In the United States we are obsessed with lists and rankings. So I took a look at what’s going on with online retail sales. While the leader is clear, it is attractive to observe who follows him.
It’s no surprise that Amazon is the leader in online retail. In 2017, the Seattle-based giant captured 43. 5% of the market. It is quite an achievement. I discovered Amazon’s strength and reputation when I was hospitalized. I was told to buy anything I wanted for home use on Amazon. Everyone (friends, colleagues, and various members of the rehabilitation center’s staff) echoed the same thing. message. People accept the company’s extensive collection and its quick delivery as true.
From there, the list of the 10 most sensible shows a huge sales hole before any other company registers a trademark. Market research corporation eMarketer lists the nine closest competitors, and to say closest is an understatement. The other major players combined are far from catching up with Amazon’s volume: EBay owns 6. 6% of the market; Apple, 3. 9%; Walmart, 3. 7%; Housing deposits, 1. 5%; Best Buy, 1. 3%; QVC Group, 1. 2%; Macy’s, 1. 2%; Costco, 1. 2%; and Wayfair, 1. 1%. This represents just over 65% for the 10 most sensible companies. On a positive note, this leaves room for many other stores to take advantage of the internet.
I think the percentage of places in Amazon’s marketplace is scary nowadays, but it may be even more so. EMarketer expects it to capture 49. 1% of the place’s share in the market in 2018, a significant jump of about six percentage points. Last month’s fourth annual Prime Day generated a lot of activity on the site, and the company now controls more than 5% of the overall U. S. market. (which includes online and offline sales combined). On Prime Day 2018, more than 100 million pieces were sold, and sales are expected to exceed $3. 4 billion when the final figures are revealed.
Amazon’s dominance is visible throughout the market. Computers and customer electronics make up Amazon’s largest volume. They account for more than a quarter of your e-commerce business. Then there are clothing and accessories, which have overtaken books as the dominant category. Amazon’s clothing sales now generate 15. 4% of Amazon’s business. and 38. 5% of all online clothing sales in the United States.
Unsurprisingly, Amazon’s fast-growing category is food and beverages. With the acquisition of approximately 470 units of Whole Foods, the company can gain a dominant position in all channels. So far, consumers continue to shop aggressively in stores, so online food and the beverage industry is lagging behind, as consumers like to touch on freshness in stores. But I expect consistent gains in line and an expansion in overall market share.
The challenge for the industry is how to compete with this e-commerce giant. The lack of significant online market penetration through leaders like Walmart, Home Depot, Best Buy, Macy’s and Costco underscores that those stores haven’t figured out a way to grow. this channel while protecting their in-store operations. Even though they claim to adopt an omnichannel strategy, it turns out that they still emphasize their in-store business and see their online business as a marginal advantage. Your grocery shopping delight reflects this. For example, although Walmart ships fast, I had problems with their site. And Macy’s didn’t have the item I was looking for in stock. I’ll help a strong retail business, but that doesn’t mean I’ll tolerate a mediocre website. Shopping for food is a pleasure for customers.
The fight for market share is a broad issue that generally takes into account customer points such as product selection, price, shipping and handling, returns, and visitor service. The costs are not the lowest on the Amazon site, however, the collection is vast and the delivery is very fast, especially for Prime visitors. Returns are simple and easy to use. However, general merchandise stores can gain percentage in the e-commerce market through their own exclusive and competitive promotions that show that they perceive their competitor. They’ll have to tirelessly search for opportunities to offer a grocery shopping experience that showcases them in an exclusive way and offer anything that Amazon can’t replicate seamlessly. Prime Day is a wonderful idea, so why couldn’t a competitor host a similar event?
I heard that Amazon is preparing a toy catalog to identify their toy collection and help them develop their leadership in some other category. I wonder if any other store will compete with a toy book so that Amazon doesn’t. get an overwhelming percentage of the toy business that Toys ‘R’ Us gave up. In the fashion segment, where Amazon has gained traction, I think it could be attractive to consumers if other corporations promoted the creations of well-known designers on the Internet. I also think Prime Day can be copied with an annual “Red Star Day” for Macy’s, a “W” for Walmart, a “Costco,” or a “Blue” Best Buy. Building a promotion with a transparent and enforceable goal in the relationship with the unique positioning of your logo would be exciting and rewarding for each of those corporations.
These are just some of the questions we want to ask ourselves. In the absence of new and cutting-edge ideas in this direction, I believe that Amazon will gain a larger share of the market at the expense of the classic players in the retail sector. be more agile and react temporarily to new ideas.