Best Ways to Make Money in 2022: Online and Offline Ideas

Starting a side gig can be a great way to supplement your income. Whether you’re saving for a dream vacation, a down payment on a house, or you need extra money to make ends meet, there are many ways to make money online and offline to help.

1. Start a Freelance Gig

If you have a special skill, such as writing, editing, voice-over skills, web design, or social media marketing, you can start a freelance gig and start working right away. When you freelance, you decide what services you’ll offer and what you’ll charge.

You can market yourself on your own social media pages, or you can join sites like Fiverr or Upwork to promote your services and leverage their large audience.

2. Start a Blog

If you love writing and are knowledgeable about a certain topic, you can start a blog and monetize it. Blog writing doesn’t require special skills. You just need a good command of the English language, and to know how to write to your target audience.

Once you build up a large enough following, you can monetize your blog by adding affiliate links and writing sponsored posts. Affiliate links are links from stores or services that your audience would like and that you believe in. Every time a reader clicks on your link and makes a purchase, you earn a small commission.

Sponsored posts are blog posts you write but are paid for by the sponsoring company. They pay you to promote their product, but you should always provide your honest opinion.

3. Drive for Uber or Lyft

If you prefer a more physical job, you could download the Uber or Lyft app and drive people to their destination. You are still a freelancer with Uber or Lyft, paying your own taxes and setting your own schedule.

Once you’re approved, which means you passed the background check and your car meets their requirements, you can turn yourself to ‘available’ whenever you want to work. You also get to choose with rides you pick up based on their destination and the amount you’ll make.

4. Shop for Instacart or Shipt

If you love to shop, get paid to shop and spend other people’s money by working for Instacart or Shipt. You can work as a delivery driver, which means you shop for customers’ groceries based on the order they placed and deliver it to their homes.

You could also work in-store, picking the orders but bringing them out to the customers’ cars rather than delivering it to their home.

Both options allow you to set your own hours and work when you want, except if you work curbside pickup, you must pick a 4-hour window that you’ll work to claim a shift.

5. Deliver Food

If you don’t mind driving, but don’t want to shop, consider delivering food for UberEATS or DoorDash. Both services have apps that you download and set yourself to ‘available’ to pick up orders in the area.

You can pick up orders at one or severalrestaurants and deliver them to the customer’s home. You’ll earn a fee from the service plus tips you earn from customers.

6. Be a Virtual Assistant

A virtual assistant is like a receptionist, but you work at home. You could assist small businesses doing just about any task they need including:

Answering emails
Answering phones
Managing the social media account
Managing appointments and/or the calendar
Writing blog posts
Bookkeeping
Miscellaneous tasks

You decide what services you’ll offer as a virtual assistant and can advertise them on freelance marketplaces like Fiverr or advertise the services yourself.

7. Sell Photography or Homemade Items

If you’re crafty or have an eye for photography, sell your items online. You can open your own ‘shop’ on Etsy or advertise your goods on Facebook Marketplace or even eBay. If you sell only photography, you can list your stock photos on sites like Shutterstock.

The nice thing about stock photography is you only take the picture one time, but you can sell it as many times as you want as the buyer is responsible for printing the picture.

8. Rent out Unused Space in your Home

If you have space in your home that doesn’t get used, consider renting it out. If you have an extra room or maybe an entire finished basement to rent, you can list it on Airbnb. If you have extra garage space or a parking spot you don’t use, list it on Spacer.com.

You choose the rental rates and the terms of the agreement. The service you list your room or space with will take a small portion of the fee for administrative costs and you keep the rest.

9. Sign up for TaskRabbit

If you’re a ‘jack of all trades’ sign up for TaskRabbit and people will hire you for your services. You can advertise a large number of services including:

Cleaning
Handyman services
Moving
Delivery

TaskRabbit is an app that anyone can use to find people like you offering services. All payment goes through the app so you know you’ll get paid when the job is complete plus you get to advertise your services to TaskRabbit’s large audience.

10. Be a Social Media Manager

If you’re good with social media, consider working as a social media manager. Social media is important for every business, but not everyone has the time or knowledge on how to do it. You can charge high prices to manage a company’s social media, allowing you to have a creative outlet plus make money doing what you’re good at.

11. Teach English

If you’re a certified teacher, you can make extra money teaching English to kids abroad. VIPKid is a great place to get on with to make money tutoring online. You’ll work on China times, though, which means either working early morning or late at night so you can work around the student’s school times. VIPKid creates the lesson plans. All you have to do is show up and present the lesson at the required time.

Final Thoughts

It’s easy to make extra money both online and offline. You could even combine the two, taking on a couple of extra jobs and make yourself extra money. While these side gigs won’t pay your mortgage, the money can add up when you work a few of them, allowing you to reach your financial goals without having to take on another job and dealing with another boss.

When Will Bitcoin Hit $100,000? Maybe Sooner Than You Think!

Many experts are now growing more confident in their beliefs that Bitcoin will hit $100,000 sooner than people think. Many also strongly believe that it will hit that price point by the end of 2022. These claims are backed by technical and fundamental analysis.

News and Indications

The world of cryptocurrency has recently come about with some potentially bullish news. To start with, President Joe Biden has finally signed the cryptocurrency executive order in March of 2022. The markets had been waiting on this order for months to gauge its potential impact. As a result of this executive order, BTC jumped higher with the removal of uncertainty from the market, however it has recently suffered declines along with the broader market. However the issuance of this executive order did remove the overhang of some uncertainty that had potentially been holding back many crypto assets. Many experts say this executive order may spark other occurrences that help propel Bitcoin to greater heights.

Some analysts agree that the price of each bitcoin could go as high as a million dollars. Out of all of the catalysts that have got bitcoin so far, Walmart just may be the one that pushes it significantly higher. It is now hosting Bitcoin ATMs where you can go in and buy bitcoin with cash.

In other happenings, you also have the Houston pension funds that are supposed to pay retired firefighters. They have a five billion dollar pension, out of which, they used 25 million dollars to purchase Bitcoin and Ethereum. This is a good indication that big money investments are now starting to enter the crypto space.

Facebook Partners with Coinbase

Facebook is partnering with Coinbase to introduce its wallet. Very soon, people will be able to send cryptocurrencies to each other using the platform. Not to mention, Facebook’s brand reinvention into Metaverse is also a bullish indication for Crypto. Anyone who has not invested in Bitcoin yet may change their minds once Facebook introduces its crypto wallet.

Bitcoin’s Price

The market cap of Bitcoin has reached 1.2 trillion dollars which means that it is very close to surpassing the entire market cap of silver. Despite its rising price, many critics still believe that Bitcoin does not hold long-term value, and this is because its price has fluctuated over many stages and cycles. To get a better perspective on the price of Bitcoin and where it could be headed, it is important to look at the stock-to-flow model.

This model looks at finite limited resources such as gold, diamonds, and other commodities. Looking at these commodities, one can somewhat accurately predict the price of a particular asset sector in the future. Many experts have used the stock-to-flow model and applied it to bitcoin.

Keep in mind that this model only looks at the stock, which refers to the amount of something in existence. It then compares it to the flow, which refers to the rate at which you create, produce, or find something. The stock-to-flow model for bitcoin has been extremely close to following its price, and according to its chart, the price is on the verge of something very big about to happen.

Bitcoin is Backed by Strong Narrative

One of the biggest reasons why bitcoin has been accelerating in value is because of the narrative behind it. Money is on everyone’s mind, and the narrative surrounding bitcoin is getting stronger, which will lead to further adoption. This narrative has to do with how the government is still printing plenty of fiat currency and using it as an easy escape to get rid of their economic shortcomings.

Excessive printing of money is causing high rates of inflation in the country along with other factors. This allows them to use the money to buy up bonds, corporate debt, and other assets. This incentivizes people with money to buy assets which are perceived to be a store of value, like commodities and now also cryptocurrency. All of this has the effect of asset inflation which leaves more dollars in the system competing for the same amount of goods.

This does not mean that your net worth is increasing. Instead, it simply just takes more money to get the same amount of available goods. This narrative of money is very persistent and will set the foundation for bitcoin adoption.

How Talking Points and Distrust Will be Enough

Inflationary pressures have investors strongly considering alternative asset classes as a way to stay ahead of the curve. Historically investors have looked to perceived “stores of value” like gold and silver to stay ahead of inflation, but cryptocurrency has potential in this area.

For some investors, they may consider putting all of their money into stocks, as a means to outpace inflation. For some, this means putting their money into bitcoin and crypto assets. Many are even labeling bitcoin as the fastest horse in the race of all existing asset classes according to the data. Some models predict that bitcoin is the best hedge against inflation.

Final Thoughts

Overall, gauging bitcoin’s performance will require plenty of patience, and since it is dependent on some external factors like world events, anything can happen in terms of its valuation. Whether or not its price will reach the $100,000 mark by the end of 2022 is very debatable. However, there are more bullish fundamental indicators than bearish ones, which is why you can expect good things from your bitcoin investment.

B2B Payments Trends for 2022

Over the last few years, the B2B payments landscape has seen numerous advancements, gaining considerable traction in the business space. A study by Gartner predicts that in the span of the next few years, 80 percent of B2B sales transactions between suppliers and buyers will take place over digital channels. The opportunity to make B2B payments will provide astronomical benefits to all sectors of the market. Keep in mind that about 28 trillion dollars worth of B2B transactions occur on an annual basis. 1.8 trillion of that amount ends up being card payments, while 12 trillion goes through checks.

B2B Payment Landscape

Many interesting things are happening in the world of B2B eCommerce. Besides the fact that it is a 12.2 trillion dollar market– that’s six times larger than the B2C market! –around half of all sales are recorded through manual processes. Sales reps, purchase orders, and paper-driven business processes are in need of extensive upgrades.

There is a massive opportunity for innovation in the B2B commerce space. Taking advantage of this opportunity can accelerate companies’ growth, whether they’re already there or are looking to enter the space. Now, new marketplaces, distributors, and industry players are making a big difference in helping the overall market to grow. However, traditional methods are yet to improve when it comes to the payment types within the market.

You have to think about companies making larger payments to suppliers or vendors. When you are a supplier dealing with a business, remember that they will not pay anyone upfront, so the way you get paid can vary. In this case, knowing B2B payment processing tips can help.

How Do Payments Affect B2B Commerce?

B2B companies that are starting to go online, whether they have just started operations or have some eCommerce experience, need to consider payment methods. The speed at which companies conduct business operations is increasing rapidly, and today’s payment processes need to be efficient and solid to support online transactions. In this highly digital world, banks are taking measures to accommodate the speed at which businesses are continuing operations.

They are working with industry leaders to accelerate business-to-business payments by incorporating modern solutions that meet the demands of the future. The aim of such system integration is to replace checks and invoices with end-to-end automation and technologically advanced solutions. Whether it is invoicing, payments, remittance information, and more, change is inevitable.

Trends of B2B Payments

Moving Away from Paper

Consumers are no longer relying on paper transactions and have decided to move to digital alternatives since they are cheaper, faster, and safer. 59% of users currently use mobile banking, but businesses aren’t catching up. Despite mobile banking being a digital alternative, it is nowhere near the scale of B2B payments that you can use today. Companies will soon realize that a scalable and standard process is well within reach. Implementing and deploying B2B payment methods will mitigate paper processes to a large extent.

Making B2B payments using manual methods will have its fair share of errors. It is also more costly and time-consuming than digital alternatives. Digital innovations in the B2B payment sector are causing businesses to strategize their processes, ensuring they are more streamlined. Innovations that include these strategies present businesses with the opportunity to re-imagine their current payment system entirely. This maximizes the efficiency of payment processes at every step of the way.

Transformative Benefits

Businesses benefit from adopting electronic payments. Automating business processes offers further advantages, which is critical if you wish to survive in today’s economy. These include error reduction, cash management, increased transparency, risk mitigation, and more.

One of the trends also includes electronic invoices, electronic remittances, and other automatic financial procedures. All of this combines to make payments less manually intensive and quicker. It also frees up employees’ time, so instead of keeping up with payments, they enjoy the peace of mind to perform important tasks that contribute to the business’s growth.

Digitalization also helps businesses manage cash flow capabilities with real-time data management. Ultimately, decreasing invoice payments can help businesses avoid delayed payments and take advantage of early payment discount programs. Virtual exchange systems of value are much more efficient and reduce any potential for human errors.

Risk Mitigation

B2B payment trends that take virtual undertakings are also very low on risk thanks to limited manual processes and a low volume of paper checks, which minimizes the risk of fraud. It will also increase transparency, making cash more manageable. Reports tracking unpaid and paid invoices bring about greater insights that lead to a better automation process. It also makes payments more secure and stable for businesses, which opens up more revenue generation opportunities.

E-remittance

The data collected by the E-remittance technology make payment applications faster and more precise. It also improves the accuracy of receivable balances and different accounts. Though the benefits are clear, frameworks for account management may differ in the coming future. Service providers are likely to act as service points to deliver data and information to clients.

Concluding Words

B2B payment trends in 2022 will have standards that ensure interoperability, allowing businesses to incorporate a highly compatible payment option that receives payments through various channels. Payment systems in the future will formulate a virtual framework that will help businesses enhance connectivity and value across an expansive cross-border network. Suppliers will likely have to engage with providers and locate access points. All of this will help make payments more accessible for B2B transactions.

Coinbase Registers with the SEC

On May 10^th, Coinbase announced that it had filed for a registration statement with the Securities Exchange Commission (SEC). The announcement came along with their reports for the first quarter of 2022, where they reported missing the revenue estimates that were previously given by analysts and sending shares down as much as 19%.

In a released statement from Coinbase discussing their registration statement with the SEC, the statement was intended to be used for potential prospective offerings, including the sale of new securities. However, new securities won’t be immediately available.

This statement, and their recent Q1 results, came during a major sell-off in the crypto market which has been referred to by some as a crypto crash, with Bitcoin dropping below $30,000. Coinbase has lost more than 70% of its value since late March.

Coinbase commented on its goals and approach to capital structure over the years, stating that its aim has always been to raise capital at the lowest cost possible to its shareholders. They expect that the shelf registration would speed up the process of issuing securities to a matter of days, which they hoped would allow them to time the market conditions better.

While these are the company’s statements on the matter, the reality is that their decision could have been driven by other factors, such as the uncertainty surrounding crypto assets regarding the U.S. federal securities law, as well as the mounting pressures for crypto regulation.

Coinbase reported, in their filing, that the SEC traditionally doesn’t confirm the status of crypto assets as securities in advance. Since the evolution of crypto assets and their classification is still ongoing, it’s difficult to predict how to classify them. The only crypto assets that the SEC has given a definitive view on are Bitcoin and Ethereum, which they don’t see as securities. However, Coinbase stated that the SEC’s views are not binding for courts, other agencies, or even the SEC itself. Coinbase believes that should the SEC change its approach, it could have a significant impact on the business.

Other crypto assets have yet to be ruled out as securities by the SEC under their current rules, though the company’s analysts argued that none of the assets traded on their platform are considered securities.

For their part, Coinbase gave a warning on their filing for people investing in crypto assets. They warned that should the SEC, or any other regulatory authority be it national or foreign, determine that a crypto asset traded on the platform was a security, Coinbase wouldn’t be able to continue offering said asset until they could do so in a compliant manner.

This statement helps shed light on Coinbase’s decision to file with the SEC, as they seem to be preparing in advance to offer crypto assets on their platform that are considered a security by the SEC or any court.

The registration has more potential benefits for Coinbase, as it would allow them to provide the company’s crypto products and assets on top of those from third parties. As of now, there is regulatory uncertainty regarding the company’s yield-generating activities such as staking and lending. These could eventually be considered securities, but the filing would allow Coinbase to act quickly on that matter.

Coinbase also revealed that it had received investigative subpoenas from the SEC regarding its stable coin and yield-generating product plans. Should these be classified as securities, the registration could help the company keep these services afloat by meeting the necessary compliance measures.

In the last part of their statement, Coinbase mentioned that they believed this shelf registration statement would enhance the company’s flexibility, as well as enable access to other capital markets more efficiently and effectively when market conditions were optimal.

Companies Using Instant Payments to Attract Employees

The pandemic left a major impact on the way things work. From business operations to the way we interact – it affected everything. It also pushed companies to reconsider the incentives they use to attract employees. This is largely driven by employees’ newfound demand for remote working opportunities. Another example includes applications that allow workers to get paid on a daily basis. With just a few clicks, they can withdraw money as soon as their shift ends.

There’s immense competition among businesses to hire the right hourly workers as the labor market is very tight. This has created a situation that favors the worker because they now have a variety of options to choose from. The current condition of the labor market has led to these applications becoming a key recruiting tool. Company owners using these instant payment methods explain that these have helped them attract new employees and manage their money better.

Job candidates can easily go onto the application and see how much they can earn on an hourly basis as their work shift continues. Since workers find this system very convenient, many recruiters are marketing its integration to draw more applicants to their companies.

Employees are also starting to recognize how great it feels to clock out after a shift with more money in their bank accounts. Hourly workers see numerous benefits of such a system, like having gas money for one’s car immediately after a shift, making instant pay seem like a practical solution for employers.

Early Adopters of Instant Pay

Some of the first businesses that implemented instant pay include nursing homes, and they continue to use this technology today. Moreover, millennials find the instant payment system to be ideal since it fits right into their lifestyle. To start with, instant pay solutions are easily compatible with mobile applications and digital solutions.

Tech-savvy users who describe themselves as digital natives find this feature quite lucrative. Nowadays, candidates and prospects are actively looking for such options on social media so that they can land a job where they can enjoy flexibility through instant payment systems. To integrate a payment method that helps employees get their hands on their money instantly, companies are relying on applications such as Instant Financial. This application allows workers to get paid a few minutes after clocking out.

One aspect of a weekly payment system that attracts employees is that they’re able to save money by getting an accumulative amount at the end of the week. This way, the application also caters to workers looking to save money through weekly payments.

It has an option that allows employees to control how much money they get at the end of the day. For instance, they can choose to withdraw only 50% of their earnings at the end of the shift. This will allow them the flexibility that millennial and tech-savvy prospects demand. For companies looking to attract new talent, applications such as these prove quite effective.

Instant pay systems, applications, and other new ways to pay that are similar have been at the forefront for many giant companies and retailers when it comes to recruiting. With applications such as these, employees are leveraging the convenience of being able to access their funds instantly. What’s more, these types of apps keep you from delaying necessary tasks simply because you’re waiting for your next paycheck to arrive.

Pay Apps and Their Benefits to Employers

Overall, an employer’s biggest win is employee retention. If they can keep an employee satisfied enough to remain in the company for a long time, it increases productivity and helps with growth. In a competitive environment where many companies are implementing tactics to attract prospects, this can be difficult.

Implementing innovative payment systems for instant payments can prove integral for employee retention. This can solidify an employer’s employee base and help them form a satisfied workforce. In the long term, this can improve productivity and help ensure the company’s growth.

It’s also worth keeping in mind that instant pay options keep employees from seeking short-term loans and lending opportunities. Such loans, often called payday loans, can potentially put them in never-ending debt. Lending and borrowing never come without stress and emotional burden. Employers can prevent this from happening by helping them get paid quickly. This way, employees can avoid troublesome bill collectors, tax collectors, and landlords pushing them to make payments.

When you pay employees as soon as their shift ends, they no longer have to loan out products and services at hefty interest rates. This has a resounding impact on their finances and keeps them emotionally and mentally healthy. These applications also help reduce employers’ burden since they no longer have to make special amends to ensure employee satisfaction.

Financial Stability Factor

Debt can single-handedly make things very difficult for a happy employee. The fact that daily payment systems can help workers dodge stressful debt makes it an impeccable solution for employers.

Employers can use many angles when trying to attract employees with instant pay, with one of the strongest ones being the ability to control how much money you make in a company. After all, the rewards of your labor should be instantly redeemable since you’ve put in the effort to produce results.

Final Words

Companies are beginning to realize this, and applications and systems are making it possible for them to implement it. This is an employee benefit that has the edge over all others when companies are trying to retain and attract employees.

FIS and US Treasury Team up to Release Embedded Finance Tool

On May 11, the Fintech Firm FIS and the Banking-as-a-Service startup Treasury Prime revealed through a press release that they are partnering to launch an embedded finance tool. One of the main reasons they cited was the growing need for financial institutions to provide digital banking experiences to their customers, a necessity that is exacerbated by the digital transformation of the global economy.

In their statement, FIS remarked on embedded finance being a key trend in the finance industry, as it allows companies the ability to provide FinTech services through their digital channels such as payments, banking, investments, credit, and insurance.

This news comes just a month after FIS unveiled its Banking-as-a-Service Hub, on April 12. Back then, FIS said this tool would provide institutions of all sizes a full suite of banking and payment capabilities, as well as allow them to configure new financial service offerings with ease.

FIS’ aim with this tool is to provide small to medium-sized financial institutions with the necessary tools to complete, thanks to improved digital banking services. According to FIS’ release, this tool would allow the institutions to provide new methods for managing deposits and accounts payable transactions, as well as other banking functions, remotely and digitally.

FIS’ Head of Payments, Kelly Beatty, stated in the release that embedded finance is growing as a trend due to the way it empowers businesses to quickly implement innovative ideas through the combination of financial services with user experiences. One example she mentioned was how embedded finance allows commercial services like lending and insurance to be handled with the same convenience as regular app purchases.

Beatty also stated that the needs of the customers was the focus of these services. In the release, she said that customer’s expectations could be reached through the integration of financial services into business software, new channels can be created that can reach even more financial services.

On their end, Treasury Prime’s CEO Chris Dean said that the banks that take advantage of these embedded services can become the foundation for a new generation of financial institutions, and that embedded finance could bring them new potential revenue streams.

In the press release, it was also revealed that Grasshopper, a digital commercial bank, would be the first financial institution to use FIS’ embedded services tool.

The market for embedded finance experiences continues to rise, with one study finding that 23% of consumers had used buy now pay later (BNPL) to split large purchases into smaller installment payments at the point of sale (POS).

FIS Acquisition of Payrix Expands its Offerings to Include Payfac as a Service

In their increased bid to boost their embedded finance capabilities, Fintech platform FIS has acquired Payrix, the embedded payment company. Payrix was founded in 2015 and has provided embedded payment solutions to serve SMB eCommerce merchants.

According to their press release, this would boost their eCommerce offerings to companies regardless of size or industry, through the addition of embedded payments using a Software-as-a-Service platform (SaaS).

This continues FIS’ expansion of payment capabilities that started with the acquisition of Worldplay in 2019. The acquisition will allow FIS to expand its reach to a global scale, as well as include new capabilities such as automated digital onboarding, billing, compliance, and settlement. This would let the company expand into the SMB eCommerce market, as well as others.

This acquisition gives FIS more share in the embedded finance industry, where they were already a powerhouse in terms of banking solutions for depositing, lending, or issuing payment assets.

FIS didn’t disclose the terms of the acquisition, nor were they included in their February financial results.

FIS’ bets for more embedded finance services are grounded in reality. 60% of decision-makers at financial institutions in the UK have integrated at least one piece of digital technology in the last year. Embedded finance services are quickly gaining popularity worldwide. Around 57% of legacy financial institutions expected to take advantage of FinTech partnerships, with close to 48% of them seeing this as essential to innovate. Furthermore, 52% of these institutions are considering the potential of developing disruptive technologies, while 25% believe that they can make their services more appealing through their use.

Everything points to FIS making the right decisions in terms of acquisitions, with the payment and finance sector quickly evolving and companies rapidly absorbing one another. FIS’ rival, Fiserv, acquired the remaining stake of Finxact for $650 million, while another company, Fintech Amount, bought Linear for $175 million. This was around the same time that NMI, the global payment platform, acquired IRIS.

For their part, FIS reported net earnings of $4.1 billion for 2021. This was an increase of 19% over 2020, with their fourth-quarter alone reporting $1.2 billion in net earnings, up 16% from the previous year. Their revenue, meanwhile, was up 11% both for their fourth quarter and the whole year of 2021. Revenue for the fourth quarter was $3.7 billion, while the year as a whole saw $13.9 billion in revenue.

Inflation Moderates Slightly in March 2022 After Increasing for 8 Months

The consumer price index (CPI) fell from 8.5% in March to 8.3% in April, according to the report from the U.S. Bureau of Labor Statistics, failing to meet the expectations of Wall Street for consumer prices and inflation. Economists had previously forecasted a drop to 8.1% for the same time period, owing to raises in rates from the Federal Reserve. However, it still was the first drop in eight months. While experts believe that inflation may finally have peaked, others feel that the Federal Reserve will need to be more aggressive regarding the interest rates for things to return to normal levels.

This is reflected in the way that prices went up. The consumer price index went up 0.6% for most items between March and April, with the exception of groceries and gas. Wall Street expected a rise of only 0.4%, given that the increase was 0.3% in March. The fact that the increase doubled is a sign that inflation is still a factor.

This increase in prices caused the stocks to end lower once more. The Dow Jones Industrial Average finished 1% lower, or over 300 points,the same day the report was released. The S&P 500 meanwhile fell 1.6%, and Nasdaq Composite fell by 3.2%.Some of the heaviest hits were felt in the Tech industry, with companies such as Netflix, Amazon, Apple, and Tesla falling by 3% or more due to the continued offload of shares by investors.

This data has worsened the state of the crypto market, as well as further eroded the confidence of its investors. Bitcoin’s price fell another 7% to reach around $29,000, its lowest point since the late 2020-early 2021 surge in price. Though it has since stabilized at around $30,000.

While food, shelter, and vehicle prices surged, gas prices fell around 6%, which helped counteract the overall increase and slow the rate of inflation. Experts believe that the peak of inflation has most likely been reached, but that the prices will continue to be above the Fed’s expectations during 2023. The chief economist of Comerica Bank, Bill Adams, stated that the slower inflation seen in April was most likely an effect of March’s gas price surge, itself owed to the Russia-Ukraine war.

This slow down of inflation, after a 40-year high, paints a slightly better picture after months of price increases. Still, April was the second-highest inflation level in four decades. The Federal Reserve set a 2% rate of inflation as its target, but experts expect that to rise to 5% or 6%, one of its highest points in history.

Chris Zaccarelli, chief investment officer of Independent Advisor Alliance, stated that the Fed would need to raise rates more quickly and to higher levels in order for things to stabilize. He predicted at least four 50 bps rate hikes during 2023. On May 10^th, one day before the report was revealed, United States President Joe Biden referred to inflation as his top domestic priority and the mainproblem that families are currently facing. This increased escalation in inflation is owed, in part, due to disruptions in supply chains caused by the worldwide COVID-19 pandemic.

D2C E-commerce Brands Struggle as Life with COVID19 Returns to Normal

Direct to consumer brands, which once were looked at as the future of commerce, are currently going down hard. Brands like Warby Parker, FIGS, Allbirds, Stitch Fix, Etsy, and Peloton are seeing their share prices decline massively. These companies seemed to have everything going for them, with promises of low overheads, global customer bases, and no middlemen, and yet their share prices have gone down by 60% in the past six months, and in some cases even more.

While their products are beloved and the brands well regarded in terms of quality, the confidence of investors has waned. This is mainly due to a combination of factors that has rocked the D2C industry as a whole. Due to the issues that the pandemic brought to supply channels, shipping costs have soared significantly. This coupled with higher Facebook ad prices, worse ad measurement, and smaller than expected audiences has dealt an almost crippling blow to the market.

On top of that, an analysis of public D2C companies with market caps of $800 million or more, made by Big Technology, found that almost all of them are struggling with shrinking margins and revenue, runaway losses, or a combination of them. In 2022, these companies have lost billions in market cap in a year that was already difficult for industries to begin with.

But out of all these, the rising Facebook ad prices seem to have been the most damaging factor. From the start, D2C companies have used social media and mainly Facebook as an affordable source for advertising. This was necessary for them due to their lack of physical spaces where a customer could walk in, using these ads to lure them to their virtual spaces instead.

At the time they went public, these companies had very limited brand awareness. Warby Parker, for instance, only had 13% brand awareness when it went public. Through Facebook, D2C companies could reach thousands of customers for just a few dollars.

But that’s not the case anymore. Rising demand has caused ad prices to triple within the past two years. Where reaching 1,000 customers could have cost around $6 in the past, the price could be as much as $18 now.

As previously mentioned, issues with the supply chain driving the rising cost of shipping is another critical problem. Due to the pandemic, the cost of importing containers from China increased dramatically, as much as 10 times in some cases. Given that these brands rely on shipping and imports for their operations, they have struggled to make up for that increased cost in their operations.

And yet another less mentioned but still important problem is the changes made to Apple’s iOS privacy settings and policies. iOS 14 privacy changes affected the ability of D2C brands to measure how well their social media ads are working, with internal metrics being off by as much as 40 to 50%. This severely limits how the companies can optimize their social media campaigns, which reduces their effectiveness. Coupled with the increased ad prices, they are paying more for less.

But D2C brands are not looking at this situation with crossed arms. Many companies, including Allbirds, have reached out to their investors to specify their plans to deal with these problems.

Allbirds specifically has shifted to grow its wholesale operations, opening three dozen physical stores, expanding its product categories, making new products, and establishing new partnerships. Tim Brown, Co-CEO and co-founder of the company, revealed to investors that their collaboration with Adidas saw them sell 90% of their inventory in three days. This shift to more physical selling has clearly worked, with retail channel sales going up by 129%. However, investors remain concerned given the current market.

Allbirds referred to “external headwinds” several times during their investor call and expressed that they would remain to apply a cautious outlook for 2022 until they could ascertain how these elements would play out.

While the brands have tried to work their way out, the numbers are not looking great. Allbirds, Warby Parker, Peloton, and Wayfair have posted significant losses or margin contraction over the last year. To give a concrete example, Wayfair went from $173 net income in 2020 to losing $78 million in 2021’s third quarter. In the same quarter, Warby Parker lost $91 million, though that’s in part due to stock compensation.

With interest rates rising, investors are warier of these companies. Furthermore, they have started to ask whether their valuations might be overblown, given that the market for their products doesn’t seem to be as large as projected. This has been reflected in the stock prices of these companies, with companies going down at least 19%. Some, like Allbirds and Warby Parker, have gone down significantly more with 64% and 40% decreases respectively.

And yet, the D2C space is not dead, far from it. Big brands like Nike are positioning their portfolios to take more advantage of these spaces. Furthermore, the rising prices of Facebook ads could be counteracted by moving to other platforms such as TikTok. And yet, seeing these public valuations in the billions contrast with such stark realities is not easy. Only time will tell how the D2C market fares.

New Ideas to Enhance Your Business in 2022

There is no better time than now to offer a compelling product. Consumers are starting to get out more and spend again. Economic activity is increasing, employment is high, and as inflation is starting to bite, buyers are racing to make purchases before things get even more expensive.

However, most new products fail. However, many successful products are either a pivot of older or failed products or a culmination of many long-forgotten ones. So, if you are considering new products for your company, we delve into some areas where you can start. It may not require the birth of an ingenious new product, and it can be minor tweaks to an existing one. Maybe your product development doesn’t need additions to the lineup but more focus and revamp. Perhaps you’re missing out on potential customers because you don’t know what they want, you don’t have a presence where the customers are, or you lack follow-through with the customer. These areas require just as much attention as product development does.

Iterate

Slack was a pivot from a failed gaming platform. Nintendo’s gaming system was a result of decades of iterations. The company started from playing cards and evolved into toys, including a solar-powered light gun. This was followed up with the development of a video game console with a light gun accessory for Magnavox, and then the numerous game consoles produced over the years and for what made them famous globally. The first iteration of the iPhone 15 years ago is day and night to what the latest iPhone offers today.

Start by improving the product you already have. Maybe you’ve already started proactively outreaching your customers to get recommendations on the subsequent potential enhancements they most need. If you haven’t, start with the influx of support inquiries you’ve gotten over time and see how the UX can be improved to eliminate the recurring queries.

Tools and Analytics

Free tools are available to help with the latest product trends, and the direction industry leaders are heading into with their products based on consumer demand. These tools and analytics are also helpful in gauging how your products are piquing prospective client interest and what you can do to tweak that interest. Below are some tools entrepreneurs can use to aid in assessing new product ideas in 2022.

Google Analytics – you can use this tool to see what keywords or search terms lead customers to your website. This can help in illuminating possible product development ideas. It may also help determine what you may need to focus on more in your product lineup and what is working well in resonating with customers.

Google Trends – This tool gives real-time data on trends in a particular region or globally. If a specific trending topic is relevant to your business or product, it may require minor tweaks to content on your website to route traffic.

Google Keyword planner – This tool aids in the Trends tool by targeting specific keywords relevant to your business or products based on average searches. Couple that with Google Ads to see pricing options for those words and the competition around them.

Social Media and the changing Advertising landscape

There has been a significant change in how businesses reach their customers. As consumer viewing habits have shifted from television to mobile devices, companies target their ads on mediums where they find consumers most, online and on social media. Furthermore, businesses have begun informing and educating their potential customers and often invest heavily in content of the subject matter relating to their products and niches. Below are some other areas businesses can invest in to improve the prospects of marketing their products.

Instagram – Brands have used this app for posting pictures and videos to build their audience and highlight their offerings. Simultaneously the app has spawned its own category of employment, influencers. Over time, these individuals have built out their audience and can be leveraged for product placements and referrals.

Facebook – Having a Facebook page for your business is vital today, like your website. With over 2 billion active users of the site, almost everyone uses the social media platform today. It’s not only an online social gathering but one where people go to get advice and opinions on products. More and more, Facebook is the starting point for most searches before a purchase. Beyond their social circle, individuals can join specific groups relevant to their search to gain the insight required.

Tik Tok – This is a relatively new social media app that quickly takes the audience away from the larger and more established players in the space. Its short viral videos have overtaken the usage of both Instagram and Facebook combined. This platform helps reach audiences for awareness quickly and can also be used for product placements.

An App

Gone are the days of giving away souvenirs or swag bags. The environmental impact of such offerings may harm a brand with some of the more conscientious consumers today. As a result, more businesses have started to build and offer apps. They benefit from collecting first-party data about your potential users, allowing companies to provide curated and very specific products and offers. It is much more effective and convenient for today’s mobile consumers.

The Customer Experience

The customer experience is everything in today’s environment to set your business apart from your competitors. The main reason is that getting the customer experience right is complex and requires an investment of both time and capital. In a way, a top-notch customer experience is its own form of marketing. Some companies offer a certain level of support and customer experience for a higher range of product bundles as a tertiary service. In effect, you transform the customer experience into an iteration of a product.

Maybe your business only needs to have a very informative and intuitively designed knowledgebase page. More likely, it would help if you had a well-trained team that understands the nuances of your products and various troubleshooting that they may require that are both personable and helping.

Another area can be the degree to which support is available. It may be email only, or your firm can stand out from the competition with a more real-time offering such as chat and phone support, 24/7/365. This, all easily visible on your website, speaks volumes as well!