Amazon Is Killing It

Article on Amazon by Shelly Banjo

amazon-sign

Amazon–it’s bigger than you think.  Just yesterday I found out that KMart is closing 64 of its stores nationwide by the middle of December.

Amazon is already the biggest clothing seller online. It might soon overtake most of its brick-and-mortar rivals in fashion sales, as well.

This I did not know, but it makes sense.  People use Amazon for all sorts of products.  It’s crazy, crazy good.

For the past decade, fashion brands had viewed Amazon as the enemy. Brands swore off selling goods on Amazon, bemoaning its cluttered website and the risk of counterfeit goods. Many reluctantly started their own websites, but continued to rely on department stores for the bulk of their sales.

I like how the department stores have had to adjust.  That news is good.  It shows that no one in any market is invincible.  I did not know that Amazon bought Zappos.  That’s big!

So Amazon started making its own private-label clothes. It bought Zappos in 2009, turbo-charging shoe sales. And it focused on selling the basics, such as t-shirts, leggings, and jeans — things people felt comfortable buying online and replenishing regularly.

This does not bode well for department stores at all.

As shoppers got more confident buying clothes on Amazon, that eroded the steady consumer spending on basic goods department stores once enjoyed.

Ouch.

Amazon increased the number of apparel and accessory products on its website by 87 percent last year from the year before, as its apparel sales hit $16.3 billion, according to trade publication Internet Retailer. That’s more than the combined online sales of its five largest online clothing competitors — Macy’s, Nordstrom, Kohl’s, Gap, and Victoria’s Secret parent L Brands.

That is incredible.

Keep reading.  You’ll enjoy the interactive charts that show Amazon’s dominance against these established retail department stores.

via Robert Wenzel

 

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