Amazon accounts for 25% of American e-commerce, a feat that no one thought possible to be achieved by a single company, just a few years ago.
According to data provided by eMarketer, Amazon, in 2021, accounted for 41.4% of United States e-commerce sales. The marketplace represents about 60% of Amazon's GMV, which is why it has 25% of United States e-commerce.
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The Amazon case is like a one-horse race: technically it has competition, but in practice, it is so far away that it is just irrelevant for the online titan.
The closest competitor is Walmart, with over 6% of the global market share for the United States. And even when everything seems to be working perfectly for Amazon, there is a shadow of a doubt lingering in the air: the clients are mostly buying not-Amazon’s brands.
One key ingredient to understanding why Amazon is concerned about its future relies on the fact that last year - according to our partner Pattern - barely 1% of the total sales of Amazon, were done via their white labels.
This means that 99% of Amazon’s sales are done by third parties. And that ought to be scary for any brand. And still, the retail titan can not - and must not - slow down. Because competition is also growing, thanks to the global boom of e-commerce.
New marketplaces have rapidly consolidated in the Covid aftermath: Americanas - from Brazil and expanding to all Latin America - with over 45 million monthly visitors is challenging Amazon in a future key market. While others like Google Express, Cratejoy, and Bonanza are bringing the fight to Amazon’s own courtyard: the United States and Canada.
And the way these marketplaces hit Amazon is precisely by stealing - or enticing with better conditions - the third parties brands and companies that make the bulk of Amazon’s sales. That’s why Jeff Bezos' company has been keen on developing their own white-label brands, as a way to guarantee their future.
To better understand why Amazon is pushing into the white-label brand creation we would love to share with you our recent article on this matter!
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