In 2021, the number of e-commerce sites has reached 24 million, and many more emerge every day, most of which are turning to science to improve. Amazon remains the biggest, claiming 59 percent of millennials who visit Amazon first and only shop in other online stores when they don’t find their desired product from the site.
The e-commerce industry offers promising revenue to businesses that, starting in 2021, many experts expect to produce annual sales of $4.5 trillion. And by 2040, e-commerce wilhrl be the new standard means of purchase, estimated to claim 95 percent of purchases in the future. And to catch up with customer demand, e-commerce businesses turn to shipping stores to ensure their customers receive their items on time and with minimal delays. This allows companies to offer more products and enable customers to shop all day, unlike the limited time they can spend in a brick-and-mortar shop.
This is why many budding businesses stake their claim in the online space and become successful, like the e-commerce giant Amazon.
What You Can Learn from Amazon
All throughout the United States, Amazon makes up 44 percent of all e-commerce sales; the rest are any other competitors. But what made Amazon the king of e-commerce that it is right now? It has become a household name that it’s impossible not to have heard about it. As such, Amazon had outranked Walmart as the largest retailer in the world.
No matter the size and industry of your business, if you’re selling online, you are already competing with Amazon. There are plenty of emerging competitors nowadays from all kinds of industries.
For example, Netflix competes with streaming services, Google Home or Siri for voice assistants, and Microsoft Azure for cloud-based services.
In which aspect does Amazon outstand other e-commerce businesses? It’s in the shipping service, outgrowing its retail reputation. Not only does it provide shipping services for its products, but just recently, it claims to be a delivery service provider for third-party sellers, gaining the right to call UPS or FedEx its rivals. Experts even believe that Amazon is going to be the biggest shipping provider in the future.
How Other E-commerce Businesses Compete with Amazon
How do you successfully compete with the king of e-commerce, convincing customers to prefer your products over Amazon’s or other competitors? Learn from other businesses that came before you and succeeded. Here are a few ways to help you get started:
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Niche E-commerce Businesses
Amazon might sell just about anything. But people will always tend to choose brands, manufacturers, and stores that have their specialization. Amazon might be very good at sales conversion, but they still cannot compete with even smaller niche businesses specializing in certain products.
These specialty products include vegan cosmetics, skincare products, essential oil, and even specialty pet items. Many shoppers still buy even at higher prices since reportedly, there are 73 percent of millennials who claim they are willing to pay more for products that can ensure sustainability.
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Walmart
Even if Amazon has outranked Walmart, the latter remains the greatest competitor of Amazon in the retail industry. This is mainly because Walmart has 11,000 physical stores spread around 27 countries and a solid online presence.
Amazon has yet to ever be innovative in the retail aspect, given that Walmart is continually growing at a whopping 40 percent per year, thanks to its international presence and millions of customer base.
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Alibaba
Alibaba separates itself from Amazon by offering wholesale services instead of retail, splitting into various businesses rather than under one roof and focusing on B2B, B2C, and multinational brands. With its vast market share in China, considerable international presence, and B2B, B2C, etc., focus, Alibaba can undoubtedly compete with Amazon.
On November 13, 2018, Alibaba set a world record during China’s “single day” when it sold $30.8 billion worth of products. This value shows Alibaba can go toe to toe with Amazon.
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Otto
Another factor that helps an e-commerce business stand out from its competitors is innovation, being able to keep up with the times. Otto is the top online retailer in Europe, mainly because of its user-friendly interface that allows shoppers to navigate the site easily.
When it comes to appliances, fashion, and furniture, Otto is the first go-to shop, taking in 72 percent of sales.
Stay Competitive with Giant Competitors
What’s common about successful e-commerce businesses is that they continually innovate their products, build their brand, and employ digital marketing strategies. These strategies include using e-commerce search engine optimization, social media marketing, a convenient website experience to customers, and consistent quality content and services. Once you identify what your brand is and what you can offer to customers, you can provide them an experience unlike the big retail stores.
By studying how the big stores do it and providing specialized products, any company can compete with Amazon with the right strategies.
