Amazon on track to capture nearly HALF of US e-commerce market by the end of 2018, research shows

  • Amazon on track to grab almost half of the US e-commerce market next year 
  • That's according to new research from marketing firm eMarketer, which showed that eBay, Walmart and Apple's e-commerce sales trail Amazon in comparison  
  • The report comes as Amazon is set to kick off its annual Prime Day sale on July 16 

Amazon is on its way to eating the e-commerce world.

A new report from digital marketing research firm eMarketer indicates that the Silicon Valley giant is expected to capture a whopping 49.1% of the US e-commerce market by the end of 2018.

Specifically, Amazon is projected to rake in $258.2 billion in e-commerce sales in the US, which is an increase of 30% from 2017, eMarketer noted. 

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A new report from digital marketing research firm eMarketer indicates that Amazon is expected to capture a whopping 49.1% of the US retail market by the end of 2018

A new report from digital marketing research firm eMarketer indicates that Amazon is expected to capture a whopping 49.1% of the US retail market by the end of 2018

Far behind Amazon is eBay at 6.6%, followed by Apple at 3.9% and Walmart - considered to be Amazon's top rival - at just 3.7%. 

Home Depot, Best Buy, QVC Group, Macy's, Costco and Wayfair make up the rest of the list.  

The data shows just how large Amazon's e-commerce business has become. 

What's more, its continued year-over-year growth indicates it shows no signs of slowing down anytime soon. 

Amazon, which was founded in 1994, started out as a modest online book seller that has since grown into a sprawling e-commerce platform that reaches into wide-ranging industries, like video streaming, cloud computing, logistics and more. 

However, its major growth engine continues to be Amazon's Marketplace, which allows third-party sellers to market products on the platform and use the firm's logistics network. 

Behind Amazon is eBay at 6.6%, Apple at 3.9% and Walmart - considered to be Amazon's top rival - at just 3.7%. Home Depot, Best Buy, QVC Group, Macy's, Costco and Wayfair follow

Behind Amazon is eBay at 6.6%, Apple at 3.9% and Walmart - considered to be Amazon's top rival - at just 3.7%. Home Depot, Best Buy, QVC Group, Macy's, Costco and Wayfair follow

eMarketer said it comprises 68% of Amazon's retail sales, compared to 32% for Amazon's direct sales. 

The firm believes Amazon's Marketplace sales will comprise over 70% of Amazon's e-commerce business by 2019.  

'The continued growth of Amazon’s Marketplace makes sense on a number of levels,' said Andrew Lipsman, principal analyst at eMarketer, wrote in the report. 

'More buyers transacting more often on Amazon will naturally attract third-party sellers.

'But because third-party transactions are also more profitable, Amazon has every incentive to make the process as seamless as possible for those selling on the platform,' he added.   

Its major growth engine continues to be Amazon's Marketplace, which allows third-party sellers to market products on the platform and use the firm's logistics network

Its major growth engine continues to be Amazon's Marketplace, which allows third-party sellers to market products on the platform and use the firm's logistics network

eMarketer projects that computers and consumer electronics will be the leading product category on Amazon this year, making up 25.5% of sales, followed by apparel and accessories

eMarketer projects that computers and consumer electronics will be the leading product category on Amazon this year, making up 25.5% of sales, followed by apparel and accessories

eMarketer projects that computers and consumer electronics will be the leading product category on Amazon this year, making up 25.5% of sales.

Apparel and accessories are also expected to gain larger share of Amazon's e-commerce sales. 

That's not surprising considering Amazon has directed greater focus toward its in-house brands, as well as promoting and working with more high-end brands like Calvin Klein, DKNY and others. 

The report comes as Amazon is set to host its annual Prime Day event on July 16.

Prime Day is Amazon's annual 'holiday of savings', which the firm has pitched as a shopping event that's meant to rival Black Friday.

The report comes as Amazon is set to host its annual Prime Day event on July 16.  Prime Day is Amazon's annual 'holiday of savings', which it claims rivals Black Friday

The report comes as Amazon is set to host its annual Prime Day event on July 16.  Prime Day is Amazon's annual 'holiday of savings', which it claims rivals Black Friday

The global event was first launched in 2015 and includes deep discounts on Amazon-branded goods, as well as thousands of other items.

Since then, Prime Day has turned into a multi-day event, lasting for over 30 hours in 2017.

It has sparked the launch of similar shopping events from rival retailers like Target, Walmart and J.C. Penney.

A 2017 report from Consumer Intelligence Research Partners estimated that Amazon has roughly 85 million Prime subscribers in the US alone.   

Prime subscribers get access to a range of services, such as same-day and two-day shipping, the Prime Video streaming service, as well as newer offerings like Prime Wardrobe.

HOW DOES AMAZON'S PRIME WARDROBE WORK?

 Shoppers pick three or more items and then have a try-on period of seven-days to find the best styles.

The items arrive in a re-sealable box with a pre-paid label for returns.

For items they want to discard, customers can drop off at a UPS location.