New data from Nielsen has found that Amazon's share of the overall CPG e-commerce market has fallen as rival operators make gains, however, the Seattle-based giant isn't likely to be too concerned.
Nielsen data for the 52 weeks to 31 January found that Amazon currently holds a 39% share of CPG e-commerce in the US market, down from 44% the previous year.
At the same time, Instacart has doubled its presence from 4% to 8%, Walmart has tripled its e-commerce penetration from 2% to 6%, and other rivals like Chewy (5%), Target (3%) and Kroger (5%) have all made gains.
Accelerated Response
'A downward shift in Amazon’s share of CPG sales in the U.S. sends an important message to retailers and manufacturers,' Nielsen said. 'Traditional and non-traditional retailers have been accelerating their responses to Amazon by adjusting their omnichannel offerings and strategies. These adjustments have helped them steal share from the global online player, but other factors are at play.
'Today, the playing field online has become exponentially more crowded, and while that does bring complications, it also means that many merchants have begun to hit their stride with consumers online.'
However, Nielsen argued that Amazon is unlikely to be dismayed by the development – on the contrary, in fact. While Amazon's share has declined, it now relates to an e-commerce overall market that is growing in size, a 'collective adoption' that is boosting its coffers.
While two years ago, the US CPG e-commerce market was worth $37 billion (€33.4 billion), it's now worth $65 billion (€58.7 billion), and going only one way – up.
'Win-Win Scenario'
'It’s a bit of a win-win scenario,' Nielsen said. 'Yes, Amazon is still on a level of its own, bringing in 33% of all dollar gains in CPG e-commerce. However, the other ~66% of growth is a true testament to positive change for other players that are actively investing in their online operations.'
Nielsen said that the click and collect market offers opportunity for online players to gain traction in an increasingly competitive e-commerce sector – click and collect now accounts for 11% of all CPG e-commerce sales in the US, compared to 4% just two years ago.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
