Amazon to account for half of US e-commerce by 2021

By

Kate Dingwall

Published
Apr 12, 2017

Amazon’s mass take over of the e-commerce world shows no sign of slowing down. Analysts have predicted that by 2021, 50% of all e-commerce revenue in the United States will come from Amazon.

Currently, Amazon accounts for 34% of all sales in the US. Wall Street firm Needham predicts Amazon will see 50% growth in the next five years, bringing Amazon’s domination up to 50% of the American e-commerce market.

Needham’s Kerry Rice stated, "We believe Amazon's established dominance in the US is sustainable with Prime, mobile penetration and third-party growth.”

In addition, Rice predicts that Amazon’s market share will grow a further 16%.

Amazon has been taking the e-commerce realm by storm of late. The firm has opened several new American distribution centers and shortened delivery times. These advances are resonating with consumers – Amazon commanded the largest share of online apparel sales with Millennials in 2017 and ranked number one in customer satisfaction.