Amazon is the first Ecommerce platform that comes to our mind when someone mentions online shopping — that’s how enormous it is.
The retail store’s success primarily stems from the innovative and adaptive methods and technologies championed by its CEO, Jeff Bezos.
Perhaps that’s the reason its net sales were expected to reach $146bn, or $60bn more than in 2019. But that isn’t the end of the story. Its growth trajectory is rising in the coming years.
The pandemic and its repercussions further contributed to the net sales of Ecommerce businesses, and Amazon, of course, is at the top of the list.
Here’s how Amazon’s year over year (YoY) growth impacts its annual revenue.
The Global Crisis Escalated Ecommerce Growth
Perhaps by now, we know how much the global crisis affected and altered the world entirely. There was, and is, a massive shift to a far more digital world.
Education, economics, and consumer trends all underwent a profound change. People started spending more time on social media, with integrated shopping tabs, and hence there was a growing number of online shoppers through social commerce.
Global ecommerce revenue surged by 17% in 2020 compared to 14% in 2019. Due to the lockdown, people started purchasing even the simplest everyday household items online. People didn’t feel safe leaving the house initially, then this convenient behavior later became habitual.
Though the fear of the pandemic has decreased, the online shopping trend isn’t going away anytime soon.
People are turning to Shopify, Amazon, Walmart, Target, and other branded websites to purchase their favorite goods. While the digital market is all growing at the same rate, Amazon, in particular, is still outperforming its competitors.
Amazon Dominates the Ecommerce World
Amazon, the world’s leading online store based in the US, enjoyed an unexpected growth in net revenues in 2020.
Recent stats show that the Ecommerce company sold goods worth $300bn in 2020, more than $100bn from the previous year. Also, the 2020 Future Shopper report shows that 48% of global online shoppers declare Amazon as their favorite shopping store.
But that’s not it; Forbes mentions that 89% of consumers are more interested in buying products from Amazon than other Ecommerce websites.
Further, 37% of online shoppers prefer Amazon to buy toys, and 29% like to purchase tech-related items from the platform.
What’s more, the trend is expected to grow further. Now in 2021, profits from online stores could reach $162bn, which is more than double from just two years ago.
Amazon Popularity In the US
Did you know the US accounts for 93% of total sales on Amazon? That’s right, from media to electronic to other popular product categories, most bought items on Amazon are by US consumers.
We’re all aware that Amazon has expanded into international marketplaces including amazon.de, amazon.fr, amazon.co.uk, amazon.com, amazon.in, and several other locations. But data shows that the United States remains the largest and most profitable market.
Aside from the United States, Canada is the second-largest market, accounting for 1% of total sales, followed by China, the United Kingdom, and Australia, accounting for 0.6%, 0.4%, and 0.3%, respectively.
It’s safe to say that Amazon is the most popular online retail platform among US citizens.
Ecommerce Net Revenue to Increase Tremendously
Though the impact of COVID-19 has faded over time, the crisis is still lurking. Several trends which began during the pandemic have persisted and will continue to do so.
Retail ecommerce sales in 2020 were $4.28 trillion, and are projected to grow to $5.4 trillion in 2022.
New technology is making it easier for people to purchase their favorite products online. Consumers are also enticed because of the convenience online shopping offers. They no longer need to leave their home and stand in lines to buy the products they need.
All they need to do is open a website on their mobile phones and order within seconds from the comfort of their homes.
What’s more, ecommerce sellers know the hacks of attracting more customers through online sales, discounts, gifts, and exclusive offers.
As such, the market will continue expanding.
Leap at the Opportunity of Ecommerce Growth
If you run an online business, this is your chance to benefit from the changing consumer trends. Since more and more people are turning to online websites to purchase products, you can make the most out of this opportunity and grow your e-commerce business like never before.
Here are a few tips and tricks to grow your online business.
- Engage with your customers through social media. Currently, Instagram has the highest average value order. Also, data shows that Instagram and Facebook have the most engaged audience. So, are you promoting your brand on these platforms?
- If you’re selling on Amazon or Shopify, make sure you write detailed and attractive product descriptions. Remember, your customers can’t pick up your product and examine it physically. Product videos are a bonus.
Consumers have to rely on product descriptions and pictures. So ensure you keep them engaging, high quality, and informational. For example, add a few graphics highlighting important functionality of the product.
- If product sourcing, labeling, and shipping are too overwhelming for you, you can rely on Elite Automation for that. The automation company will take care of your products, sales, inventory, customer service, and store entirely. What’s more, you’ll observe major growth in your revenue and will have an FBA store you can resell down the road, should you choose.
- Nothing attracts a customer more than an amazing discount or deal. So make sure you offer discounts frequently to earn some loyal clients.
Final Words
With a growing trend in online shopping, more businesses are turning away from brick-and-mortar. Nonetheless, Amazon is currently outpacing other similar marketplaces in the e-comm world.
The online retail store is growing YoY — in 2022, its net sales are expected to hit over $162 billion.
The trends in online shopping are growing, and retailers are experimenting with new methods to attract loyal customers.
The e-comm environment is more dynamic than ever: all e-commerce business owners and brands need to stay on top of tech, marketing strategies, and relevancy to stay profitable and competitive.
