Amazon sellers are facing stiffer competition (AMZN)

This story was delivered to BI Intelligence "E-Commerce Briefing" subscribers. To learn more and subscribe, please click here.ChannelAdvisor, which helps retailers sell online, reported that its clients' same-store sales growth on Amazon.com was 6.4% YoY during July, a decrease from Junes 11.6%, cites Internet Retailer.ChannelAdvisors clients sell through various online marketplaces, including Amazon and eBay, and the company generates monthly reports to analyze its clients sales growth across the different marketplaces. For comparison, sales on marketplaces for ChannelAdvisors clients, excluding Amazon and eBay, experienced 53.3% YoY growth.The increase in the number of third-party sellers on Amazon during the last year is the driving force behind the increasing competition. The e-commerce giant recently reportedstrong second-quarter results, even though its third-party sellers are heavily competing on price.In fact, ChannelAdvisor reported, through a sample of sellers, a 227% YoY increase in July in competing offers at the individual product level, as the number of new sellers forced long-term merchants to match and decrease their prices.The influx of third-party sellers on Amazon has led to a price war between merchants, which could limit many sellers revenue opportunities. In response, sellers could look to smaller online marketplaces, such as Etsy or Walmart, in order to sustain sales growth in the future.To receive stories like this one directly to your inbox every morning, sign up for the E-Commerce Briefing newsletter.Click here to learn more about how you can gain risk-free access today.Join the conversation about this story
Click here to read full news..