Amazon continues to dominate the e-commerce marketplace in North America
According to the ecommerceDB Trend Report 2023, Amazon continues to take the dominant position in North America's e-commerce marketplace with superior advantages.
In North America, Amazon has an exceptionally large market share in the United States and Canada. According to data previously released by market research firm eMarkete, Amazon occupies about 40% of the U.S. e-commerce market share, while the market share of the second-ranked Walmart is only 13%; and in Canada, Amazon takes up to 44.2%, the second-ranked Shopify is only 10.9%.
In addition, according to the latest report, in the United States, Canada and Mexico, the three major e-commerce markets in North America, the concentration among the top 250 online stores also varies. In these e-commerce net sales, Amazon, Walmart and Apple, the sum of the top 3 players occupy more than a third, 38%, 37% and 34%, respectively.
Although the share of sales in the Mexican market is slightly lower than in the other two markets, Mexico has also seen an increase in market concentration over the past two years. Between 2019 and 2022, sales of the top five e-commerce brands in Mexico grew by 50%, and the top six brands grew by 60%, much higher than the CAGR in the US and Canada (less than 40%) over the same period.
North America is one of the most dynamic and promising e-commerce markets in the world, with total e-commerce market revenues approaching $1 trillion by 2022. The North American e-commerce market is forecast to grow at a CAGR of 15% from 2022 to 2026, reaching a market size of $1.8 trillion by 2026, closing in on Asia.
There is no doubt that the United States and Canada have robust economic strength to support the development of e-commerce. And Mexico, as an emerging market with a population of nearly 130 million, although its e-commerce development is still not as strong as the United States and Canada, but it holds immense potential.
Amazon also sees the huge potential of the North American market. In order to help sellers in the United States, Mexico and Canada for better development, it previously launched a "NARF Plan" focused on North American logistics remote delivery.
This plan allows sellers in the United States, Mexico and Canada to share inventory, and the goods do not need to be warehoused in Mexico and Canada, can be shipped directly from the United States. Simply put, sellers do not need to set up separate inventory locations. This plan aims to increase sales for sellers, reduce FBA costs, and the platform can also rely on this plan to accelerate the pace of layout of the North American market.
In short, the North American e-commerce market is characterized by high concentration and high competition. For cross-border e-commerce sellers, high concentration means that there will be opportunities for greater exposure and sales opportunities; while high competition also means more pressure and challenges for sellers, and it will be more difficult for small businesses to break through.
An efficient and innovative financial tool plays an essential role for businesses to thrive. From payment to cash management, each step will save a lot.
iPeakoin, a global institution-grade cash management platform, can provide cross-border merchants an integrated financial solution for payments settlement. With iPeakoin Global Account, businesses of all sizes can open multi-currency accounts in the name of company, able to receive and make payments for suppliers, shipping, and manufacturing. Meanwhile, the Partical Treasury can also help businesses to grow their idle cash.
For more details, please visit ipeakoin.com. Also feel free to send us a note at marketing@ipeakoin.com or https://t.me/ipeakoin (Telegram).