span title=\"2:38 - 2:49\" data-start=\"00:02:37.679\" data-end=\"00:02:49.077\" data-spk=\"1\" data-label=\"Scot\">Who will we have it\u2019s been a while since we dropped a pod because we both had spring breaks and then you\u2019ve been traveling a bit so it\u2019s great to be back.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:49]<\/small>\u00a0<span title=\"2:49 - 2:54\" data-start=\"00:02:49.090\" data-end=\"00:02:54.011\" data-spk=\"0\" data-label=\"Jason\">Yeah it\u2019s super fun to catch up with you and with the audience.<\/span><br \/><span title=\"2:55 - 3:08\" data-start=\"00:02:54.774\" data-end=\"00:03:07.838\" data-spk=\"0\" data-label=\"Jason\">I feel like the last show we did was right after shoptalk so I did get to see a bunch of folks and now you know it\u2019s a treat your season is starting to heat up so I have a bunch of upcoming trips so.<\/span><br \/><span title=\"3:08 - 3:15\" data-start=\"00:03:08.078\" data-end=\"00:03:14.598\" data-spk=\"0\" data-label=\"Jason\">If listeners are going to any of these shows make sure you make a point to catch up with me and you could see the jar jar costume.<\/span><br \/><span title=\"3:15 - 3:19\" data-start=\"00:03:14.833\" data-end=\"00:03:18.990\" data-spk=\"0\" data-label=\"Jason\">In person so I\u2019m actually doing this show from.<\/span><br \/><span title=\"3:19 - 3:25\" data-start=\"00:03:19.261\" data-end=\"00:03:25.090\" data-spk=\"0\" data-label=\"Jason\">The famous Mayflower Hotel in Washington d.c. because I\u2019m in town for the.<\/span><br \/><span title=\"3:25 - 3:31\" data-start=\"00:03:25.475\" data-end=\"00:03:30.894\" data-spk=\"0\" data-label=\"Jason\">Home and Commercial products Association I\u2019m doing the keynote for their annual conference tomorrow morning.<\/span><br \/><span title=\"3:31 - 3:41\" data-start=\"00:03:31.388\" data-end=\"00:03:40.809\" data-spk=\"0\" data-label=\"Jason\">And then I\u2019m going to sap Sapphire which is their big customer show in Orlando in on May 15th if you like.<\/span><br \/><span title=\"3:41 - 3:56\" data-start=\"00:03:41.092\" data-end=\"00:03:56.054\" data-spk=\"0\" data-label=\"Jason\">There\u2019s a fair amount of our listeners that go to that show and then to fun ones that are you know core Commerce shows after that we have Commerce next by our friends Scott Silverman is in New York in June so June 20th.<\/span><br \/><span title=\"3:56 - 4:06\" data-start=\"00:03:56.397\" data-end=\"00:04:05.825\" data-spk=\"0\" data-label=\"Jason\">And I\u2019ll be doing some fun stuff stuff on stage there and then in RFC you know has their kind of future looking executive digital Summit.<\/span><\/p>\n<p><small>[4:07]<\/small>\u00a0<span title=\"4:07 - 4:21\" data-start=\"00:04:06.757\" data-end=\"00:04:20.595\" data-spk=\"0\" data-label=\"Jason\">On the beach it Tara no in Rancho Palos Verdes it\u2019s called the inner F Nexus on July 10 and all both be giving a keynote and I will also be interviewing Kara Swisher so I feel like.<\/span><br \/><span title=\"4:21 - 4:24\" data-start=\"00:04:20.993\" data-end=\"00:04:24.315\" data-spk=\"0\" data-label=\"Jason\">I\u2019m going to spend an hour just making fun of Scott Galloway with her.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[4:25]<\/small>\u00a0<span title=\"4:25 - 4:30\" data-start=\"00:04:24.760\" data-end=\"00:04:29.994\" data-spk=\"1\" data-label=\"Scot\">Nice yeah that\u2019s good the dog dog is off the porch whoo.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:30]<\/small>\u00a0<span title=\"4:30 - 4:43\" data-start=\"00:04:29.928\" data-end=\"00:04:42.865\" data-spk=\"0\" data-label=\"Jason\">Exactly I was thinking about like maybe bring a mask I\u2019ve already you know I have audio collection of a lot of my favorite Scott Galloway predictions meaning which didn\u2019t come true.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[4:43]<\/small>\u00a0<span title=\"4:43 - 4:47\" data-start=\"00:04:42.565\" data-end=\"00:04:46.585\" data-spk=\"1\" data-label=\"Scot\">Macy\u2019s Woodberry Amazon and apparel.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:47]<\/small>\u00a0<span title=\"4:47 - 4:49\" data-start=\"00:04:47.324\" data-end=\"00:04:48.760\" data-spk=\"0\" data-label=\"Jason\">But I feel like this is.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[4:48]<\/small>\u00a0<span title=\"4:48 - 4:50\" data-start=\"00:04:48.460\" data-end=\"00:04:49.998\" data-spk=\"1\" data-label=\"Scot\">Amazon to be Roadkill.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:50]<\/small>\u00a0<span title=\"4:50 - 5:03\" data-start=\"00:04:50.359\" data-end=\"00:05:03.188\" data-spk=\"0\" data-label=\"Jason\">Like Freaky Friday like so like Cara is this like super famous interviewer and I am interviewing her and we\u2019re doing it at Tara know where she started code conference so it\u2019s very topsy-turvy.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[5:03]<\/small>\u00a0<span title=\"5:03 - 5:07\" data-start=\"00:05:03.495\" data-end=\"00:05:07.352\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah just bring red tears without her trademark thing.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[5:07]<\/small>\u00a0<span title=\"5:07 - 5:12\" data-start=\"00:05:07.052\" data-end=\"00:05:12.219\" data-spk=\"0\" data-label=\"Jason\">I assume she just travels with one of her own yeah that Herman Miller red chair yeah.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[5:09]<\/small>\u00a0<span title=\"5:09 - 5:15\" data-start=\"00:05:09.462\" data-end=\"00:05:14.875\" data-spk=\"1\" data-label=\"Scot\">BYO RC okay.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[5:15]<\/small>\u00a0<span title=\"5:15 - 5:24\" data-start=\"00:05:14.948\" data-end=\"00:05:23.841\" data-spk=\"0\" data-label=\"Jason\">I actually think she\u2019s not with Vox anymore so I don\u2019t know you know she may be in withdrawn not she may have said said goodbye to the red chairs will have to ask her.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[5:24]<\/small>\u00a0<span title=\"5:24 - 5:26\" data-start=\"00:05:23.541\" data-end=\"00:05:25.608\" data-spk=\"1\" data-label=\"Scot\">Look that\u2019s that\u2019s question number one.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[5:26]<\/small>\u00a0<span title=\"5:26 - 5:39\" data-start=\"00:05:25.722\" data-end=\"00:05:39.074\" data-spk=\"0\" data-label=\"Jason\">Yeah but besides all of that we are just getting started on q1 earnings season and you know of course for most of our listeners one of the most important earnings calls happened last week.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[5:39]<\/small>\u00a0<span title=\"5:39 - 5:46\" data-start=\"00:05:39.261\" data-end=\"00:05:45.726\" data-spk=\"1\" data-label=\"Scot\">Yeah it wouldn\u2019t be a Jason and Scot show if we didn\u2019t have some Amazon news.<\/span><br \/><span title=\"5:47 - 5:54\" data-start=\"00:05:47.097\" data-end=\"00:05:53.760\" data-spk=\"1\" data-label=\"Scot\">So on April 27th which was last Thursday when we\u2019re recording this Amazon had their earnings\u00a0<\/span><span title=\"5:54 - 6:05\" data-start=\"00:05:53.556\" data-end=\"00:06:04.631\" data-spk=\"1\" data-label=\"Scot\">it was what Wall Street would call a clear beat meaning both top and the bottom line where a beat this is welcome news because Amazon\u2019s earnings have been kind of like not\u00a0<\/span><span title=\"6:05 - 6:07\" data-start=\"00:06:04.613\" data-end=\"00:06:07.190\" data-spk=\"1\" data-label=\"Scot\">not mrs. but not amazing.<\/span><\/p>\n<p><small>[6:07]<\/small>\u00a0<span title=\"6:07 - 6:17\" data-start=\"00:06:07.413\" data-end=\"00:06:17.099\" data-spk=\"1\" data-label=\"Scot\">So revenues came in two percent above consensus which is a slight beat but what got Wall Street very excited was operating income came in 57 percent above\u00a0<\/span><span title=\"6:17 - 6:25\" data-start=\"00:06:17.010\" data-end=\"00:06:25.416\" data-spk=\"1\" data-label=\"Scot\">and longtime listeners will know I usually cover the retail portion of Amazon and Jason covers the cloud or a WS part,\u00a0<\/span><span title=\"6:26 - 6:40\" data-start=\"00:06:25.561\" data-end=\"00:06:39.621\" data-spk=\"1\" data-label=\"Scot\">we\u2019re going to mix it up because I read all the reports and what was most interesting right now in kind of the world of Internet stocks the whole world has been turned upside down by chat GPT\u00a0<\/span><span title=\"6:40 - 6:49\" data-start=\"00:06:39.514\" data-end=\"00:06:48.809\" data-spk=\"1\" data-label=\"Scot\">which is put out by open AI Sam Altman startup who is partially owned and supported by Microsoft there and investor and the hole,\u00a0<\/span><span title=\"6:49 - 6:52\" data-start=\"00:06:48.924\" data-end=\"00:06:52.150\" data-spk=\"1\" data-label=\"Scot\">infrastructure runs on Azure their cloud computing,\u00a0<\/span><span title=\"6:52 - 7:01\" data-start=\"00:06:52.163\" data-end=\"00:07:01.428\" data-spk=\"1\" data-label=\"Scot\">platform this has been a huge win for Microsoft because it\u2019s enabled them to add a chat gbt like component to Bing.<\/span><\/p>\n<p><small>[7:02]<\/small>\u00a0<span title=\"7:02 - 7:06\" data-start=\"00:07:01.609\" data-end=\"00:07:05.737\" data-spk=\"1\" data-label=\"Scot\">And you know the buzz is that,\u00a0<\/span><span title=\"7:06 - 7:17\" data-start=\"00:07:05.779\" data-end=\"00:07:17.460\" data-spk=\"1\" data-label=\"Scot\">search is dead a lot of people are even speculating maybe even apps will be dead you know maybe maybe you don\u2019t really need apps on a phone if you could just talk to your phone and say hey book me restaurant reservation as\u00a0<\/span><span title=\"7:17 - 7:26\" data-start=\"00:07:17.353\" data-end=\"00:07:26.486\" data-spk=\"1\" data-label=\"Scot\">6:30 at the one of these three restaurants why do you need a nap if an AI can go to that room so there\u2019s there\u2019s a lot of people in the\u00a0<\/span><span title=\"7:26 - 7:29\" data-start=\"00:07:26.414\" data-end=\"00:07:28.836\" data-spk=\"1\" data-label=\"Scot\">Wall Street and Tech world are,\u00a0<\/span><span title=\"7:29 - 7:42\" data-start=\"00:07:28.920\" data-end=\"00:07:41.635\" data-spk=\"1\" data-label=\"Scot\">I would say there\u2019s like this wall of worry around this new innovation and this is real so chat GPT was the fastest product to 100 million users what was it Jason like four weeks or something.<\/span><\/p>\n<p><small>[7:42]<\/small>\u00a0<span title=\"7:42 - 7:50\" data-start=\"00:07:42.483\" data-end=\"00:07:50.384\" data-spk=\"1\" data-label=\"Scot\">Like an egg yeah if you see a chart it\u2019s like this a vertical wall whereas like Facebook and some of those kinds of things were previous record holders for this and it took,\u00a0<\/span><span title=\"7:51 - 7:54\" data-start=\"00:07:50.559\" data-end=\"00:07:54.128\" data-spk=\"1\" data-label=\"Scot\">you know years and so-so.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[7:54]<\/small>\u00a0<span title=\"7:54 - 7:58\" data-start=\"00:07:54.248\" data-end=\"00:07:58.160\" data-spk=\"0\" data-label=\"Jason\">Two months to a billion or 4 months to a billion users.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[7:58]<\/small>\u00a0<span title=\"7:58 - 8:05\" data-start=\"00:07:58.004\" data-end=\"00:08:05.112\" data-spk=\"1\" data-label=\"Scot\">Yeah so it\u2019s just this crazy adoption curve unlike anything we\u2019ve ever seen before so you know there\u2019s,\u00a0<\/span><span title=\"8:05 - 8:15\" data-start=\"00:08:05.197\" data-end=\"00:08:14.847\" data-spk=\"1\" data-label=\"Scot\">this was top of mind when this came out so the so while streets pretty obsessed with what\u2019s going on with the cloud also\u00a0<\/span><span title=\"8:15 - 8:19\" data-start=\"00:08:14.836\" data-end=\"00:08:19.126\" data-spk=\"1\" data-label=\"Scot\">Amazon\u2019s Cloud division has been slowing their growth it was the\u00a0<\/span><span title=\"8:19 - 8:27\" data-start=\"00:08:18.976\" data-end=\"00:08:26.745\" data-spk=\"1\" data-label=\"Scot\">you know the darling of the Amazon portfolio and now it\u2019s been slowing because as we head into this recessionary period,\u00a0<\/span><span title=\"8:27 - 8:35\" data-start=\"00:08:26.812\" data-end=\"00:08:34.971\" data-spk=\"1\" data-label=\"Scot\">also another concern is we cover this a little bit last time but Silicon Valley Bank failed we\u2019ve had all this kind of startup\u00a0<\/span><span title=\"8:35 - 8:41\" data-start=\"00:08:34.834\" data-end=\"00:08:40.981\" data-spk=\"1\" data-label=\"Scot\">craziness and a lot of those startups use cloud computing and Amazon so,\u00a0<\/span><span title=\"8:41 - 8:55\" data-start=\"00:08:41.113\" data-end=\"00:08:54.783\" data-spk=\"1\" data-label=\"Scot\">so that was what all eyes were on and you know what we saw was the growth did slow to 11 and a half percent which was less bad than what people were thinking so is kind of viewed as positive which is always one of these counter,\u00a0<\/span><span title=\"8:55 - 9:03\" data-start=\"00:08:54.820\" data-end=\"00:09:03.202\" data-spk=\"1\" data-label=\"Scot\">Wall Street all about expectations not like the real absolute numbers but 11.5 percent growth is this is this part we\u2019ve been covering this for for.<\/span><\/p>\n<p><small>[9:04]<\/small>\u00a0<span title=\"9:04 - 9:09\" data-start=\"00:09:03.539\" data-end=\"00:09:09.055\" data-spk=\"1\" data-label=\"Scot\">Years of this point five years and it\u2019s always growing north of 50%\u00a0<\/span><span title=\"9:09 - 9:22\" data-start=\"00:09:08.911\" data-end=\"00:09:21.512\" data-spk=\"1\" data-label=\"Scot\">but this time it really slowed down and they\u2019re even projecting for next quarter or slow 2011 Amazon did Jesse did talk a lot about AI there they\u2019ve talked about how they\u2019re going to do a lot of people\u00a0<\/span><span title=\"9:22 - 9:24\" data-start=\"00:09:21.506\" data-end=\"00:09:23.765\" data-spk=\"1\" data-label=\"Scot\">the other problem with Chad gbt\u00a0<\/span><span title=\"9:24 - 9:37\" data-start=\"00:09:23.717\" data-end=\"00:09:37.376\" data-spk=\"1\" data-label=\"Scot\">is it looks the prior to the prior a I think we all spend a lot of time with which was Alexa now feels wildly inferior because you\u2019re having these really robust conversations with chat gvt and Alexis can do like,\u00a0<\/span><span title=\"9:37 - 9:44\" data-start=\"00:09:37.484\" data-end=\"00:09:43.649\" data-spk=\"1\" data-label=\"Scot\">yeah it\u2019s not really like at that level of conversational AI you can\u00a0<\/span><span title=\"9:44 - 9:55\" data-start=\"00:09:43.589\" data-end=\"00:09:54.688\" data-spk=\"1\" data-label=\"Scot\">get some weather maybe play a song and a couple other little things add something it\u2019ll talk to you about do you want to reorder your dog food and yeah that\u2019s about it right so very,\u00a0<\/span><span title=\"9:55 - 10:07\" data-start=\"00:09:54.874\" data-end=\"00:10:06.664\" data-spk=\"1\" data-label=\"Scot\">Barry and then you know that used to be cool and now in a world where we\u2019re chatty be teeing it feels inferior so Amazon like Google is a little bit on their heels from this and\u00a0<\/span><span title=\"10:06 - 10:15\" data-start=\"00:10:06.496\" data-end=\"00:10:14.548\" data-spk=\"1\" data-label=\"Scot\">they basically came out and said we\u2019re going to do a lot around Alexa here and it will we\u2019re dedicated that being by far the best voice assistant,\u00a0<\/span><span title=\"10:15 - 10:29\" data-start=\"00:10:14.753\" data-end=\"00:10:29.150\" data-spk=\"1\" data-label=\"Scot\">and we\u2019ll be adding chats ubt like capabilities but then for AWS they basically said look there\u2019s all these language models out there and we\u2019re going to be neutral will have all kinds of different flavors kind of thing so whatever you want we\u2019ll have.<\/span><\/p>\n<p><small>[10:30]<\/small>\u00a0<span title=\"10:30 - 10:39\" data-start=\"00:10:29.559\" data-end=\"00:10:38.704\" data-spk=\"1\" data-label=\"Scot\">And the one of the concerns is these large language models use a ton of gpus and those are expensive.<\/span><br \/><span title=\"10:39 - 10:47\" data-start=\"00:10:38.993\" data-end=\"00:10:47.015\" data-spk=\"1\" data-label=\"Scot\">Azure is adding a ton of workloads from this and their conference call they went so far as to say.<\/span><br \/><span title=\"10:47 - 10:56\" data-start=\"00:10:47.334\" data-end=\"00:10:55.806\" data-spk=\"1\" data-label=\"Scot\">It\u2019s like accelerated growth dramatically at Azure they\u2019re getting all these loads that they would have never seen before thanks to their relationship and,\u00a0<\/span><span title=\"10:56 - 11:05\" data-start=\"00:10:55.921\" data-end=\"00:11:04.934\" data-spk=\"1\" data-label=\"Scot\">they\u2019re scaling up this gpus and so it kind of feels early and Aang\u2019s like maybe Microsoft has got like this.<\/span><br \/><span title=\"11:05 - 11:10\" data-start=\"00:11:05.205\" data-end=\"00:11:09.747\" data-spk=\"1\" data-label=\"Scot\">Bit of an advantage over both Google and they WS so,\u00a0<\/span><span title=\"11:10 - 11:22\" data-start=\"00:11:09.922\" data-end=\"00:11:21.723\" data-spk=\"1\" data-label=\"Scot\">so you know it was interesting because I\u2019m saying all that because what happened is they announced their up a little bit that day and then they announced and they were down and they\u2019ve been kind of sideways since then so and what was clear be quarter\u00a0<\/span><span title=\"11:22 - 11:32\" data-start=\"00:11:21.639\" data-end=\"00:11:31.602\" data-spk=\"1\" data-label=\"Scot\">with AWS not as bad as you would think it would be you had the numbers would say oh the stock should go up 5 to 10% but they didn\u2019t because I don\u2019t think everyone really liked,\u00a0<\/span><span title=\"11:32 - 11:37\" data-start=\"00:11:31.729\" data-end=\"00:11:36.902\" data-spk=\"1\" data-label=\"Scot\">body language around you know what\u2019s going on chat gbt and Amazon\u2019s response.<\/span><\/p>\n<p><small>[11:40]<\/small>\u00a0<span title=\"11:40 - 11:45\" data-start=\"00:11:40.226\" data-end=\"00:11:44.816\" data-spk=\"1\" data-label=\"Scot\">So that was a that was a long part but that was I thought it was kind of interesting.<\/span><br \/><span title=\"11:45 - 11:55\" data-start=\"00:11:45.159\" data-end=\"00:11:55.073\" data-spk=\"1\" data-label=\"Scot\">The whole world and like the last yeah six months has been turned upside down by this and it\u2019s always an option or that always gets my attention because this is where\u00a0<\/span><span title=\"11:55 - 12:04\" data-start=\"00:11:54.930\" data-end=\"00:12:04.400\" data-spk=\"1\" data-label=\"Scot\">unique opportunities are created for disruption and all kinds of what happens is when my favorite books is the innovators dilemma when something new like this comes along,\u00a0<\/span><span title=\"12:05 - 12:19\" data-start=\"00:12:04.538\" data-end=\"00:12:18.978\" data-spk=\"1\" data-label=\"Scot\">people that were previously the leaders have a really hard time adapting to it because they get baked into their business model so for example to pick on Google it\u2019s very hard for them to offer a chat interface on the core Google search because,\u00a0<\/span><span title=\"12:19 - 12:27\" data-start=\"00:12:19.020\" data-end=\"00:12:27.258\" data-spk=\"1\" data-label=\"Scot\">every pixel of core Google search is like so highly optimized and them hitting their numbers relies on that that real estate.<\/span><\/p>\n<p><small>[12:28]<\/small>\u00a0<span title=\"12:28 - 12:37\" data-start=\"00:12:27.823\" data-end=\"00:12:36.638\" data-spk=\"1\" data-label=\"Scot\">Basically not changing that to change that real estate and experiment with something that is expensive and not monetized is.<\/span><br \/><span title=\"12:37 - 12:45\" data-start=\"00:12:36.903\" data-end=\"00:12:45.171\" data-spk=\"1\" data-label=\"Scot\">Almost impossible you know it\u2019s it will certainly make them lose mountains of Revenue and even worse on ibadah,\u00a0<\/span><span title=\"12:45 - 12:57\" data-start=\"00:12:45.232\" data-end=\"00:12:57.039\" data-spk=\"1\" data-label=\"Scot\">so it\u2019s really kind of fascinating to Think Through the strategy here of what\u2019s everyone going to do and how do they adapt to this new world and to some extent Amazon not as bad as Google I would argue but that Amazon is a little bit of a in a pickle.<\/span><br \/><span title=\"12:57 - 12:58\" data-start=\"00:12:57.388\" data-end=\"00:12:58.037\" data-spk=\"1\" data-label=\"Scot\">Um\u00a0<\/span><span title=\"12:58 - 13:10\" data-start=\"00:12:58.133\" data-end=\"00:13:10.367\" data-spk=\"1\" data-label=\"Scot\">it got even so bad also around the same time Jeff Bezos was at Coachella and he was just out there dancing and wearing this kind of fun butterfly shirt and everyone\u2019s kind of like you know it almost felt like\u00a0<\/span><span title=\"13:10 - 13:13\" data-start=\"00:13:10.338\" data-end=\"00:13:13.384\" data-spk=\"1\" data-label=\"Scot\">fiddling while Rome burned\u00a0<\/span><span title=\"13:13 - 13:26\" data-start=\"00:13:13.270\" data-end=\"00:13:25.756\" data-spk=\"1\" data-label=\"Scot\">so a lot of people are like and then you know so Disney\u2019s CEO has come back and a lot of people are projecting that maybe we\u2019ll see a day where like a Larry Page comes back to Google and a Bezos comes back\u00a0<\/span><span title=\"13:26 - 13:31\" data-start=\"00:13:25.607\" data-end=\"00:13:31.339\" data-spk=\"1\" data-label=\"Scot\">to Amazon to it\u2019s going to be interesting to see what happens this next next three to six months are gonna be really\u00a0<\/span><span title=\"13:31 - 13:38\" data-start=\"00:13:31.285\" data-end=\"00:13:38.039\" data-spk=\"1\" data-label=\"Scot\">fun to watch in the world of large trillion-dollar internet companies to see what\u2019s going down.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[13:39]<\/small>\u00a0<span title=\"13:39 - 13:44\" data-start=\"00:13:38.646\" data-end=\"00:13:43.994\" data-spk=\"0\" data-label=\"Jason\">Oh for sure and I keep saying this but we\u2019re going to have to do another.<\/span><br \/><span title=\"13:44 - 13:50\" data-start=\"00:13:44.331\" data-end=\"00:13:49.636\" data-spk=\"0\" data-label=\"Jason\">Deep dive on AI and chechi because there are so many it\u2019s changing so,\u00a0<\/span><span title=\"13:50 - 14:04\" data-start=\"00:13:49.799\" data-end=\"00:14:03.632\" data-spk=\"0\" data-label=\"Jason\">fast and there\u2019s this whole like shift from keywords to prompts and you know like all of you know Google\u2019s intrinsic strengths are suddenly becoming weaknesses there\u2019s this interesting battle,\u00a0<\/span><span title=\"14:04 - 14:14\" data-start=\"00:14:03.740\" data-end=\"00:14:13.661\" data-spk=\"0\" data-label=\"Jason\">um between like these AI capabilities as destinations versus these AI capabilities as.<\/span><br \/><span title=\"14:14 - 14:23\" data-start=\"00:14:13.968\" data-end=\"00:14:22.969\" data-spk=\"0\" data-label=\"Jason\">Sort of infrastructure that that you add to any destination right and so you know the interesting thing about Chad gbt you can license the.<\/span><br \/><span title=\"14:23 - 14:32\" data-start=\"00:14:23.216\" data-end=\"00:14:31.916\" data-spk=\"0\" data-label=\"Jason\">The GPT for engine and build it in your own apps or your own website but 1.2 billion consumers a month,\u00a0<\/span><span title=\"14:32 - 14:39\" data-start=\"00:14:32.103\" data-end=\"00:14:38.875\" data-spk=\"0\" data-label=\"Jason\">are going to chat. Open a i.com so that\u2019s now a destination on the web that\u2019s bigger than Bing.<\/span><\/p>\n<p><small>[14:40]<\/small>\u00a0<span title=\"14:40 - 14:47\" data-start=\"00:14:39.524\" data-end=\"00:14:47.023\" data-spk=\"0\" data-label=\"Jason\">Like move more people last month went to their website opening eyes website then went to Bing and that\u2019s a,\u00a0<\/span><span title=\"14:47 - 15:00\" data-start=\"00:14:47.180\" data-end=\"00:15:00.183\" data-spk=\"0\" data-label=\"Jason\">Game Changer I get it\u2019s feels like a huge missed opportunity side note that there\u2019s not ads on that website yet I\u2019m sure I\u2019m sure that that that is coming in Italy but so there are all these like super interesting changes.<\/span><br \/><span title=\"15:01 - 15:10\" data-start=\"00:15:00.724\" data-end=\"00:15:09.653\" data-spk=\"0\" data-label=\"Jason\">I kind of feel like even if all that wasn\u2019t playing out like just the the fact that AWS is decelerating a little bit.<\/span><\/p>\n<p><small>[15:10]<\/small>\u00a0<span title=\"15:10 - 15:24\" data-start=\"00:15:10.453\" data-end=\"00:15:24.249\" data-spk=\"0\" data-label=\"Jason\">Would be the news from this earning thing and it\u2019s what everyone\u2019s talking about and it\u2019s almost a shame because it\u2019s kind of masking what otherwise like is a pretty remarkable quarter compared to like what most of their peers are likely to do.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[15:25]<\/small>\u00a0<span title=\"15:25 - 15:30\" data-start=\"00:15:24.760\" data-end=\"00:15:29.705\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah walk us through some of the highlights that you saw in the non aw site.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[15:30]<\/small>\u00a0<span title=\"15:30 - 15:44\" data-start=\"00:15:30.103\" data-end=\"00:15:44.301\" data-spk=\"0\" data-label=\"Jason\">Well so the first thing if you look at North American gmv it grew 13% in q1 so that that is a deceleration from,\u00a0<\/span><span title=\"15:44 - 15:48\" data-start=\"00:15:44.452\" data-end=\"00:15:48.231\" data-spk=\"0\" data-label=\"Jason\">their Q4 growth but like to put that in comparison.<\/span><br \/><span title=\"15:49 - 15:58\" data-start=\"00:15:48.556\" data-end=\"00:15:58.116\" data-spk=\"0\" data-label=\"Jason\">Us retail sales grew four percent in the first quarter so so you know this is kind of back to pre-pandemic levels where Amazon\u2019s growing.<\/span><br \/><span title=\"15:58 - 16:08\" data-start=\"00:15:58.495\" data-end=\"00:16:07.533\" data-spk=\"0\" data-label=\"Jason\">Despite being you know the largest or second largest retailer in the US depending on how you count growing quite a bit of water faster than the industry,\u00a0<\/span><span title=\"16:08 - 16:15\" data-start=\"00:16:07.731\" data-end=\"00:16:14.737\" data-spk=\"0\" data-label=\"Jason\">you don\u2019t normally we would we compare Amazon\u2019s growth to all retailers growth but also to all of e-commerce has growth,\u00a0<\/span><span title=\"16:15 - 16:24\" data-start=\"00:16:14.924\" data-end=\"00:16:24.436\" data-spk=\"0\" data-label=\"Jason\">so the US Department of Commerce comes out with their Q2 growth numbers in a couple weeks so May 18th I think if you want to mark your calendars will do a show and talk about that but.<\/span><br \/><span title=\"16:25 - 16:30\" data-start=\"00:16:24.659\" data-end=\"00:16:30.000\" data-spk=\"0\" data-label=\"Jason\">Just kind of interpreting the data and extrapolating.<\/span><\/p>\n<p><small>[16:31]<\/small>\u00a0<span title=\"16:31 - 16:37\" data-start=\"00:16:30.572\" data-end=\"00:16:37.019\" data-spk=\"0\" data-label=\"Jason\">U.s. e-commerce and q1\u2019s likely to grow about 10% which is kind of a recovery for e-commerce but still,\u00a0<\/span><span title=\"16:37 - 16:44\" data-start=\"00:16:37.224\" data-end=\"00:16:44.182\" data-spk=\"0\" data-label=\"Jason\">that means Amazon the largest e-commerce player out there is growing faster than the industry as a whole which is.<\/span><br \/><span title=\"16:44 - 16:51\" data-start=\"00:16:44.459\" data-end=\"00:16:51.309\" data-spk=\"0\" data-label=\"Jason\">You know typical for Amazon but you know not very typical in the rest of the world so the retail story was,\u00a0<\/span><span title=\"16:51 - 17:00\" data-start=\"00:16:51.471\" data-end=\"00:16:59.793\" data-spk=\"0\" data-label=\"Jason\">was really strong and it was driven almost exclusively by your favorite part of the retail Echo System the marketplace right it was almost all.<\/span><\/p>\n<p><small>[17:00]<\/small>\u00a0<span title=\"17:00 - 17:07\" data-start=\"00:17:00.052\" data-end=\"00:17:06.500\" data-spk=\"0\" data-label=\"Jason\">3p sales which I want to say grew 16 percent.<\/span><br \/><span title=\"17:07 - 17:16\" data-start=\"00:17:06.728\" data-end=\"00:17:15.940\" data-spk=\"0\" data-label=\"Jason\">Or fifteen percent for the quarter so so 3p continues to be a super important part,\u00a0<\/span><span title=\"17:16 - 17:24\" data-start=\"00:17:16.127\" data-end=\"00:17:24.166\" data-spk=\"0\" data-label=\"Jason\">and you know I always like to talk about the ad business ads were up 21% which is a,\u00a0<\/span><span title=\"17:24 - 17:32\" data-start=\"00:17:24.347\" data-end=\"00:17:31.906\" data-spk=\"0\" data-label=\"Jason\">a deceleration of the ads business as well just like AWS but a couple interesting things,\u00a0<\/span><span title=\"17:32 - 17:35\" data-start=\"00:17:32.087\" data-end=\"00:17:35.181\" data-spk=\"0\" data-label=\"Jason\">there\u2019s a ton of headwinds,\u00a0<\/span><span title=\"17:35 - 17:47\" data-start=\"00:17:35.271\" data-end=\"00:17:47.049\" data-spk=\"0\" data-label=\"Jason\">for traditional dip digital ads right now as the economy is getting a little more challenging you know a lot of brands are cutting back on their spinned because the privacy issues they\u2019re cutting back on a lot of the traditional digital channels,\u00a0<\/span><span title=\"17:47 - 17:55\" data-start=\"00:17:47.205\" data-end=\"00:17:54.542\" data-spk=\"0\" data-label=\"Jason\">um so you look at like metas ad business in q1 it grew three percent Google\u2019s ad business grew to percent.<\/span><\/p>\n<p><small>[17:55]<\/small>\u00a0<span title=\"17:55 - 18:00\" data-start=\"00:17:54.771\" data-end=\"00:18:00.227\" data-spk=\"0\" data-label=\"Jason\">Pinterest was the leader of those kind of traditional platforms their ad business grew five percent,\u00a0<\/span><span title=\"18:00 - 18:13\" data-start=\"00:18:00.359\" data-end=\"00:18:12.569\" data-spk=\"0\" data-label=\"Jason\">and Amazon which is has a bigger ad business than Pinterest Amazon grew 21% so that that growth you know continues to be remarkable,\u00a0<\/span><span title=\"18:13 - 18:18\" data-start=\"00:18:12.702\" data-end=\"00:18:18.002\" data-spk=\"0\" data-label=\"Jason\">um I did a quick back of the napkin estimate and I,\u00a0<\/span><span title=\"18:18 - 18:30\" data-start=\"00:18:18.158\" data-end=\"00:18:29.749\" data-spk=\"0\" data-label=\"Jason\">I know AWS generated about 5 billion dollars in earn income for the quarter the ad unit probably generated 7.1 billion dollars in earning come for the quarter so quite a bit more,\u00a0<\/span><span title=\"18:30 - 18:36\" data-start=\"00:18:29.900\" data-end=\"00:18:36.101\" data-spk=\"0\" data-label=\"Jason\">profit to the bottom line coming from that ad business then coming from from AWS,\u00a0<\/span><span title=\"18:36 - 18:43\" data-start=\"00:18:36.294\" data-end=\"00:18:42.549\" data-spk=\"0\" data-label=\"Jason\">and then you know Amazon you know as they always do they kind of pepper and some favorable stats so they talked about how.<\/span><br \/><span title=\"18:43 - 18:53\" data-start=\"00:18:42.765\" data-end=\"00:18:52.674\" data-spk=\"0\" data-label=\"Jason\">They they had 26 million customers for same-day delivery in q1 which is fifty percent growth year over year so you know you.<\/span><br \/><span title=\"18:53 - 18:58\" data-start=\"00:18:52.909\" data-end=\"00:18:57.679\" data-spk=\"0\" data-label=\"Jason\">You kind of you\u2019ve seen a lot of other retailers that as the economy has gotten kind of tough they\u2019ve kind of.<\/span><\/p>\n<p><small>[18:58]<\/small>\u00a0<span title=\"18:58 - 19:12\" data-start=\"00:18:57.962\" data-end=\"00:19:11.741\" data-spk=\"0\" data-label=\"Jason\">Ratcheted back their service level a little bit like you\u2019re seeing a lot of people starting to charge more for returns you\u2019re starting to see delivery promises get stretched out a little bit and you know Amazon is kind of.<\/span><br \/><span title=\"19:12 - 19:17\" data-start=\"00:19:11.969\" data-end=\"00:19:17.497\" data-spk=\"0\" data-label=\"Jason\">Adjusting their returns policy as well but like they\u2019re they\u2019re all in on that fast same day delivery.<\/span><br \/><span title=\"19:18 - 19:23\" data-start=\"00:19:17.738\" data-end=\"00:19:22.761\" data-spk=\"0\" data-label=\"Jason\">And it seems like consumers are continuing to embrace that.<\/span><br \/><span title=\"19:23 - 19:35\" data-start=\"00:19:23.044\" data-end=\"00:19:34.773\" data-spk=\"0\" data-label=\"Jason\">Um there\u2019s this kind of big strategic shift that they talked about Scott that I know you\u2019ve been falling which is kind of the shift from a national fulfillment model to a regional fulfillment model.<\/span><br \/><span title=\"19:35 - 19:50\" data-start=\"00:19:35.056\" data-end=\"00:19:49.760\" data-spk=\"0\" data-label=\"Jason\">And this is all about getting more efficiency so the idea is you know in the old model you placed an order and you know they ship from whatever Warehouse fulfillment center had the goods in stock so often that.<\/span><br \/><span title=\"19:50 - 19:52\" data-start=\"00:19:50.007\" data-end=\"00:19:52.434\" data-spk=\"0\" data-label=\"Jason\">Are shipping things from pretty far away,\u00a0<\/span><span title=\"19:53 - 20:06\" data-start=\"00:19:52.573\" data-end=\"00:20:05.900\" data-spk=\"0\" data-label=\"Jason\">and mold you know in a you know your your multicart order could have Goods coming from a lot of different fulfillment centers and you know this quarter the focus is really on redesigning the whole fulfillment center to optimize.<\/span><\/p>\n<p><small>[20:06]<\/small>\u00a0<span title=\"20:06 - 20:10\" data-start=\"00:20:06.466\" data-end=\"00:20:09.596\" data-spk=\"0\" data-label=\"Jason\">How many trips they have to make to your house and how many,\u00a0<\/span><span title=\"20:10 - 20:22\" data-start=\"00:20:09.777\" data-end=\"00:20:21.692\" data-spk=\"0\" data-label=\"Jason\">how much of the goods can all come from the same fulfillment center so there\u2019s a laser focus on kind of getting the inventory in each fulfillment center right for the market that it\u2019s serving,\u00a0<\/span><span title=\"20:22 - 20:33\" data-start=\"00:20:21.867\" data-end=\"00:20:32.785\" data-spk=\"0\" data-label=\"Jason\">um and the you know in their investor call the CFO was talking about how like they\u2019re starting to they\u2019re already starting to unlock.<\/span><br \/><span title=\"20:33 - 20:48\" data-start=\"00:20:33.140\" data-end=\"00:20:48.006\" data-spk=\"0\" data-label=\"Jason\">Um significant improvements in their operating margins as a result of cutting down on the amount of trips in order to serve the same amount of gmv and they think there\u2019s a lot of Headroom to continue improving math if you\u2019ve been following that kind of,\u00a0<\/span><span title=\"20:48 - 20:57\" data-start=\"00:20:48.151\" data-end=\"00:20:56.869\" data-spk=\"0\" data-label=\"Jason\">Regional shift it almost feels like the Reinventing the you know kind of against innovators dilemma they\u2019re Reinventing their whole fulfillment model despite the fact that they have the.<\/span><br \/><span title=\"20:57 - 20:59\" data-start=\"00:20:57.236\" data-end=\"00:20:59.135\" data-spk=\"0\" data-label=\"Jason\">The world\u2019s largest fulfillment model.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[21:00]<\/small>\u00a0<span title=\"21:00 - 21:12\" data-start=\"00:20:59.598\" data-end=\"00:21:12.090\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah I think this is really interesting and in some ways maybe the go Puffs the world kind of showed him how to do this ironically enough and you know and this surge of same-day delivery I think they\u2019re having.<\/span><br \/><span title=\"21:13 - 21:21\" data-start=\"00:21:12.529\" data-end=\"00:21:21.182\" data-spk=\"1\" data-label=\"Scot\">I think you know in the early days the same day delivery I remember Sebastian going ham he was SVP saying\u00a0<\/span><span title=\"21:21 - 21:35\" data-start=\"00:21:21.050\" data-end=\"00:21:35.231\" data-spk=\"1\" data-label=\"Scot\">yes he was at our conference and he said something like we just put out there to see and we were surprised by how many people use it and then you know they had data that indicated this is like five years ago that it was addictive because\u00a0<\/span><span title=\"21:35 - 21:36\" data-start=\"00:21:35.093\" data-end=\"00:21:36.289\" data-spk=\"1\" data-label=\"Scot\">you.<\/span><\/p>\n<p><small>[21:37]<\/small>\u00a0<span title=\"21:37 - 21:46\" data-start=\"00:21:36.608\" data-end=\"00:21:46.246\" data-spk=\"1\" data-label=\"Scot\">We have forget which of us going this is your zero friction addiction so once you have one of these low-friction experiences you\u2019re like yeah yeah you know of course I would like it yeah,\u00a0<\/span><span title=\"21:46 - 21:59\" data-start=\"00:21:46.403\" data-end=\"00:21:59.388\" data-spk=\"1\" data-label=\"Scot\">I\u2019m running this morning all like it the same day but that\u2019s making them for deploying a lot more of the product to be able to satisfy that demand but they have the data to do it the key is it\u2019s a you know there\u2019s,\u00a0<\/span><span title=\"22:00 - 22:14\" data-start=\"00:21:59.532\" data-end=\"00:22:13.545\" data-spk=\"1\" data-label=\"Scot\">there\u2019s this you know something like 300 million skus out there in the cloud that you can buy a small portion of those percentage-wise large sales wise is in the network of FCS and then the system learned what to,\u00a0<\/span><span title=\"22:14 - 22:22\" data-start=\"00:22:13.582\" data-end=\"00:22:21.669\" data-spk=\"1\" data-label=\"Scot\">put at the edge near you and that same day thing there\u2019s a set of skus and it\u2019s probably down to 10,000 at that point,\u00a0<\/span><span title=\"22:22 - 22:32\" data-start=\"00:22:21.826\" data-end=\"00:22:31.554\" data-spk=\"1\" data-label=\"Scot\">that they know those are the most frequently Asked seemed a things it\u2019s going to be things like toilet replenishable toiletries,\u00a0<\/span><span title=\"22:32 - 22:43\" data-start=\"00:22:31.597\" data-end=\"00:22:42.863\" data-spk=\"1\" data-label=\"Scot\">dog food for me all those types personal items Healthcare Beauty and you know it\u2019s not the it\u2019s not the Xbox or something that can kind of weight\u00a0<\/span><span title=\"22:43 - 22:49\" data-start=\"00:22:42.780\" data-end=\"00:22:48.506\" data-spk=\"1\" data-label=\"Scot\">well I guess some of that could be but you know there\u2019s plenty of stuff people are happy to wait for so,\u00a0<\/span><span title=\"22:49 - 22:56\" data-start=\"00:22:48.602\" data-end=\"00:22:55.861\" data-spk=\"1\" data-label=\"Scot\">that that edge Network allows them to Ford deploy 5 to 10,000 excuse and get them to you really fast.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[22:56]<\/small>\u00a0<span title=\"22:56 - 23:00\" data-start=\"00:22:56.450\" data-end=\"00:23:00.205\" data-spk=\"0\" data-label=\"Jason\">Yeah and I think what\u2019s interesting is that it turns out that the.<\/span><br \/><span title=\"23:00 - 23:12\" data-start=\"00:23:00.440\" data-end=\"00:23:11.857\" data-spk=\"0\" data-label=\"Jason\">The those skews that are needed for same-day delivery in Raleigh are not the same as the skills that are needed in Chicago and AI is really helping them sort of optimize.<\/span><br \/><span title=\"23:12 - 23:26\" data-start=\"00:23:12.218\" data-end=\"00:23:25.792\" data-spk=\"0\" data-label=\"Jason\">Those fulfillment centers and the numbers are actually a little bigger than your you\u2019re saying there are now like 300,000 same day skus in the system and in some markets there they have over 100,000 skus available for same-day so it y you know there.<\/span><\/p>\n<p><small>[23:26]<\/small>\u00a0<span title=\"23:26 - 23:31\" data-start=\"00:23:26.201\" data-end=\"00:23:31.363\" data-spk=\"0\" data-label=\"Jason\">They\u2019re kind of expanding from the head in skews to you know at least the chunky middle scuze.<\/span><br \/><span title=\"23:32 - 23:37\" data-start=\"00:23:31.621\" data-end=\"00:23:36.644\" data-spk=\"0\" data-label=\"Jason\">On that same day delivery and it and it seems like that\u2019s continuing to work for them.<\/span><br \/><span title=\"23:37 - 23:46\" data-start=\"00:23:36.975\" data-end=\"00:23:46.361\" data-spk=\"0\" data-label=\"Jason\">I just think it\u2019s you know again a lot of people that had you know the huge infrastructure lead the Amazon had him fulfillment centers you know would.<\/span><br \/><span title=\"23:47 - 23:59\" data-start=\"00:23:46.686\" data-end=\"00:23:58.854\" data-spk=\"0\" data-label=\"Jason\">But I find it hard to disrupt that model and pivot to a new model and it seems like you know Tim zones credit they\u2019re they\u2019re not afraid to disrupt themselves and it feels like that\u2019s kind of what they\u2019re doing here.<\/span><br \/><span title=\"23:59 - 24:05\" data-start=\"00:23:59.077\" data-end=\"00:24:04.845\" data-spk=\"0\" data-label=\"Jason\">And it seems like it least pull narrowly it\u2019s working you know they\u2019re also.<\/span><br \/><span title=\"24:05 - 24:18\" data-start=\"00:24:05.080\" data-end=\"00:24:18.396\" data-spk=\"0\" data-label=\"Jason\">Over the covid time there have been some capacity constraints and they rolled out a lot of technology to help help third-party sellers better manage their own.<\/span><br \/><span title=\"24:19 - 24:28\" data-start=\"00:24:18.624\" data-end=\"00:24:27.541\" data-spk=\"0\" data-label=\"Jason\">Capacity and you know I\u2019m hearing from third-party sellers that that is going better that they have you know are better able.<\/span><\/p>\n<p><small>[24:29]<\/small>\u00a0<span title=\"24:29 - 24:40\" data-start=\"00:24:29.314\" data-end=\"00:24:40.497\" data-spk=\"0\" data-label=\"Jason\">Predict the cost and the capacity that will be available for them and they\u2019re not getting as many unpleasant surprises as they as they kind of had had in the past of that that stuff is all interesting,\u00a0<\/span><span title=\"24:41 - 24:45\" data-start=\"00:24:40.672\" data-end=\"00:24:44.673\" data-spk=\"0\" data-label=\"Jason\">I also think Amazon\u2019s big enough that they\u2019re they\u2019re you know kind of a.<\/span><br \/><span title=\"24:45 - 24:57\" data-start=\"00:24:44.962\" data-end=\"00:24:57.022\" data-spk=\"0\" data-label=\"Jason\">A good surrogate for for the actual consumer economies at this point and so is interesting you know they talked about the Americans can consumer and you know the North America was where a lot of Amazon\u2019s growth was.<\/span><br \/><span title=\"24:57 - 24:58\" data-start=\"00:24:57.293\" data-end=\"00:24:58.073\" data-spk=\"0\" data-label=\"Jason\">Um\u00a0<\/span><span title=\"24:58 - 25:10\" data-start=\"00:24:58.290\" data-end=\"00:25:09.755\" data-spk=\"0\" data-label=\"Jason\">They they had a statement that they\u2019re continuing to see the US consumer is being conscious that she\u2019s definitely moderated her spending on discretionary categories,\u00a0<\/span><span title=\"25:10 - 25:15\" data-start=\"00:25:09.894\" data-end=\"00:25:15.253\" data-spk=\"0\" data-label=\"Jason\">she\u2019s trading down to more value oriented eizan\u2019s.<\/span><\/p>\n<p><small>[25:16]<\/small>\u00a0<span title=\"25:16 - 25:30\" data-start=\"00:25:15.747\" data-end=\"00:25:30.492\" data-spk=\"0\" data-label=\"Jason\">You know there continues to be healthy demand for Staples and you know I think we heard similar things from other big retailers like Wal-Mart and Target so that kind of felt in line but what was interesting was Europe.<\/span><br \/><span title=\"25:31 - 25:44\" data-start=\"00:25:30.739\" data-end=\"00:25:44.301\" data-spk=\"0\" data-label=\"Jason\">The growth is much slower but it was a significantly higher beat versus expectations than North America was and they had kind of an interesting editorial on Europe they said that,\u00a0<\/span><span title=\"25:44 - 25:48\" data-start=\"00:25:44.488\" data-end=\"00:25:48.165\" data-spk=\"0\" data-label=\"Jason\">European demand while cautious came in better than expected,\u00a0<\/span><span title=\"25:48 - 26:02\" data-start=\"00:25:48.334\" data-end=\"00:26:01.896\" data-spk=\"0\" data-label=\"Jason\">we see customer confidence increasing with inflation tickling down in the EU and that\u2019s kind of at odds with a bunch of other retailers that that are competing in Europe that are still you know kind of talking about,\u00a0<\/span><span title=\"26:02 - 26:14\" data-start=\"00:26:02.082\" data-end=\"00:26:14.359\" data-spk=\"0\" data-label=\"Jason\">the consumer Demand Being really repressed in Europe and the European consumer really struggling due to even higher inflation then then what consumers are experiencing here in North America so,\u00a0<\/span><span title=\"26:15 - 26:21\" data-start=\"00:26:14.557\" data-end=\"00:26:21.287\" data-spk=\"0\" data-label=\"Jason\">um it either sounds like Amazon\u2019s having a better go of it than a lot of other retailers in Europe,\u00a0<\/span><span title=\"26:21 - 26:31\" data-start=\"00:26:21.468\" data-end=\"00:26:30.535\" data-spk=\"0\" data-label=\"Jason\">or Amazon is being the first one to sort of see the economy turning a little more favorable in Europe so.<\/span><br \/><span title=\"26:31 - 26:33\" data-start=\"00:26:30.752\" data-end=\"00:26:33.419\" data-spk=\"0\" data-label=\"Jason\">I kind of found that interesting.<\/span><\/p>\n<p><small>[26:42]<\/small>\u00a0<span title=\"26:42 - 26:45\" data-start=\"00:26:41.965\" data-end=\"00:26:44.728\" data-spk=\"0\" data-label=\"Jason\">Yeah well again you know the.<\/span><br \/><span title=\"26:45 - 26:54\" data-start=\"00:26:44.999\" data-end=\"00:26:54.181\" data-spk=\"0\" data-label=\"Jason\">Historically like Europe is smaller than North America for Amazon but it you know because it\u2019s smaller it was growing faster but you know there have been more.<\/span><br \/><span title=\"26:54 - 27:09\" data-start=\"00:26:54.433\" data-end=\"00:27:09.396\" data-spk=\"0\" data-label=\"Jason\">Challenges supply chain disruptions there\u2019s more uncertainty in a lot of the European economies and so you know it\u2019s like for global companies I\u2019m particularly brands that do business everywhere.<\/span><br \/><span title=\"27:10 - 27:18\" data-start=\"00:27:09.703\" data-end=\"00:27:18.037\" data-spk=\"0\" data-label=\"Jason\">Um that European softness has been a challenge the one outlier of all that is luxury so it does feel.<\/span><br \/><span title=\"27:18 - 27:29\" data-start=\"00:27:18.289\" data-end=\"00:27:28.697\" data-spk=\"0\" data-label=\"Jason\">Like kind of a bifurcated economy that like luxury can you know is actually kind of bounce back in Europe and is continuing to do pretty pretty well worldwide while.<\/span><br \/><span title=\"27:29 - 27:34\" data-start=\"00:27:29.316\" data-end=\"00:27:33.654\" data-spk=\"0\" data-label=\"Jason\">High inflation is hurting a lot more of the kind of staple Industries a lot more.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[27:35]<\/small>\u00a0<span title=\"27:35 - 27:43\" data-start=\"00:27:34.598\" data-end=\"00:27:42.962\" data-spk=\"1\" data-label=\"Scot\">Having Survived the Great Recession of 08 and 09 at Chow buzzer the weird thing about the data was the luxury segment accelerated\u00a0<\/span><span title=\"27:43 - 27:50\" data-start=\"00:27:42.909\" data-end=\"00:27:50.402\" data-spk=\"1\" data-label=\"Scot\">you have to have the the wealthy folks do find during economic downturns turns out.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[27:50]<\/small>\u00a0<span title=\"27:50 - 28:00\" data-start=\"00:27:50.420\" data-end=\"00:27:59.728\" data-spk=\"0\" data-label=\"Jason\">Yeah this was a weird one in that like that\u2019s for that was for sure true where the demand was shifted in unusual ways because often you have a lot of.<\/span><br \/><span title=\"28:00 - 28:05\" data-start=\"00:27:59.956\" data-end=\"00:28:04.847\" data-spk=\"0\" data-label=\"Jason\">Really wealthy consumers are also tend to be really mobile consumer so you have,\u00a0<\/span><span title=\"28:05 - 28:13\" data-start=\"00:28:05.046\" data-end=\"00:28:13.476\" data-spk=\"0\" data-label=\"Jason\">historical you\u2019d have a lot of really wealthy people from China that would go to France and buy a lot of luxury goods and in covid of course nobody was going anywhere so there was this huge,\u00a0<\/span><span title=\"28:14 - 28:28\" data-start=\"00:28:13.549\" data-end=\"00:28:27.646\" data-spk=\"0\" data-label=\"Jason\">spike in luxury goods in China so like the overall worldwide demand for luxury was very high but there were these weird mismatches where the demand was not coming from the markets that it typically came from and now it feels like it\u2019s.<\/span><br \/><span title=\"28:29 - 28:33\" data-start=\"00:28:28.554\" data-end=\"00:28:33.414\" data-spk=\"0\" data-label=\"Jason\">Reverting more it\u2019s starting to revert to more traditional.<\/span><\/p>\n<p><small>[28:37]<\/small>\u00a0<span title=\"28:37 - 28:41\" data-start=\"00:28:36.768\" data-end=\"00:28:40.607\" data-spk=\"0\" data-label=\"Jason\">So there was a another interesting earnings call this morning.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[28:41]<\/small>\u00a0<span title=\"28:41 - 28:49\" data-start=\"00:28:41.161\" data-end=\"00:28:49.092\" data-spk=\"1\" data-label=\"Scot\">Yeah so Shopify came out with their earnings and they\u2019ve had just kind of set the stage.<\/span><br \/><span title=\"28:49 - 28:57\" data-start=\"00:28:49.489\" data-end=\"00:28:57.174\" data-spk=\"1\" data-label=\"Scot\">In the during covid they were Off to the Races and they\u2019ve had a really hard time in the last year kind of in that\u00a0<\/span><span title=\"28:57 - 29:07\" data-start=\"00:28:57.085\" data-end=\"00:29:06.993\" data-spk=\"1\" data-label=\"Scot\">post covid era as they invested so much and then covid the e-commerce growth reverted to the mean as you\u2019ve been,\u00a0<\/span><span title=\"29:07 - 29:20\" data-start=\"00:29:07.012\" data-end=\"00:29:19.546\" data-spk=\"1\" data-label=\"Scot\">so good at pointing out and they thought it would just continue up into the right and so they did about a ten percent reduction in force I think is a year ago maybe a little longer,\u00a0<\/span><span title=\"29:21 - 29:34\" data-start=\"00:29:20.610\" data-end=\"00:29:34.449\" data-spk=\"1\" data-label=\"Scot\">and so then this morning they came out and they beat Lowered Expectations to put this in perspective of their growth has slowed to 25% and they were consistently growing well north of 50% so they\u2019re they\u2019re definitely,\u00a0<\/span><span title=\"29:35 - 29:39\" data-start=\"00:29:34.605\" data-end=\"00:29:39.484\" data-spk=\"1\" data-label=\"Scot\">this was good for a while there were kind of Contracting but now at least they\u2019re back to growth they are losing money but\u00a0<\/span><span title=\"29:39 - 29:51\" data-start=\"00:29:39.461\" data-end=\"00:29:51.244\" data-spk=\"1\" data-label=\"Scot\">they should get back to profitability here in a quarter or two but the big surprise was you know if you recall they were going to take on Amazon and they started really building out some fulfillment\u00a0<\/span><span title=\"29:51 - 30:00\" data-start=\"00:29:51.172\" data-end=\"00:30:00.137\" data-spk=\"1\" data-label=\"Scot\">and they bought a couple companies to do that and started building out this whole infrastructure called Shopify fulfillment Network or sfm.<\/span><\/p>\n<p><small>[30:00]<\/small>\u00a0<span title=\"30:00 - 30:06\" data-start=\"00:30:00.312\" data-end=\"00:30:05.810\" data-spk=\"1\" data-label=\"Scot\">So they announced on the call today that they\u2019re just basically abandoning that whole strategy and\u00a0<\/span><span title=\"30:06 - 30:19\" data-start=\"00:30:05.690\" data-end=\"00:30:19.457\" data-spk=\"1\" data-label=\"Scot\">the assets they previously bought an aggregate for over two billion dollars they sold to a company called Flex port for a billion so that had to hurt so basically a billion dollar loss on the strategy\u00a0<\/span><span title=\"30:19 - 30:26\" data-start=\"00:30:19.319\" data-end=\"00:30:25.808\" data-spk=\"1\" data-label=\"Scot\">and they basically said you know the future is AI and that\u2019s where we\u2019re going to put our effort,\u00a0<\/span><span title=\"30:26 - 30:36\" data-start=\"00:30:26.007\" data-end=\"00:30:36.252\" data-spk=\"1\" data-label=\"Scot\">and then when they sell this unit there also some people go with that but they\u2019re also announced they\u2019re doing at 23% that would include some of those people it\u2019s not it\u2019s not entirely clear.<\/span><\/p>\n<p><small>[30:36]<\/small>\u00a0<span title=\"30:36 - 30:45\" data-start=\"00:30:36.469\" data-end=\"00:30:44.550\" data-spk=\"1\" data-label=\"Scot\">How many will be core Shopify versus the people leaving with the sfn I think it\u2019s.<\/span><br \/><span title=\"30:45 - 30:49\" data-start=\"00:30:44.893\" data-end=\"00:30:48.600\" data-spk=\"1\" data-label=\"Scot\">Relatively small you know I don\u2019t think that\u2019s happened was like this huge.<\/span><br \/><span title=\"30:49 - 31:01\" data-start=\"00:30:49.022\" data-end=\"00:31:00.751\" data-spk=\"1\" data-label=\"Scot\">People operation like you have an Amazon anyway so they\u2019re going to reduce headcount by 11,000 people 29k so from 11,000 29k,\u00a0<\/span><span title=\"31:01 - 31:06\" data-start=\"00:31:00.853\" data-end=\"00:31:05.552\" data-spk=\"1\" data-label=\"Scot\">so about 23% reduction these things are always kind of.<\/span><\/p>\n<p><small>[31:06]<\/small>\u00a0<span title=\"31:06 - 31:15\" data-start=\"00:31:06.472\" data-end=\"00:31:15.185\" data-spk=\"1\" data-label=\"Scot\">Little tricky emotionally because you feel for those people that are losing their jobs and found out this morning that\u2019s going to be no fun,\u00a0<\/span><span title=\"31:15 - 31:20\" data-start=\"00:31:15.311\" data-end=\"00:31:19.547\" data-spk=\"1\" data-label=\"Scot\">but then Wall Street loves a good reduction for us because that means more profits oh,\u00a0<\/span><span title=\"31:20 - 31:32\" data-start=\"00:31:19.614\" data-end=\"00:31:31.649\" data-spk=\"1\" data-label=\"Scot\">the stock this is a huge win for the stock because Wall Street has hated hated hated this idea if you take this super high margin software business and you layer in a super low margin fulfillment business,\u00a0<\/span><span title=\"31:32 - 31:35\" data-start=\"00:31:31.764\" data-end=\"00:31:35.399\" data-spk=\"1\" data-label=\"Scot\">so you know Wall Street this is part of the innovators dilemma,\u00a0<\/span><span title=\"31:35 - 31:47\" data-start=\"00:31:35.460\" data-end=\"00:31:46.997\" data-spk=\"1\" data-label=\"Scot\">once you\u2019ve baked your margins in at 85% or whatever you can\u2019t then go to Wall Street and say we\u2019re going to bring that down 15% 270 because we\u2019re going to be fulfillment and that\u2019s a,\u00a0<\/span><span title=\"31:47 - 31:54\" data-start=\"00:31:47.033\" data-end=\"00:31:53.865\" data-spk=\"1\" data-label=\"Scot\">yeah 30% margin business your blend that in with our 85 you get us to 70 or whatever it is,\u00a0<\/span><span title=\"31:54 - 31:58\" data-start=\"00:31:53.950\" data-end=\"00:31:58.450\" data-spk=\"1\" data-label=\"Scot\">so so Wall Street was very happy to see them abandoned us,\u00a0<\/span><span title=\"31:59 - 32:08\" data-start=\"00:31:58.589\" data-end=\"00:32:07.998\" data-spk=\"1\" data-label=\"Scot\">it does raise the question one of the reasons they got in this is you and I talked a lot about Shopify versus Amazon and you know the same time.<\/span><br \/><span title=\"32:08 - 32:13\" data-start=\"00:32:08.227\" data-end=\"00:32:13.425\" data-spk=\"1\" data-label=\"Scot\">Amazon is raising the bar on e-commerce we just talked about this two same day,\u00a0<\/span><span title=\"32:14 - 32:22\" data-start=\"00:32:13.641\" data-end=\"00:32:22.462\" data-spk=\"1\" data-label=\"Scot\">Shopify was going to arm the rebels so that they could at least keep up with two day now they\u2019re abandoning that you know there\u2019s gonna continue to be,\u00a0<\/span><span title=\"32:23 - 32:29\" data-start=\"00:32:22.577\" data-end=\"00:32:28.531\" data-spk=\"1\" data-label=\"Scot\">yeah this could be a big moment in history where Shopify messes up and you know.<\/span><\/p>\n<p><small>[32:29]<\/small>\u00a0<span title=\"32:29 - 32:41\" data-start=\"00:32:28.820\" data-end=\"00:32:41.144\" data-spk=\"1\" data-label=\"Scot\">What\u2019s a I going to solve if you have this great product recommendation or something that doesn\u2019t show up for five days in Amazon eats the Shopify Merchants lunch because they just are better at Logistics\u00a0<\/span><span title=\"32:41 - 32:48\" data-start=\"00:32:41.133\" data-end=\"00:32:48.463\" data-spk=\"1\" data-label=\"Scot\">so this is this is a big decision throwing in the towel and it\u2019s going to be interesting to see,\u00a0<\/span><span title=\"32:48 - 32:56\" data-start=\"00:32:48.482\" data-end=\"00:32:55.897\" data-spk=\"1\" data-label=\"Scot\">if this is wise or not I obviously lean towards I don\u2019t think this is going to be a great in decision for him.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[32:57]<\/small>\u00a0<span title=\"32:57 - 32:59\" data-start=\"00:32:56.636\" data-end=\"00:32:59.388\" data-spk=\"0\" data-label=\"Jason\">Yeah it is tricky.<\/span><br \/><span title=\"33:00 - 33:14\" data-start=\"00:32:59.731\" data-end=\"00:33:13.539\" data-spk=\"0\" data-label=\"Jason\">The you know I would also mention there\u2019s this so I you know scary service from Amazon looming on the Shopify Horizon that it\u2019s not clear Shopify his really declared what they want they\u2019re going to do with yet which is the.<\/span><br \/><span title=\"33:14 - 33:25\" data-start=\"00:33:13.798\" data-end=\"00:33:24.848\" data-spk=\"0\" data-label=\"Jason\">The by with prime service which is you know in in effect to use that really solid Amazon Fulfillment Network even when you sell stuff on Shopify.<\/span><br \/><span title=\"33:25 - 33:35\" data-start=\"00:33:25.095\" data-end=\"00:33:34.956\" data-spk=\"0\" data-label=\"Jason\">And so you know maybe they\u2019re they\u2019re dumping on the Shopify fulfillment Network stuff in there just gonna see the Fulfillment Amazon we\u2019ll have to see.<\/span><br \/><span title=\"33:35 - 33:45\" data-start=\"00:33:35.263\" data-end=\"00:33:44.925\" data-spk=\"0\" data-label=\"Jason\">Um I do I\u2019ve decided to correct one thing you said like Shopify is huge on talking about e-commerce regress to the mean.<\/span><br \/><span title=\"33:45 - 33:57\" data-start=\"00:33:45.436\" data-end=\"00:33:56.534\" data-spk=\"0\" data-label=\"Jason\">That\u2019s actually not true right get when they talk about that they\u2019re talking about the ratio of e-commerce sales to retail sales and it\u2019s partly true for that.<\/span><br \/><span title=\"33:57 - 34:06\" data-start=\"00:33:56.835\" data-end=\"00:34:06.016\" data-spk=\"0\" data-label=\"Jason\">That you know we kind of went from 14 or 15 percent of all sales being online to 17 or 18 percent and we bounced back down to 15%.<\/span><br \/><span title=\"34:06 - 34:18\" data-start=\"00:34:06.245\" data-end=\"00:34:18.149\" data-spk=\"0\" data-label=\"Jason\">Um you know that that shape varied while we you know depending on the category so image digitally immature categories like Grocery and Automotive had kind of a permanent Spike whereas,\u00a0<\/span><span title=\"34:18 - 34:22\" data-start=\"00:34:18.299\" data-end=\"00:34:21.959\" data-spk=\"0\" data-label=\"Jason\">like apparel you know had kind of a temporary bump.<\/span><\/p>\n<p><small>[34:23]<\/small>\u00a0<span title=\"34:23 - 34:34\" data-start=\"00:34:22.518\" data-end=\"00:34:33.604\" data-spk=\"0\" data-label=\"Jason\">In absolute dollars e-commerce is way bigger than before the pandemic e-commerce is 90% up from from 2019 and so when when they kind of use that.<\/span><br \/><span title=\"34:34 - 34:40\" data-start=\"00:34:34.079\" data-end=\"00:34:39.589\" data-spk=\"0\" data-label=\"Jason\">As an excuse for the layoffs I would say like don\u2019t buy it right like that.<\/span><\/p>\n<p><small>[34:41]<\/small>\u00a0<span title=\"34:41 - 34:55\" data-start=\"00:34:40.713\" data-end=\"00:34:55.465\" data-spk=\"0\" data-label=\"Jason\">There\u2019s a lot more demand for digital Goods than there were in 2019 and Shopify isn\u2019t laying people off because that demand has receded like throwing people off because they haven\u2019t perfectly figured out what the right business model is and from my standpoint.<\/span><br \/><span title=\"34:56 - 35:09\" data-start=\"00:34:55.796\" data-end=\"00:35:09.172\" data-spk=\"0\" data-label=\"Jason\">They\u2019re still a little dyslexic on who they\u2019re even trying to serve they still have all this language around you know serving the small Independent Business the mom-and-pop and arming the rebels and all that but like you know when you listen all the success stories in their earnings calls.<\/span><br \/><span title=\"35:10 - 35:20\" data-start=\"00:35:09.587\" data-end=\"00:35:19.574\" data-spk=\"0\" data-label=\"Jason\">It\u2019s it\u2019s Staples it\u2019s why it\u2019s it\u2019s you know it\u2019s it\u2019s bigger or midsize specialty retailers that are moving to the platform,\u00a0<\/span><span title=\"35:20 - 35:21\" data-start=\"00:35:19.700\" data-end=\"00:35:21.250\" data-spk=\"0\" data-label=\"Jason\">it\u2019s not the rebels I,\u00a0<\/span><span title=\"35:21 - 35:36\" data-start=\"00:35:21.407\" data-end=\"00:35:36.008\" data-spk=\"0\" data-label=\"Jason\">Kendall Jackson and Kendall Jenner and Staples are not the rebels and so I don\u2019t know like I think they like that that narrative but like I\u2019m not sure they\u2019ve come a perfectly aligned their product offering to the.<\/span><br \/><span title=\"35:36 - 35:45\" data-start=\"00:35:36.279\" data-end=\"00:35:44.998\" data-spk=\"0\" data-label=\"Jason\">The companies that are like driving the bulk of their gmv growth and when they you know do focus on the long tail Mom and Pops.<\/span><br \/><span title=\"35:45 - 35:54\" data-start=\"00:35:45.251\" data-end=\"00:35:53.837\" data-spk=\"0\" data-label=\"Jason\">It really makes that gmv number kind of office gated because there\u2019s so much churn over there right and they go or gmv went up 25%.<\/span><br \/><span title=\"35:54 - 36:07\" data-start=\"00:35:54.108\" data-end=\"00:36:06.619\" data-spk=\"0\" data-label=\"Jason\">Was that because like all your customers are thriving and they\u2019re all growing or is it because you just added way more companies that will have a nine-month mortality rate than you then you did the quarter before.<\/span><\/p>\n<p><small>[36:09]<\/small>\u00a0<span title=\"36:09 - 36:16\" data-start=\"00:36:08.884\" data-end=\"00:36:16.131\" data-spk=\"0\" data-label=\"Jason\">So I think it\u2019s like I definitely like there\u2019s a lot of strong,\u00a0<\/span><span title=\"36:16 - 36:23\" data-start=\"00:36:16.204\" data-end=\"00:36:22.567\" data-spk=\"0\" data-label=\"Jason\">sort of advantages and and experiences still in the Shopify ecosystem and.<\/span><br \/><span title=\"36:23 - 36:31\" data-start=\"00:36:22.807\" data-end=\"00:36:30.901\" data-spk=\"0\" data-label=\"Jason\">Feel like shot pay is getting some traction the shop app has got a lot more traction than I originally predicted and now there are some legitimate.<\/span><br \/><span title=\"36:31 - 36:38\" data-start=\"00:36:31.208\" data-end=\"00:36:38.274\" data-spk=\"0\" data-label=\"Jason\">Marketplace features in there there\u2019s a lots of things going for them I certainly would not write them off but I do think.<\/span><br \/><span title=\"36:39 - 36:45\" data-start=\"00:36:39.417\" data-end=\"00:36:45.161\" data-spk=\"0\" data-label=\"Jason\">Like in the next couple of quarters we need to see some more clarity about like what they want to be and where their growth is really going to come.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[36:46]<\/small>\u00a0<span title=\"36:46 - 36:56\" data-start=\"00:36:46.081\" data-end=\"00:36:56.284\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah it\u2019s going to be we\u2019ll be tracking it closely on the show as we have them so it\u2019s going to be interesting to see I don\u2019t think either of us had this in our predictions though sadly.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[36:57]<\/small>\u00a0<span title=\"36:57 - 37:09\" data-start=\"00:36:56.669\" data-end=\"00:37:08.843\" data-spk=\"0\" data-label=\"Jason\">Yeah no I mean I was definitely caught by I never thought this Acquisitions made sense but I certainly thought that you know they would hold on to him longer so I don\u2019t know I guess if you\u2019re an investor like.<\/span><br \/><span title=\"37:09 - 37:15\" data-start=\"00:37:09.083\" data-end=\"00:37:14.797\" data-spk=\"0\" data-label=\"Jason\">Like once you realize it was the wrong decision like there\u2019s probably something good about like cutting bait quickly instead of trying to.<\/span><br \/><span title=\"37:15 - 37:20\" data-start=\"00:37:15.369\" data-end=\"00:37:20.140\" data-spk=\"0\" data-label=\"Jason\">Drag it around drag it out longer just because you you don\u2019t want to own up to the mistake.<\/span><br \/><span title=\"37:22 - 37:36\" data-start=\"00:37:22.375\" data-end=\"00:37:35.523\" data-spk=\"0\" data-label=\"Jason\">So anyway that feels like a pretty good recap of the two big earnings there\u2019s a you know a bunch of the traditional retailers will be record reporting over the next four weeks and of course we\u2019ll have US Department of Commerce data,\u00a0<\/span><span title=\"37:36 - 37:38\" data-start=\"00:37:35.571\" data-end=\"00:37:37.554\" data-spk=\"0\" data-label=\"Jason\">including q1 e-commerce.<\/span><br \/><span title=\"37:38 - 37:46\" data-start=\"00:37:37.789\" data-end=\"00:37:46.141\" data-spk=\"0\" data-label=\"Jason\">Later this month so lots of reasons to have another new show and I still do think we got to get that.<\/span><br \/><span title=\"37:46 - 37:52\" data-start=\"00:37:46.364\" data-end=\"00:37:51.561\" data-spk=\"0\" data-label=\"Jason\">That large language Model A I show on the on the books.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[37:52]<\/small>\u00a0<span title=\"37:52 - 37:58\" data-start=\"00:37:51.988\" data-end=\"00:37:57.588\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah we will we\u2019re through our vacation period and we should have some time to lay that down\u00a0<\/span><span title=\"37:57 - 38:09\" data-start=\"00:37:57.420\" data-end=\"00:38:09.240\" data-spk=\"1\" data-label=\"Scot\">and Jason you\u2019ve got a keynote tomorrow and you got some slides to work on buddy so we\u2019re going to make this a short one in the pantheon of Jason and Scot show lengthy episodes.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[38:09]<\/small>\u00a0<span title=\"38:09 - 38:14\" data-start=\"00:38:09.042\" data-end=\"00:38:14.281\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah we\u2019ll give it a few minutes back to our listeners and I will go write a keynote for tomorrow.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[38:15]<\/small>\u00a0<span title=\"38:15 - 38:20\" data-start=\"00:38:14.648\" data-end=\"00:38:20.338\" data-spk=\"1\" data-label=\"Scot\">Awesome it\u2019s always good when you\u2019re up against deadlines so you\u2019re going to crush it.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[38:20]<\/small>\u00a0<span title=\"38:20 - 38:26\" data-start=\"00:38:20.345\" data-end=\"00:38:25.668\" data-spk=\"0\" data-label=\"Jason\">I feel like the one thing I have going for me is the present the content will be very Timely.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[38:26]<\/small>\u00a0<span title=\"38:26 - 38:30\" data-start=\"00:38:26.258\" data-end=\"00:38:30.013\" data-spk=\"1\" data-label=\"Scot\">Good yep fresh like.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[38:30]<\/small>\u00a0<span title=\"38:30 - 38:43\" data-start=\"00:38:29.713\" data-end=\"00:38:43.305\" data-spk=\"0\" data-label=\"Jason\">Awesome Scott thinks every very much everyone for listening as always enjoyed the show we sure would love it if you jump on iTunes and give us that five star review and until next time happy commercing!<\/span><\/p>\n<\/div>\n<p><p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weekly podcast with the latest e-commerce news and events. Episode 303 is an recap of Amazon and Shopify Q1 2023 earnings. Subscribe: ????? Amazon […]<\/p>\n","protected":false},"author":1,"featured_media":1121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-9365","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcasts"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/9365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=9365"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/9365\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/1121"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=9365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=9365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=9365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Subscribe<\/strong>:<\/p>\n<span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><\/iframe><\/figure>\n<p>Amazon and Shopify both reported their Q1 2023 earnings last week.<\/p>\n<p>Amazon had a strong first quarter, slightly over-shadowed by it\u2019s slowing AWS growth.<\/p>\n<p>Shopify also had strong Q1 2023 earnings although it did not achieve profitability. Shopify also announced a second reduction of headcount and announced that they were selling all of the recently acquired logistic assets.<\/p>\n<p><strong>Don\u2019t forget to like our\u00a0facebook page, and if you enjoyed this episode please write us a review on itunes.<\/strong><\/p>\n<p>Episode 305 of the Jason & Scot show was recorded on Thursday, May 4th 2023<span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 id=\"chapter\">Transcript<\/h2>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:23]<\/small>\u00a0<span title=\"0:23 - 0:25\" data-start=\"00:00:23.135\" data-end=\"00:00:25.497\" data-spk=\"0\" data-label=\"Jason\">Welcome to the Jason and Scot show,\u00a0<\/span><span title=\"0:26 - 0:39\" data-start=\"00:00:25.569\" data-end=\"00:00:38.747\" data-spk=\"0\" data-label=\"Jason\">this is episode 305 being recorded on Thursday May 4th May the 4th be with you I\u2019m your host Jason retailgeek Goldberg and as usual I\u2019m here with your co-host Scot Wingo.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:39]<\/small>\u00a0<span title=\"0:39 - 0:53\" data-start=\"00:00:38.957\" data-end=\"00:00:52.970\" data-spk=\"1\" data-label=\"Scot\">Hey Jason and welcome back Jason Scott showed listeners Happy Star Wars Day May the 4th be with you hope everyone had a great Star Wars Day Jason people can\u2019t see you but you are wearing your Jar Jar Binks cosplay.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:53]<\/small>\u00a0<span title=\"0:53 - 0:56\" data-start=\"00:00:53.295\" data-end=\"00:00:56.293\" data-spk=\"0\" data-label=\"Jason\">I kind of assumed people just assume I\u2019m always wearing that.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:57]<\/small>\u00a0<span title=\"0:57 - 1:11\" data-start=\"00:00:56.534\" data-end=\"00:01:10.715\" data-spk=\"1\" data-label=\"Scot\">You should do the whole episode and jar jar speak well said Jason what\u2019s a new at the Amazon what.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:10]<\/small>\u00a0<span title=\"1:10 - 1:23\" data-start=\"00:01:10.427\" data-end=\"00:01:22.577\" data-spk=\"0\" data-label=\"Jason\">I feel like people don\u2019t get the jar jar one I did I did do an act during covid-19 doing all this pitch theater online I did a pitch on Halloween in a Darth Vader mask.<\/span><br \/><span title=\"1:24 - 1:27\" data-start=\"00:01:23.851\" data-end=\"00:01:27.402\" data-spk=\"0\" data-label=\"Jason\">And we won the pitch so I feel like I should be doing costumes more.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:28]<\/small>\u00a0<span title=\"1:28 - 1:35\" data-start=\"00:01:27.553\" data-end=\"00:01:35.346\" data-spk=\"1\" data-label=\"Scot\">Awesome you guys intimidate them and it\u2019s called the Darth Vader intimidation closed when you wear the Vader the Vader suit.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:34]<\/small>\u00a0<span title=\"1:34 - 1:38\" data-start=\"00:01:34.151\" data-end=\"00:01:38.212\" data-spk=\"0\" data-label=\"Jason\">Exactly exactly and it had the voice changing thing and so it is.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:38]<\/small>\u00a0<span title=\"1:38 - 1:47\" data-start=\"00:01:37.924\" data-end=\"00:01:46.950\" data-spk=\"1\" data-label=\"Scot\">Honest I find your lack of faith yeah there\u2019s a lot of death lot of lot of puts you can use in a pitch.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:48]<\/small>\u00a0<span title=\"1:48 - 1:56\" data-start=\"00:01:47.785\" data-end=\"00:01:56.155\" data-spk=\"0\" data-label=\"Jason\">Yes unfortunately not a large enough chunk of the total addressable Market are Geeks.<\/span><br \/><span title=\"1:58 - 2:09\" data-start=\"00:01:58.337\" data-end=\"00:02:08.504\" data-spk=\"0\" data-label=\"Jason\">If you like is wrong I know how I got in this like funky like creative advertising world with all these I kept custody clients like I totally don\u2019t fit in.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:09]<\/small>\u00a0<span title=\"2:09 - 2:17\" data-start=\"00:02:09.208\" data-end=\"00:02:17.139\" data-spk=\"1\" data-label=\"Scot\">Yeah been a misfit toy my whole life so sir not going to stop anytime soon embrace it Jason.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:15]<\/small>\u00a0<span title=\"2:15 - 2:28\" data-start=\"00:02:14.628\" data-end=\"00:02:28.274\" data-spk=\"0\" data-label=\"Jason\">Yeah it was announced today that we won a big new client lvmh and so I like went on LinkedIn and joke that like it was largely thanks to my my stature is a luxury influencer.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:29]<\/small>\u00a0<span title=\"2:29 - 2:32\" data-start=\"00:02:28.665\" data-end=\"00:02:32.396\" data-spk=\"1\" data-label=\"Scot\">Nice congrats your tick-tocks on luxury have one the death.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:32]<\/small>\u00a0<span title=\"2:32 - 2:37\" data-start=\"00:02:32.138\" data-end=\"00:02:36.597\" data-spk=\"0\" data-label=\"Jason\">I know I know for a long time people were like why are you wasting your time with that and now they know.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:38]<\/small>\u00a0<span title=\"2:38 - 2:49\" data-start=\"00:02:37.679\" data-end=\"00:02:49.077\" data-spk=\"1\" data-label=\"Scot\">Who will we have it\u2019s been a while since we dropped a pod because we both had spring breaks and then you\u2019ve been traveling a bit so it\u2019s great to be back.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:49]<\/small>\u00a0<span title=\"2:49 - 2:54\" data-start=\"00:02:49.090\" data-end=\"00:02:54.011\" data-spk=\"0\" data-label=\"Jason\">Yeah it\u2019s super fun to catch up with you and with the audience.<\/span><br \/><span title=\"2:55 - 3:08\" data-start=\"00:02:54.774\" data-end=\"00:03:07.838\" data-spk=\"0\" data-label=\"Jason\">I feel like the last show we did was right after shoptalk so I did get to see a bunch of folks and now you know it\u2019s a treat your season is starting to heat up so I have a bunch of upcoming trips so.<\/span><br \/><span title=\"3:08 - 3:15\" data-start=\"00:03:08.078\" data-end=\"00:03:14.598\" data-spk=\"0\" data-label=\"Jason\">If listeners are going to any of these shows make sure you make a point to catch up with me and you could see the jar jar costume.<\/span><br \/><span title=\"3:15 - 3:19\" data-start=\"00:03:14.833\" data-end=\"00:03:18.990\" data-spk=\"0\" data-label=\"Jason\">In person so I\u2019m actually doing this show from.<\/span><br \/><span title=\"3:19 - 3:25\" data-start=\"00:03:19.261\" data-end=\"00:03:25.090\" data-spk=\"0\" data-label=\"Jason\">The famous Mayflower Hotel in Washington d.c. because I\u2019m in town for the.<\/span><br \/><span title=\"3:25 - 3:31\" data-start=\"00:03:25.475\" data-end=\"00:03:30.894\" data-spk=\"0\" data-label=\"Jason\">Home and Commercial products Association I\u2019m doing the keynote for their annual conference tomorrow morning.<\/span><br \/><span title=\"3:31 - 3:41\" data-start=\"00:03:31.388\" data-end=\"00:03:40.809\" data-spk=\"0\" data-label=\"Jason\">And then I\u2019m going to sap Sapphire which is their big customer show in Orlando in on May 15th if you like.<\/span><br \/><span title=\"3:41 - 3:56\" data-start=\"00:03:41.092\" data-end=\"00:03:56.054\" data-spk=\"0\" data-label=\"Jason\">There\u2019s a fair amount of our listeners that go to that show and then to fun ones that are you know core Commerce shows after that we have Commerce next by our friends Scott Silverman is in New York in June so June 20th.<\/span><br \/><span title=\"3:56 - 4:06\" data-start=\"00:03:56.397\" data-end=\"00:04:05.825\" data-spk=\"0\" data-label=\"Jason\">And I\u2019ll be doing some fun stuff stuff on stage there and then in RFC you know has their kind of future looking executive digital Summit.<\/span><\/p>\n<p><small>[4:07]<\/small>\u00a0<span title=\"4:07 - 4:21\" data-start=\"00:04:06.757\" data-end=\"00:04:20.595\" data-spk=\"0\" data-label=\"Jason\">On the beach it Tara no in Rancho Palos Verdes it\u2019s called the inner F Nexus on July 10 and all both be giving a keynote and I will also be interviewing Kara Swisher so I feel like.<\/span><br \/><span title=\"4:21 - 4:24\" data-start=\"00:04:20.993\" data-end=\"00:04:24.315\" data-spk=\"0\" data-label=\"Jason\">I\u2019m going to spend an hour just making fun of Scott Galloway with her.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[4:25]<\/small>\u00a0<span title=\"4:25 - 4:30\" data-start=\"00:04:24.760\" data-end=\"00:04:29.994\" data-spk=\"1\" data-label=\"Scot\">Nice yeah that\u2019s good the dog dog is off the porch whoo.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:30]<\/small>\u00a0<span title=\"4:30 - 4:43\" data-start=\"00:04:29.928\" data-end=\"00:04:42.865\" data-spk=\"0\" data-label=\"Jason\">Exactly I was thinking about like maybe bring a mask I\u2019ve already you know I have audio collection of a lot of my favorite Scott Galloway predictions meaning which didn\u2019t come true.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[4:43]<\/small>\u00a0<span title=\"4:43 - 4:47\" data-start=\"00:04:42.565\" data-end=\"00:04:46.585\" data-spk=\"1\" data-label=\"Scot\">Macy\u2019s Woodberry Amazon and apparel.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:47]<\/small>\u00a0<span title=\"4:47 - 4:49\" data-start=\"00:04:47.324\" data-end=\"00:04:48.760\" data-spk=\"0\" data-label=\"Jason\">But I feel like this is.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[4:48]<\/small>\u00a0<span title=\"4:48 - 4:50\" data-start=\"00:04:48.460\" data-end=\"00:04:49.998\" data-spk=\"1\" data-label=\"Scot\">Amazon to be Roadkill.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:50]<\/small>\u00a0<span title=\"4:50 - 5:03\" data-start=\"00:04:50.359\" data-end=\"00:05:03.188\" data-spk=\"0\" data-label=\"Jason\">Like Freaky Friday like so like Cara is this like super famous interviewer and I am interviewing her and we\u2019re doing it at Tara know where she started code conference so it\u2019s very topsy-turvy.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[5:03]<\/small>\u00a0<span title=\"5:03 - 5:07\" data-start=\"00:05:03.495\" data-end=\"00:05:07.352\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah just bring red tears without her trademark thing.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[5:07]<\/small>\u00a0<span title=\"5:07 - 5:12\" data-start=\"00:05:07.052\" data-end=\"00:05:12.219\" data-spk=\"0\" data-label=\"Jason\">I assume she just travels with one of her own yeah that Herman Miller red chair yeah.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[5:09]<\/small>\u00a0<span title=\"5:09 - 5:15\" data-start=\"00:05:09.462\" data-end=\"00:05:14.875\" data-spk=\"1\" data-label=\"Scot\">BYO RC okay.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[5:15]<\/small>\u00a0<span title=\"5:15 - 5:24\" data-start=\"00:05:14.948\" data-end=\"00:05:23.841\" data-spk=\"0\" data-label=\"Jason\">I actually think she\u2019s not with Vox anymore so I don\u2019t know you know she may be in withdrawn not she may have said said goodbye to the red chairs will have to ask her.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[5:24]<\/small>\u00a0<span title=\"5:24 - 5:26\" data-start=\"00:05:23.541\" data-end=\"00:05:25.608\" data-spk=\"1\" data-label=\"Scot\">Look that\u2019s that\u2019s question number one.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[5:26]<\/small>\u00a0<span title=\"5:26 - 5:39\" data-start=\"00:05:25.722\" data-end=\"00:05:39.074\" data-spk=\"0\" data-label=\"Jason\">Yeah but besides all of that we are just getting started on q1 earnings season and you know of course for most of our listeners one of the most important earnings calls happened last week.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[5:39]<\/small>\u00a0<span title=\"5:39 - 5:46\" data-start=\"00:05:39.261\" data-end=\"00:05:45.726\" data-spk=\"1\" data-label=\"Scot\">Yeah it wouldn\u2019t be a Jason and Scot show if we didn\u2019t have some Amazon news.<\/span><br \/><span title=\"5:47 - 5:54\" data-start=\"00:05:47.097\" data-end=\"00:05:53.760\" data-spk=\"1\" data-label=\"Scot\">So on April 27th which was last Thursday when we\u2019re recording this Amazon had their earnings\u00a0<\/span><span title=\"5:54 - 6:05\" data-start=\"00:05:53.556\" data-end=\"00:06:04.631\" data-spk=\"1\" data-label=\"Scot\">it was what Wall Street would call a clear beat meaning both top and the bottom line where a beat this is welcome news because Amazon\u2019s earnings have been kind of like not\u00a0<\/span><span title=\"6:05 - 6:07\" data-start=\"00:06:04.613\" data-end=\"00:06:07.190\" data-spk=\"1\" data-label=\"Scot\">not mrs. but not amazing.<\/span><\/p>\n<p><small>[6:07]<\/small>\u00a0<span title=\"6:07 - 6:17\" data-start=\"00:06:07.413\" data-end=\"00:06:17.099\" data-spk=\"1\" data-label=\"Scot\">So revenues came in two percent above consensus which is a slight beat but what got Wall Street very excited was operating income came in 57 percent above\u00a0<\/span><span title=\"6:17 - 6:25\" data-start=\"00:06:17.010\" data-end=\"00:06:25.416\" data-spk=\"1\" data-label=\"Scot\">and longtime listeners will know I usually cover the retail portion of Amazon and Jason covers the cloud or a WS part,\u00a0<\/span><span title=\"6:26 - 6:40\" data-start=\"00:06:25.561\" data-end=\"00:06:39.621\" data-spk=\"1\" data-label=\"Scot\">we\u2019re going to mix it up because I read all the reports and what was most interesting right now in kind of the world of Internet stocks the whole world has been turned upside down by chat GPT\u00a0<\/span><span title=\"6:40 - 6:49\" data-start=\"00:06:39.514\" data-end=\"00:06:48.809\" data-spk=\"1\" data-label=\"Scot\">which is put out by open AI Sam Altman startup who is partially owned and supported by Microsoft there and investor and the hole,\u00a0<\/span><span title=\"6:49 - 6:52\" data-start=\"00:06:48.924\" data-end=\"00:06:52.150\" data-spk=\"1\" data-label=\"Scot\">infrastructure runs on Azure their cloud computing,\u00a0<\/span><span title=\"6:52 - 7:01\" data-start=\"00:06:52.163\" data-end=\"00:07:01.428\" data-spk=\"1\" data-label=\"Scot\">platform this has been a huge win for Microsoft because it\u2019s enabled them to add a chat gbt like component to Bing.<\/span><\/p>\n<p><small>[7:02]<\/small>\u00a0<span title=\"7:02 - 7:06\" data-start=\"00:07:01.609\" data-end=\"00:07:05.737\" data-spk=\"1\" data-label=\"Scot\">And you know the buzz is that,\u00a0<\/span><span title=\"7:06 - 7:17\" data-start=\"00:07:05.779\" data-end=\"00:07:17.460\" data-spk=\"1\" data-label=\"Scot\">search is dead a lot of people are even speculating maybe even apps will be dead you know maybe maybe you don\u2019t really need apps on a phone if you could just talk to your phone and say hey book me restaurant reservation as\u00a0<\/span><span title=\"7:17 - 7:26\" data-start=\"00:07:17.353\" data-end=\"00:07:26.486\" data-spk=\"1\" data-label=\"Scot\">6:30 at the one of these three restaurants why do you need a nap if an AI can go to that room so there\u2019s there\u2019s a lot of people in the\u00a0<\/span><span title=\"7:26 - 7:29\" data-start=\"00:07:26.414\" data-end=\"00:07:28.836\" data-spk=\"1\" data-label=\"Scot\">Wall Street and Tech world are,\u00a0<\/span><span title=\"7:29 - 7:42\" data-start=\"00:07:28.920\" data-end=\"00:07:41.635\" data-spk=\"1\" data-label=\"Scot\">I would say there\u2019s like this wall of worry around this new innovation and this is real so chat GPT was the fastest product to 100 million users what was it Jason like four weeks or something.<\/span><\/p>\n<p><small>[7:42]<\/small>\u00a0<span title=\"7:42 - 7:50\" data-start=\"00:07:42.483\" data-end=\"00:07:50.384\" data-spk=\"1\" data-label=\"Scot\">Like an egg yeah if you see a chart it\u2019s like this a vertical wall whereas like Facebook and some of those kinds of things were previous record holders for this and it took,\u00a0<\/span><span title=\"7:51 - 7:54\" data-start=\"00:07:50.559\" data-end=\"00:07:54.128\" data-spk=\"1\" data-label=\"Scot\">you know years and so-so.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[7:54]<\/small>\u00a0<span title=\"7:54 - 7:58\" data-start=\"00:07:54.248\" data-end=\"00:07:58.160\" data-spk=\"0\" data-label=\"Jason\">Two months to a billion or 4 months to a billion users.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[7:58]<\/small>\u00a0<span title=\"7:58 - 8:05\" data-start=\"00:07:58.004\" data-end=\"00:08:05.112\" data-spk=\"1\" data-label=\"Scot\">Yeah so it\u2019s just this crazy adoption curve unlike anything we\u2019ve ever seen before so you know there\u2019s,\u00a0<\/span><span title=\"8:05 - 8:15\" data-start=\"00:08:05.197\" data-end=\"00:08:14.847\" data-spk=\"1\" data-label=\"Scot\">this was top of mind when this came out so the so while streets pretty obsessed with what\u2019s going on with the cloud also\u00a0<\/span><span title=\"8:15 - 8:19\" data-start=\"00:08:14.836\" data-end=\"00:08:19.126\" data-spk=\"1\" data-label=\"Scot\">Amazon\u2019s Cloud division has been slowing their growth it was the\u00a0<\/span><span title=\"8:19 - 8:27\" data-start=\"00:08:18.976\" data-end=\"00:08:26.745\" data-spk=\"1\" data-label=\"Scot\">you know the darling of the Amazon portfolio and now it\u2019s been slowing because as we head into this recessionary period,\u00a0<\/span><span title=\"8:27 - 8:35\" data-start=\"00:08:26.812\" data-end=\"00:08:34.971\" data-spk=\"1\" data-label=\"Scot\">also another concern is we cover this a little bit last time but Silicon Valley Bank failed we\u2019ve had all this kind of startup\u00a0<\/span><span title=\"8:35 - 8:41\" data-start=\"00:08:34.834\" data-end=\"00:08:40.981\" data-spk=\"1\" data-label=\"Scot\">craziness and a lot of those startups use cloud computing and Amazon so,\u00a0<\/span><span title=\"8:41 - 8:55\" data-start=\"00:08:41.113\" data-end=\"00:08:54.783\" data-spk=\"1\" data-label=\"Scot\">so that was what all eyes were on and you know what we saw was the growth did slow to 11 and a half percent which was less bad than what people were thinking so is kind of viewed as positive which is always one of these counter,\u00a0<\/span><span title=\"8:55 - 9:03\" data-start=\"00:08:54.820\" data-end=\"00:09:03.202\" data-spk=\"1\" data-label=\"Scot\">Wall Street all about expectations not like the real absolute numbers but 11.5 percent growth is this is this part we\u2019ve been covering this for for.<\/span><\/p>\n<p><small>[9:04]<\/small>\u00a0<span title=\"9:04 - 9:09\" data-start=\"00:09:03.539\" data-end=\"00:09:09.055\" data-spk=\"1\" data-label=\"Scot\">Years of this point five years and it\u2019s always growing north of 50%\u00a0<\/span><span title=\"9:09 - 9:22\" data-start=\"00:09:08.911\" data-end=\"00:09:21.512\" data-spk=\"1\" data-label=\"Scot\">but this time it really slowed down and they\u2019re even projecting for next quarter or slow 2011 Amazon did Jesse did talk a lot about AI there they\u2019ve talked about how they\u2019re going to do a lot of people\u00a0<\/span><span title=\"9:22 - 9:24\" data-start=\"00:09:21.506\" data-end=\"00:09:23.765\" data-spk=\"1\" data-label=\"Scot\">the other problem with Chad gbt\u00a0<\/span><span title=\"9:24 - 9:37\" data-start=\"00:09:23.717\" data-end=\"00:09:37.376\" data-spk=\"1\" data-label=\"Scot\">is it looks the prior to the prior a I think we all spend a lot of time with which was Alexa now feels wildly inferior because you\u2019re having these really robust conversations with chat gvt and Alexis can do like,\u00a0<\/span><span title=\"9:37 - 9:44\" data-start=\"00:09:37.484\" data-end=\"00:09:43.649\" data-spk=\"1\" data-label=\"Scot\">yeah it\u2019s not really like at that level of conversational AI you can\u00a0<\/span><span title=\"9:44 - 9:55\" data-start=\"00:09:43.589\" data-end=\"00:09:54.688\" data-spk=\"1\" data-label=\"Scot\">get some weather maybe play a song and a couple other little things add something it\u2019ll talk to you about do you want to reorder your dog food and yeah that\u2019s about it right so very,\u00a0<\/span><span title=\"9:55 - 10:07\" data-start=\"00:09:54.874\" data-end=\"00:10:06.664\" data-spk=\"1\" data-label=\"Scot\">Barry and then you know that used to be cool and now in a world where we\u2019re chatty be teeing it feels inferior so Amazon like Google is a little bit on their heels from this and\u00a0<\/span><span title=\"10:06 - 10:15\" data-start=\"00:10:06.496\" data-end=\"00:10:14.548\" data-spk=\"1\" data-label=\"Scot\">they basically came out and said we\u2019re going to do a lot around Alexa here and it will we\u2019re dedicated that being by far the best voice assistant,\u00a0<\/span><span title=\"10:15 - 10:29\" data-start=\"00:10:14.753\" data-end=\"00:10:29.150\" data-spk=\"1\" data-label=\"Scot\">and we\u2019ll be adding chats ubt like capabilities but then for AWS they basically said look there\u2019s all these language models out there and we\u2019re going to be neutral will have all kinds of different flavors kind of thing so whatever you want we\u2019ll have.<\/span><\/p>\n<p><small>[10:30]<\/small>\u00a0<span title=\"10:30 - 10:39\" data-start=\"00:10:29.559\" data-end=\"00:10:38.704\" data-spk=\"1\" data-label=\"Scot\">And the one of the concerns is these large language models use a ton of gpus and those are expensive.<\/span><br \/><span title=\"10:39 - 10:47\" data-start=\"00:10:38.993\" data-end=\"00:10:47.015\" data-spk=\"1\" data-label=\"Scot\">Azure is adding a ton of workloads from this and their conference call they went so far as to say.<\/span><br \/><span title=\"10:47 - 10:56\" data-start=\"00:10:47.334\" data-end=\"00:10:55.806\" data-spk=\"1\" data-label=\"Scot\">It\u2019s like accelerated growth dramatically at Azure they\u2019re getting all these loads that they would have never seen before thanks to their relationship and,\u00a0<\/span><span title=\"10:56 - 11:05\" data-start=\"00:10:55.921\" data-end=\"00:11:04.934\" data-spk=\"1\" data-label=\"Scot\">they\u2019re scaling up this gpus and so it kind of feels early and Aang\u2019s like maybe Microsoft has got like this.<\/span><br \/><span title=\"11:05 - 11:10\" data-start=\"00:11:05.205\" data-end=\"00:11:09.747\" data-spk=\"1\" data-label=\"Scot\">Bit of an advantage over both Google and they WS so,\u00a0<\/span><span title=\"11:10 - 11:22\" data-start=\"00:11:09.922\" data-end=\"00:11:21.723\" data-spk=\"1\" data-label=\"Scot\">so you know it was interesting because I\u2019m saying all that because what happened is they announced their up a little bit that day and then they announced and they were down and they\u2019ve been kind of sideways since then so and what was clear be quarter\u00a0<\/span><span title=\"11:22 - 11:32\" data-start=\"00:11:21.639\" data-end=\"00:11:31.602\" data-spk=\"1\" data-label=\"Scot\">with AWS not as bad as you would think it would be you had the numbers would say oh the stock should go up 5 to 10% but they didn\u2019t because I don\u2019t think everyone really liked,\u00a0<\/span><span title=\"11:32 - 11:37\" data-start=\"00:11:31.729\" data-end=\"00:11:36.902\" data-spk=\"1\" data-label=\"Scot\">body language around you know what\u2019s going on chat gbt and Amazon\u2019s response.<\/span><\/p>\n<p><small>[11:40]<\/small>\u00a0<span title=\"11:40 - 11:45\" data-start=\"00:11:40.226\" data-end=\"00:11:44.816\" data-spk=\"1\" data-label=\"Scot\">So that was a that was a long part but that was I thought it was kind of interesting.<\/span><br \/><span title=\"11:45 - 11:55\" data-start=\"00:11:45.159\" data-end=\"00:11:55.073\" data-spk=\"1\" data-label=\"Scot\">The whole world and like the last yeah six months has been turned upside down by this and it\u2019s always an option or that always gets my attention because this is where\u00a0<\/span><span title=\"11:55 - 12:04\" data-start=\"00:11:54.930\" data-end=\"00:12:04.400\" data-spk=\"1\" data-label=\"Scot\">unique opportunities are created for disruption and all kinds of what happens is when my favorite books is the innovators dilemma when something new like this comes along,\u00a0<\/span><span title=\"12:05 - 12:19\" data-start=\"00:12:04.538\" data-end=\"00:12:18.978\" data-spk=\"1\" data-label=\"Scot\">people that were previously the leaders have a really hard time adapting to it because they get baked into their business model so for example to pick on Google it\u2019s very hard for them to offer a chat interface on the core Google search because,\u00a0<\/span><span title=\"12:19 - 12:27\" data-start=\"00:12:19.020\" data-end=\"00:12:27.258\" data-spk=\"1\" data-label=\"Scot\">every pixel of core Google search is like so highly optimized and them hitting their numbers relies on that that real estate.<\/span><\/p>\n<p><small>[12:28]<\/small>\u00a0<span title=\"12:28 - 12:37\" data-start=\"00:12:27.823\" data-end=\"00:12:36.638\" data-spk=\"1\" data-label=\"Scot\">Basically not changing that to change that real estate and experiment with something that is expensive and not monetized is.<\/span><br \/><span title=\"12:37 - 12:45\" data-start=\"00:12:36.903\" data-end=\"00:12:45.171\" data-spk=\"1\" data-label=\"Scot\">Almost impossible you know it\u2019s it will certainly make them lose mountains of Revenue and even worse on ibadah,\u00a0<\/span><span title=\"12:45 - 12:57\" data-start=\"00:12:45.232\" data-end=\"00:12:57.039\" data-spk=\"1\" data-label=\"Scot\">so it\u2019s really kind of fascinating to Think Through the strategy here of what\u2019s everyone going to do and how do they adapt to this new world and to some extent Amazon not as bad as Google I would argue but that Amazon is a little bit of a in a pickle.<\/span><br \/><span title=\"12:57 - 12:58\" data-start=\"00:12:57.388\" data-end=\"00:12:58.037\" data-spk=\"1\" data-label=\"Scot\">Um\u00a0<\/span><span title=\"12:58 - 13:10\" data-start=\"00:12:58.133\" data-end=\"00:13:10.367\" data-spk=\"1\" data-label=\"Scot\">it got even so bad also around the same time Jeff Bezos was at Coachella and he was just out there dancing and wearing this kind of fun butterfly shirt and everyone\u2019s kind of like you know it almost felt like\u00a0<\/span><span title=\"13:10 - 13:13\" data-start=\"00:13:10.338\" data-end=\"00:13:13.384\" data-spk=\"1\" data-label=\"Scot\">fiddling while Rome burned\u00a0<\/span><span title=\"13:13 - 13:26\" data-start=\"00:13:13.270\" data-end=\"00:13:25.756\" data-spk=\"1\" data-label=\"Scot\">so a lot of people are like and then you know so Disney\u2019s CEO has come back and a lot of people are projecting that maybe we\u2019ll see a day where like a Larry Page comes back to Google and a Bezos comes back\u00a0<\/span><span title=\"13:26 - 13:31\" data-start=\"00:13:25.607\" data-end=\"00:13:31.339\" data-spk=\"1\" data-label=\"Scot\">to Amazon to it\u2019s going to be interesting to see what happens this next next three to six months are gonna be really\u00a0<\/span><span title=\"13:31 - 13:38\" data-start=\"00:13:31.285\" data-end=\"00:13:38.039\" data-spk=\"1\" data-label=\"Scot\">fun to watch in the world of large trillion-dollar internet companies to see what\u2019s going down.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[13:39]<\/small>\u00a0<span title=\"13:39 - 13:44\" data-start=\"00:13:38.646\" data-end=\"00:13:43.994\" data-spk=\"0\" data-label=\"Jason\">Oh for sure and I keep saying this but we\u2019re going to have to do another.<\/span><br \/><span title=\"13:44 - 13:50\" data-start=\"00:13:44.331\" data-end=\"00:13:49.636\" data-spk=\"0\" data-label=\"Jason\">Deep dive on AI and chechi because there are so many it\u2019s changing so,\u00a0<\/span><span title=\"13:50 - 14:04\" data-start=\"00:13:49.799\" data-end=\"00:14:03.632\" data-spk=\"0\" data-label=\"Jason\">fast and there\u2019s this whole like shift from keywords to prompts and you know like all of you know Google\u2019s intrinsic strengths are suddenly becoming weaknesses there\u2019s this interesting battle,\u00a0<\/span><span title=\"14:04 - 14:14\" data-start=\"00:14:03.740\" data-end=\"00:14:13.661\" data-spk=\"0\" data-label=\"Jason\">um between like these AI capabilities as destinations versus these AI capabilities as.<\/span><br \/><span title=\"14:14 - 14:23\" data-start=\"00:14:13.968\" data-end=\"00:14:22.969\" data-spk=\"0\" data-label=\"Jason\">Sort of infrastructure that that you add to any destination right and so you know the interesting thing about Chad gbt you can license the.<\/span><br \/><span title=\"14:23 - 14:32\" data-start=\"00:14:23.216\" data-end=\"00:14:31.916\" data-spk=\"0\" data-label=\"Jason\">The GPT for engine and build it in your own apps or your own website but 1.2 billion consumers a month,\u00a0<\/span><span title=\"14:32 - 14:39\" data-start=\"00:14:32.103\" data-end=\"00:14:38.875\" data-spk=\"0\" data-label=\"Jason\">are going to chat. Open a i.com so that\u2019s now a destination on the web that\u2019s bigger than Bing.<\/span><\/p>\n<p><small>[14:40]<\/small>\u00a0<span title=\"14:40 - 14:47\" data-start=\"00:14:39.524\" data-end=\"00:14:47.023\" data-spk=\"0\" data-label=\"Jason\">Like move more people last month went to their website opening eyes website then went to Bing and that\u2019s a,\u00a0<\/span><span title=\"14:47 - 15:00\" data-start=\"00:14:47.180\" data-end=\"00:15:00.183\" data-spk=\"0\" data-label=\"Jason\">Game Changer I get it\u2019s feels like a huge missed opportunity side note that there\u2019s not ads on that website yet I\u2019m sure I\u2019m sure that that that is coming in Italy but so there are all these like super interesting changes.<\/span><br \/><span title=\"15:01 - 15:10\" data-start=\"00:15:00.724\" data-end=\"00:15:09.653\" data-spk=\"0\" data-label=\"Jason\">I kind of feel like even if all that wasn\u2019t playing out like just the the fact that AWS is decelerating a little bit.<\/span><\/p>\n<p><small>[15:10]<\/small>\u00a0<span title=\"15:10 - 15:24\" data-start=\"00:15:10.453\" data-end=\"00:15:24.249\" data-spk=\"0\" data-label=\"Jason\">Would be the news from this earning thing and it\u2019s what everyone\u2019s talking about and it\u2019s almost a shame because it\u2019s kind of masking what otherwise like is a pretty remarkable quarter compared to like what most of their peers are likely to do.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[15:25]<\/small>\u00a0<span title=\"15:25 - 15:30\" data-start=\"00:15:24.760\" data-end=\"00:15:29.705\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah walk us through some of the highlights that you saw in the non aw site.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[15:30]<\/small>\u00a0<span title=\"15:30 - 15:44\" data-start=\"00:15:30.103\" data-end=\"00:15:44.301\" data-spk=\"0\" data-label=\"Jason\">Well so the first thing if you look at North American gmv it grew 13% in q1 so that that is a deceleration from,\u00a0<\/span><span title=\"15:44 - 15:48\" data-start=\"00:15:44.452\" data-end=\"00:15:48.231\" data-spk=\"0\" data-label=\"Jason\">their Q4 growth but like to put that in comparison.<\/span><br \/><span title=\"15:49 - 15:58\" data-start=\"00:15:48.556\" data-end=\"00:15:58.116\" data-spk=\"0\" data-label=\"Jason\">Us retail sales grew four percent in the first quarter so so you know this is kind of back to pre-pandemic levels where Amazon\u2019s growing.<\/span><br \/><span title=\"15:58 - 16:08\" data-start=\"00:15:58.495\" data-end=\"00:16:07.533\" data-spk=\"0\" data-label=\"Jason\">Despite being you know the largest or second largest retailer in the US depending on how you count growing quite a bit of water faster than the industry,\u00a0<\/span><span title=\"16:08 - 16:15\" data-start=\"00:16:07.731\" data-end=\"00:16:14.737\" data-spk=\"0\" data-label=\"Jason\">you don\u2019t normally we would we compare Amazon\u2019s growth to all retailers growth but also to all of e-commerce has growth,\u00a0<\/span><span title=\"16:15 - 16:24\" data-start=\"00:16:14.924\" data-end=\"00:16:24.436\" data-spk=\"0\" data-label=\"Jason\">so the US Department of Commerce comes out with their Q2 growth numbers in a couple weeks so May 18th I think if you want to mark your calendars will do a show and talk about that but.<\/span><br \/><span title=\"16:25 - 16:30\" data-start=\"00:16:24.659\" data-end=\"00:16:30.000\" data-spk=\"0\" data-label=\"Jason\">Just kind of interpreting the data and extrapolating.<\/span><\/p>\n<p><small>[16:31]<\/small>\u00a0<span title=\"16:31 - 16:37\" data-start=\"00:16:30.572\" data-end=\"00:16:37.019\" data-spk=\"0\" data-label=\"Jason\">U.s. e-commerce and q1\u2019s likely to grow about 10% which is kind of a recovery for e-commerce but still,\u00a0<\/span><span title=\"16:37 - 16:44\" data-start=\"00:16:37.224\" data-end=\"00:16:44.182\" data-spk=\"0\" data-label=\"Jason\">that means Amazon the largest e-commerce player out there is growing faster than the industry as a whole which is.<\/span><br \/><span title=\"16:44 - 16:51\" data-start=\"00:16:44.459\" data-end=\"00:16:51.309\" data-spk=\"0\" data-label=\"Jason\">You know typical for Amazon but you know not very typical in the rest of the world so the retail story was,\u00a0<\/span><span title=\"16:51 - 17:00\" data-start=\"00:16:51.471\" data-end=\"00:16:59.793\" data-spk=\"0\" data-label=\"Jason\">was really strong and it was driven almost exclusively by your favorite part of the retail Echo System the marketplace right it was almost all.<\/span><\/p>\n<p><small>[17:00]<\/small>\u00a0<span title=\"17:00 - 17:07\" data-start=\"00:17:00.052\" data-end=\"00:17:06.500\" data-spk=\"0\" data-label=\"Jason\">3p sales which I want to say grew 16 percent.<\/span><br \/><span title=\"17:07 - 17:16\" data-start=\"00:17:06.728\" data-end=\"00:17:15.940\" data-spk=\"0\" data-label=\"Jason\">Or fifteen percent for the quarter so so 3p continues to be a super important part,\u00a0<\/span><span title=\"17:16 - 17:24\" data-start=\"00:17:16.127\" data-end=\"00:17:24.166\" data-spk=\"0\" data-label=\"Jason\">and you know I always like to talk about the ad business ads were up 21% which is a,\u00a0<\/span><span title=\"17:24 - 17:32\" data-start=\"00:17:24.347\" data-end=\"00:17:31.906\" data-spk=\"0\" data-label=\"Jason\">a deceleration of the ads business as well just like AWS but a couple interesting things,\u00a0<\/span><span title=\"17:32 - 17:35\" data-start=\"00:17:32.087\" data-end=\"00:17:35.181\" data-spk=\"0\" data-label=\"Jason\">there\u2019s a ton of headwinds,\u00a0<\/span><span title=\"17:35 - 17:47\" data-start=\"00:17:35.271\" data-end=\"00:17:47.049\" data-spk=\"0\" data-label=\"Jason\">for traditional dip digital ads right now as the economy is getting a little more challenging you know a lot of brands are cutting back on their spinned because the privacy issues they\u2019re cutting back on a lot of the traditional digital channels,\u00a0<\/span><span title=\"17:47 - 17:55\" data-start=\"00:17:47.205\" data-end=\"00:17:54.542\" data-spk=\"0\" data-label=\"Jason\">um so you look at like metas ad business in q1 it grew three percent Google\u2019s ad business grew to percent.<\/span><\/p>\n<p><small>[17:55]<\/small>\u00a0<span title=\"17:55 - 18:00\" data-start=\"00:17:54.771\" data-end=\"00:18:00.227\" data-spk=\"0\" data-label=\"Jason\">Pinterest was the leader of those kind of traditional platforms their ad business grew five percent,\u00a0<\/span><span title=\"18:00 - 18:13\" data-start=\"00:18:00.359\" data-end=\"00:18:12.569\" data-spk=\"0\" data-label=\"Jason\">and Amazon which is has a bigger ad business than Pinterest Amazon grew 21% so that that growth you know continues to be remarkable,\u00a0<\/span><span title=\"18:13 - 18:18\" data-start=\"00:18:12.702\" data-end=\"00:18:18.002\" data-spk=\"0\" data-label=\"Jason\">um I did a quick back of the napkin estimate and I,\u00a0<\/span><span title=\"18:18 - 18:30\" data-start=\"00:18:18.158\" data-end=\"00:18:29.749\" data-spk=\"0\" data-label=\"Jason\">I know AWS generated about 5 billion dollars in earn income for the quarter the ad unit probably generated 7.1 billion dollars in earning come for the quarter so quite a bit more,\u00a0<\/span><span title=\"18:30 - 18:36\" data-start=\"00:18:29.900\" data-end=\"00:18:36.101\" data-spk=\"0\" data-label=\"Jason\">profit to the bottom line coming from that ad business then coming from from AWS,\u00a0<\/span><span title=\"18:36 - 18:43\" data-start=\"00:18:36.294\" data-end=\"00:18:42.549\" data-spk=\"0\" data-label=\"Jason\">and then you know Amazon you know as they always do they kind of pepper and some favorable stats so they talked about how.<\/span><br \/><span title=\"18:43 - 18:53\" data-start=\"00:18:42.765\" data-end=\"00:18:52.674\" data-spk=\"0\" data-label=\"Jason\">They they had 26 million customers for same-day delivery in q1 which is fifty percent growth year over year so you know you.<\/span><br \/><span title=\"18:53 - 18:58\" data-start=\"00:18:52.909\" data-end=\"00:18:57.679\" data-spk=\"0\" data-label=\"Jason\">You kind of you\u2019ve seen a lot of other retailers that as the economy has gotten kind of tough they\u2019ve kind of.<\/span><\/p>\n<p><small>[18:58]<\/small>\u00a0<span title=\"18:58 - 19:12\" data-start=\"00:18:57.962\" data-end=\"00:19:11.741\" data-spk=\"0\" data-label=\"Jason\">Ratcheted back their service level a little bit like you\u2019re seeing a lot of people starting to charge more for returns you\u2019re starting to see delivery promises get stretched out a little bit and you know Amazon is kind of.<\/span><br \/><span title=\"19:12 - 19:17\" data-start=\"00:19:11.969\" data-end=\"00:19:17.497\" data-spk=\"0\" data-label=\"Jason\">Adjusting their returns policy as well but like they\u2019re they\u2019re all in on that fast same day delivery.<\/span><br \/><span title=\"19:18 - 19:23\" data-start=\"00:19:17.738\" data-end=\"00:19:22.761\" data-spk=\"0\" data-label=\"Jason\">And it seems like consumers are continuing to embrace that.<\/span><br \/><span title=\"19:23 - 19:35\" data-start=\"00:19:23.044\" data-end=\"00:19:34.773\" data-spk=\"0\" data-label=\"Jason\">Um there\u2019s this kind of big strategic shift that they talked about Scott that I know you\u2019ve been falling which is kind of the shift from a national fulfillment model to a regional fulfillment model.<\/span><br \/><span title=\"19:35 - 19:50\" data-start=\"00:19:35.056\" data-end=\"00:19:49.760\" data-spk=\"0\" data-label=\"Jason\">And this is all about getting more efficiency so the idea is you know in the old model you placed an order and you know they ship from whatever Warehouse fulfillment center had the goods in stock so often that.<\/span><br \/><span title=\"19:50 - 19:52\" data-start=\"00:19:50.007\" data-end=\"00:19:52.434\" data-spk=\"0\" data-label=\"Jason\">Are shipping things from pretty far away,\u00a0<\/span><span title=\"19:53 - 20:06\" data-start=\"00:19:52.573\" data-end=\"00:20:05.900\" data-spk=\"0\" data-label=\"Jason\">and mold you know in a you know your your multicart order could have Goods coming from a lot of different fulfillment centers and you know this quarter the focus is really on redesigning the whole fulfillment center to optimize.<\/span><\/p>\n<p><small>[20:06]<\/small>\u00a0<span title=\"20:06 - 20:10\" data-start=\"00:20:06.466\" data-end=\"00:20:09.596\" data-spk=\"0\" data-label=\"Jason\">How many trips they have to make to your house and how many,\u00a0<\/span><span title=\"20:10 - 20:22\" data-start=\"00:20:09.777\" data-end=\"00:20:21.692\" data-spk=\"0\" data-label=\"Jason\">how much of the goods can all come from the same fulfillment center so there\u2019s a laser focus on kind of getting the inventory in each fulfillment center right for the market that it\u2019s serving,\u00a0<\/span><span title=\"20:22 - 20:33\" data-start=\"00:20:21.867\" data-end=\"00:20:32.785\" data-spk=\"0\" data-label=\"Jason\">um and the you know in their investor call the CFO was talking about how like they\u2019re starting to they\u2019re already starting to unlock.<\/span><br \/><span title=\"20:33 - 20:48\" data-start=\"00:20:33.140\" data-end=\"00:20:48.006\" data-spk=\"0\" data-label=\"Jason\">Um significant improvements in their operating margins as a result of cutting down on the amount of trips in order to serve the same amount of gmv and they think there\u2019s a lot of Headroom to continue improving math if you\u2019ve been following that kind of,\u00a0<\/span><span title=\"20:48 - 20:57\" data-start=\"00:20:48.151\" data-end=\"00:20:56.869\" data-spk=\"0\" data-label=\"Jason\">Regional shift it almost feels like the Reinventing the you know kind of against innovators dilemma they\u2019re Reinventing their whole fulfillment model despite the fact that they have the.<\/span><br \/><span title=\"20:57 - 20:59\" data-start=\"00:20:57.236\" data-end=\"00:20:59.135\" data-spk=\"0\" data-label=\"Jason\">The world\u2019s largest fulfillment model.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[21:00]<\/small>\u00a0<span title=\"21:00 - 21:12\" data-start=\"00:20:59.598\" data-end=\"00:21:12.090\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah I think this is really interesting and in some ways maybe the go Puffs the world kind of showed him how to do this ironically enough and you know and this surge of same-day delivery I think they\u2019re having.<\/span><br \/><span title=\"21:13 - 21:21\" data-start=\"00:21:12.529\" data-end=\"00:21:21.182\" data-spk=\"1\" data-label=\"Scot\">I think you know in the early days the same day delivery I remember Sebastian going ham he was SVP saying\u00a0<\/span><span title=\"21:21 - 21:35\" data-start=\"00:21:21.050\" data-end=\"00:21:35.231\" data-spk=\"1\" data-label=\"Scot\">yes he was at our conference and he said something like we just put out there to see and we were surprised by how many people use it and then you know they had data that indicated this is like five years ago that it was addictive because\u00a0<\/span><span title=\"21:35 - 21:36\" data-start=\"00:21:35.093\" data-end=\"00:21:36.289\" data-spk=\"1\" data-label=\"Scot\">you.<\/span><\/p>\n<p><small>[21:37]<\/small>\u00a0<span title=\"21:37 - 21:46\" data-start=\"00:21:36.608\" data-end=\"00:21:46.246\" data-spk=\"1\" data-label=\"Scot\">We have forget which of us going this is your zero friction addiction so once you have one of these low-friction experiences you\u2019re like yeah yeah you know of course I would like it yeah,\u00a0<\/span><span title=\"21:46 - 21:59\" data-start=\"00:21:46.403\" data-end=\"00:21:59.388\" data-spk=\"1\" data-label=\"Scot\">I\u2019m running this morning all like it the same day but that\u2019s making them for deploying a lot more of the product to be able to satisfy that demand but they have the data to do it the key is it\u2019s a you know there\u2019s,\u00a0<\/span><span title=\"22:00 - 22:14\" data-start=\"00:21:59.532\" data-end=\"00:22:13.545\" data-spk=\"1\" data-label=\"Scot\">there\u2019s this you know something like 300 million skus out there in the cloud that you can buy a small portion of those percentage-wise large sales wise is in the network of FCS and then the system learned what to,\u00a0<\/span><span title=\"22:14 - 22:22\" data-start=\"00:22:13.582\" data-end=\"00:22:21.669\" data-spk=\"1\" data-label=\"Scot\">put at the edge near you and that same day thing there\u2019s a set of skus and it\u2019s probably down to 10,000 at that point,\u00a0<\/span><span title=\"22:22 - 22:32\" data-start=\"00:22:21.826\" data-end=\"00:22:31.554\" data-spk=\"1\" data-label=\"Scot\">that they know those are the most frequently Asked seemed a things it\u2019s going to be things like toilet replenishable toiletries,\u00a0<\/span><span title=\"22:32 - 22:43\" data-start=\"00:22:31.597\" data-end=\"00:22:42.863\" data-spk=\"1\" data-label=\"Scot\">dog food for me all those types personal items Healthcare Beauty and you know it\u2019s not the it\u2019s not the Xbox or something that can kind of weight\u00a0<\/span><span title=\"22:43 - 22:49\" data-start=\"00:22:42.780\" data-end=\"00:22:48.506\" data-spk=\"1\" data-label=\"Scot\">well I guess some of that could be but you know there\u2019s plenty of stuff people are happy to wait for so,\u00a0<\/span><span title=\"22:49 - 22:56\" data-start=\"00:22:48.602\" data-end=\"00:22:55.861\" data-spk=\"1\" data-label=\"Scot\">that that edge Network allows them to Ford deploy 5 to 10,000 excuse and get them to you really fast.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[22:56]<\/small>\u00a0<span title=\"22:56 - 23:00\" data-start=\"00:22:56.450\" data-end=\"00:23:00.205\" data-spk=\"0\" data-label=\"Jason\">Yeah and I think what\u2019s interesting is that it turns out that the.<\/span><br \/><span title=\"23:00 - 23:12\" data-start=\"00:23:00.440\" data-end=\"00:23:11.857\" data-spk=\"0\" data-label=\"Jason\">The those skews that are needed for same-day delivery in Raleigh are not the same as the skills that are needed in Chicago and AI is really helping them sort of optimize.<\/span><br \/><span title=\"23:12 - 23:26\" data-start=\"00:23:12.218\" data-end=\"00:23:25.792\" data-spk=\"0\" data-label=\"Jason\">Those fulfillment centers and the numbers are actually a little bigger than your you\u2019re saying there are now like 300,000 same day skus in the system and in some markets there they have over 100,000 skus available for same-day so it y you know there.<\/span><\/p>\n<p><small>[23:26]<\/small>\u00a0<span title=\"23:26 - 23:31\" data-start=\"00:23:26.201\" data-end=\"00:23:31.363\" data-spk=\"0\" data-label=\"Jason\">They\u2019re kind of expanding from the head in skews to you know at least the chunky middle scuze.<\/span><br \/><span title=\"23:32 - 23:37\" data-start=\"00:23:31.621\" data-end=\"00:23:36.644\" data-spk=\"0\" data-label=\"Jason\">On that same day delivery and it and it seems like that\u2019s continuing to work for them.<\/span><br \/><span title=\"23:37 - 23:46\" data-start=\"00:23:36.975\" data-end=\"00:23:46.361\" data-spk=\"0\" data-label=\"Jason\">I just think it\u2019s you know again a lot of people that had you know the huge infrastructure lead the Amazon had him fulfillment centers you know would.<\/span><br \/><span title=\"23:47 - 23:59\" data-start=\"00:23:46.686\" data-end=\"00:23:58.854\" data-spk=\"0\" data-label=\"Jason\">But I find it hard to disrupt that model and pivot to a new model and it seems like you know Tim zones credit they\u2019re they\u2019re not afraid to disrupt themselves and it feels like that\u2019s kind of what they\u2019re doing here.<\/span><br \/><span title=\"23:59 - 24:05\" data-start=\"00:23:59.077\" data-end=\"00:24:04.845\" data-spk=\"0\" data-label=\"Jason\">And it seems like it least pull narrowly it\u2019s working you know they\u2019re also.<\/span><br \/><span title=\"24:05 - 24:18\" data-start=\"00:24:05.080\" data-end=\"00:24:18.396\" data-spk=\"0\" data-label=\"Jason\">Over the covid time there have been some capacity constraints and they rolled out a lot of technology to help help third-party sellers better manage their own.<\/span><br \/><span title=\"24:19 - 24:28\" data-start=\"00:24:18.624\" data-end=\"00:24:27.541\" data-spk=\"0\" data-label=\"Jason\">Capacity and you know I\u2019m hearing from third-party sellers that that is going better that they have you know are better able.<\/span><\/p>\n<p><small>[24:29]<\/small>\u00a0<span title=\"24:29 - 24:40\" data-start=\"00:24:29.314\" data-end=\"00:24:40.497\" data-spk=\"0\" data-label=\"Jason\">Predict the cost and the capacity that will be available for them and they\u2019re not getting as many unpleasant surprises as they as they kind of had had in the past of that that stuff is all interesting,\u00a0<\/span><span title=\"24:41 - 24:45\" data-start=\"00:24:40.672\" data-end=\"00:24:44.673\" data-spk=\"0\" data-label=\"Jason\">I also think Amazon\u2019s big enough that they\u2019re they\u2019re you know kind of a.<\/span><br \/><span title=\"24:45 - 24:57\" data-start=\"00:24:44.962\" data-end=\"00:24:57.022\" data-spk=\"0\" data-label=\"Jason\">A good surrogate for for the actual consumer economies at this point and so is interesting you know they talked about the Americans can consumer and you know the North America was where a lot of Amazon\u2019s growth was.<\/span><br \/><span title=\"24:57 - 24:58\" data-start=\"00:24:57.293\" data-end=\"00:24:58.073\" data-spk=\"0\" data-label=\"Jason\">Um\u00a0<\/span><span title=\"24:58 - 25:10\" data-start=\"00:24:58.290\" data-end=\"00:25:09.755\" data-spk=\"0\" data-label=\"Jason\">They they had a statement that they\u2019re continuing to see the US consumer is being conscious that she\u2019s definitely moderated her spending on discretionary categories,\u00a0<\/span><span title=\"25:10 - 25:15\" data-start=\"00:25:09.894\" data-end=\"00:25:15.253\" data-spk=\"0\" data-label=\"Jason\">she\u2019s trading down to more value oriented eizan\u2019s.<\/span><\/p>\n<p><small>[25:16]<\/small>\u00a0<span title=\"25:16 - 25:30\" data-start=\"00:25:15.747\" data-end=\"00:25:30.492\" data-spk=\"0\" data-label=\"Jason\">You know there continues to be healthy demand for Staples and you know I think we heard similar things from other big retailers like Wal-Mart and Target so that kind of felt in line but what was interesting was Europe.<\/span><br \/><span title=\"25:31 - 25:44\" data-start=\"00:25:30.739\" data-end=\"00:25:44.301\" data-spk=\"0\" data-label=\"Jason\">The growth is much slower but it was a significantly higher beat versus expectations than North America was and they had kind of an interesting editorial on Europe they said that,\u00a0<\/span><span title=\"25:44 - 25:48\" data-start=\"00:25:44.488\" data-end=\"00:25:48.165\" data-spk=\"0\" data-label=\"Jason\">European demand while cautious came in better than expected,\u00a0<\/span><span title=\"25:48 - 26:02\" data-start=\"00:25:48.334\" data-end=\"00:26:01.896\" data-spk=\"0\" data-label=\"Jason\">we see customer confidence increasing with inflation tickling down in the EU and that\u2019s kind of at odds with a bunch of other retailers that that are competing in Europe that are still you know kind of talking about,\u00a0<\/span><span title=\"26:02 - 26:14\" data-start=\"00:26:02.082\" data-end=\"00:26:14.359\" data-spk=\"0\" data-label=\"Jason\">the consumer Demand Being really repressed in Europe and the European consumer really struggling due to even higher inflation then then what consumers are experiencing here in North America so,\u00a0<\/span><span title=\"26:15 - 26:21\" data-start=\"00:26:14.557\" data-end=\"00:26:21.287\" data-spk=\"0\" data-label=\"Jason\">um it either sounds like Amazon\u2019s having a better go of it than a lot of other retailers in Europe,\u00a0<\/span><span title=\"26:21 - 26:31\" data-start=\"00:26:21.468\" data-end=\"00:26:30.535\" data-spk=\"0\" data-label=\"Jason\">or Amazon is being the first one to sort of see the economy turning a little more favorable in Europe so.<\/span><br \/><span title=\"26:31 - 26:33\" data-start=\"00:26:30.752\" data-end=\"00:26:33.419\" data-spk=\"0\" data-label=\"Jason\">I kind of found that interesting.<\/span><\/p>\n<p><small>[26:42]<\/small>\u00a0<span title=\"26:42 - 26:45\" data-start=\"00:26:41.965\" data-end=\"00:26:44.728\" data-spk=\"0\" data-label=\"Jason\">Yeah well again you know the.<\/span><br \/><span title=\"26:45 - 26:54\" data-start=\"00:26:44.999\" data-end=\"00:26:54.181\" data-spk=\"0\" data-label=\"Jason\">Historically like Europe is smaller than North America for Amazon but it you know because it\u2019s smaller it was growing faster but you know there have been more.<\/span><br \/><span title=\"26:54 - 27:09\" data-start=\"00:26:54.433\" data-end=\"00:27:09.396\" data-spk=\"0\" data-label=\"Jason\">Challenges supply chain disruptions there\u2019s more uncertainty in a lot of the European economies and so you know it\u2019s like for global companies I\u2019m particularly brands that do business everywhere.<\/span><br \/><span title=\"27:10 - 27:18\" data-start=\"00:27:09.703\" data-end=\"00:27:18.037\" data-spk=\"0\" data-label=\"Jason\">Um that European softness has been a challenge the one outlier of all that is luxury so it does feel.<\/span><br \/><span title=\"27:18 - 27:29\" data-start=\"00:27:18.289\" data-end=\"00:27:28.697\" data-spk=\"0\" data-label=\"Jason\">Like kind of a bifurcated economy that like luxury can you know is actually kind of bounce back in Europe and is continuing to do pretty pretty well worldwide while.<\/span><br \/><span title=\"27:29 - 27:34\" data-start=\"00:27:29.316\" data-end=\"00:27:33.654\" data-spk=\"0\" data-label=\"Jason\">High inflation is hurting a lot more of the kind of staple Industries a lot more.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[27:35]<\/small>\u00a0<span title=\"27:35 - 27:43\" data-start=\"00:27:34.598\" data-end=\"00:27:42.962\" data-spk=\"1\" data-label=\"Scot\">Having Survived the Great Recession of 08 and 09 at Chow buzzer the weird thing about the data was the luxury segment accelerated\u00a0<\/span><span title=\"27:43 - 27:50\" data-start=\"00:27:42.909\" data-end=\"00:27:50.402\" data-spk=\"1\" data-label=\"Scot\">you have to have the the wealthy folks do find during economic downturns turns out.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[27:50]<\/small>\u00a0<span title=\"27:50 - 28:00\" data-start=\"00:27:50.420\" data-end=\"00:27:59.728\" data-spk=\"0\" data-label=\"Jason\">Yeah this was a weird one in that like that\u2019s for that was for sure true where the demand was shifted in unusual ways because often you have a lot of.<\/span><br \/><span title=\"28:00 - 28:05\" data-start=\"00:27:59.956\" data-end=\"00:28:04.847\" data-spk=\"0\" data-label=\"Jason\">Really wealthy consumers are also tend to be really mobile consumer so you have,\u00a0<\/span><span title=\"28:05 - 28:13\" data-start=\"00:28:05.046\" data-end=\"00:28:13.476\" data-spk=\"0\" data-label=\"Jason\">historical you\u2019d have a lot of really wealthy people from China that would go to France and buy a lot of luxury goods and in covid of course nobody was going anywhere so there was this huge,\u00a0<\/span><span title=\"28:14 - 28:28\" data-start=\"00:28:13.549\" data-end=\"00:28:27.646\" data-spk=\"0\" data-label=\"Jason\">spike in luxury goods in China so like the overall worldwide demand for luxury was very high but there were these weird mismatches where the demand was not coming from the markets that it typically came from and now it feels like it\u2019s.<\/span><br \/><span title=\"28:29 - 28:33\" data-start=\"00:28:28.554\" data-end=\"00:28:33.414\" data-spk=\"0\" data-label=\"Jason\">Reverting more it\u2019s starting to revert to more traditional.<\/span><\/p>\n<p><small>[28:37]<\/small>\u00a0<span title=\"28:37 - 28:41\" data-start=\"00:28:36.768\" data-end=\"00:28:40.607\" data-spk=\"0\" data-label=\"Jason\">So there was a another interesting earnings call this morning.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[28:41]<\/small>\u00a0<span title=\"28:41 - 28:49\" data-start=\"00:28:41.161\" data-end=\"00:28:49.092\" data-spk=\"1\" data-label=\"Scot\">Yeah so Shopify came out with their earnings and they\u2019ve had just kind of set the stage.<\/span><br \/><span title=\"28:49 - 28:57\" data-start=\"00:28:49.489\" data-end=\"00:28:57.174\" data-spk=\"1\" data-label=\"Scot\">In the during covid they were Off to the Races and they\u2019ve had a really hard time in the last year kind of in that\u00a0<\/span><span title=\"28:57 - 29:07\" data-start=\"00:28:57.085\" data-end=\"00:29:06.993\" data-spk=\"1\" data-label=\"Scot\">post covid era as they invested so much and then covid the e-commerce growth reverted to the mean as you\u2019ve been,\u00a0<\/span><span title=\"29:07 - 29:20\" data-start=\"00:29:07.012\" data-end=\"00:29:19.546\" data-spk=\"1\" data-label=\"Scot\">so good at pointing out and they thought it would just continue up into the right and so they did about a ten percent reduction in force I think is a year ago maybe a little longer,\u00a0<\/span><span title=\"29:21 - 29:34\" data-start=\"00:29:20.610\" data-end=\"00:29:34.449\" data-spk=\"1\" data-label=\"Scot\">and so then this morning they came out and they beat Lowered Expectations to put this in perspective of their growth has slowed to 25% and they were consistently growing well north of 50% so they\u2019re they\u2019re definitely,\u00a0<\/span><span title=\"29:35 - 29:39\" data-start=\"00:29:34.605\" data-end=\"00:29:39.484\" data-spk=\"1\" data-label=\"Scot\">this was good for a while there were kind of Contracting but now at least they\u2019re back to growth they are losing money but\u00a0<\/span><span title=\"29:39 - 29:51\" data-start=\"00:29:39.461\" data-end=\"00:29:51.244\" data-spk=\"1\" data-label=\"Scot\">they should get back to profitability here in a quarter or two but the big surprise was you know if you recall they were going to take on Amazon and they started really building out some fulfillment\u00a0<\/span><span title=\"29:51 - 30:00\" data-start=\"00:29:51.172\" data-end=\"00:30:00.137\" data-spk=\"1\" data-label=\"Scot\">and they bought a couple companies to do that and started building out this whole infrastructure called Shopify fulfillment Network or sfm.<\/span><\/p>\n<p><small>[30:00]<\/small>\u00a0<span title=\"30:00 - 30:06\" data-start=\"00:30:00.312\" data-end=\"00:30:05.810\" data-spk=\"1\" data-label=\"Scot\">So they announced on the call today that they\u2019re just basically abandoning that whole strategy and\u00a0<\/span><span title=\"30:06 - 30:19\" data-start=\"00:30:05.690\" data-end=\"00:30:19.457\" data-spk=\"1\" data-label=\"Scot\">the assets they previously bought an aggregate for over two billion dollars they sold to a company called Flex port for a billion so that had to hurt so basically a billion dollar loss on the strategy\u00a0<\/span><span title=\"30:19 - 30:26\" data-start=\"00:30:19.319\" data-end=\"00:30:25.808\" data-spk=\"1\" data-label=\"Scot\">and they basically said you know the future is AI and that\u2019s where we\u2019re going to put our effort,\u00a0<\/span><span title=\"30:26 - 30:36\" data-start=\"00:30:26.007\" data-end=\"00:30:36.252\" data-spk=\"1\" data-label=\"Scot\">and then when they sell this unit there also some people go with that but they\u2019re also announced they\u2019re doing at 23% that would include some of those people it\u2019s not it\u2019s not entirely clear.<\/span><\/p>\n<p><small>[30:36]<\/small>\u00a0<span title=\"30:36 - 30:45\" data-start=\"00:30:36.469\" data-end=\"00:30:44.550\" data-spk=\"1\" data-label=\"Scot\">How many will be core Shopify versus the people leaving with the sfn I think it\u2019s.<\/span><br \/><span title=\"30:45 - 30:49\" data-start=\"00:30:44.893\" data-end=\"00:30:48.600\" data-spk=\"1\" data-label=\"Scot\">Relatively small you know I don\u2019t think that\u2019s happened was like this huge.<\/span><br \/><span title=\"30:49 - 31:01\" data-start=\"00:30:49.022\" data-end=\"00:31:00.751\" data-spk=\"1\" data-label=\"Scot\">People operation like you have an Amazon anyway so they\u2019re going to reduce headcount by 11,000 people 29k so from 11,000 29k,\u00a0<\/span><span title=\"31:01 - 31:06\" data-start=\"00:31:00.853\" data-end=\"00:31:05.552\" data-spk=\"1\" data-label=\"Scot\">so about 23% reduction these things are always kind of.<\/span><\/p>\n<p><small>[31:06]<\/small>\u00a0<span title=\"31:06 - 31:15\" data-start=\"00:31:06.472\" data-end=\"00:31:15.185\" data-spk=\"1\" data-label=\"Scot\">Little tricky emotionally because you feel for those people that are losing their jobs and found out this morning that\u2019s going to be no fun,\u00a0<\/span><span title=\"31:15 - 31:20\" data-start=\"00:31:15.311\" data-end=\"00:31:19.547\" data-spk=\"1\" data-label=\"Scot\">but then Wall Street loves a good reduction for us because that means more profits oh,\u00a0<\/span><span title=\"31:20 - 31:32\" data-start=\"00:31:19.614\" data-end=\"00:31:31.649\" data-spk=\"1\" data-label=\"Scot\">the stock this is a huge win for the stock because Wall Street has hated hated hated this idea if you take this super high margin software business and you layer in a super low margin fulfillment business,\u00a0<\/span><span title=\"31:32 - 31:35\" data-start=\"00:31:31.764\" data-end=\"00:31:35.399\" data-spk=\"1\" data-label=\"Scot\">so you know Wall Street this is part of the innovators dilemma,\u00a0<\/span><span title=\"31:35 - 31:47\" data-start=\"00:31:35.460\" data-end=\"00:31:46.997\" data-spk=\"1\" data-label=\"Scot\">once you\u2019ve baked your margins in at 85% or whatever you can\u2019t then go to Wall Street and say we\u2019re going to bring that down 15% 270 because we\u2019re going to be fulfillment and that\u2019s a,\u00a0<\/span><span title=\"31:47 - 31:54\" data-start=\"00:31:47.033\" data-end=\"00:31:53.865\" data-spk=\"1\" data-label=\"Scot\">yeah 30% margin business your blend that in with our 85 you get us to 70 or whatever it is,\u00a0<\/span><span title=\"31:54 - 31:58\" data-start=\"00:31:53.950\" data-end=\"00:31:58.450\" data-spk=\"1\" data-label=\"Scot\">so so Wall Street was very happy to see them abandoned us,\u00a0<\/span><span title=\"31:59 - 32:08\" data-start=\"00:31:58.589\" data-end=\"00:32:07.998\" data-spk=\"1\" data-label=\"Scot\">it does raise the question one of the reasons they got in this is you and I talked a lot about Shopify versus Amazon and you know the same time.<\/span><br \/><span title=\"32:08 - 32:13\" data-start=\"00:32:08.227\" data-end=\"00:32:13.425\" data-spk=\"1\" data-label=\"Scot\">Amazon is raising the bar on e-commerce we just talked about this two same day,\u00a0<\/span><span title=\"32:14 - 32:22\" data-start=\"00:32:13.641\" data-end=\"00:32:22.462\" data-spk=\"1\" data-label=\"Scot\">Shopify was going to arm the rebels so that they could at least keep up with two day now they\u2019re abandoning that you know there\u2019s gonna continue to be,\u00a0<\/span><span title=\"32:23 - 32:29\" data-start=\"00:32:22.577\" data-end=\"00:32:28.531\" data-spk=\"1\" data-label=\"Scot\">yeah this could be a big moment in history where Shopify messes up and you know.<\/span><\/p>\n<p><small>[32:29]<\/small>\u00a0<span title=\"32:29 - 32:41\" data-start=\"00:32:28.820\" data-end=\"00:32:41.144\" data-spk=\"1\" data-label=\"Scot\">What\u2019s a I going to solve if you have this great product recommendation or something that doesn\u2019t show up for five days in Amazon eats the Shopify Merchants lunch because they just are better at Logistics\u00a0<\/span><span title=\"32:41 - 32:48\" data-start=\"00:32:41.133\" data-end=\"00:32:48.463\" data-spk=\"1\" data-label=\"Scot\">so this is this is a big decision throwing in the towel and it\u2019s going to be interesting to see,\u00a0<\/span><span title=\"32:48 - 32:56\" data-start=\"00:32:48.482\" data-end=\"00:32:55.897\" data-spk=\"1\" data-label=\"Scot\">if this is wise or not I obviously lean towards I don\u2019t think this is going to be a great in decision for him.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[32:57]<\/small>\u00a0<span title=\"32:57 - 32:59\" data-start=\"00:32:56.636\" data-end=\"00:32:59.388\" data-spk=\"0\" data-label=\"Jason\">Yeah it is tricky.<\/span><br \/><span title=\"33:00 - 33:14\" data-start=\"00:32:59.731\" data-end=\"00:33:13.539\" data-spk=\"0\" data-label=\"Jason\">The you know I would also mention there\u2019s this so I you know scary service from Amazon looming on the Shopify Horizon that it\u2019s not clear Shopify his really declared what they want they\u2019re going to do with yet which is the.<\/span><br \/><span title=\"33:14 - 33:25\" data-start=\"00:33:13.798\" data-end=\"00:33:24.848\" data-spk=\"0\" data-label=\"Jason\">The by with prime service which is you know in in effect to use that really solid Amazon Fulfillment Network even when you sell stuff on Shopify.<\/span><br \/><span title=\"33:25 - 33:35\" data-start=\"00:33:25.095\" data-end=\"00:33:34.956\" data-spk=\"0\" data-label=\"Jason\">And so you know maybe they\u2019re they\u2019re dumping on the Shopify fulfillment Network stuff in there just gonna see the Fulfillment Amazon we\u2019ll have to see.<\/span><br \/><span title=\"33:35 - 33:45\" data-start=\"00:33:35.263\" data-end=\"00:33:44.925\" data-spk=\"0\" data-label=\"Jason\">Um I do I\u2019ve decided to correct one thing you said like Shopify is huge on talking about e-commerce regress to the mean.<\/span><br \/><span title=\"33:45 - 33:57\" data-start=\"00:33:45.436\" data-end=\"00:33:56.534\" data-spk=\"0\" data-label=\"Jason\">That\u2019s actually not true right get when they talk about that they\u2019re talking about the ratio of e-commerce sales to retail sales and it\u2019s partly true for that.<\/span><br \/><span title=\"33:57 - 34:06\" data-start=\"00:33:56.835\" data-end=\"00:34:06.016\" data-spk=\"0\" data-label=\"Jason\">That you know we kind of went from 14 or 15 percent of all sales being online to 17 or 18 percent and we bounced back down to 15%.<\/span><br \/><span title=\"34:06 - 34:18\" data-start=\"00:34:06.245\" data-end=\"00:34:18.149\" data-spk=\"0\" data-label=\"Jason\">Um you know that that shape varied while we you know depending on the category so image digitally immature categories like Grocery and Automotive had kind of a permanent Spike whereas,\u00a0<\/span><span title=\"34:18 - 34:22\" data-start=\"00:34:18.299\" data-end=\"00:34:21.959\" data-spk=\"0\" data-label=\"Jason\">like apparel you know had kind of a temporary bump.<\/span><\/p>\n<p><small>[34:23]<\/small>\u00a0<span title=\"34:23 - 34:34\" data-start=\"00:34:22.518\" data-end=\"00:34:33.604\" data-spk=\"0\" data-label=\"Jason\">In absolute dollars e-commerce is way bigger than before the pandemic e-commerce is 90% up from from 2019 and so when when they kind of use that.<\/span><br \/><span title=\"34:34 - 34:40\" data-start=\"00:34:34.079\" data-end=\"00:34:39.589\" data-spk=\"0\" data-label=\"Jason\">As an excuse for the layoffs I would say like don\u2019t buy it right like that.<\/span><\/p>\n<p><small>[34:41]<\/small>\u00a0<span title=\"34:41 - 34:55\" data-start=\"00:34:40.713\" data-end=\"00:34:55.465\" data-spk=\"0\" data-label=\"Jason\">There\u2019s a lot more demand for digital Goods than there were in 2019 and Shopify isn\u2019t laying people off because that demand has receded like throwing people off because they haven\u2019t perfectly figured out what the right business model is and from my standpoint.<\/span><br \/><span title=\"34:56 - 35:09\" data-start=\"00:34:55.796\" data-end=\"00:35:09.172\" data-spk=\"0\" data-label=\"Jason\">They\u2019re still a little dyslexic on who they\u2019re even trying to serve they still have all this language around you know serving the small Independent Business the mom-and-pop and arming the rebels and all that but like you know when you listen all the success stories in their earnings calls.<\/span><br \/><span title=\"35:10 - 35:20\" data-start=\"00:35:09.587\" data-end=\"00:35:19.574\" data-spk=\"0\" data-label=\"Jason\">It\u2019s it\u2019s Staples it\u2019s why it\u2019s it\u2019s you know it\u2019s it\u2019s bigger or midsize specialty retailers that are moving to the platform,\u00a0<\/span><span title=\"35:20 - 35:21\" data-start=\"00:35:19.700\" data-end=\"00:35:21.250\" data-spk=\"0\" data-label=\"Jason\">it\u2019s not the rebels I,\u00a0<\/span><span title=\"35:21 - 35:36\" data-start=\"00:35:21.407\" data-end=\"00:35:36.008\" data-spk=\"0\" data-label=\"Jason\">Kendall Jackson and Kendall Jenner and Staples are not the rebels and so I don\u2019t know like I think they like that that narrative but like I\u2019m not sure they\u2019ve come a perfectly aligned their product offering to the.<\/span><br \/><span title=\"35:36 - 35:45\" data-start=\"00:35:36.279\" data-end=\"00:35:44.998\" data-spk=\"0\" data-label=\"Jason\">The companies that are like driving the bulk of their gmv growth and when they you know do focus on the long tail Mom and Pops.<\/span><br \/><span title=\"35:45 - 35:54\" data-start=\"00:35:45.251\" data-end=\"00:35:53.837\" data-spk=\"0\" data-label=\"Jason\">It really makes that gmv number kind of office gated because there\u2019s so much churn over there right and they go or gmv went up 25%.<\/span><br \/><span title=\"35:54 - 36:07\" data-start=\"00:35:54.108\" data-end=\"00:36:06.619\" data-spk=\"0\" data-label=\"Jason\">Was that because like all your customers are thriving and they\u2019re all growing or is it because you just added way more companies that will have a nine-month mortality rate than you then you did the quarter before.<\/span><\/p>\n<p><small>[36:09]<\/small>\u00a0<span title=\"36:09 - 36:16\" data-start=\"00:36:08.884\" data-end=\"00:36:16.131\" data-spk=\"0\" data-label=\"Jason\">So I think it\u2019s like I definitely like there\u2019s a lot of strong,\u00a0<\/span><span title=\"36:16 - 36:23\" data-start=\"00:36:16.204\" data-end=\"00:36:22.567\" data-spk=\"0\" data-label=\"Jason\">sort of advantages and and experiences still in the Shopify ecosystem and.<\/span><br \/><span title=\"36:23 - 36:31\" data-start=\"00:36:22.807\" data-end=\"00:36:30.901\" data-spk=\"0\" data-label=\"Jason\">Feel like shot pay is getting some traction the shop app has got a lot more traction than I originally predicted and now there are some legitimate.<\/span><br \/><span title=\"36:31 - 36:38\" data-start=\"00:36:31.208\" data-end=\"00:36:38.274\" data-spk=\"0\" data-label=\"Jason\">Marketplace features in there there\u2019s a lots of things going for them I certainly would not write them off but I do think.<\/span><br \/><span title=\"36:39 - 36:45\" data-start=\"00:36:39.417\" data-end=\"00:36:45.161\" data-spk=\"0\" data-label=\"Jason\">Like in the next couple of quarters we need to see some more clarity about like what they want to be and where their growth is really going to come.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[36:46]<\/small>\u00a0<span title=\"36:46 - 36:56\" data-start=\"00:36:46.081\" data-end=\"00:36:56.284\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah it\u2019s going to be we\u2019ll be tracking it closely on the show as we have them so it\u2019s going to be interesting to see I don\u2019t think either of us had this in our predictions though sadly.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[36:57]<\/small>\u00a0<span title=\"36:57 - 37:09\" data-start=\"00:36:56.669\" data-end=\"00:37:08.843\" data-spk=\"0\" data-label=\"Jason\">Yeah no I mean I was definitely caught by I never thought this Acquisitions made sense but I certainly thought that you know they would hold on to him longer so I don\u2019t know I guess if you\u2019re an investor like.<\/span><br \/><span title=\"37:09 - 37:15\" data-start=\"00:37:09.083\" data-end=\"00:37:14.797\" data-spk=\"0\" data-label=\"Jason\">Like once you realize it was the wrong decision like there\u2019s probably something good about like cutting bait quickly instead of trying to.<\/span><br \/><span title=\"37:15 - 37:20\" data-start=\"00:37:15.369\" data-end=\"00:37:20.140\" data-spk=\"0\" data-label=\"Jason\">Drag it around drag it out longer just because you you don\u2019t want to own up to the mistake.<\/span><br \/><span title=\"37:22 - 37:36\" data-start=\"00:37:22.375\" data-end=\"00:37:35.523\" data-spk=\"0\" data-label=\"Jason\">So anyway that feels like a pretty good recap of the two big earnings there\u2019s a you know a bunch of the traditional retailers will be record reporting over the next four weeks and of course we\u2019ll have US Department of Commerce data,\u00a0<\/span><span title=\"37:36 - 37:38\" data-start=\"00:37:35.571\" data-end=\"00:37:37.554\" data-spk=\"0\" data-label=\"Jason\">including q1 e-commerce.<\/span><br \/><span title=\"37:38 - 37:46\" data-start=\"00:37:37.789\" data-end=\"00:37:46.141\" data-spk=\"0\" data-label=\"Jason\">Later this month so lots of reasons to have another new show and I still do think we got to get that.<\/span><br \/><span title=\"37:46 - 37:52\" data-start=\"00:37:46.364\" data-end=\"00:37:51.561\" data-spk=\"0\" data-label=\"Jason\">That large language Model A I show on the on the books.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[37:52]<\/small>\u00a0<span title=\"37:52 - 37:58\" data-start=\"00:37:51.988\" data-end=\"00:37:57.588\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah we will we\u2019re through our vacation period and we should have some time to lay that down\u00a0<\/span><span title=\"37:57 - 38:09\" data-start=\"00:37:57.420\" data-end=\"00:38:09.240\" data-spk=\"1\" data-label=\"Scot\">and Jason you\u2019ve got a keynote tomorrow and you got some slides to work on buddy so we\u2019re going to make this a short one in the pantheon of Jason and Scot show lengthy episodes.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[38:09]<\/small>\u00a0<span title=\"38:09 - 38:14\" data-start=\"00:38:09.042\" data-end=\"00:38:14.281\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah we\u2019ll give it a few minutes back to our listeners and I will go write a keynote for tomorrow.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[38:15]<\/small>\u00a0<span title=\"38:15 - 38:20\" data-start=\"00:38:14.648\" data-end=\"00:38:20.338\" data-spk=\"1\" data-label=\"Scot\">Awesome it\u2019s always good when you\u2019re up against deadlines so you\u2019re going to crush it.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[38:20]<\/small>\u00a0<span title=\"38:20 - 38:26\" data-start=\"00:38:20.345\" data-end=\"00:38:25.668\" data-spk=\"0\" data-label=\"Jason\">I feel like the one thing I have going for me is the present the content will be very Timely.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[38:26]<\/small>\u00a0<span title=\"38:26 - 38:30\" data-start=\"00:38:26.258\" data-end=\"00:38:30.013\" data-spk=\"1\" data-label=\"Scot\">Good yep fresh like.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[38:30]<\/small>\u00a0<span title=\"38:30 - 38:43\" data-start=\"00:38:29.713\" data-end=\"00:38:43.305\" data-spk=\"0\" data-label=\"Jason\">Awesome Scott thinks every very much everyone for listening as always enjoyed the show we sure would love it if you jump on iTunes and give us that five star review and until next time happy commercing!<\/span><\/p>\n<\/div>\n<p><p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weekly podcast with the latest e-commerce news and events. Episode 303 is an recap of Amazon and Shopify Q1 2023 earnings. Subscribe: ????? Amazon […]<\/p>\n","protected":false},"author":1,"featured_media":1121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-9365","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcasts"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/9365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=9365"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/9365\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/1121"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=9365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=9365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=9365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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