The only flaw! Amazon is firmly in the top spot in US e-commerce, but it performs poorly in these areas

The only flaw! Amazon is firmly in the top spot in US e-commerce, but it performs poorly in these areas

According to Inside Intelligence , Amazon, as the leader in the US retail industry, accounts for 37.6% of US e-commerce sales this year, with total sales of $431.1 billion. Although the company is the leader in many industries in the United States, there are always some areas where it is not satisfactory.

 

Grocery stores : According to Inside Intelligence, Amazon will account for 22% of U.S. grocery e-commerce sales this year , while its competitor Walmart accounts for 28.4% of sales, and another strong competitor Instacart accounts for 21.9%.

 

Amazon launched Amazon in 2007   Fresh service and the acquisition of Whole Foods Market in 2017, Amazon has been digging deep into this category for a simple reason - they believe the market potential in this area is huge. But before Amazon expands its physical stores - whether acquiring or creating its own stores, Walmart will still be left behind Amazon.

 

 

In-store service : Amazon Go stores were closed because they were not popular with consumers . According to Inside intelligence, if Amazon can expand its physical store coverage and convince consumers to adopt their payment technology, the company may become a giant in the physical store industry.

 

Amazon's in-store payment technology is far ahead of competitors, including Just Walk Out, Dash cart that scans when adding items, and Amazon One biometric payment. But for now, consumers are hesitant about these technologies, worried that they will compromise their privacy.

 

 

Fast fashion : According to Inside Intelligence , Amazon accounts for 31.7% of the sales of e-commerce services and accessories in the United States , and performs well in this field. However, with the development of Chinese fast fashion giants SHEIN and TEMU, Amazon's share and status will inevitably be impacted .

 

According to Morning Consult, SHEIN is popular among about 44% of Generation Z , which explains why videos about SHEIN shopping lists are everywhere on TikTok. In addition, with the improvement of Generation Z's spending power and their insistence on new micro-fashion products, Amazon's business in the fast fashion field has been challenged.

 

International business : According to Inside Intelligence , Alibaba's e-commerce transaction volume last year ($1.228 trillion) was almost twice that of Amazon ($657.02 billion). In China , where Alibaba is dominant , it accounts for more than 50% of global e-commerce retail sales , while the United States accounts for only about 18%. Interestingly, both retailers intend to expand through physical grocery and retail media.

Amazon

USA

E-commerce

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