“To succeed, stay out in front of change.” – Sam Walton
E-commerce has been around for over two decades and has come a long way.
Giants like Amazon (AMZN) famously started with books, eventually working their way to a catalog of more than 300 million products available from both Amazon and third-party sellers
Looking at specific categories, consumer electronics are expected to comprise around 39% of e-commerce product sales by 2023, followed by household appliances at 31%, and apparel at 24%.
Food is expected to comprise the smallest share at 3%.
Here’s the chart:
A New Era For Consumer Products
As friction points continue to smooth out, consumers have become increasingly comfortable with shopping online. Initially, Amazon started with books due to their low price, ease of shipping, and diverse assortment.
Today, leading categories include higher-value products such as household appliances.
Online retailers like Wayfair have become popular for furniture and home goods, while Warby Parker has become a leader in eyewear. These companies have established themselves as household names by leveraging direct-to-consumer relationships.
On the other hand, over half of Amazon’s gross merchandise volume is from third-party sellers. It’s interesting to think of the companies within this $200+ billion market that are making strides as well.
Twitter: @_SeanDavid
The author or his firm have positions in mentioned securities at the time of publication. 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.
