Invasion of the Category Snatchers: Past Success on Amazon Doesn’t Guarantee Future Success

Invasion of the category snatchers.jpg

Warren Buffet said that in ten years, the retail industry will be unrecognizable. The billionaire investor confirmed what we already knew when he sold off the last $900 million of his retail stock and said, “The department store is online now.”

That’s old news.

The real news is what’s happening inside the online marketplaces.

Death of brick & mortar retail.pngSellers with basic operational capabilities are under siege and losing ground fast to more agile and sophisticated competitors. Sellers who cling to the old model won’t survive. Systems and processes that were once useful must either be streamlined or eliminated. It’s not an easy thing to do, but some sellers have done it. You can too. But time isn’t on your side.

The original categories of top third-party sellers have become saturated. Growth is grinding to a halt. So, they’re taking a page out of the playbooks of Amazon, eBay, and Walmart. They’re expanding to new product categories – categories you may be selling in – and all of the systems and resources that catapulted them to the top of their original categories are coming with them.

Category expansion was how Amazon became the go-to online retailer – and it has sellers like you to thank for it. Amazon used third-party seller data to identify the fastest-growing and most profitable categories – a data-driven approach that practically guaranteed its success.

Category expansion was also the engine of eBay’s spectacular growth.

Walmart expanded its online capabilities – and product categories – by acquisition, beginning with Jet.com shortly after Jet had acquired Hayneedle. In the next 7 months, Walmart also acquired:

  • Modcloth (women’s apparel & accessories for ages 18-35)
  • Moosejaw (over 400 brands of outdoor gear and apparel)
  • Shoebuy (more than 800 brands in footwear, clothing and accessories)

“The acquisitions give us immediate expertise and capabilities in new, more upscale categories of merchandise,” says CEO Doug McMillon.

No surprise then that top third-party sellers are following in the footsteps of these giants and why comScore calls category expansion a top growth factor in digital commerce.

According to Forrester, “Many retailers are increasing the number of SKUs they sell online by a factor of 5-to-10 times. Brands too are increasing the number of SKUs they offer with new sub-brands, private label products, and a general diversification of product lines.”

You already have a hard time staying competitive – it’s only going to get worse.

Bain & Company – a top management consulting firm – conducted a 5-year study on how companies successfully sustain profitable growth and found two major factors. Most of that growth came when a company pushed outside, “… the boundaries of its core business into an adjacent space”. In our industry
this can mean expanding into new categories. Second, these companies, “… develop a formula for expanding those boundaries in predictable, repeatable ways.” Companies that use a repeatable formula have a success rate of 50-80% or higher.

Some sellers have found that repeatable formula. They found out how to automate and streamline their operational processes. They leverage this advantage in the new categories they enter. Their formula systemizes growth while reducing the complexity and the learning curve that go along with it. That’s why they are at the top and poised to go higher.

You need to find that formula too … now.  

21 Comments

  1. Central london harley street Psychotherapist on December 15, 2018 at 3:00 pm

    Very good post.Really thank you! Really Cool.



  2. descargar facebook on December 6, 2018 at 2:21 am

    Valuable info. Fortunate me I found your web site accidentally,
    and I am surprised why this twist of fate did not came about earlier!
    I bookmarked it.



  3. Sling TV Save Money Coupon 2018 on December 5, 2018 at 4:08 pm

    It’s a pity you don’t have a donate button! I’d without a doubt donate to this outstanding
    blog! I guess for now i’ll settle for bookmarking and adding your RSS feed to my Google account.

    I look forward to brand new updates and will share this site with my Facebook group.
    Chat soon!



  4. Sling TV Save Money Coupon 2018 on December 5, 2018 at 10:41 am

    Hi there to all, how is the whole thing, I think every one is
    getting more from this site, and your views are fastidious in favor of new people.



  5. descargar facebook on November 21, 2018 at 10:41 am

    Appreciate the recommendation. Let me try it out.



  6. What Equipment is Needed for Sling TV on November 20, 2018 at 8:11 am

    you are truly a good webmaster. The web site loading
    speed is incredible. It sort of feels that you are doing any unique trick.
    Furthermore, The contents are masterpiece.
    you’ve done a fantastic job on this topic!



  7. What Equipment is Needed for Sling TV on November 19, 2018 at 9:30 am

    I do believe all the concepts you’ve presented on your post.
    They’re really convincing and will certainly work. Still, the posts are very short for starters.
    May you please prolong them a little from subsequent time?
    Thanks for the post.



  8. What Equipment is Needed for Sling TV on November 18, 2018 at 6:25 pm

    It’s an remarkable paragraph in support of all the web people; they will get
    advantage from it I am sure.



  9. What Equipment is Needed for Sling TV on November 18, 2018 at 5:14 pm

    We’re a group of volunteers and starting a new scheme in our community.
    Your site offered us with valuable information to work on. You
    have done an impressive job and our entire community will be
    grateful to you.



  10. What Equipment is Needed for Sling TV on November 17, 2018 at 9:16 am

    Woah! I’m really loving the template/theme of this blog.

    It’s simple, yet effective. A lot of times it’s tough to get that “perfect balance” between superb usability and visual appeal.
    I must say that you’ve done a amazing job with this.
    In addition, the blog loads very quick for me on Opera.
    Exceptional Blog!



  11. sling tv coupons and promo codes for november 2018 on November 17, 2018 at 7:15 am

    Sling tv coupons and promo codes for november 2018
    Great goods from you, man. I have understand your stuff previous to
    and you’re just too magnificent. I really like what you’ve acquired here, certainly like what you’re stating and the way in which you say it.

    You make it enjoyable and you still care for to keep it sensible.
    I cant wait to read much more from you. This is actually a tremendous web
    site. Sling tv coupons and promo codes for november 2018



  12. Lipinska Blanka Ten Dzien ebook on November 17, 2018 at 6:53 am

    Does your site have a contact page? I’m having a
    tough time locating it but, I’d like to send you an email.
    I’ve got some suggestions for your blog you might be interested in hearing.
    Either way, great site and I look forward to
    seeing it grow over time.



  13. What Equipment is Needed for Sling TV on November 17, 2018 at 6:06 am

    Hey there! Do you know if they make any plugins to protect against
    hackers? I’m kinda paranoid about losing everything I’ve worked
    hard on. Any recommendations?



  14. What Equipment is Needed for Sling TV on November 16, 2018 at 11:35 am

    After I originally commented I seem to have clicked the -Notify me when new comments are added- checkbox and
    from now on whenever a comment is added I recieve 4 emails with
    the same comment. Is there a means you can remove me from that service?
    Kudos!



  15. Sling TV on November 15, 2018 at 1:16 pm

    I think the admin of this site is genuinely working hard for his site, because here
    every material is quality based stuff.



  16. Sling TV on November 14, 2018 at 9:53 am

    I like what you guys are usually up too. Such clever work and reporting!
    Keep up the excellent works guys I’ve added you guys to our blogroll.



  17. What Equipment is Needed for Sling TV on November 13, 2018 at 2:35 pm

    Hey would you mind sharing which blog platform you’re
    working with? I’m going to start my own blog in the near future but
    I’m having a tough time choosing between BlogEngine/Wordpress/B2evolution and Drupal.
    The reason I ask is because your layout seems different then most blogs and I’m looking for something completely unique.
    P.S Sorry for being off-topic but I had to ask!



  18. Sling TV on November 12, 2018 at 4:30 am

    Woah! I’m really loving the template/theme of this site. It’s simple, yet effective.
    A lot of times it’s challenging to get that “perfect balance” between usability and
    visual appearance. I must say that you’ve done a excellent job with this.
    Additionally, the blog loads very quick for me on Safari.
    Exceptional Blog!



  19. Sling TV on November 10, 2018 at 6:29 pm

    I really like what you guys are up too. Such clever work and exposure!
    Keep up the awesome works guys I’ve incorporated
    you guys to my personal blogroll.



  20. Sling TV on November 10, 2018 at 10:38 am

    Hello There. I discovered your weblog the usage of msn. That is an extremely neatly written article.
    I will make sure to bookmark it and return to read extra of your useful info.
    Thanks for the post. I will definitely comeback.



  21. What Equipment is Needed for Sling TV on November 9, 2018 at 5:44 pm

    I’ll right away grasp your rss as I can not find your email subscription hyperlink or e-newsletter service.
    Do you’ve any? Please allow me recognise in order
    that I may just subscribe. Thanks.



Leave a Comment