It is obvious that Amazon's growth is braking or that Amazon's rival companies are steadily increasing market share in the e-commerce market

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by Mike Seyfang

Jumpshot , an e-commerce market research company, has released a report on the e-commerce market in the second quarter of 2018. The growth rate of Amazon that seemed to be one of the strongest ceased, while other retailers entered the e-commerce market one after another in the meantime. While Amazon gradually dropped its share in various product areas, it turned out that competitors such as Wal-Mart grew share little by little.

jumpshot | The Competitive State Of eCommerce Market Places - Data Report Q 2 2018
(PDF file) http://go.jumpshot.com/rs/677-KZC-213/images/Jumpshot-Q2-Data-Report.pdf

Amazon has a share of 80% or more in many product categories, but in some genres such as furniture, beauty products and women's clothing, it is divided by 80%, which is not overwhelmingly superior.

Amazon's growth rate by product category increased by an average of about 20% compared to the same period last year. However, the growth rate of the market in each sector is on average about 32%, which shows that Amazon's growth rate has not kept up with the overall market growth rate.

Meanwhile, the growth of Amazon rival Wal-Mart is remarkable, and the field of home appliances, Do-it-Yourself, Foodstuffs, Sports / Outdoor / Fitness, Beauty items, Pharmaceuticals, Daily Miscellaneous Goods and Women's Clothing So on average, it has increased by about 70% compared to the same period last year.

In other words, compared with Amazon, Wal-Mart is showing 3.5 times more growth than Amazon.

The share of the "Do-It-Yourself" genre in the second quarter of 2018 was 83.8% of Amazon, 83% of Amazon, 5.5% of The Home Depot and 3% of Walmart, respectively. However, compared with the same period last year, Amazon has a 3.0% share decline, while Walmart is up by 16.2%, The Home Depot is up by 12.2%.

Share of "furniture" genre, Amazon 47.0% mail order site of furniture specialized wayfair is 13.5%, followed by Wal-Mart is 13.1%, IKEA has become a share of 8.5%. However, looking at the growth rate compared with the same period last year, Amazon and Wal-Mart have reduced their market share, but you can see that wayfair and IKEA are growing steadily. The furniture market has many rivals, and the mail order service of the late generation is also growing.

In "grocery" again, Amazon's share is large, 81.8% it is nothing. However, compared to the same period last year, Amazon has declined its market share by about 8.0%, and it turns out that Wal-Mart is showing growth of 52.3% instead.

Amazon holds a 72.2% share of "beauty items", but there are many services to enter, sharpening the outlook. Amazon's share is down 9.5% from the same period last year, but Wal-Mart has increased by 63.2% and TARGET has increased by 100%, depriving Amazon's share.

"Women's clothing" has more services than cosmetic items entering the e-commerce market, and it shows the appearance of the ruler of the group. Amazon's share is 42.0%, which is half of the market share, which is 30% lower than the year-ago quarter and has lost its market share. Meanwhile, JCPenney , H & M, etc. have increased their market share significantly.

In addition, Jumpshot also refers to Amazon's product search system. According to Jumpshot, Amazon's search results are more likely to lead to purchases as they are displayed higher, and it has been found out that up to 4 columns of the first page of search results account for half of sales in that product area did.

Moreover, the time from searching for goods at Amazon to actually purchasing was longer than the time from searching for products to purchasing. In 19% of people buying it within 5 minutes on Amazon, 31% of people who suffer from around 30 minutes suffer from purchasing. On the other hand, 35% of people search on Google have decided to purchase within 5 minutes.

In addition, Amazon's advertising business was up 129% in the second quarter of 2018 compared to the same period last year, but in fact it was said that the click rate of Amazon's sponsored advertisement is actually rising little by little.