Amazon Claims 44% of 2017 U.S. e-Commerce Sales, Beats Google for Shopping Searches


SEATTLE – Amazon just proved it’s the true giant everyone calls it by claiming 44 percent of all U.S. e-commerce sales in 2017, according to One Click Retail. Amazon also accounted for 4 percent of the country’s total retail sales for the year – approximately $200 billion.

It is particularly successful in consumer electronics, which generated more than $8 billion in sales. Home-and-kitchen and publishing followed with $5.5 billion and $5 billion in sales respectively. The sports-and-outdoors market’s sales hit $4 billion.

Luxury beauty was the fastest growing segment with 47-percent year-over-year growth to $400 million in sales. The pantry category enjoyed 38-percent growth with $500 million in sales. Amazon’s grocery and furniture categories each posted 33-percent year-over-year growth, and $1.5 billion in sales, respectively.

Analysts say Amazon’s efforts to create its own automated marketing system and sophisticated search platform are paying handsome dividends. More than half of all product searches today begin on Amazon – and only Amazon can convert click-throughs to sales. 

Other companies are feeling Amazon’s growth in search, namely Google. Today, many brands are taking their search budgets out of Google and Facebook and putting it into Amazon, according to the report.

A new report from Forrester Research says Amazon is becoming a preferred destination for online shopping and search because of the way "Amazon is exploiting Google’s weakness in online shopping." 

U.S. consumers are now more than 2.5 times more likely to find out about the brand of a recent purchase from Amazon than from other online searches. 

That erosion will likely continue. Overall, Forrester analysts expect the number of U.S. mobile phone search users to grow from 204.4 million in 2017 to 242.8 million in 2022, which supports the continued strong growth in mobile search advertising that the analyst firm predicts. And as the number of users grows, so do the number of mobile searches per user.