Together with digital kompakt, the University of St. Gallen, Lehrstuhl für Entrepreneurship, and Etribes we published a report about the German E-Commerce and Amazon’s real market dominance in Germany. Read more below!
Uncovering Amazon’s real Market Dominance
Amazon has significantly expanded its market dominance in e-commerce in recent years. The E-Commerce Germany Report (short: ECG-report) gives an overview and insights into the developments of the online business and an extensive evaluation of the competitive situation on and beyond Amazon in Germany. The aim is to provide insights and a deeper understanding, to create more transparency and to highlight opportunities and risks.
The report contains:
- the sales figures, market shares and marketplace visibility for the ten most relevant product categories determined in the first half of 2019
- the distribution of vendors’ and sellers’ sales broken down by category
- the top 50 most visible brands on Amazon per product category
- the Amazon Market Dominance Index which compares values for the dominance of the online retailer in the respective segment
Online Business grows by around 8% year-on-year
In Germany, the online marketplaces have expanded their volume to EUR 30 billion, making them the strongest distribution channel in the German e-commerce. Compared to the previous year, online trading grew by around 8 percent. Amazon is one of the main players in this field. On this platform, independent third-party providers can offer their products next to the regular offers. This enables Amazon to expand its product range, while marketplace dealers benefit from the large customer base.
The ECG-report examines the penetration of the market of the leading online retailer in Germany and explains important key figures. The Amazon Market Dominance Index was developed on a scientific basis in order to represent Amazon’s dominance in the market. This provides insights into the distribution of the sales across the individual product categories. The higher Amazon’s market share, the higher the dominance and the AMDI’s value.
metoda delivers Database for the Report
If you want to be successful in the world of e-commerce and its biggest player Amazon, you need a lot of data and insights. For the E-Commerce Germany Report, we collected “relevant e-commerce metrics such as price and revenue at category level, presented the visibility of the most successful brands and thus provided a reliable data base for the Amazon Market Dominance Index – because data is our core competence.” says our CEO, Stefan Bures. This data helps retailers to better understand and classify the market position of Amazon and potential competitors.
Amazon’s real Market Power – Strong in Electronics, weak in Food and Clothing
Another topic of the ECG-report concerns the online business from the customer’s point of view. Which products from which categories are most successful on Amazon?
With a turnover of € 2.64 billion, the core business of the online retailer comes from the “Electronic & Computers” category. The AMDI shows that Amazon is far ahead of the competition not only in this category. The online platform also dominates in the areas “Books”, “Toys & Baby” and “Sports & Leisure”. In contrast, the “Food & Beverages” and “Clothing” segments offer a tough competitive environment and are hardly relevant for consumers. They often switch to other online platforms or use stationary retail outlets. However, Amazon sees great potential and expandability in this field.
In the area of “Fashion”, the online platform Amazon is currently experimenting with various projects to increase its fashion competence. Among other things, this is being tested by building its own brand, sponsoring the Fashion Week Tokyo, an AI-based search tool and a Prime Video in-house production.
What’s up next with the ECG Report?
The E-Commerce Germany Report provides a comprehensive overview of the Amazon world. The report is carried out regularly and appears every six months with an up-to-date database. In addition, a podcast has been published, which you can access via the following link.
Read the complete ECG-Report here!
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