Amazon is the undisputed leader in the US e-commerce market. Most retailers have witnessed a jump in online sales amid the coronavirus pandemic. The brick-and-mortar retail store sales have taken a hit, though. Amazon’s sales are skyrocketing and the company is hiring 100,000 workers to handle the increased demand. Others have a long way to go before they can challenge Amazon. Here we take a look at the top 10 largest ecommerce companies in the US in 2020.
Ranked: The largest ecommerce companies in 2020
The ranking is based on data from the research firm eMarketer’s annual report on the largest US ecommerce companies. The research firm ranked e-tailers based on the gross value of products or services they are projected to sell online in 2020.
Amazon is expected to further strengthen its position in the market this year. But there are some surprising names that have jumped up the list. For instance, Target’s strategies have shown impressive results, though its e-commerce market share remains tiny at just 1.2%.
According to eMarketer, Amazon is expected to have a 38.7% market share in 2020, up from 37.3% last year. The Jeff Bezos-led company has been the largest ecommerce company in the US for well over a decade. Amazon has a vast delivery network, offering fast and free delivery across the country.
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Amazon is also the brand most emotionally-connected with its customers. Most of Amazon’s customers can’t imagine living without it. The e-commerce giant is projected to capture 4.6% of the total – both online and offline – sales in the US this year. In recent weeks, the company has been criticized for not doing enough to protect its delivery network employees amid the coronavirus pandemic.
Walmart is the second largest ecommerce company with a market share of just 5.3%. It has become increasingly popular among millennials. The company has significantly improved its app and website experience. Its flexible delivery times and click-and-collect services have worked pretty well.
eBay has slipped to third place with 4.7% market share. It is followed by Apple at 3.7%. Apple is a technology company rather than an e-commerce player. But it sells its iPhones, iPads, Macs, accessories, as well as services online. And these sales are enough to earn it a place among the largest ecommerce players in the country. Both eBay and Apple are expected to see a decline in their market share this year.
The Home Depot remains among the top five with a 1.7% share. The company’s click-and-collect service has been quite successful. Given the shutdowns due to coronavirus, stores accepting on-the-go mobile orders and allowing customers to pick up are expected to see a strong growth in sales this year.
Wayfair was ranked sixth with a 1.5% market share. It was followed by Best Buy (1.3%) and Target (1.2%). Costco was at No.9 with 1.2% market share while Macy’s ranked 10th with 1.1% share. Notably, Target’s e-commerce sales are expected to be only $10 million higher than Costco.
Research firm eMarketer expects Target’s online sales to jump 24% this year to $8.34 billion. Costco’s e-commerce business is projected to generate $8.33 billion in 2020. Target is investing aggressively in drive-up services, remodeling its stores, and same-day delivery. Its efforts appear to be paying off. Target jumped from 11th spot in 2019 to 8th place this year.
Qurate drops out of top ten
Qurate Retail Group – which owns HSN and QVC – slipped out of the top ten as its market share is projected to drop from 1.2% in 2019 to just 1% in 2020. Both Qurate Retail Group and Macy’s would see weaker sales this year due to the softening apparel market. Both companies rely heavily on apparel and fashion.
The US retail industry will undergo massive transformation this year due to the coronavirus pandemic and the rising number of jobless claims. Consumers will get more conservative with their money to save more for emergencies. Their spending behavior will also change. In fact, it’s already changing. According to the US Commerce Department, receipts at clothing stores fell 3.1% in January. It’s the biggest drop since March 2009.