A 2022 PYMNTS analysis found that Amazon and Walmart together take about 50% of the total U.S. ecommerce market. Amazon is by far the most dominant player, accounting for about 45% of all U.S. digital retail sales. Walmart accounts for 5%. Other big names, like Wayfair (1.5%) play a major role in U.S. ecommerce as well.
Image source: PYMNTS
As an independent ecommerce business, you spend a lot of time thinking about how to remain relevant in an industry dominated by these behemoths. You’re also eyeing your own product niche, ever vigilant for direct competitors with stronger brands and sharper marketing.
Don’t Go All-in on Amazon
Some ecommerce businesses adapt to this difficult landscape by going all-in on Amazon’s seller ecosystem, essentially becoming captive to North America’s largest digital retailer.
This might seem like a safe bet, but competition among Amazon sellers is even more cutthroat than competition for organic and paid search traffic outside it. Amazon’s internal algorithms are even more opaque than Google’s. And sellers using Fulfillment by Amazon logistics services sacrifice nearly half the revenue from each sale.
The safer play — though it’s not easy by any stretch of the imagination — is to improve your strategies for attracting and converting prospects outside the Amazon ecosystem.
Even if you do use Amazon as a sales channel, it’s probably not your only one (or even the most important). Rather than doubling down on Amazon, you…
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By: Guest Author
