US ecommerce giant Amazon has become the UK’s fifth biggest retailer by spending market share, accounting for £4 in every £100 spent on retail last year.
Amazon is now only being held off the top spot by the big four grocers — Tesco, Sainsbury’s, Asda, and Morrisons.
With Amazon primarily selling non-essential items — compared to the grocers essential goods — and that it does not have any physical stores in the UK, highlights its success.[verdict_chart id=”148249″]
Amazon is also growing quicker than many of its rivals. Its market value is thought to have risen by 22.5% in 2017 in comparison to total online spend rising 8.4%, suggesting it is stealing share from competitors.
It’s forecast to have accounted for 33.5% of all UK spend online in 2017 versus 29.6% in 2016.
Given Amazon’s phenomenal performance and the limited growth forecast in retail spend over the next five years, it is no surprise that retailers are keen to sell via Amazon’s site.
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However, they need to give shoppers a reason to visit and purchase from their own websites, such as exclusive products or loyalty rewards, to cement their place in the market.