Internet Retailer’s 2019 Top 500 web merchants are gaining market share over smaller rivals, and it’s not just Amazon that’s growing. In fact, it’s the smallest Top 500 retailers that are growing the fastest.
It won’t come as a shock that Amazon.com Inc. is gaining ground in e-commerce, but there are many online competitors growing faster than Amazon.
Internet Retailer’s just-released 2019 Top 500 report, which ranks North America’s leading online retailers by web sales, shows that the retailers ranked Nos. 401-500 this year grew their collective web revenue by 24.3% in 2018 over 2017, faster than the 20.0% growth of Amazon, and well above the 14.1% year-over-year e-commerce growth in North America.
The Top 500 as a whole grew their worldwide online sales by 17.6% in 2018, and accounted for 89.8% of U.S. online retail sales in 2018, up nearly three percentage points from 87.0% in 2017. Amazon, by far the leading online retailer in North America, accounted for 22.4% of U.S. e-commerce in 2018, compared to 20.9% a year earlier.
While some believe Amazon is killing the operators of retail stores, store-grounded retailers are more than holding their own online. The 138 retail chains in the Top 500 grew their online sales by an average of 16.3% in 2018. And some did far better than that, including Walmart Inc., No. 3 in the Top 500, whose web sales increased 38.8% in 2018 and have grown by an average of 26% over the past five years, according to Internet Retailer.
Consumer brand manufacturers in the Top 500 also grew rapidly online, increasing their web sales by 17.9% in 2018. Nike Inc. (No. 34) was among the big winners, growing by 25.0%. But so were the 31 digitally native brands that got their start on the web, though some now also sell through stores. These web-first brands, such as The Honest Co. (No. 135) and Glossier Inc. (No. 404), collectively increased their online sales by 29.5% in 2018, versus 17.4% for the rest of the Top 500.
Internet Retailer, which has been ranking North America’s leading online retailers since 2004, not only estimates sales for each Top 500 retailer but also such key metrics as website traffic, conversion rate, average order value, customer demographics and more—more than 200 data points for each retailer. All of that data is contained in an online database available by subscription.
“Researching the Top 500 never gets old for us because e-commerce keeps changing every year,” says Molly Love, CEO of Vertical Web Media LLC, publisher of the Internet Retailer 2019 Top 500 report. “This year’s Top 500 report digs into exciting new developments in e-commerce, including the big surge in online grocery sales and the growth of omni-channel services offered by store-based retailers. For anyone competing in or following e-commerce, this report is a treasure trove of data that can’t be found anywhere else.”
ABOUT DC360 Research | At Digital Commerce 360 (DC360) Research our goal is to provide data and information about e-commerce that helps retail companies, investors and technology providers prosper. The team tracks hundreds of metrics on roughly 6,000 online retail companies around the world, including such sought-after data points as web sales and traffic, conversion rates, average order value and key technology partners used to power their e-commerce businesses. We sell this data in its raw format in our multiple online databases, and we dig deeply into these numbers in our custom research division, and to help inform our 30+ exclusive analysis reports we publish each year on key e-commerce topics, including online marketplaces, cross-border e-commerce and omni-channel retailing.