According to research by JPMorgan, ecommerce giant Amazon is set to dethrone Walmart's top spot next year.
As its biggest Amazon Prime Day approaches, the US based ecommerce giant celebrates another milestone as JPMorgan analysts Doug Anmuth and Bryan M. Smilek revealed to Yahoo Finance that Amazon is set to become the USA’s biggest retailer in 2024.
Currently, American ‘hypermarket’ chain Walmart claims the top spot with over 4,500 stores across the states and an ecommerce site with a full catalogue.
JPMorgan estimates show that, in 2023, Amazon’s GMV will likely grow 11.6 percent year-over-over to $477 billion. At the end of 2023, JPMorgan analysts expect the company’s ecommerce market share to be 42.2 percent, an increase of 106 basis points YoY.
The analysts attribute this growth to an uptake in ecommerce, fast delivery speeds, Amazon’s cost cutting measures, investments in fintech, and Amazon Prime membership growth. Amazon’s Prime memberships are set to reach 300 million globally, aided by promotions such as the current $2 membership promo in the US, usually $15 USD per month.
Last year’s Amazon Prime Day event was the biggest Prime Day event in Amazon’s history with more than 300 million items worldwide snapped up by Prime Members during the event’s two days. The second Prime Day event in October had significantly less impact with only a third of the sales made in July at 100 million sales over the course of the event. July’s upcoming event is expected to exceed last year’s results despite economic turmoil across the globe.
The company has been placed under government scrutiny in America with the Federal Trade Commission (FTC) suing Amazon due to customers being “tricked” into signing up for Prime memberships and then making it difficult to cancel these subscriptions.
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