Stefan Mileschin

Positive signs of competition

Despite the fact it being some of the only way that people could buy products during the lockdown, there are signs that Amazon is starting to lose market share.

For the first three months of 2020, Amazon's revenue was up 26 percent, to $75.5 billion. Yet several of its competitors in e-commerce "are showing dramatically faster growth rates".

Bloomberg's opinion columnist noted Shopify had reported "the aggregated online sales of its merchant customer base grew 46 percent in the first quarter".

After March sales began increasing even more. Online furniture retailer Wayfair said it had revenue growth of roughly 90 percent so far in its second quarter, a significant increase versus the 20 percent growth it generated for the three months ended in March. Traditional retailers who sell online are flourishing as well.

On April 23, Target said its online business had risen more than 275 percent month to date to that point, while electronics retailer Best Buy also pointed last month to recent triple-digit growth trends for its website. Costco Wholesale, meanwhile, reported April e-commerce sales growth of 86 percent.

For all the antitrust scrutiny Amazon has had for crushing the competition in e-commerce with its leading 37 percent share in the US.last year, according to eMarketer, these recent numbers point to share losses for the tech giant. Rivals now have an opening to show they, too, can delight customers with good service and build consumer loyalty. And if they can take advantage, perhaps the e-commerce race isn't over yet.

https://fudzilla.com/news/50803-amaz...g-market-share