Easier said than done, it seems. It's not just that online retailers are gaining market share from bricks-and-mortar. It's that Amazon is getting a larger and larger share of online purchases. And I'm not just talking books and electronics. Amazon is becoming a general store for the 21st century.
It's old news to point out consumers are doing more of their buying online. What's noteworthy is that, according to a recent consumer survey by research firm TraQline, Amazon is taking share of online purchases in specialty retailing categories -- i.e., Amazon is doubly blessed by taking share in a segment that is taking share.
Here are a couple of examples from TraQline's survey:
Portable Power Tools
|% Sold Online-2005||5.0%||13.0%|
|% Sold Online-2010||9.0%||18.0%|
|Amazon's Online Share-2005||22.0%||17.0%|
|Amazon's Online Share-2010||37.0%||35.0%|
|Amazon's Total Share-2005||1.1%||2.2%|
|Amazon's Total Share-2010||3.3%||6.3%|
In portable power tools (drills, for example), Amazon's share of all purchases -- online and offline -- tripled from 2005 to 2010. Meanwhile, Home Depot's
Likewise, in kitchen electrics (coffee makers, for example), Amazon's share of all purchases -- online and offline -- almost tripled from 2005 to 2010. Meanwhile, Bed Bath & Beyond's
And in case you missed Best Buy's
Amazon is not just a play on the shift to online retailing. Amazon is taking share of online retailing because it executes well and offers a compelling combination of attractive prices and convenience. Invest in companies that compete with that at your own peril.
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