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6 Trends Rising E-Commerce Players Are Leveraging to Compete Against Amazon

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6 Trends Rising E-Commerce Players Are Leveraging to Compete Against Amazon

Amazon is the most formidable force in e-commerce. Here’s how emerging e-commerce players are protecting their businesses from being disrupted by the retail giant.

CB Insights,

5 min read
4 take-aways
Audio & text

What's inside?

How do you compete with a behemoth like Amazon?

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Editorial Rating

10

Qualities

  • Analytical
  • Well Structured
  • Overview

Recommendation

Amazon has got it made in the e-commerce juggernaut, and the pandemic only strengthened Amazon’s infiltration into the lives of normal citizens – or did it? Though it posted record sales in 2020, Amazon actually lost more than a quarter of its market share. It seems that small, specialized businesses are cashing in on some consumer trends that Amazon is either unable to satisfy, or has been ignoring completely. This informative report from CB Insights will give you a list of start-ups to watch, and a deeper understanding of what’s driving e-commerce customers.

Summary

Amazon exceeded $385 billion in net sales in 2020, a 38% increase over 2019. Still, the behemoth’s share of e-commerce is declining.

Amazon’s mastery of “distribution, fulfillment and delivery” gave them an edge during early pandemic days, when they were able to provide essential products to panicked customers. Unsurprisingly, 2020 was a banner year, but though net sales increased 38%, their actual share of e-commerce sales went down. In 2019, Amazon captured 43.8% of US e-commerce, but in 2020 that number was only 31.4%. How are non-Amazon businesses, large and small, managing to capture some of the sales in the face of Amazon’s prevalence?

Stores like Target and Walmart are seeing major growth in e-commerce. Target saw 155% in digital sales growth in 2020’s third quarter, and Walmart saw 69% growth in the fourth quarter. Smaller businesses are capitalizing on important consumer trends to seize market share, namely by offering “community connection,” “sustainability,” “assortment relevance,” and mobile, app-based retail.

Companies offering personalized and/or niche assortments stand a chance of gaining a foothold.

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About the Author

CB Insights is a technology insights platform that analyzes market factors influencing growth, competition and technology.

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