Amazon’s market share estimate downgraded 10%

Amazon’s estimated share of the US ecommerce market has been slashed dramatically by analysts after it released figures for the first time.

According to highly cited and trusted retail research firm EMarketer, Amazon is expected to account for 37.7 per cent of the online ecommerce market this year.

This marks a significant drop from previous estimations of 47 per cent, representing a significant shift of focus away from its first-hand retail sales towards boosting sales of third-party retailers on its marketplace.

The dramatic revaluation comes after the Amazon’s chief executive Jeff Bezos disclosed never-before-seen figures, revealing that independent merchants accounted for 58 per cent of gross merchandise sales on its website.

READ MORE: Majority of own-label Amazon brands under performing

According to Bezos, sales by third party sellers rose from three per cent in 1999 to 30 per cent in 2008, to a whopping 58 per cent in 2018.

“The compound annual growth rate for our first-party business in that time period is 25 per cent. But in that same time, third-party sales have grown from $0.1 billion to $160 billion — a compound annual growth rate of 52 per cent,” Bezos stated.

“Third-party sellers are kicking our first-party butt. Badly.”

This comes as Amazon begins to shift its focus away from its own retail sales, currently offering around 130 private label brands on its marketplace, alongside a further 422 brands which are sold exclusively on Amazon.

READ MORE: Amazon scraps laws preventing sellers offering items cheaper on rival sites

Of the 100 own-label brands launched by Amazon in 2018, none of them are category leaders.

Furthermore, the vast majority of its own brand sales come from just a few brands, for instance its AmazonBasics range accounts for just five per cent of products launched, but 57 per cent of overall own-brand sales.

Over 80 per cent of its private label sales come from just 10 brands, four of which have Amazon in the name, suggesting an obvious affiliation with the company is an effective selling point.

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