As e-commerce booms during the pandemic, some marketplaces have greatly benefited, a few prepared for the future, while others were caught unprepared to react. A typical seller relied on Amazon, saw growth on Walmart, got excited by Facebook, and didn’t care about Google.
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eBay expects gross merchandise volume (GMV) to grow between 23% and 26% in the second quarter, a remarkable acceleration from the 2% average over the past thirteen quarters, since the start of 2016. That will make it its biggest quarter ever due to the net increase of $5 billion compared to the second quarter of 2019.
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Sales on Etsy grew nearly 140% in May, after growing 100% in April. May marks the highest sales month since Etsy went public in 2015. Powering that, 165,000 new sellers joined the marketplace during the month, double the average.
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Amazon shoppers left nearly one million negative seller reviews in the last thirty days. More than twice the usual amount. In the U.S., 13% of customers had a negative buying experience, up from 5% a year ago.
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Issues affecting global supply chains and Amazon's warehouses have considerably reduced the number of new products launched on the site. For example, the number of new best-sellers in the headphones category shrank from nearly 200 a month to less than 20 during the last thirty days. The volatility of the best-sellers list is an indicator of the health of the private label sellers industry.
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Amazon, along with Vogue and Council of Fashion Designers of America (CFDA), launched a new storefront called “Common Threads: Vogue x Amazon Fashion.” The storefront features two dozen brands. However, it has little else going for it.
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Sales on Walmart marketplace increased more than on its main rivals Amazon and eBay. The marketplace, which provides over 90% of the assortment on the website, is surging, driven by the significant increase in the number of shoppers on Walmart.
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Amazon has opened its warehouses to all items and reintroduced shopping functionality like deals and recommendations. Fast shipping for non-essentials is back, too, crucially.
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Amazon's online sales soared 24% in the first quarter, the fastest pace in four years. Amazon's first-party sales - not the total GMV, including the marketplace, but only sales where Amazon is the retailer - increased at more than twice the rate compared to Q1 2019, despite only part of the quarter affected by the pandemic.
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Share of top Amazon sellers by China-based businesses has been shrinking because of disruption to manufacturing, freight, and warehousing, as well as consumers prioritizing essentials.
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