Amazon Owns More Than A Third of U.S. E-Commerce, Report Says

Written by Fred J. Aun
April 16th, 2009

Everybody knows is an online giant. Now an analyst has determined just how big a giant: According to RBC Capital Analyst Stephen Ju, Amazon accounts for more than a third of all E-Commerce.

“Using our data, the total GMV (value of all the e-commerce activity flowing through AMZN’s platform) is close to $12.5 billion in the U.S., or 34 percent of the $37 billion the U.S. Commerce Department reported for 4Q08,” wrote Ju an April 14 report called “How Much Share Does Amazon Really Have?” Ju determined Amazon’s piece of the U.S. E-Commerce pie continues to grow. It was 27 percent last year, he wrote.


5 Comments | Read Amazon Owns More Than A Third of U.S. E-Commerce, Report Says

  1. Gail Says:

    A day late and a dollar short. 4Q08 is long gone; what about 1Q09? How is AMZN doing now?

    How about adding some perspective? Compare AMZN’s marketshare to EBAY. Compare it to retail stores with online presence, such as Walmart. Simply stating statistics is an empty exercise.

  2. Carol Says:

    What is meant by platform? Is this Amazon sales or sales from every merchant who uses the Amazon storefront? Or is the dollar volume generated by other merchants in Amazon’s storefront small enough to be irrelevant?

  3. Questioning Says:

    It states AMZ’s platform which many other retailers use. I wonder what the state is for just AMZ’s website and not the overall platform.

  4. Amazon Says:

    The Amazon “platform” is more than just the store. Many “stores” use the cart functions from Amazon. They also have a “self publish” option. A company can build their own e-commerce store using the Amazon Platform.

  5. Wedge Says:

    Gail –

    I’d guess that Amazon smoked eBay. Amazon does a good job with its merchants to push products that sell, and offer competition on those products which means customers get a good price.

    eBay let’s everyone list everything, does nothing to help its sellers (raising fees, taking away the ability to leave feedback, etc.)


StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.