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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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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