Amazon now contributes at least 40% of total US e-commerce sales

Written on the 23 February 2017 by Dave Mitchell

Last week The Census Bureau of the Department of Commerce reported 2016 US e-commerce results. Sales have grown by $53.16 billion in a year.

In 2016 Amazon's net sales were $79.78 billion, up from $63.72 billion the year before.

Thus they've grown by $16.06 billion.

However, Amazon doesn't report gross merchandise volume (GMV) number, so this figure only measures Amazon's own sales. But since roughly 50% of units sold on Amazon are from marketplace sellers, we are estimating that marketplace sellers generated $60-$80 billion in sales last year.

By plugging all these numbers into a formula we get that:

55% of US e-commerce growth was thanks to Amazon

We are estimating it to be anywhere from 50 to 60%, so the 55% is right in the middle.

Following this logic Amazon now contributes at least 40% of total US e-commerce sales.

Amazon is growing 20%+ every quarter, compared to the 14% US e-commerce growth so Amazon's share will continue to rise.

This is important to illustrate just how big is Amazon.

For anyone unfamiliar with Amazon's earnings and US e-commerce size, it might appear that Amazon is a pretty big site, but the market has many more players. That is true, there are many players trying to compete with Amazon, but as far as 2016 was concerned Amazon dominated.

This is great news for Elite eCommerce clients those estimated $60-$80 billion in sales were divided up by hundreds of thousands of sellers. That number will rise 20% or more in 2017, creating more than $10 billion in new selling opportunities.

Author: Dave Mitchell
About: With years of experience David loves developing business specifically to help Entrepreneurs within the eCommerce Industry. David’s passion is creating new platforms with our Mentoring team and seeing the success of Licensees at Elite eCommerce.

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