Main Street retail was KO’d and marginalized by the malignant spread of big box retailers with their brick, mortar, asphalt and prison-like architectural gulags that became the retail norm  in much of the so-called civilized world. Thee parking lot malls are now suffering from a double  hit as shoppers with fewer disposable dollars migrate to the point-and-click economy .   Rarely do things stay the same in this world today;  Morgan Stanley has published a chart that illustrates that many of these online retailers are themselves at risk of losing revenue as a variety of new and to-be launched exclusive platforms vie for customer loyalty, and growth.

The chart also point out that some of these same categories are risks for dominant online retailers such as Amazon.

Amazon has been impacted the most recently as its media division has hustled to participate in the shift toward digital delivery (Kindle, Amazon VOD being good examples).  Despite these efforts, however, the company still generates more than half of its overall revenue and profit from physical book, music, DVD, and game sales.  If Amazon can’t successfully transition these sales to digital, half of its business could gradually disappear.

Those e-commerce companies that best adjust to the shift will show the best returns.  Here are some specific category examples:

• Books: There are about six different e-readers either on the market or in development.  Even print publishers like Hearst and Time Inc. are developing e-readers.
• Games: Console games are being challenged by online games, many of which are played on social networks, kicking e-commerce stores out of the equation.
• Video: From streaming to downloading, online video is hurting DVD sales.  E-commerce companies will need to develop on-demand platforms like Amazon Video On Demand to compete.