Here’s how much Amazon dominates online retail

Further proof of the scale of Amazon’s footprint (AMZN) – Get the report from, Inc. a in online transactions, a new report shows that Amazon Marketplace accounts for about 25% of all online spending in America, according to Marketplace Pulse.

In other words, a quarter of every dollar spent online goes to market, a dominance that no other company, not even Amazon’s traditional retail platform, can claim. Although this retail platform still does better than anyone else.

to market, to market

Launched in 2000, Amazon Marketplace allows third-party transactions between buyers and sellers, so if you’ve bought or sold a used DVD through the service, you’ve participated in Amazon Marketplace. The platform is so popular that in Q3 2021, 56% of paid units on Amazon were sold by third-party sellers, according to Statista.

But since its introduction, Amazon Marketplace has grown from what was initially seen by some as the service’s answer to similar buyer-to-seller websites such as eBay and Craigslist, which it far exceeds due to value. integrated name and customer base from Amazon, to its own online ecosystem.

To put things into perspective, if it were a completely separate company, Amazon Marketplace would still be considered the largest online retailer in the country.

Over 300 million people and small and medium businesses sell through Amazon Marketplace, or businesses will sell through the marketplace in addition to selling directly through their website platform.

But there is a close correlation between the two branches of Amazon. When Amazon the company changes its various fees, the marketplace is affected and when Amazon introduced advertising for its third-party sellers, Marketplace Pulse notes that “over time this has become a requirement as some sellers have opted in to , others had no choice but to follow.”

Amazon dominates e-commerce

Amazon Marketplace accounts for 25% of all online sales. Even if you took it out of the equation altogether, the regular Amazon store would still dominate the online market, accounting for 17% of all sales. Its next closest competitor would be Walmart, which is less than half the size of Amazon.

Amazon is so dominant that Marketplace Pulse reports that it would need to combine the next five mass-market retailers, Walmart, eBay, Apple, The Home Depot and Target, to match its size.

Shopify at number three, sort of

The Marketplace Pulse list does not consider stores that operate on Shopify, an online service that helps people build and maintain businesses online.

But if all Shopify merchants counted as a single retailer, that would constitute a market share of around 10%, making it the third largest in the United States. This is not enough to challenge Amazon’s dominance, and many stores with an online platform also use Amazon. Marketplace, but for anyone complaining that Amazon has too much control over online sales, it’s at least a small alternative.

About Nunnally Maurice

Check Also

Britain’s Next buys bankrupt furniture retailer, 400 jobs cut goes into administration this Wednesday Next buys brand, website and intellectual property for 3.4 …