Nearly 60% of all online retail purchases in the U.S. were done on Amazon last year, new PYMNTS data show, reflecting the company’s tightening grip on eCommerce sales and a continuation of the stair step market share advance it has made over the past twenty years.
In fact, the new findings defy the logic that says it gets harder to grow a large business, having doubled its share of the domestic retail piece to 56.7% in 2021 from 28.1% in 2014.
In calculating Amazon and Walmart’s respective slice of the overall and digital retail sales pies, PYMNTS uses a gross merchandise value method which backs out things like revenue from Amazon Web Services but includes the full dollar value of everything sold, even when an item is sold and fulfilled for a third party for a 10-15% selling commission.
The findings also show how much Amazon is dominating Walmart when it comes to online-only sales, having added over 3 ½ percentage points to its share of digital sales last year, completing a 10-percentage point COVID-era jump since 2019.
By comparison, during that same 2-year pandemic period, Walmart’s share of domestic digital retail sales has grown nearly 50% — albeit off a much smaller base — ending 2021 with a 6.2% portion.
Said another way, despite all of Walmart’s efforts and the investments it has made to grow its eCommerce sales and diversify its traditional reliance on the 5,000 physical store locations that dot the country, the digitally-native Amazon still holds nearly a 10x lead over its rival on this front.
The Online Advantage
Amazon’s eCommerce advantage is significant on many fronts, not least of which is the fact that, as PYMNTS reported last week, it has now pushed the online giant into the lead for the first time, with its share of total U.S. […]
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