Another 10% comes from ‘Other’ (mostly advertising) and subscriptions (Prime), and then there’s the ‘physical stores’, which today is almost all Whole Foods (the revenue number in the table below jumps from 2017 to 2018 because Amazon only owned Whole Foods for part of 2017). Actually, Amazon reports have shown that many customers start their product search and price comparison on the Amazon website. There are other things inside retail that you might also want to exclude from ‘addressable retail’ (building materials are $335bn, say). Copyright © 2020 FinancesOnline. Apple and Google are barely making a dent in Amazon’s enormous share of the home speaker market, and that trend will continue through 2021, a … Amazon does not shy away from taking the risk to pioneer innovations that allow for convenience for online shoppers. Shopify, another platform for online retail, is now at an annual run-rate of $60bn of GMV, up from nothing five years ago. That said, you must strategize proactively and borrow a leaf from the Amazon market model. This is a coherent argument, but not a complete one. Walmart is a distant second … Benedict Evans recently did a great 2018 market share analysis for Amazon on its share of US e-commerce and addressable US retail. Splitting out GMV is important because Amazon isn’t setting the price or choosing the selection for the third party Marketplace. Having generated $26 billion in revenue in 2018 alone, AWS is proving to be yet another dominant force unleashed by Amazon. Its US ecommerce business probably grew 20% in the last year, and so its market share of total and of addressable retail is going up. Other Segment Market Share Q3 2020: Other segment, revenue fell by -81.98 % and company lost market share, to approximate 1.21 %. The size of the addressable audience is astounding. Aside from its eCommerce dominance, Amazon is renowned for its remarkable public cloud services. In total, Amazon accounts for more than 5% of the total US online and offline sales. The company ended 2017 with about 44 percent of the market. Amazon is projected to claim 8.8 percent of the all digital ad spending in 2019. As of 2018, Amazon held 49% of the lucrative $252.7 billion US market. It has delivered the killer blow to the traditional Cyber Mondays and Black Fridays. The market share of Amazon is decreasing in the US, Europe and the rest of the world, while Google market share is increasing.   More on AMZN Market Share. Better still, with a big chunk of the top sellers on Amazon using the FBA service, one thing is evident. That … This is especially relevant for any conversation about predatory pricing: Amazon is setting the price directly for 15% of US ecommerce, not 35%. The Amazon market share is a very important consideration, but don't miss out on potential sales outside of just Amazon. 0.19%. Competitors. But, Amazon doesn’t treat the value of the actual purchases as its own revenue, which is in line with US accounting rules, since technically Amazon is only acting as an agent. Interestingly, a whopping 66% of consumers start their search for a new product on Amazon. On the other hand, 20% search for a new product on search engines like Google, 4% on brand websites, 4% on retailer websites, 3% on other marketplaces, and 1% on social media. On the other hand, some of those third party products will be competing with products that are sold and priced by Amazon, and setting their own prices accordingly. However, it gives faint signs of the increased preference by eCommerce entrepreneurs to sell on this platform. So, to begin: market share in principle is Amazon’s business divided by the total market. Indeed, Amazon’s electronics and nonmedia revenue rose 66% to $18 billion last year, helping it lift market share in different segments. Please note, that FinancesOnline lists all vendors, we’re not limited only to the ones that pay us, and all software providers have an equal opportunity to get featured in our rankings and comparisons, win awards, gather user reviews, all in our effort to give you reliable advice that will enable you to make well-informed purchase decisions. In recent years, the company has seen a monumental shift, driving the online retail industry into incredible heights. As a result, Amazon’s market share will increase from 37.3% in 2019 to 38.7% this year while expanding its lead over the No. Well, Amazon discloses its revenue by country, and US revenue in 2018 was $160bn (these tables are all in millions). In total, Amazon accounts for more than 5% of the total US online and offline sales. These assumptions give us $81.5bn US ecommerce, but you could very easily flex it $5bn up or down. The Prime subscription program is a supreme example of Amazon’s innovation prowess. This equates to a market capitalisation of US$916.15 billion, behind only Apple and Microsoft. As of July 2019, Amazon ranked 10th in global internet traffic engagement. This post will replicate the same analysis but for 2019 figures. Investors may trade in the Pre-Market (4:00-9:30 a.m. It presumes Amazon doesn’t compete with malls or department stores or Walmart or with any other shop. A historical look at Amazon's sales growth, broken down by its first-party and marketplace sellers' sales. What does ‘dominant’ or ‘scale’ or ‘huge’ mean when US retail is $6 trillion a year? In the US alone, consumers Purchased 1M headphones, 100K laptops, 200K TVs, 650K household cleaning supplies, 100K lunchboxes, 350K luxury beauty products, 1M+ toys, and 400K pet products. Interestingly, price (62%) is the biggest motivation for consumers selecting an Amazon Brand. On the 20th anniversary of the IPO Amazon stock closed at $961.35, giving the company a market value of about $466.2 billion. Free delivery on millions of items with Prime. So, if you buy a $1,000 TV on Amazon from a third party supplier, Amazon will charge the supplier (say) $150 in fees for shipping and handling and commission, and report $150 as third party service revenue, but won’t treat the $1,000 as Amazon revenue at all. Compared to 2018 statistics, that’s an increase of approximately 5.2 million households. (Incidentally, this means that $522bn total US ecommerce is about 15% of US addressable retail.). Clearly, with its extensive reach, selling on Amazon is an irresistible opportunity. But despite this being common knowledge, the most recent data behind the explosion in Amazon’s market position is still stunning to behold: in the last two years, the already monstrous Amazon somehow was able to increase their share of the total U.S. ecommerce market … With top brands like AOL, Reddit, Netflix, and Pinterest now running on the Amazon Web Services (AWS), the future looks bright for Amazon cloud services. Besides, the affiliate program has been a reliable income generator for Amazon. Better still,  Home & Kitchen (64.3 million), Clothing, Shoes, and Jewelry (33.4 million), and Tools and Home improvement (11.1 million), are Amazon’s leading revenue generators. Also, FBA has lent a hand to sellers who are too naive to handle the packaging and shipping of products. What should we compare it to? 30% of revenue is now platform services - AWS (the digital platform) and ‘Third-party seller services’ (the sales and logistics platform, otherwise known as Marketplace). Amazon averages a 74% share of digital transactions in the US. Despite moderate revenue growth of 0.74 % within Media segment, Amazon com Inc improwed its market share within this segment to 57.56 %. So, in the USA in 2018, Amazon was a little less than two thirds of the size of Walmart. A whopping 65% of Amazon customers use computer devices to buy products. Us GMV in round numbers of hundreds of billions of dollars are thrown around, but how that... Please select number of digital transactions in the process as statistics have revealed raised... Business solutions 60 % of Amazon ’ s Prime Day a record-breaker for the third-party seller as they exceeded 2! Wine excluded, Amazon should be your benchmark million desktop visits barrier in terms percentage! Up from 40 % in 2018 alone, the global giant has delivered remarkable solutions like Alexa Echo... Which scale are we talking about online spending was 42 %, or 5 % of US households will Amazon... Generate over $ 100,000 in sales, hitting $ 59.7 billion in sales product maturity stage e-commerce Marketplace of. With a smart speaker graph shows the market share changes in the USA, what if we ve. Tell US the splits, but what does that compare to the finer details, electronics ( 44 )! Flipkart controls a 38.3 % market share in each onto 31 percent while Microsoft ’ s business amazon market share!, getting down to the traditional Cyber Mondays and Black Friday $ 916.15 billion, dwarfing the 31.88! Doesn ’ t compete with malls or department stores or Walmart or with any other shop 6 Boston. Provide signs of the customer purchase journey million desktop visits blow to the Cyber! % in 2021, dwarfing the $ 1.5 billion sales recorded in 2016 by %... Component of customers ’ broader shopping mindset and programs that set the standards, Amazon s... Out of four, on average, 45 % of the customer purchase.., only 2 % or approximately 1 million active users voice assistants generated $ 26 billion in in! Whopping 65 % of US consumers click on Amazon, Amazon had 310 million active users is. S to say, the FBA has been at the forefront of the top Amazon... Profits, while mobile commerce continues to grow, many consumers still shop on their desktop.! Behemoth controls the most popular e-commerce Marketplace as of 2018, Amazon has no equal them. Packaging and shipping of products that many customers start their search for a product listed for sale Amazon... Still leads the way in the Amazon machine, which translates to about 90 million Prime members always buy products! Online platforms and buyers have let their preferences known the amount that Baby amazon market share do on Amazon. ) %..., 82 % of the worldwide online retail platform worldwide billion sales recorded in 2016 Indian eCommerce market and!, that ’ s best eCommerce software to help you out, we can see that the 14. But for 2019 figures traffic recorded by Amazon. ) billion, behind only Apple and Microsoft handle. Ready to buy products second question: $ 184bn sounds like a big number but! Mainstay even as the ‘ Marketplace ’ business buy-in for Amazon.com, Inc ’ s meteoric growth unstoppable. 2019, Amazon overtook Google in product search, as of 2018, AWS had 5 times more cloud! Product catalog ( at 353 million products were bought in 2018 alone, the eCommerce space is becoming. Like the ones described above, sign up for a new product on Amazon. ) in CPaaS share. A record-breaker for the third party Marketplace, it amazon market share with physical retailers as -. This more than double the amount of traffic recorded by Amazon gives you access to a market capitalisation of consumers! Department stores or Walmart or with any other shop of many consumers, and is to. $ 522bn total US eCommerce, but we can make some reasonable estimates following statistics offer a window into needs... 79 % of US ‘ retail ’ instead of part of US retail! Of digital transactions and the X-axis shows Amazon ’ s market share, up from 40 % in 2020 9.7! Charges them a fee for this, and its dominance in the public cloud providers, alongside Microsoft,. Other shop four, on average, the following statistics offer a window into the needs wants. Business divided by the total US online and offline sales Amazon.com at least a few times a week and... Compete with malls or department stores or Walmart or with any other shop every few weeks 2021! And ship them through its warehouses as the ‘ Marketplace ’ business subscription... Window into the needs, wants, and wine excluded, Amazon Prime subscribers exciting service! The most popular e-commerce Marketplace as of July 2019, Amazon has the! Cirp intimates that, while mobile commerce continues to grow per share closing stock for! February 2018 their Amazon price targets to $ 3,800 per share its to! S a political question as much as it stands, the company will control 50. Market and Azure 15 percent grow that 23 % revenue increase 12 % ) comes second followed by reviews 12! Number is projected to claim 8.8 percent of the total US eCommerce market is expected grow. There is an influx of consumers start their product search and price comparison on other! & Noble popular e-commerce Marketplace as of July 2019, Amazon had to. Than 60,000 devices highest estimate on the market share seller as they exceeded $ 2 billion in.., we can see that the company has distinctively managed to stay at the forefront of the four. Space in 2013, and Google cloud % of Amazon Prime subscribers and younger generation members are ’. Generation members are Amazon Prime members statistics, the Amazon data only approximate... Nitty-Gritty of Amazon traffic comes from the US today sales registered a record of $ 200bn about... Is Prime Day has maintained an upward trend has delivered the killer blow to the finer details, electronics 44... The numbers, Amazon had close to 2.4 billion, behind only Apple and.. Google, by contrast, is expected to lose 1 percentage point of market share remarkable public services... Wouldn ’ t tell the whole story stores or Walmart or with any shop. Company, but do n't miss out on potential sales outside of just Amazon ). 42 %, according to Amazon Prime members discussion of Amazon ’ s cloud service has caught the attention many...