Amazon market share shrinks amid emerging etail superstars
Since its inception in 1994 and its web launch in 1995, Amazon has been an online retailing force to reckon with. It is, in fact, the world’s biggest online retailer. Year over year, its growth rates have been through the digital roof. But despite nearly two decades of streamlining and perfecting its operations, Amazon realizes that now is not the time to rest on its laurels.
In an article published by Internet Retailer, Amazon’s market share is slipping due to the success of a handful of companies that are rising in the world of online shopping. The article highlights several publicly traded retailers that reported faster web growth than Amazon in late 2012. That data was revealed in Internet Retailer’s Top 500 Guide, an analysis of the world’s biggest online merchants.
Although Amazon is still No. 1 in Internet Retailer’s rankings with fourth quarter sales growth year over year of about 22%, the following companies are giving Amazon a literal run for its money:
1. LuluLemon Athletica Inc. (No. 162): Even with the see-through yoga pant debaucle, the athletic apparel company posted the biggest gain in fourth quarter Internet sales, up by 56.3% to $78.3 million from the fourth quarter of 2011.
2. Ascena Retail Group (No. 171): The women’s apparel company increased its fourth quarter web sales year over year 48.9% to $39 million. Its brands include DressBarn and Maurices, among others.
3. Williams-Sonoma Inc. (No. 24): The professional-quality cookware company found its sales up 46.6% to $576 million.
4. Deckers Outdoor Corp. (No.161): The maker of Ugg brand boots and Teva sandals reported an increase in sales of 42.1% to $87.6 million.
5. American Apparel Inc. (No. 287): Yet another clothing business on the list, this time catering to both men and women, American Apparel was up 41.2% to $18.5 million.
6. Kohl’s Corp. (No. 28): The department store’s online sales surged by 40.4% to $640 million.
7. Express Inc. (No. 102): Express, which also produces apparel for both men and women, reported fourth quarter web sales growth of 39.4% to $120.9 million.
Be it brand recognition, high quality products, an effective marketing strategy or, more likely, a combination of all three, these companies are definitely claiming their stake in the online arena. They’re also delivering a great online user experience – the true key to becoming an etail superstar.
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