Unit 5 Article Review: E-Commerce

ARE THE NUMEROUS independent music retailers who list products on the Amazon marketplace, or make use of Fulfillment by Amazon services, at risk of having their accounts hacked?

According to an April 10 article in The Wall Street Journal, the answer is yes. The Journal reports that hackers are using credentials stolen from Amazon’s third-party sellers to post fake transac-

tions and steal cash. In addition, they have also hacked into the accounts of Amazon sellers who haven’t used them recently to post nonexistent merchan- dise for steep discounts in an attempt to pocket the cash. Juozas Kaziukėnas, chief executive of

Marketplace Pulse, a business-intelli- gence firm focused on e-commerce, tells reporters, “Hacking Amazon is becoming…increasingly a big deal. The value to be gained is bigger as Amazon grows.” According to the report, the fraud stems largely from email and password credentials stolen from previ- ously hacked accounts and then sold on what’s dubbed the “dark web,” a net- work of anonymous internet servers where hackers communicate and trade illicit information. Such hacks previous- ly have struck sites such as PayPal Inc. and eBay Inc., but Amazon recently has become a target of choice, according to cybersecurity experts. CJ Rosenbaum, a New York-based

lawyer who represents Amazon sellers, also told reporters that more than a

40 MUSIC TRADES May 2017

MAY 2017

RETAIL NEWS � HAPPENINGS � ANALYSIS � FROM THE FRONT LINES

SWEETWATER RECENTLY surpassed 100 million views on its YouTube channel, with subscribers to the channel now exceeding 137,000. The retailer launched its video effort in December of 2008, with a part-time videographer and a part-time producer. Today, housed in state-of-the art studios completed in 2016, and designed by esteemed acoustician Russ Berger, the video staff includes five videographers, a creative director, and three content providers. In 2017 the department will pro- duce approximately 900 videos. Sweetwater founder and President Chuck Surack said, “Our video efforts are

an extension of our long-held commitment to being the experts in all things audio, from musical instruments to pro-audio gear. It’s a vindication of our video strategy to reach such a huge milestone in only nine years.” Sweetwater’s videos fall into four general categories: product demos, “how-to” videos, case histories, and interviews with industry professionals—musicians, audio manufacturers, and pro-audio users of renown. Most Sweetwater videos are product demos and are embedded on the appropriate product pages at Sweetwater.com.

Sweetwater’s editorial director, Mitch Gallagher, has been the principal subject of Sweetwater’s videos from the begin- ning, providing the most informative inter- views and product demos in the industry. His videos are posted three times a week on Sweetwater’s YouTube and Facebook pages. Many Sweetwater product demos fea- ture vendor product specialists and clini- cians who visit weekly for Sweetwater’s training sessions for its sales engineers. The video team also provides real-time coverage of NAMM and AES confer- ences.

100 MILLION VIEW SWEETWATER VIDEOS

HACKERS THREATEN AMAZON THIRD-PARTY SELLERS

dozen of his clients have told him they were hacked, a number of whom lost about half of their monthly sales of $15,000 to $100,000. They are asking Amazon for their money back, he said. The Journal reports that the precise

scope and financial impact of the Amazon attacks is unclear. However, some sellers told the paper that the hacks have shaken their confidence in Amazon’s security measures. Third- party merchants are critical for Amazon’s retail business, with more than two million sellers on the site accounting for more than half of its sales, including more than 100,000 sell- ers who each now sell in excess of $100,000 annually.

TOP HONORS FOR COLLINS MUSIC

COLLINS MUSIC Center, with five locations west of Houston, Texas, has been voted “Best Music Store” by read- ers of the Victoria Advocate, a leading local newspaper. Readers cited the 57- year-old stores’ friendly sales staff and repair services. Fred Whisenhung, man- ager of the Victoria location, said, “We are the only store in the area that offers repairs, and we do a good job with that. We have a lot of musicians based here, and they know they can depend on our good technicians.”

STONE VINTAGE OPENS IN SACRAMENTO

BRENDAN STONE is opening a new music boutique in Sacramento, California, specializing in vintage and high-end gear. He says the 700-square- foot location will cater to the “gear- heads” who eschew digital effects for vacuum tubes and cherish fine, well- played guitars. Stone is modeling his new store on gui-

tar boutiques he has visited in Texas and Oregon. He says the idea for the vin- tage-focused retail business occurred to him when he was working at Skip’s Music, helping customers re-create the tones of classic Pink Floyd and Black Sabbath records. “I love the idea of an older crowd that’s reclaiming its youth, and the younger kids experiencing something that wasn’t tangible for

them,” said Stone. “It’s not their fault they were born in another generation. It’ll be a home away from home for musicians so they can hone their sound in a comfortable atmosphere.” In addition to a selection of used gear,

Stone plans to offer new products from small scale manufacturers, products that aren’t readily found online or in chain stores. The store boasts a full vintage vibe, with a couch that was built in Sacramento during the 1960s, an old school soda machine, a Rock-ola juke- box from the 1960s, and a classic candy machine that dispenses guitar picks.

NEW LOCATION FOR BRIAN’S GUITARS

SIX-YEAR-OLD Brian’s Guitars is set to move from Hamden to nearby Cheshire, Connecticut to occupy an expanded showroom. Owner Brian Giampietro said, “The new building is over double the space for our retail room, and we will

be able to offer lessons as well.” Efforts by the town of Cheshire to

upgrade its retail center prompted Giampietro to relocate his store, which will be adjacent to an arts center in the converted Ball & Socket factory. Brian’s Guitars specializes in high-end

guitars, stocking over 300 instruments.

RETAILER UPDATE

MUSIC TRADES May 2017 43

The exterior of the new Brian’s Guitars location in Cheshire, Connecticut.

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