Amazon to dominate ecommerce sales? Here’s your online store’s survival strategy
According to Fortune, Amazon will make up 50% of all US ecommerce by 2021. This dominance sends chills down the spines of street retailers, but also independent online store owners.
- Are you an ecommerce store owner?
- Are you wondering whether it will be possible to compete with a major marketplace?
The online retailer accounts for approximately 34% of US online sales. No wonder Amazon’s market share growth may sound intimidating.
Luckily, there are ecommerce solutions that will help you grow your online business too. A good ecommerce tool will help you stay competitive and increase your sales exponentially in a hassle-free way.
Amazon’s predicted market share growth may make you wonder …
- Will my online shop survive?
- How to take my online store’s sales to the next level?
We may have an answer.
Amazon is a big player on the global ecommerce market
It looks like Amazon is in for a bright future. To a large extent, Amazon’s forecasted growth will be driven by the success of the Prime membership program as well as mobile penetration. Even though traditional retailers are experiencing strong online growth, Amazon is still far ahead of its rivals.
What’s the secret behind Amazon’s ecommerce success?
The program that isn’t… top secret at all. It’s the already mentioned Prime program. At a cost of USD 99 per year, Prime offers its subscribers various special Amazon deals, such as free two-day shipping and entertainment (e.g. streaming music and television shows).
The number of Prime members has been growing, driving Amazon’s success. Still, it’s not only about a mere growth in the number of Prime members. Crucially, shoppers using Prime are active, trying to make the most of their investment.
According to data from eMarketer, 80% of Prime members shopped on amazon.com at least once per month. According to CIRP, they spend up to USD 1,500 per year on the site, more than twice as much as non-members.
Amazon got it right.
Amazon’s shopping app should not be underestimated either. Not only is it motivating purchasing decisions on Amazon, but also driving the shift of online shopping from desktop to smartphone.
Additionally, Amazon makes a lot of profit on other services such as Amazon Web Services, thanks to which Amazon can afford to drive prices down and stay competitive on the ecommerce market.
According to SLI Systems, over 70% of online businesses view Amazon as a threat to their future. At the same time, many online retailers sell and make profits on Amazon. They also have a possibility of growing their online store sales and staying competitive.
So if you own an online shop … don’t let it go, but make it grow!
Granted, Amazon is a big fish in the ecommerce pond. Hence, independent online sellers may be concerned about not being able to compete with a giant marketplace.
The question remains:
If you’re an online store owner, how to not only survive, but also thrive in an ecommerce environment?
If you think about it…
Amazon is an international ecommerce giant. So why not expand internationally yourself? You may wonder, though… but I won’t build another Amazon…
True, this may not happen. However, you can still grow your ecommerce business and notice a big, positive change in your pocket. Your domestic market may be a familiar place, but consider this:
British online sellers who are making the most of the global marketplace and cross-border opportunities should see something like 40% of their orders coming from abroad and just 60% from the domestic market.
The UK retailer ASOS is a perfect example. It has become a global business with more than 60% of its business coming from abroad. This was achieved thanks to offering a fully localized buying experience to their key international markets.
OK, so you’ve decided to follow suit. But how to do it?
The answer is: go global.
By using a cross-border sales tool that will make it hassle-free for you. PayPal Global Sellers in partnership with Webinterpret is a solution that localizes online stores and upgrades the buying experience for international buyers.
In a nutshell
Amazon’s growth may sound intimidating to online store owners. If you’re one of them, the truth is, you still have a big international marketplace to tap into.
Make your products available beyond your domestic market. Give your international customers the fully localized buyer experience.
Make your online business not only about survival, but growth and online sales success.
Further Reading & Other Sources
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