“There is only one boss. The customer.” – Sam Walton
COVID-19 has accelerated secular trends which have been underway for some time, among them is the adoption of e-commerce and e-commerce sales growth.
In a previous chart spotlight, I noted how the share of retail sales conducted online received a boost from the change in consumer behavior.
In the e-commerce ecosystem, there’s countless companies of all sizes looking for their piece of the pie. And as e-commerce sales growth continues, the opportunity is there.
The share of top 10 online retailers is expected to reach ~60% in 2020, compared to 58% in 2019 and 55% in 2017.
The E-Commerce Ecosystem
There’s no doubt that the most popular name in e-commerce is Amazon (AMZN). The company has built a widespread logistics network and acts as a platform for countless third-party sellers.
This has attracted players such as Walmart (WMT) who recently announced their monthly subscription service, Walmart+, which is expected to price at $98/year. Additionally, there are platforms like Shopify operating in the background and enabling businesses to sell directly to consumers.
Even companies like Facebook are offering businesses the ability to create storefronts on their social media platforms, which will further integrate e-commerce into society and ease adoption.
Going forward, it will be interesting to see how the e-commerce ecosystem evolves, and which firms best capture the value created.
Twitter: @_SeanDavid
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
