Articles

Jul 14, 2020

Fulfillment is Amazon's Single Point of Failure

Recent months have highlighted the vulnerability that stems from Amazon’s fulfillment operations: Amazon warehouses and ships practically everything sold on Amazon. The same FBA moat that allows the company to provide a consistent shopping experience despite millions of sellers behind the scenes is a single point of failure. As it tries to protect that single point of failure, it needs increasingly strict quantity restrictions, high fees, and complex rules for sellers using FBA.

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Jul 10, 2020

Amazon Lost Web Traffic Market Share

Amazon lost some market share, as measured by web traffic, to the next ten biggest online retail rivals: down from 52% in January to 47% in June. Yet, as the pandemic brought accelerated e-commerce adoption, top players remained the same.

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Jul 8, 2020

Amazon Marketplace Is No Longer Anonymous

Amazon will begin displaying the business name and address of sellers in the U.S. marketplace starting September 1st, putting the U.S. marketplace in line with the European, Japan, and Mexico marketplaces, where this information was always available because of local laws.

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Jun 30, 2020

Longtime Amazon Sellers Drive Most Sales

The majority of sales volume on the Amazon marketplace comes from sellers that have been on it for years. That signals the controlled churn and high longevity of those businesses. At the same time, new sellers bring incremental growth.

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Jun 24, 2020

Amazon’s Shrinking Reliance on Top Sellers

As the overall Amazon marketplace GMV expands, top sellers represent a shrinking percent. More of the sales come from a broader set of sellers than the top sellers outpacing the rest. The data indicates that it is getting harder for large sellers to continue growing because it is getting easier for new sellers to start selling.

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Jun 18, 2020

Shopify’s Pivot to an Integrator

Despite Shopify's new-found narrative of being an integrator, it's a poor one. And as a business, it assumes other channels will not succeed, because that would render Shopify obsolete.

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Jun 17, 2020

Amazon Launches in Saudi Arabia

Amazon launched in Saudi Arabia on Wednesday, June 17th, replacing Souq.com - the largest e-commerce platform in the Arab world it acquired for $580 million in 2017 - with Amazon.sa. Saudi Arabia is Amazon’s 17th global marketplace. A year ago, the company launched in the United Arab Emirates, replacing Souq there too.

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Jun 10, 2020

Amazon’s Struggles Sent Traffic to Rival Retailers

As e-commerce spending accelerated, Amazon grew slower than the next ten biggest online retail rivals. Amazon’s struggles with fulfillment as well as unique strengths by Walmart in grocery and Target in same-day delivery have created a growth spike.

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Jun 9, 2020

Marketplace Winners and Losers During the Pandemic

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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Jun 5, 2020

eBay Pulled Along by the Pandemic

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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