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Amazon’s Dominance in Ecommerce

Amazon now accounts for nearly 50% of all U.S. ecommerce sales.
Visual Capitalist creates and curates enriched visual content focused on emerging trends in business and investing. Founded in 2011 in Vancouver, the team at Visual Capitalist believes that art, data, and storytelling can be combined in a manner that makes complex issues and processes more digestible. Covering high-growth opportunities and industries such as technology, mining, and energy, Visual Capitalist reaches millions of investors each year. Visual Capitalist’s infographics have been featured in The Wall Street Journal, The New York Times, Zero Hedge, Maclean’s, Gizmodo, The Vancouver Sun, and Business Insider.
Visual Capitalist creates and curates enriched visual content focused on emerging trends in business and investing. Founded in 2011 in Vancouver, the team at Visual Capitalist believes that art, data, and storytelling can be combined in a manner that makes complex issues and processes more digestible. Covering high-growth opportunities and industries such as technology, mining, and energy, Visual Capitalist reaches millions of investors each year. Visual Capitalist’s infographics have been featured in The Wall Street Journal, The New York Times, Zero Hedge, Maclean’s, Gizmodo, The Vancouver Sun, and Business Insider.

This Chart Shows Amazon's Dominance in Ecommerce

This Chart Shows Amazon’s Dominance in Ecommerce

It’s no secret that Amazon is dominant in ecommerce.

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 from 38% to 49%.

Amazon holds almost half of the massive $252.7 billion market – that’s more than double the market share of the next nine companies (including eBay, Walmart, Best Buy, Apple, etc.) combined!

Retailers like Walmart and Best Buy are collectively throwing billions of dollars to get a foothold online. The competition is certainly fierce, but Amazon has still been able to achieve astronomical growth:

2016 2017 2018
Amazon market share 38.1% 43.5% 49.1%

Will Amazon cap out at 50%, 60%, 70%, or beyond?

At this point no one can tell – but regardless of where the growth ends, such a level of dominance has never been achieved in the retail market like this before.

A Prime Driver

Although not as stunning as overall ecommerce market share, the company’s Prime Day numbers also illustrate the vast size and scale of the company.

The most recent rendition of the annual event in July 2018 raked in $4.2 billion of revenue in a 36-hour period, even though the company had well-publicized technical issues that cost the company $72 million.

2015 2016 2017 2018
Prime Day Sales $0.9B $1.5B $2.4B $4.2B

The 2018 event brought a revenue increase of 74% – and Prime Day now generates more sales than Cyber Monday or Black Friday ecommerce sales.

There’s no doubt that the Jeff Bezos Empire is holding strong: with $900 billion in market capitalization, Amazon is now in the conversation to join Apple in hitting the $1 trillion milestone in the coming months.

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