eBlog - How Scrappy, Disruptive Brands are Stealing Your Market Share on Amazon

On June 6, 2017, I’m heading to IRCE to speak at the Amazon & Me day on “Negotiating with Amazon”. There are a great roster of speakers lined up, including consumer brands seeing great success online. I hope to see some of you there!

Both in my consulting practice and during my ten years at Amazon managing categories, I have repeatedly witnessed the remarkable rise of a certain type of brands to large, competitive players in their categories. The Grocery Manufacturer’s Association and BCG released a report that stated, “…brick-and-mortar market share and shelf-space prominence do not translate into digital sales, and nimble new competitors with disruptive strategies…stake out leadership positions and are then hard to dislodge.”

recent Bain article echoed these trends. “…15 years ago, large brands were more likely than small brands to outgrow their categories consistently year-over-year. Today, small brands have the edge [ on stealing market share ] as 23% of them outpaced their category growth every year from 2010 to 2014, compared with only 14% of larger brands.” This growth is heavily skewed to e-commerce (or as Bain affectionately called it, “non-traditional grocery channels”). 

Sidebar: When do you think we’ll embrace e-commerce as “traditional”? How old must we be? I feel like a grown-up perpetually stuck at the kids table. It’s getting embarrassing. But I digress . . .