In June more sellers saw a decline than were able to grow their sales. The fastest growing seller was Simple Modern, a classic case of private labeling. They only have 6 products in stock, but all of those products are their own brand and thus they are able to avoid competition from other sellers.
Read morePrime Day is back for a second year. Amazon hasn't confirmed the date yet, but we are hearing very reliable rumors that Prime Day is back on July 12th this year. In 2015 Prime Day sales on July 15th increased by over 200% compared to the same day the year before. With some sellers having their best day of the year, even considering Black Friday and Cyber Monday.
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Even though the Walmart Marketplace launched in 2009 it has been slow to grow. When we reported on it in May it had only grown to 500 sellers. Walmart has been working on perfecting their processes and improving the software side of it which implied the limited growth of the marketplace. Nonetheless since then it has been growing at a steady pace and just crossed 1,000 sellers.
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"In the UK and Spain, the cost of growth relative to the size of the businesses has led to plans to close these operations" said Rakuten this week. Rakuten acquired Play.com in 2011 for $40 million, and turned it into Rakuten.co.uk in months following. Despite global presence in Japan and the US, Rakuten.co.uk struggled to match Amazon UK and eBay UK.
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We noticed that often products sold by merchants are not fulfilled from the local country. For example it's not uncommon to see products shipped from China on Amazon USA. Thanks to ever-decreasing fulfilling costs most Amazon marketplaces have become global platforms. Thus we looked at where most of the sellers are based.
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eBay Shipping Supplies is a unique seller. It's not really a separate seller - this is eBay selling eBay branded packaging for sellers. Recently eBay is trying to compete with Amazon by increasing their brand awareness, and one of the ways is by offering sellers credits to buy packaging supplies. Since almost all Amazon sales come in a box with Prime marketing, eBay wants a similar effect.
Read moreOverall May has been a slow-growth month with most sellers continuing at their current pace or seeing a decline. The market is switching into Summer mode as sellers offering outdoors, swimming and sports products are accelerating. Fastest growing retailer Relevant Gifts sells various gifts and home decoration products. Most of the brands sold are only available from Relevant Gifts so they don't have to deal with a lot of competition.
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Many sellers rely on Amazon as not only a marketplace, but also as a fulfillment partner. Fulfillment by Amazon, or FBA, is a program which offers warehousing and order fulfillment services for an extra fee. This week we wanted to look at how many of those sellers are using FBA. In our estimates we consider any seller using FBA for at least half of their products. This makes it much easier for sellers to offer fast shipping and also makes their products available under Amazon Prime for free shipping.
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Walmart reported 2016 Q1 results this week, and while the company has posted positive results and outperformed the estimates, ecommerce growth has been disappointing. Despite big investment into its websites and the Walmart Marketplace, ecommerce sales rose only 7% in the quarter.
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China's ecommerce market is already the largest in the world, yet it continues to grow. Despite Alibaba and JD.com facing challenges expanding delivery networks to reach over 1 billion people living in rural areas, both have posted better than average growth numbers in Q1. Alibaba Group reported 24% year-over-year growth of gross merchandise volume (GMV) at $115 billion. JD.com reported it's sales grew by 55% to $20.1 billion.
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