amazon market share 2019
Companywide revenue growth expected to rise sharply amid COVID-19. The program is a no-brainer for its free shipping. Her decision to focus on these two industries was spurred by their explosive growth in the last decade, much of it she attributes to the emergence of disruptive technologies and the quick adoption by businesses that were quick to recognize their values to their organizations. On the contrary, its takeoff as a tool to simplify the sales process has not been impressive, but a better future is burgeoning.Aside from its eCommerce dominance, Amazon is renowned for its remarkable public cloud services. Hence, you could argue that since ecommerce is clearly going to take over a much larger share of retail, and since Amazon has a large (35-40%) share of ecommerce, Amazon’s strength in ecommerce means it will swallow everything else, even if it’s only at 5-6% today. Amazon US GMV plus the US physical stores (which we need to include now since we’re comparing with physical retail) was roughly $200bn. It has delivered the killer blow to the traditional Cyber Mondays and Black Fridays. Studying these statistics will help you understand online consumers’ needs. Today, sellers are eager to try their luck on different online platforms and buyers have let their preferences known.The following statistics offer a window into the needs, wants, and behavior of today’s customers.
What’s intriguing is that Amazon Prime has quashed one of the The Prime subscription program is a supreme example of Amazon’s innovation prowess. But that doesn’t mean selling on Amazon is straightforward.
To repeat: Amazon doesn’t treat that $160bn as its own revenue and so it’s not in the revenue tables above - it only reports the $43bn of fees for handling it. To illustrate, with over 8,000 partner network members, 1,900+ AWS third-party software products, and 70+ infrastructure services, the AWS is a force to reckon with.
But if we’re going to worry about the scale of the Amazon machine, which scale are we talking about?
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). That clearly wouldn’t mean it wasn’t dominant in the ‘relevant market’. This market will change radically over the next few decades as we go first to electric and then to autonomy, but for the moment we should exclude this as well. Amazon Alexa and Amazon Echo were not designed to exclusively streamline sales.
As for US retail: Total US retail in 2018 was $6tr, but that includes bars and restaurants, and though some of the restaurant business is clearly moving to online ordering and delivery it’s not there yet, so we should probably exclude this.Gasoline stations had $511bn of revenue (co-incidentally almost exactly the same size as ecommerce) and it seems unlikely that Amazon will ever sell gasoline. 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.
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