According to our research of the 800 million items on eBay, 18 million are available with 3-day guaranteed delivery, 8 million are available with 2-day guaranteed delivery, and close to 2 million are available with next day 1-day guaranteed delivery.
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Amazon marketplace grew to a few hundred billions of dollars in size because brands refused to sell to Amazon directly. The future of Amazon is brands represented by Amazon, an Amazon agency, or by the brand itself. The opportunity for sellers is shrinking.
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Wish is a mobile shopping app for customers whose first priority is low prices. The app sells a few billion dollars worth of products a year by enabling merchants to sell directly to consumers. According to our research 94% of the growing list of merchants are based in China.
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Walmart online assortment has over 42 million products, but only 3.5 million products are sold by Walmart. The rest are by one of the over 20,000 marketplace sellers.
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"Can a restaurant succeed if it's delivery-only?" asked Neal Ungerleider of Fast Company. Well, can a retailer succeed if it's marketplace-only?
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When it comes to Amazon its moat is wide and deep: Prime memberships, AWS cloud hosting, etc. But probably the most under-appreciated moat is the marketplace and its impact to competing retailers.
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Starting this summer Facebook has started to quietly expand the Facebook Marketplace to include businesses selling retail products. According to our research it has already surpassed the first 150 sellers.
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Unbeknownst to many Google is building an e-commerce marketplace. According to our research Google's shopping platform recently surpassed 500 stores. Most of which it added in the last four months.
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Amazon is the third largest advertising platform, behind Facebook and Google. Facebook and Google together account for more than half of the overall online advertising market in the US, but Amazon advertising is growing six times faster than the incumbents.
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Achieving nationwide free two-day shipping is hard and expensive. Even Walmart can't do it perfectly - customers on the west cost have access to 20% less products with two-day shipping available than customers on the east cost.
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