The unprecedented growth of the US eCommrce market is largely driven by none other than Amazon.com. The eCommerce behemoth has been dominating the market for years now and the latest data indicate that no single player would be able to come close – forget about competing – to Amazon in years to come.
According to the latest data from eMarketer, Amazon is estimated to account for 41.4% of the annual US retail eCommerce sales in 2021.
Amazon’s share of the retail eCommerce market in US, depicts a lot about the trust millions of customers in the US have in the eCommerce giant that started its journey in 1994. And when we put the figure along with the rest top 10 eCommerce players side by side, it paints quite a thought-provoking scenario.
Amazon Share in US eCommerce Market: Big Picture
- The US retail eCommerce market is estimated to touch $933 billion in 2021.
- Amazon is estimated to capture 41.4%, amounting to $386 billion, beating the closest competitors with a distant margin. It means the eCommerce giant will pocket $2 of every $5 spent by US online shoppers this year.
- Walmart, the second largest player in the retail eCommerce market in the US, will account for just 7.2% in 2021.
- eBay and Apple will follow Walmart with 4.3% and 3.8% market share, respectively.
- Amazon’s market share in the US is much more than the combined market share of the rest top 9 players in the US market.
- Despite the frenzied growth recorded by almost every eCommerce player during the pandemic hit period, no player is able to match the performance of Amazon.
- When it comes to evaluating Amazon’s growth by segment, the consumer electronics category continues to lead the growth. In 2020, the category made up $94.40 billion of Amazon’s gross merchandise value (GMV).
- Due to the countrywide lockdown caused by the pandemic, people turned towards eRetailers to order consumer packaged goods. As a result, this category emerged as the second most popular category in terms of GMV, in the US eCommerce market during the last year. Amazon alone accounted for 48% of it.
- Amazon also emerged as the most popular eRetailer in the US for avid readers. 80% of books and magazines that were sold online in the US during the last year were bought on Amazon.
- Amazon is expected to rack up $463.10 billion in US eCommerce sales in 2022.
Food For Thought
The cemented domination in the US eCommerce market is allowing Amazon to spread its wings in highly competitive markets outside the US. In India, where Amazon and homegrown players Flipkart are neck and neck. The market is still at a very nascent stage when compared to the US, the potential is huge and that’s why Amazon is leaving no stone unturned to strengthen its position in India. The recent court battle with India’s largest company Reliance over the acquisition of Future Retail – one of the largest retail chains in India – is testimony to the fact that Amazon has set its eyes on the pole position in India – the third largest eCommerce market after US and China.
The US eCommerce market is also witnessing the next shift of revolution. The skyrocketing growth of mCommerce in the country speaks a lot about the shopping habits of online shoppers. It’s estimated that mcommerce market in US would account for nearly 50% of the total US eCommerce market by 2025.