Amazon to become the largest US retailer by 2024: J.P. Morgan analysts
Amazon (AMZN) is poised to overtake Walmart (WMT) as the largest retailer in the US by 2024, according to a new report by J.P. Morgan analysts Doug Anmuth and Bryan M. Smilek. The report predicts that Amazon’s gross merchandise volume, or GMV, will grow 11.6% year-over-over to $477 billion in 2023, and surpass Walmart’s GMV of $482 billion in 2024.
"Amazon is well-positioned to become the largest retailer in the United States," said Anmuth. "It has a strong track record of growth, and it is continuing to invest in new areas of the retail market."
The analysts attribute Amazon’s impressive growth to several factors, including its increased penetration in under-served categories like grocery and apparel, its faster delivery speeds, and its loyal Prime membership base. They estimate that there will be about 300 million Prime members globally by the end of this year, up from 200 million in 2021.
Smilek added that Amazon's investments in brick-and-mortar retail are particularly important. "These investments will help Amazon to compete with traditional retailers and reach more customers," he said.
Amazon’s dominance in the e-commerce market is also expected to continue, as the company’s market share will reach 42.2% by the end of 2023, an increase of 106 basis points year-over-year, according to J.P. Morgan. The report also highlights Amazon’s potential to leverage generative AI in its e-commerce operations, such as creating an interactive conversational product search and enhancing personalized recommendations.
However, the report also warns that Amazon faces some challenges, such as increased competition from other online and offline retailers, regulatory scrutiny from the federal government, and rising costs and margin pressures. The report concludes that Amazon is well-positioned to capitalize on the long-term trends in e-commerce and digital transformation and that it remains one of the best growth stories in tech.
"Amazon is well-positioned to become the largest retailer in the United States," said Anmuth. "It has a strong track record of growth, and it is continuing to invest in new areas of the retail market."
The analysts attribute Amazon’s impressive growth to several factors, including its increased penetration in under-served categories like grocery and apparel, its faster delivery speeds, and its loyal Prime membership base. They estimate that there will be about 300 million Prime members globally by the end of this year, up from 200 million in 2021.
Smilek added that Amazon's investments in brick-and-mortar retail are particularly important. "These investments will help Amazon to compete with traditional retailers and reach more customers," he said.
Amazon’s dominance in the e-commerce market is also expected to continue, as the company’s market share will reach 42.2% by the end of 2023, an increase of 106 basis points year-over-year, according to J.P. Morgan. The report also highlights Amazon’s potential to leverage generative AI in its e-commerce operations, such as creating an interactive conversational product search and enhancing personalized recommendations.
However, the report also warns that Amazon faces some challenges, such as increased competition from other online and offline retailers, regulatory scrutiny from the federal government, and rising costs and margin pressures. The report concludes that Amazon is well-positioned to capitalize on the long-term trends in e-commerce and digital transformation and that it remains one of the best growth stories in tech.
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About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.