5 pictures to understand Amazon's development status in the United States

It is learned that according to eMarketer's forecast, Amazon's share of the US e-commerce market will reach 37.6% in 2023, but Amazon's strength is not only reflected in e-commerce business, but also in B2B e-commerce, retail media, AI artificial intelligence and other aspects. eMarketer released 5 data charts to reveal the current development status of Amazon in the United States.

1. E-commerce remains Amazon’s core business

In the list of the top 15 retail e-commerce companies in the United States released by eMarketer, Amazon ranked first, with sales expected to reach US$431.11 billion in 2023, far higher than the second-ranked Walmart, whose sales this year are expected to be US$73.45 billion.

It is predicted that computers and consumer electronics will account for the largest share of Amazon's US e-commerce sales, about 20%. Other popular categories include clothing and accessories, furniture and home furnishings, books, music and video, and health and personal care products.

2. Third-party sellers account for more than half of Amazon’s total sales

According to eMarketer's "2023 U.S. Retail E-Commerce Market Forecast" report, the sales growth rate of third-party sellers on e-commerce platforms will exceed the growth rate of overall e-commerce. By 2027, sales of third-party e-commerce platforms in the United States will account for more than one-third of total e-commerce sales.

Amazon will dominate, with third-party sales reaching $278.5 billion this year. Next year, that number will grow 12.9% to $314.34 billion, almost as fast as Walmart (13.0%) and faster than eBay (-1.1%), Etsy (8.1%), and Poshmark (8.1%).

3. Amazon’s advertising market share is gradually increasing, but it lags behind Meta and Google

Meta and Google are in a duopoly when it comes to digital ad revenue in the U.S., and it will take some time for Amazon to catch up. However, Amazon’s revenue from retail media advertising is continuing to grow, driving its overall share growth, while Google and Meta’s ad share has declined.

Additionally, Amazon's streaming assets, including Fire TV, Prime Video, and Freevee, give it an edge in other media categories and the ability to offer shoppable advertising.

4. Amazon’s growth opportunities in B2B e-commerce

It is predicted that in 2023, the sales of B2B e-commerce platforms in the United States will reach 1.857 trillion US dollars and will exceed 2 trillion US dollars in 2024. Amazon's Amazon Business currently accounts for 2.3% of the total sales of B2B e-commerce websites in the United States and is expected to continue to grow.

5. Amazon has big plans for generative AI

Amazon CEO Andy Jassy said in February that Amazon has been working on generative AI models like ChatGPT for a long time. In May, leaked documents showed that the company planned to improve Alexa by introducing more features similar to ChatGPT, and job postings also indicated that Amazon would add generative AI to its search function.

Several retailers, including Walmart and Levi's, have already begun experimenting with the technology, using it to recommend products, search, and generate product descriptions. If Amazon can find an easy way to bundle all of these features into a single service for merchants, it will gain a greater advantage over its retail competitors.

Editor✎ Ashley/

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