US online retailers slip against web giants like Amazon & Walmart.com
Smaller and midsized online retailers are slipping behind online retail majors like Amazon and Walmart.com, as per a recent report by Internet Retailer 2014 Second 500 Guide.
Collectively, these 500 e-retailers, who compete for the 25% of market share are not dominated by the Top 500 e-retailers in North America. The growth rate is lower than the 15.6% growth of Second 500 merchants posted in 2012, and was well behind the 17.1% growth the leading U.S. e-retailers reached in 2013—the 2014 Top 500. As a result, the Second 500's share of U.S. e-retail sales slipped slightly to 1.80% in 2013 from 1.84% a year earlier.
However, the Second 500 Guide's data show some types of merchants did better than others. Web-only merchants form the most prevalent merchant type in the 2014 Second 500 Guide—in fact, 297 out of the 500 are pure-plays, up from 292 in the 2013 edition of the Second 500 Guide. They collectively grew sales 15.6% last year to $2.8 billion. Web-only start-up companies fared particularly well as a subset: of the 25 fastest-growing retailers in the 2014 Second 500, four out of five sell only online and were founded in 2009 or later.
According to an Internet Retail Publisher, Jack Love,” There is much competitive information to be gleaned in studying mid-tier players as there is in tracking the major e-retailers. In fact, the competitive secrets of the all-new 2014 Second 500 Guidemay be even morecompelling because they are lesser known and are often more innovative and aggressive when it comes to applying best e-retailing practices. They target market niches better than many large e-retailers and in particular use social media more effectively as well."