The US e-commerce market has seen its lowest growth rate, and Amazon's share has fallen for the first time

The US e-commerce market has seen its lowest growth rate, and Amazon's share has fallen for the first time

The development of the U.S. e-commerce market has been hampered by a slowdown in consumer discretionary spending and the return of brick-and-mortar stores.

 

Recently, JPMorgan analyst Doug Anmuth believed that macro headwinds continued to hinder Amazon's development in the first half of the year, but he was optimistic about Amazon's development trend in the second half of the year and predicted that Amazon's revenue growth will re-accelerate in the second half of the year .

 

Doug Anmuth said that as Amazon improved its delivery speed and expanded its third-party seller network , adjusted its strategy and adapted to the crisis-ridden environment, although the overall performance in the second half of the year is still expected to slow down, online sales in categories such as groceries, clothing accessories, and home furnishings will rebound .

 

In addition, according to Insider Intelligence estimates, Amazon's share of U.S. e-commerce sales will decline slightly this year . Although Amazon still occupies a large share of the U.S. e-commerce market, it will drop from 38% in 2021 to 37.8% , which is also its first decline in the United States .

 

Currently in the US e-commerce market, Amazon not only has to face the ongoing supply chain crisis and inflationary pressure, but also has to compete with retailers such as Walmart and Target for the online market.

 

 

In order to stimulate the growth of online sales, major retailers have also tried their best to carry out promotional activities this year. In early June, Walmart just ended its annual promotion event " Walmart Plus Weekend ". Then , after Amazon announced the time of Prime Day ( July 12-13 ) , Target announced that it would hold the "Target Deal Days" online promotion ( July 11-13 ) one day before Prime Day .

 

Amazon was counting on Prime Day to get a good start in online market growth in the second half of the year, but with Walmart and Target coming on strong, the outcome for Amazon may not be as expected.

 

Some research firms estimate that although U.S. e-commerce sales will still grow by 9.4% this year , the pace will slow, the lowest growth since 2009 , due to macro pressures such as the return of physical stores, supply chain disruptions, tight labor market , as well as high inflation and slowing consumer spending .

 

Amazon 's online retail business in the United States is facing contraction , so it has to seek new growth opportunities and tap into new potential markets to stimulate growth.

 

 

As Amazon's sales slowed down to 7% in the first quarter of this year from 44% last year , Amazon has accelerated its development in emerging potential markets . Recently, Amazon announced that it will open five new sites in Africa, South America and Europe , including Belgium, Chile, Colombia, Nigeria and South Africa , and it is expected to complete the layout of these five emerging markets by the beginning of next year.

 

In addition, Amazon also holds big promotions in line with the local shopping peak season. Its Indian site held the " Home Shopping Spree " promotion from June 18th to 22nd .

 

The macro environment is not optimistic, and Amazon's share of the US e-commerce market has declined. For cross-border sellers on US sites , this will also be affected to a certain extent. Sellers must keep up with market changes, pay attention to changes in consumption, make good preparations for product selection, and gain more living space in the face of headwinds.

Amazon

USA

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