Amazon is the top dog of US retail, accounting for 37.6% of all US ecommerce sales this year for a total of $431.11 billion dollars, according to our forecast. While the giant has a successful stronghold in many US industries, Amazon isn’t dominant everywhere.
Grocery: Amazon will account for 22.0% of US grocery ecommerce sales this year, according to our forecast.
Amazon hasn’t shied away from the category since starting its limited-service grocery delivery service, Fresh, in 2007 and acquiring Whole Foods Market in 2017, and for good reason: The retail media potential is massive. But Walmart will continue to have Amazon beat until the tech company successfully expands its brick-and-mortar footprint, either through acquiring another grocer or building out its own locations.
In-store: Amazon’s in-store challenges are directly tied to grocery. Its Amazon Go locations haven’t caught on, resulting in closures. Amazon could be a behemoth of in-store if it expands its footprint and convinces consumers to adopt its payments tech.
Fast fashion: Amazon is still in pretty good shape in this category, accounting for 31.7% of all US ecommerce apparel and accessories sales, according to our forecast. But China-based fast-fashion giants like Shein and Temu could challenge the retailer.
Some 44% of Gen Z adults view Shein favorably, according to Morning Consult, which explains why Shein hauls are all over TikTok. Gen Z’s increased spending power and adherence to micro-trend fashion cycles could challenge Amazon’s fast-fashion business.
International: Alibaba saw nearly two times more ecommerce sales ($1.228 trillion) than Amazon ($657.02 billion) last year, according to our forecast. China, where Alibaba is dominant, accounts for over 50% of ecommerce retail sales worldwide, while the US represents around 18%. Interestingly, both retailers aim to expand via physical grocery and retail media, according to our “Global Marketplace Titans” report.
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