The Disruptors

From online social sharing to location-based targeting to new payment technologies, the retail experience is being upended and disrupted in ways big and small. Ten companies are leading the charge.

1. Amazon.com

How it Made the Cut: There is little mystery as to the online giant’s top ranking: It is the original retail disruptor. Since launching in 1995, Amazon has redefined, reinvented and fundamentally disrupted how the world shops and how retailers large and small do business and serve customers. The company’s volume is staggering, but its real genius is how it sells and delivers the goods. From “one-click” ordering and personalized product recommendations based on tracking of online behavior to same-day shipping to becoming a hosted cloud platform provider, Amazon has upended so many retail fundamentals with game-changing technologies that it’s hard to keep track. And it’s not just technology: Amazon even got the U.S. Postal Service to deliver its packages on Sundays in Los Angeles and New York!

Next Big Thing: Even faster deliveries. Amazon’s proposed drone-based delivery system, Prime Air, would use automated drones, “octocopters,” to deliver some customer packages within 30 minutes of purchase. It’s unclear whether the program will ever become a reality. But the fact that the company is even working on it cements Amazon’s place at the forefront of retail disruption. And even if the drones never fly, Amazon has other tricks up its sleeves to upend the delivery model. The company has expanded same-day shipping to 11 markets, with more cities to come.

An expanding network of gigantic fulfillment centers — some 90 globally with more on the way — is key to Amazon’s core strategy of getting whatever customers want to their doorsteps faster than nearly anyone. The company is using robots from Kiva Systems, which it bought to automate part of the fulfillment process at three of its centers. Full deployments of robots in Amazon DCs could save the company an estimated $900 million-plus in fulfillment costs.

Throw in other disruptive activities such as the expanding rollout of AmazonFresh, its grocery delivery service, and CEO Jeff Bezos’ purchase of the Washington Post last year, and you have a company that is clearly dedicated to shaking things up — and to proving that there is no industry that cannot be disrupted. Rumor has it that Amazon may be building its own cellphone — with a glasses-free 3-D display — and a TV set-top box.

2. Facebook

How it Made the Cut: The social network’s commitment to new and improved advertising products has transformed it into a powerhouse marketing tool for retailers and other brands. Indeed, Facebook is evolving into the most effective online advertising platform to date. The company’s overall ad revenue surged 66% to $1.8 billion in its most recent quarter (ended Sept. 30), with 49% of the revenue coming from mobile (and naysayers predicted the site would never become mobile-savvy). Total ad spending is expected to come in at $6 billion in 2013. Facebook is now working directly with retailers to measure the effectiveness of advertising on the social network — and how much it affects their bottom line — by tracking when users who viewed an ad actually made a purchase.

Next Big Thing: Artificial intelligence and video ads. Facebook recently hired New York University professor Yann LeCun, who has spent the last 30 years exploring artificial intelligence, to head its new artificial intelligence lab, which will have operations in London, New York and California. Reportedly, he will oversee the development of tools that can help Facebook analyze data and behavior on its social networking site.

Meanwhile, at year end, the company started placing auto-play video ads into some users’ news feeds. Look for Facebook to eventually introduce the ads to a larger audience. Research firm Sterne Agee projects the site could command as much as $3 million a day in video ads.

3. Google

How it Made the Cut: The 15-year-old company has evolved from a search engine into one of the most successful, influential and innovative companies in the world. Google’s expansion beyond Web services and software into mobile hardware has only increased its already considerable retail clout. It ranks as the most important source of online shoppers for most retailers, with an expanding e-commerce playbook that includes Google Wallet for payments, Offers for daily deals and the Google Shopper mobile app for finding items nearby. Its Shopping Express program is expanding its same-day delivery experiment using the Wallet payment platform. Beta partners included American Eagle Outfitters, Office Depot, Staples, Target, Toys “R” Us, REI and Whole Foods.

Next Big Thing: Robots. While competitor Amazon is making a splash with drones, Google is investing in robots. The company has acquired eight robotics and artificial intelligence start-up companies in the United States and Japan in an effort to create a new generation of robots. The effort isn’t targeted at consumers — at least not yet — but is aimed at manufacturing and logistics markets. And then there is Google Glass. The approximately 10,000 Glass owners who began testing the Internet-connected device last year are being allowed to invite up to three people to buy it. The company reportedly plans to release a less-expensive, mass-market model this year. Meanwhile, Google chairman Eric Schmidt is lead investor in a new retail software company, Index, that is looking to bring the personalization and data measurement of online retail to physical retailing.

4. Pinterest

How it Made the Cut: The 3-year-old scrap-booking site now ranks as one of the most popular social networks, with an estimated 70 million monthly users around the world. More than any traditional search engine, the fast-growing platform has tapped into the consumer’s love of discovery. It’s no wonder that Pinterest is being embraced by retailers: The “pinning” activity is driving purchases and traffic for brands both big and small — both online and in stores. Pinterest recently opened up its scrapbooking service to outside developers, allowing such partners as Walmart.com to use real-time Pinterest data to generate lists of the most-pinned products.

Target’s beta site, Target Awesome Shop, spotlights the top-trending items on Pinterest that also have top reviews on Target.com. And Nordstrom is using Pinterest to decide which items to feature in stores, with a special red tag affixed to products that are popular on the social network. From helping consumers find and share products to helping retailers identify trends and market to the right shoppers, Pinterest is shaking up the online commerce model.

Next Big Thing: World domination. And “promoted pins.” Having launched local-language versions of its site in Japan, Sweden, Finland, Denmark and Norway, Pinterest is now available in 12 languages, with a goal of reaching 26 by year end. But the company’s really big move will be the launch of an ad strategy, “promoted pins,” reportedly allowing retailers and brands to push products they want customers to be sure to see via paid placements.

5. Twitter