Amazon’s Market Dominance

Amazon is growing at 30 percent per year, according to Business Insider (citing analysis from Needham & Company). The online retailer’s market share is expected to grow from its current 34 percent to about 50 percent in 2020. Third-party selling makes up 49 percent of the company’s sales and is growing at a higher rate than first-party sales. Over 100,000 sellers do more than $100,000/year in business on Amazon, according to the report. Amazon also has the most popular e-commerce app with about 76 percent of consumers using the app compared to 33 percent for the Walmart app (the next most popular app).

Whole Foods Market, Amazon’s recent $13.7 billion acquisition reported total sales of $8.7 billion for the 28-week period ending April 9, 2017. Average weekly sales per store were $663,000 ($880/sf) which is one of the highest in the industry and net income was $194 million (2.2 percent of sales).

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