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A Foolish Take: Amazon Will Control 47% of the E-Commerce Market This Year

By Leo Sun – Updated Apr 10, 2019 at 10:46AM

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The 800-pound gorilla in online retail still has room to grow.

Amazon's (AMZN 2.08%) share of the U.S. e-commerce market will rise to 47% of total sales this year, according to estimates from eMarketer. The four next largest e-tailers could claim a combined market share of just 16.2%.

Check out the latest Amazon earnings call transcript.

Chart showing market share of top e-commerce platforms in the U.S.

Data source: eMarketer. Chart by author.

eBay (EBAY 0.60%) is the only top five e-tailer that is expected to lose market share this year, possibly due to tougher competition from Amazon. Last October, eBay sued Amazon for allegedly poaching its high-value sellers.

Walmart's (WMT 1.30%) U.S. e-commerce sales surged 43% year over year last quarter, thanks to the aggressive expansion of its digital platforms and delivery options, as well as acquisitions of smaller e-tailers. Walmart is also turning its brick-and-mortar stores into a fulfillment network to counter Amazon. However, its e-commerce revenue still only accounts for a small percentage of its total sales.

Meanwhile, Apple's market share is expected to be flat, while The Home Depot's should grow a little. The home improvement retailer posted an impressive 28% year-over-year jump in digital sales during the third quarter.

The competition is heating up, but these smaller rivals won't throttle Amazon's growth anytime soon. The best-case scenario, as demonstrated by Walmart, is to roll with the punches and leverage core strengths (like brick-and-mortar stores) to stay competitive.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun owns shares of Amazon and AAPL. The Motley Fool owns shares of and recommends Amazon and AAPL. The Motley Fool has the following options: long January 2020 $150 calls on AAPL and short January 2020 $155 calls on AAPL. The Motley Fool recommends eBay and HD. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
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Walmart Stock Quote
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WMT
$131.75 (1.30%) $1.69
eBay Inc. Stock Quote
eBay Inc.
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$38.42 (0.60%) $0.23

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