November 30, 2023


Business&Finance Specialists

Amazon Marketplace is 25% of US E-commerce

3 min read

20-five cents of each greenback invested purchasing on-line goes to the Amazon 3rd-bash market. Ended up Amazon’s market an independent platform, it would be the biggest online retailer in the U.S.

Amazon marketplace has a approximately 25% industry share of the total U.S. e-commerce spending. In accordance to eMarketer information, Amazon accounted for 41.4% of all U.S. e-commerce revenue in 2021. Because the marketplace accounts for at minimum 60% of Amazon’s GMV, it nets 25% as its share of U.S. e-commerce.

Amazon’s share as a retailer is 17%. Even so, it would theoretically be the premier on the web retailer even with no the marketplace. Walmart, the closest competitor, is considerably less than 50 % its measurement. It can take combining Walmart with the future five mass-market retailers to get to Amazon’s measurement.

Top 10 US Ecommerce Retailers

eBay has been shedding market share about the recent years, and marketplaces run by Walmart and Concentrate on are orders of magnitude more compact than Amazon’s. Therefore, Amazon is essentially the market – its share of the total gross sales on all marketplaces is probable as higher as 90%. That is why diversification for companies that promote by way of Amazon’s marketplace is usually unattainable.

Shopify is absent from the listing for the reason that it’s not a retailer or a market. Having said that, if all Shopify retailers ended up just one retailer, it would be the third-biggest in the U.S. with a around 10% current market share. The significance of that is not whether or not Shopify competes with Amazon or other shops (it doesn’t), but fairly that it signifies the viability of immediate-to-purchaser retail.

Top 10 US Ecommerce Retailers with Shopify

25% current market share is a recognition of Amazon marketplace’s surprising nevertheless invisible situation in e-commerce. It is made up of millions of firms that offer as a result of Amazon instead than, or in addition to, offering directly on line. It is the part of e-commerce that most people are unaccustomed to, and yet at the very same time, collectively, it retains the most market share.

Nevertheless, it collectively retains no electricity to influence its long run – Amazon is by yourself in determining it. For illustration, when Amazon introduced promotion as an selection, it in excess of time became a prerequisite for the reason that as some sellers opted-in, many others had no preference but to observe. Or, in more direct phrases, Amazon variations several service fees at will.

Amazon would argue that the market is as significant as it is mainly because it is element of a flywheel. “It’s not possible and not successful to even consider and separate promotion from third-party from retail. It is all, to us, part of a flywheel in which we assistance buyers,” mentioned Brian Olsavsky, CFO at Amazon, all through the 3rd-quarter earnings simply call. It is all portion of the similar flywheel, but no matter if parts of it could be separated will get challenged in the upcoming.

Amazon market is the greatest on the net retailer, but Amazon, the next-major, controls it. content/amazon-marketplace-is-25-of-us-e-commerce