Coldplay may not have been talking about e-commerce, but they captured a truth many businesses overlook. In a market like Lebanon’s, where sector dynamics shift quickly and competition can be deceptive, we set out to understand what really drives performance in e-commerce. E-commerce is often seen as a volume game: more shops, more sales, more growth. But when we analyzed data across 12 major industries (covering nearly 84% of total e-commerce revenue in Lebanon, excluding food deliveries and large electronics), the numbers told a different story. Market concentration, competition, and economic convenience vary widely between industries, and high revenue doesn’t always mean high efficiency.
Key Findings
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Crowded Markets, Fierce Competition
Fashion and Jewelry dominate in numbers but underperform in efficiency:
- Fashion holds 21% of all e-commerce shops, yet each shop captures only 0.08% of the fashion sector’s orders. Overall, the sector generates 15% of total e-commerce revenue.
- Jewelry & Accessories make up 12% of e-commerce shops, but per-shop share is just 0.14% of the sector’s orders. In total, the category accounts for 9% of e-commerce revenue.
A crowded pond means everyone’s fighting for the same fish. Competition is intense, margins thin, and marketing costs high.
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Small Market, Fewer but Bigger Big Players
Electronics and Household Appliances flip the script:
- Electronics represents 4.9% of e-commerce shops, with each shop securing 0.36% of the sector’s orders. This translates into a 10% share of total e-commerce revenue.
- Household Appliances (small appliances) accounts for 2.7% of e-commerce shops, and each shop averages 0.66% of the sector’s orders. The category contributes 6% to total e-commerce revenue.
Fewer players, higher per-shop performance, healthier unit economics. Sometimes a smaller pond with fewer fish makes for a better catch.
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The Middle Ground
Beauty & Cosmetics strikes a balance. It comprises 11% of e-commerce shops, with each shop handling about 0.16% of sector orders. Collectively, the sector delivers 18% of total e-commerce revenue.
Competition is real, but demand is strong enough to sustain many players while still allowing for scalable growth.
Strategic Takeaway
Our analysis highlights a clear pattern across industries: Scale does not guarantee efficiency.
- Fashion & Jewelry: High shop count, low per-shop returns → highly fragmented, competitive, and margin-thin.
- Electronics & Small Appliances: Low fragmentation, high revenue share per shop → stronger economics and a clearer path to profitability.
- Beauty & Cosmetics: Balanced structure → sustainable growth potential with manageable competition.
What this means
E-commerce businesses and investors should evaluate order share per shop and market fragmentation before entering or expanding in a sector. Prioritizing markets with high per-shop productivity and lower competitive saturation increases the likelihood of sustainable, scalable growth. This shifts the focus from “who sells the most” to “who sells most efficiently.”
The Bigger Picture
E-commerce often feels like a numbers game, but more shops don’t always lead to more wins. Fragmented markets lead to high competition, thin margins, and marketing burn. Concentrated markets foster higher productivity per shop, stronger brand positioning, and more efficient growth.
“You might be a big fish in a little pond, doesn't mean you've won, ’cause along will come a bigger one.”
In e-commerce, winning isn’t about size. It’s about choosing the right pond where you can keep growing, even when bigger fish show up. For businesses, that means looking beyond surface metrics, focusing on the markets where efficiency, scalability, and customer loyalty align.
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