Shopper Marketing - January 2017 - 45
Amazon's lead, Walmart, Macy's and Crate &
Barrel have opened their e-commerce sites to
third-party sellers as a way to offer a wider assortment without handling or shipping the additional items, The Wall Street Journal reported
Amazon's third-party marketplace accounts
for half of its assortment and as much as a fifth
of its U.S. revenue, according to Forrester Research, based in Cambridge, Massachusetts.
However, its marketplace is a bit of a Wild
West where damaged, expired and counterfeit
products keep cropping up, providing CPGs
and retailers with an opportunity to try for a
Chew On This
Amazon has quashed would-be competitors
by making them "hurdle," or spread resources
too thinly across two enterprises. "It's time for
serious players to stop hurdling and get in the
game," Ackerman says.
Walmart's acquisition of Jet.com for more
than $3 billion in August "is its way of saying,
'We're all in; we're not going to hurdle anymore,'"
As outlined at
Walmart's 2016 Investment Community Meeting covered by Mobile
Commerce Daily, Walmart
is slowing new store
openings to focus on
mobile and online commerce as its main driver
of growth. "Walmart has a
good shot at going head
to head with Amazon,"
Ackerman says. "They've
done a lot of things right."
Target also announced
plans to invest in e-commerce and supply chain
Perhaps the biggest
obstacle to e-commerce
success comes from deep-seated misconceptions about what folks are willing to buy online, says Ackerman: "One of the most successful online sellers for Mondelez is Trident
despite the fact that everyone said no one
would ever buy gum online because it's an
JANUARY 2017 SHOPPER MARKETING