Playing Apple Roulette on Amazon
The biggest challenge for Amazon for decades to come is making the marketplace customer-obsessed. Today, in some categories even increasingly, it is abuse-obsessed.
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Amazon Gross Merchandise Volume $277 Billion in 2018
$160 billion is how much third-party sellers sold on Amazon in 2018. An estimated $30 billion more than they did in 2017. Amazon's first-party sales amounted to $117 billion. For a total of $277 billion in gross merchandise volume.
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Hey Alexa, Find Me a Fake Louis Vuitton Bag on Amazon
It is comically easy to find counterfeit or otherwise infringing goods on Amazon. Luxury products from brands like Louis Vuitton, Balenciaga, or Gucci are not for sale on Amazon, but many shoppers are looking for them. Instead they find look-alike copies.
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Amazon's Ad Business Market Share Bigger Than Thought
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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Amazon Counterfeits Bottleneck
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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Amazon-Owned Brands Far From Successful
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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Veteran Amazon Sellers Still at the Top
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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China's JD.com Launches on Google
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
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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Google Shopping Grows to One Thousand
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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