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Nielsen is out with a new study saying that while “Amazon remains the leader in online consumer packaged goods (CPG),” its “share growth has slowed … Back in 2017, Amazon had a 43% hold on CPG e-commerce. This year, that figure has fallen to 39%. On the flipside, we’ve seen Walmart triple its share to 6%, Instacart double in size to 8% and we’ve witnessed healthy share growth among merchants like Target, Kroger and"

The study goes on: “A downward shift in Amazon’s share of CPG sales in the U.S. sends an important message to retailers and manufacturers. Traditional and non-traditional retailers have been accelerating their responses to Amazon by adjusting their omnichannel offerings and strategies. These adjustments have helped them steal share from the global online player, but other factors are at play.

“Today, the playing field online has become exponentially more crowded, and while that does bring complications, it also means that many merchants have begun to hit their stride with consumers online.”

Nielsen goes on:

“From competitively priced and timely delivery to the expansive array of pick-up locations and click-and-collect models (from curbside pick-up, to drive-thrus and more), online fulfillment of CPG e-commerce has been redefined in America. While the broadened distribution of e-commerce dollar share bodes well, the U.S. market is still in its infancy when it comes to adopting and localizing online purchase fulfillment. One in 10 surveyed Americans are already using in-store click-and-collect purchasing. But that pales in comparison to the 29% of Indian, 27% of Vietnamese and 26% of Chinese shoppers who are already accustomed to ordering online and picking up their purchases in stores.”
KC's View:
It was inevitable that as other retailers got better and faster and more able to exploit their own advantages, Amazon’s growth would slow. I wouldn’t count Amazon out by any means, but it certainly seems clear that the battles will be more pitched and that outcomes may not be as pre-ordained as they would’ve been just a few years ago.

Good for consumers. But tougher and tougher for retailers as everybody gets better.