Amazon Prime’s dominance is spurring new startup opportunities

John (Jiang) Lin
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John Lin is an associate partner at Trinity Ventures supporting investments in developer tools, artificial intelligence and real estate.

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E-commerce is one of the economy’s bright spots; U.S. e-commerce sales have nearly doubled in five years, and now exceed $500 billion. Unsurprisingly, Amazon has swooped in to claim a disproportionate share of the riches, gobbling up nearly 50 percent of the market share, driving competitors out of business and solidifying its position as one of the world’s most valuable companies.

As part of its complete transformation of the e-commerce landscape, Amazon has made two-day shipping the new industry standard — a standard which most would-be competitors can’t meet on their own without either investing millions in infrastructure or partnering with their greatest competitive threat. Fortunately for merchants, some exciting new logistics startups are emerging to help them compete with Amazon.

Amazon’s chokehold

In classic coopetition form, Amazon now enables more than a million merchants to sell through  Amazon Marketplace.

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