Everyone knows that Amazon is a big company, but nobody realizes the sheer size of this gigantic company. Analysts had predicted that Amazon will take 50 percent of the e-commerce market by the end of 2018, and the company has done that while maintaining its growth.
Amazon’s e-commerce sales are expected to grow by 30 percent in the American market, and its sales figures are reported to be about $260 billion by the end of 2018. This sales figure has been reported by a survey from eMarketer, which broke down the several sales figures of Amazon according to the company’s product category.
The giant e-commerce company ended the year 2017 by capturing 44 percent of the US e-commerce market, and 2018 is shaping up to be another big year for Amazon. The second company with the biggest market share is eBay, which has control of 6.6 percent of the total market share. Walmart is lagging behind in a distant fourth place with 3.7 percent of the e-commerce market share in America.
Amazon’s marketplace is growing exponentially as third-party companies have managed to grow their sales on the site. Marketplace refers to third-party companies in Amazon who sell their products on the e-commerce website instead of Amazon’s in house products. eMarketer has said that total marketplace sales by third-party vendors will consist of 50 percent of Amazon’s sales by the end of 2018, while it will continue to grow in 2019 and capture 70 percent of the total sales of Amazon.
The report also mentions that computer gadgets and consumer electronics will be the most sold items on Amazon, which will represent about 25.5 percent of the total sales of Amazon in 2018. This share is slightly less than the figures from 2017.
The hottest item in Amazon is the apparel category which will take 15 percent of the share. This segment has seen exponential growth over the years, and it has grown by 38 percent since 2017.
Amazon Prime Day continues to draw in new customers to the platform who seek amazing deals as Amazon Prime members. Prime Day will give a great boost to the sales figures of Amazon in the latter part of 2018, as this segment helps the company to keep growing at a rapid pace.
Even though Amazon continues to dominate the e-commerce market in 2018, the company has only managed to make big profits due to its cloud computing platform. Amazon Web Services, aptly known as AWS, is the biggest cash cow of the company, as they were responsible for a major portion of profits.
Amazon is currently focusing on faster delivery of products, and that is why it is investing in on-demand shipping. Its fleet of cargo planes will soon compete against FedEx and UPS, and help the company to ship its products more efficiently. 2019 will be another bad year for brick-and-mortar retail stores as e-commerce giants like Amazon will eat into the market share of these retail outlets. The e-commerce sales continue to grow in the US, which will mean even more business for Amazon in the coming years.