Can Amazon capture 70% of US e-commerce?
amazon·@leguna·
0.000 HBDCan Amazon capture 70% of US e-commerce?
 Amazon has 50% of US e-commerce. Up from 34% in 2016. US E-commerce revenue for 2020 was 759 billion. . Up from 394 billion in 2016. In a 4-5 year period, the market borderline doubled, but Amazon managed to grow its stake in it almost 50%. Which is why the companies revenue grew from 135 billion in 2016 to 386 billion now. At this pace, Amazon will probably be the first company to hit 1 trillion dollars in revenue before 2030. To also get an idea of this, only 13% of retail is e-commerce in the US. Just for comparison. Walmart’s stake in total e-commerce is 9.5% and about 13% of e-commerce. Walmart has never broken over 15% of physical retail, but Amazon is over 50% of e-commerce and it’s growing with it. Big question here is how big does Amazon get and is there a point Amazon gets 70% of e-commerce? That’s at this point a hard maybe. Shopify powers 20% of all e-commerce stores in the US and the number of those from 2019 to 2020 rose from 24,500 to 42,200. Walmart which came late to e-commerce is growing it’s game there. It had 4.2% of the overall market in 2019 and in 2020, hit 5.6. Still a lot of problems, but 10% by 2025 is possible. And finally, the biggest competitor is barely tapped into and that’s Facebook. Facebook is already 25% of online advertising. Every business has a Facebook/Instagram page. Facebook’s current e-commerce fees are lower than Amazon. It seems like a natural fit that third party sellers, manufactures and more could just skip Amazon and do everything on Facebook. For Amazon, I think they do hit the trillion dollar revenue mark this decade, but smaller e-commerce stores, legacy big box stores and Facebook will be all there to make it harder and give people more competition. Final thought 80-90% of Amazon’s revenue comes from people subscribed for Prime with over 100 million Americans subscribed. Someone should explore the option of trying to bring the benefits of prime to these smaller stores. Free shipping Customer service Streaming Anyone that can deliver that and stores can begin to market as part of it could get a huge win. It’d be expensive and hard to do, but could work.
👍 ctime, ekavieka, fatman, investegg, voter001, arcange, raphaelle, steemitboard, fengchao, laruche, walterjay, cleanplanet, honeybee, momosan, trendylife, sherrychan, ashely056, allanlong, tonality, picardoh, meepins, liking, sooty, klobu, lockhart, hufflepuff, higgs, aristocat, marsbar, trevorlp97, trevormomo, lifecoma, zafrada, fefemz, tjenkin, dameron, jabbathehut, averill, haldan, fitzroy, acantha, cerelia, pomeline, amylee, healthsquared, michaelleeld, maysun, twinkledrop, thecatfiles, serenawu, helgachen, jawnz, brianlam, tidbits, angelatang, badapple, clappy, poodles, lemonhead, fergi, dobbydoo, aipaws, denilsonrio, tellmewhy, thelittleone, serral, arbitration, babyyoda, spirulina, dooku, quigon, normanbates, mingus, holdo,