According to the financial news website, Business Insider, Amazon ranks #1 in the US ecommerce market share, anticipated to capture nearly 50% of all online sales in 2018. Amazon is accountable for half of the $252.7 billion in ecommerce sales this year, more than doubling the market share of all nine of their largest, publicly-traded competitors combined.
Best Buy, Walmart, and other competitors have been investing billions of dollars to attain a significant online presence, making the ecommerce market an aggressive place to get ahead. Even with such rigorous competition, Amazon’s ecommerce revenue is growing at an astounding rate.
Not only does Amazon demonstrate tremendous dominance within ecommerce, their internal growth over the years has been nothing short of noteworthy. In the past two years alone, Amazon has gone from owning 38% of the ecommerce market to now nearly half.
That leaves us to wonder how far Amazon will expand in the upcoming years, especially with Amazon Prime Day increasing their annual revenue significantly. The Prime Day 2018 event held in July accumulated over $4 billion of revenue in 36 hours alone. Even with admitted technical issues that cost Amazon up to $100 million in sales, Prime Day increased revenue by 74% and generated more online sales than Cyber Monday or Black Friday. The popularity of Prime Day has increased nearly 4-fold, with a spike in revenue from $0.9 billion in 2015 to now generating $4.2 billion in revenue.
Amazon now holds $900 billion in market capital and with its anticipated growth, Amazon is said to be one of the next companies behind Apple to hit $1 trillion.
With Amazon being such a dominant spot in the US ecommerce market, every manufacture and retail brand needs an Amazon strategy to find success. GRAYBOX’s Amazon consulting practice began in 2015 for just this reason. Let GRAYBOX help your brands be successful in this growing marketplace.