While only 8.8% of the total advertising budgets were spent on Amazon last year, 18% of retail advertising was spent on Amazon. Amazon's market share of retail advertising is estimated to grow to 23% in 2019. It will surpass Facebook then.
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Brands and customers have been waiting for a solution from Amazon for years. The thing is, Amazon cannot solve counterfeits. Not without changing the fundamental structure of the marketplace it operates or slowing down its Fulfillment by Amazon (FBA) warehouses to a halt. Amazon cannot solve this because it - Amazon the company - is the bottleneck.
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According to Marketplace Pulse research, Amazon-owned private label brands are not nearly as successful as many paint them to be. Amazon has been successful in creating generic items at low prices, but only when using the Amazon brand name (i.e., AmazonBasics and Amazon Essentials). Otherwise, the hundreds of brands and tens of thousands of products launched are not resonating with customers.
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The majority of top Amazon sellers joined the platform years ago and despite growing competition, changing Amazon fees, shifting brands focus, and the explosion of private label, they are still at the top.
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JD.com, China's second-largest online retailer, has setup a storefront on Google Express and Shopping Actions platforms this week to sell directly to American consumers.
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Shopify will be bigger than eBay by as early as 2021. Shopify handled $41.1 billion in sales volume in 2018, an increase of 56% over 2017. On the other side of the ring, eBay did $89.83 billion, an increase of just 7%.
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This week Google's e-commerce marketplace grew past 1,000 active stores. A year ago it had 39. It's still unclear what shopping on Google is meant to be, but before Google figures it out it is expanding the supply side.
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Every year for the last three years Amazon has lent more than $1 billion in short-term business loans to sellers on its marketplace. According to our estimates the program will surpass $5 billion in Q2 2019.
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On February 1st new e-commerce rules in India kicked in, forcing Amazon and Flipkart to restructure their business strategies. According to our research millions of products are no longer available across all categories on Amazon India.
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The #1 best selling product in Clothing on Amazon is a winter coat. Unsurprising, it is winter after all. But it's not made by Canada Goose or any other major clothing brand. Nor is it one of the private label brands Amazon has launched. Instead, it is made by Orolay, a company no one has heard of from Zhejiang province in China.
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