Amazon and Holiday Shopping
Amazon has had an excellent 2020. With the pandemic shuttering many physical stores, Amazon has become the first option for many people who want or need to buy something. This has led to Amazon’s record levels, and that trend looks like it will continue well through the end of the year. In the company’s most recent quarterly report at the end of June, Amazon generated a jaw-dropping $88.912 billion. While Amazon constantly posts major numbers, this particular quarter was impressive under the scope of the company, representing a 40.23% increase in revenue when compared to the same quarter in 2019. It looks as though this trend will continue considering the possible trends going into the holiday season.
In fact, after a major poll of shoppers from the United States, Amazon may be running away with the largest period of purchasing all year. According to the poll, 52% of these shoppers plan on starting their online holiday shopping on Amazon. While cornering the online market is already a major step, it is more expected. However, what is a more promising trend for Amazon is that 42% of these same shoppers plan to do the majority of their shopping this holiday season on Amazon. Even beyond that are the 11% who plan to exclusively shop at Amazon for their holiday shopping. These numbers suggest that in a year without any money being spent on travel expenses or public events like concerts, the majority of retail shopping during the busiest time of the year will be funneled through one company. For Amazon, this is another huge moment for them. After a successful Prime Day, capitalizing on the lack of physical retailers will surely bring in massive revenue. However, this is also indicative of the major rise in ecommerce being seen on a global level.
Because of the lack of available in-person stores and the rise in more efficient shipping and better online storefronts, ecommerce has exploded in a major way in 2020. In fact, in the second quarter of 2020, ecommerce sales in the United States rose by 44.4% to an incredible $200.72 billion spent. 2020 forecasts remain equally impressive, with ecommerce sales projected to reach $794.5 billion by the end of the year. However, while the extraordinary circumstances of this year may have caused the initial spike, ecommerce sales looking into the future are set to continue to grow. By 2024, ecommerce retail revenues are expected to reach $1.2 trillion, which would represent 19.2% of all United States retail sales. While Amazon currently represents 39% of all ecommerce sales, other companies such as Walmart, eBay, and Apple all hold solid numbers at 5.8%, 4.9%, and 3.5%, respectively. The top 10 ecommerce retailers, which represented up to 57.9% of all online sales in 2019, will see their dominance rise up to 63.2% this year.
The COVID-19 pandemic has caused many radical changes to the world of retail shopping. For the companies that have best been prepared to handle the influx of ecommerce sales as consumers have been transitioned away from in-person retailers, the growth potential is completely unparalleled. There has been no company in the world more equipped for this phenomenon than Amazon. After a massively successful Prime Day and the overwhelming favorite for consumer holiday shopping needs, Amazon is set to reach stratospheric heights of revenue that could quite possibly topple the already incredible Q2 report they had this year.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.