Here are some brands that have been most affected by eCommerce, or will be under fire in upcoming days.
Most of us think of Netflix as the biggest Video Streaming giant today. But not long before, Netflix was delivering DVDs to people via mail, and taking on Blockbuster- a DVD outlet mega-chain that had 9000 stores in the US in 2004. What followed is history and Blockbuster stores all over the country shut shop slowly, unable to cope up with Netflix’s home-delivery model.
2. Barnes & Noble
One of the first casualties of the rising tide of eCommerce has been this book retailer, with more than 600 stores in the USA hit by online book sales as well as Kindle books capturing more than 15% of the total book market. B&N shares have plummeted almost 80% to just $5.95 in June 2018. According to a Quartz report, Amazon plans to open one next-gen book-shop for every B&N that closes.
While the decline of this fashion mammoth has been on for a while, the likes of Amazon has hastened its fall. Stock prices are 45% down, and the latest Amazon Wardrobe service where you can try apparel before you buy has led to more fears among brick and mortar stores. Macy’s has plans to close up to 9 stores in 2019, to cut costs, whereas online sellers continue to rise in the fashion industry by coming up with better techniques to woo new customers.
One of the biggest American retail giants, Costco merged with Price Club and its 24-year subscriptions crossed 80 million. Seems huge? Well, Amazon Prime that launched as recently in 2005, already has 90 million active Prime members. As online sellers move more and more into groceries and fresh produce, by tying up, or buying smaller companies, the likes of bigger retails giants are likely to fall.
5. UPS and FedEx
One of the most unsuspecting business is about to be hit by eCommerce- freight. Amazon has bought 50 aeroplanes and is delivering its own cargo in many places. As per the reports, Amazon will now be competing directly with other logistics companies. As eCommerce companies start to rent out their own delivery arms to smaller businesses at pay-per-use models, the current logistics businesses will be hit hard. At the same time, many eCommerce companies are even testing delivery methods with drones so as to make deliveries faster and cheaper. All this technology makes traditional freight seem unattractive and costly.