The Competitive State of eCommerce Marketplaces...Q2 2017 vs. Q2 2018 YoY Change in Market Share...

The Competitive State of eCommerce MarketplacesData Report Q2 2018

© 2018 Jumpshot, Inc. 2

MethodologyJumpshot studied anonymous consumer actions on mobile and desktop devices within 500 eCommerce sites and marketplaces in Q2 2018, analyzing visits and transactions for different brand categories across these sites.

*Data analyzed is for online shopping activity during Q2 2018


┼ While Walmart has a relatively small market share today compared to Amazon, it is growing at 3.5x faster than Amazon

┼ Amazon is increasing focus on search platform and surpassed Google for product search

Executive Summary

Walmart and other retailers are surging online while Amazon’s market share has plateaued

┼ Amazon has more than 80%market share across numerous categories. But its dominance has left no room to grow further

┼ Different categories see different winners in YoY growth—H&M, JC Penney and Walmart are growing fastest in Women’s Clothing; Walmart, Lowes and Home Depot in Home Improvement; Walmart and Target in Beauty

© 2018 Jumpshot, Inc. 4© 2018 Jumpshot, Inc. 4

Amazon’s dominance is being challenged



Amazon has more than 80% market share across numerous categories

Sports, Fitness & Outdoors

Electronics

89.9%

Health (Medicines) Household Essentials

Home Improvement

83.8%

Food

81.8%

89.6% 92% 88.8%


But Amazon doesn’t dominate all categories

Furniture

47%

Women's Clothing

42%

Beauty

72.2%


And Amazon's growth is 1.7x slower than individual category growth YoY

20.3%

13.4%

26.2%21.2%

11.7%18.2%

32.5%29.6%

11.9%

45.7%

15.8%

34.3% 35.8%

17.4%

25.2%

36.1% 38.6%

50.4%

0%

10%

20%

30%

40%

50%

60%

Furniture Electronics Home Improvement Food/Grocery Sports, Fitness &Outdoor

Beauty Health (Medicines &Treatments)

Household Essentials Women's Clothing

Growth YoY Category Growth YoY

┼ Amazon saw an average of 20%growth YoY across these categories

┼ Sales across marketplaces for these same categories grew by 32% on average

┼ Amazon lost over 10% of market share across many categories


Walmart is growing more than 2x faster than individual categories across the board, except in Women’s Clothing

Overall Category Growth YoY Growth YoY

┼ Walmart is growing 70% YoY across these categories

┼ The average YoY growth across several categories is 32%

15.8%

34.3% 35.8%

17.4%25.2%

36.1% 38.6%50.4%

25.9%

63.7%

116.2%

33.3%

97.4%89.6%

116.2%

52.5%

0%

20%

40%

60%

80%

100%

120%

140%

Electronics Home Improvement Food Sports, Outdoor &Fitness

Beauty Health (Medicines) Household Essentials Women's Clothing


Walmart is growing 3.5x faster YoY than Amazon

Growth YoYGrowth YoY

┼ Walmart is growing 70% YoY across these categories

┼ The average growth across individual categories is 32%

20.3% 13.4%26.2% 21.2%

11.7% 18.2%32.5% 29.6%

11.9%

34.1%25.9%

63.7%

116.2%

33.3%

97.4%89.6%

116.2%

52.5%

0%

20%

40%

60%

80%

100%

120%

140%

Furniture Electronics Home Improvement Food/Grocery Sports, Fitness &Outdoor

Beauty Health (Medicines &Treatments)

HouseholdEssentials

Women's Clothing


Top performers vary across categories



Home ImprovementWalmart and Home Depot are growing up to 16% in market share, while Amazon is declining

83.8%

4.3%5.5%

3.3% 3.1%

Q2 2018 Transaction Share

-3.0%

16.2%

12.2%13.8%

-5%

0%

5%

10%

15%

20%

Q2 2017 vs. Q2 2018 YoY Change in Market Share

┼ Amazon leads, but its market share declined by 3%

┼ Walmart has 4.3% market share and is growing at a rate of 16% YoY

┼ While Home Depot and Lowes have <5% market share, they are growing at a rate of 12% and 13% respectively

Others


-10.8% -9.0%

21.6%

-4.9%

57.4%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%


FurnitureWayfair has a good market hold and continues to grow at 21%, outshone in YoY growth by Ikea at 57%

┼ Amazon has less than 50%transaction share and is losing share YoY to other retailers

┼ Ikea is growing 5.3x faster than Amazon

┼ Wayfair is continuing its market share growth at 21%

47.0%

13.1%

13.5%

3.9%

8.5%

14.0%


Others


-8.0%

52.3%

20.0%

-33.3% -30.0%-40%

-20%

0%

20%

40%

60%


FoodSpecialized food delivery brands are losing share while big box retailers like Walmart and Kroger grow 52% and 20% YoY, respectively

┼ Amazon is losing share YoY despite the acquisition of Whole Foods

┼ Meanwhile, Walmart and Kroger are growing YoY at 52% and 20% respectively

Others

81.8%

6.7%1.8%

0.6%0.7%8.4%



-9.5%

63.2%

3.0% 8.3%

100.0%

-53.8%-75%

-50%

-25%

0%

25%

50%

75%

100%

125%


BeautySpecialist retailer Sephora declines 53% online, superstores Walmart and Target steal market share

┼ Amazon is the market leader in Beauty but lost 9% market share YoY

┼ Superstores Walmart and Target steal market share from Amazon and Sephora

Others

72.2%

3.1%3.4%1.3%1.2%

0.6%

18.2%



-30%

20%

49%

26%7%

77%

-40%

-20%

0%

20%

40%

60%

80%

100%


Women’s ClothingAll top marketplaces are growing share except Amazon; H&M grew the highest at 77% YoY

┼ Amazon has less than 50%share in women’s clothing

┼ Amazon is losing transaction share at 30% YoY despite adding many designers to their portfolio

┼ H&M is growing its market share at a staggering pace of 77% YoY

Others

42.0%

4.8%7.6%9.1%

6.0%

8.3%

22.2%



Amazon is increasing focus on search and sponsored placements



Amazon overtook Google in product search┼ About 54% of product searches begin on Amazon,

up from 46% in 2015┼ Almost 90% of all product views on Amazon

result from Amazon’s product search and not merchandising, ads, or product aggregators

0% 25% 50% 75% 100%

Televisions

Audio & Home Theater

Computers & Laptops

Video Games

Health & Personal Care

Apparel

Pet Supplies

Exercise & Fitness

Total

% of Clicks from Search

46%

54%54%

46%

45%

50%

55%

2015 2018

Share of Product Searches

© 2018 Jumpshot, Inc. 18© 2018 Jumpshot, Inc.

Amazon search result placement is vital for product views

┼ Ranking high in Amazon’s search results pays massive dividends.

┼ More than 2/3 of all product clicks come from the first page of Amazon results, and 1/3 from the first two rows alone.

┼ The 4th ranked product spot generates more views (7% of all clicks) than the 2nd and 3rd ranked spots (5.7% and 5.2%, respectively).

20%

35%

16%

9%

6%

4%4%3%3%

First Page Other Pages

Share of Product Views by Amazon Search Page Results

Row 8Row 7Row 6Row 5

Row 4

Row 3

Row 2

Row 1


Time to purchase from Amazon search is longer than from Google search

┼ Time to purchase is faster for shoppers who use Google search and buy on a marketplace other than Amazon, on average

┼ 35% of Google searches, and less than 20% of Amazon searches led to a transaction within 5 days

┼ Across all categories, Amazon search averages 25.9 days from search to purchase. Google search averages just 19.6 days

19%

4% 4% 5%

8%

15% 16%

11%9%

5%3%

1%

35%

6% 6% 6% 7%9% 9%

7% 6%4%

2% 2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0-5 6-10 11-15 16-20 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60

Days from Initial Product Search to Purchase

Others


Amazon is increasing focus on sponsored ads

┼ Sponsored listings only make up about 6% of all product views from Amazon’s search results page

┼ Clicks from sponsored placements on Amazon have increased 17% since the beginning of 2018

10.29.6

10.311.0

12.4

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Jan Feb Mar Apr May

Millions

Amazon Product Views from Sponsored Placements

Number of sponsored clicks % of clicks from sponsored placements


Maximize your paid search performance on Amazon and other online retailers.Sponsored placements will begin to play a bigger role on marketplaces. You need to understand what is driving users from search engines like Google, and how to optimize your paid media strategies within retailer sites. In essence, you need data on:

• Which search strategies are driving users to a specific brand on certain marketplace.

• How sponsored clicks are driving purchases for your brand, competitor, or category.

• What search terms are driving product views on different retailer sites.

Identify who to target and where to reach them.Today's consumers browse several sites before making a purchase. You need a quick way of understanding who your target customers are beyond traditional demographic information. Replace gut feel solutions and identify the optimal targeting opportunities for ad serving with data that answers:

• Which domains your ideal customers visit.

• What content verticals buyers frequent and what genres of TV/movies they stream.

• Who your competitor’s customers are and what sites/content they visit.

Accelerate your growth with a comprehensive view across all eCommerce marketplaces.Different retailers are growing at different paces in varying categories. As a brand, you need to know which marketplaces and channels to invest in, and grow your sales. For this, you need data to understand:

• How your brand is performing vs your overall category.

• Which retailers are growing fastest in your category.

• How your competitor’s products are performing across marketplaces.

Takeaways


Jumpshot delivers digital intelligence from within the Internet's most valuable walled gardens. Our real-time, anonymized global panel tracks 5B actions a day across 100 million devices to deliver insights into online consumer behavior. Jumpshot works with customers including Condé Nast, IRI, Kantar, Pepsi, TripAdvisor and Unilever, among others.

Learn more at jumpshot.com

The Competitive State of eCommerce Marketplaces...Q2 2017 vs. Q2 2018 YoY Change in Market Share...

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