According to multiple rumors, Amazon has begun telling online merchants that the company has plans to shut down the Amazon Webstore, which is a platform where small and midsize retailers create and run their own online shop.
If you read our site on a regular basis, then you will know that Amazon isn’t the only company shutting down their ecommerce platform business, recently eBay announced that it will be shutting down its Magneto Go service, which provides similar functionality.
You might be wondering how a gigantic company such as Amazon can be forced to shut down their webstore platform, the answer is very simple, with companies such as Shopify and Bigcommerce offering customers a way to create and run their own ecommerce businesses without much prior knowledge, it has just become impossible for Amazon to compete with these companies. Another reason why more business owners were switching to Shopify and other competitors was that while dedicated ecommerce platforms such as Shopify and Bigcommerce were working on raising more funding, Amazon increased their rates.
DATA: U.S. DEPARTMENT OF COMMERCE, AMAZON.COM, INTERNET RETAILER.
As you can see in the graph above Amazon retail sales growth has been halved since Q3 2013, and experts are suggesting ecommerce will start seeing a much larger growth throughout 2015. As 2014 came to a close internet sales in the U.S. accounted for 6.5% of all retail sales, and according to the U.S. Department of Commerce that’s expected to hit 8.9% by 2018.