Amazon, Target And Macy’s Make List Of Top 10 U.S. Ecommerce Ranking

eMarketer recently released its latest ranking of which of the nation’s top retailers will dominate ecommerce in 2020. All of the retailers are well-known businesses that have refined the qualities consumers prefer when shopping online. The last several years of online retail growth have shown consumers want frictionless, quality experiences, with convenient shipping or pick-up options. And, for some retailers, brick-and-mortar stores can offer additional browsing and brand-building opportunities.

Amazon Remains The Leader Of The Ecommerce Pack By A Huge Margin

Amazon tops eMarketer’s list with a predicted 38.7% share of retail ecommerce sales in 2020. The retail megastore is one of the big four tech companies for a reason, with a hand in every aspect of American consumer preferences, from streaming to grocery delivery. Amazon’s net revenue in 2019 was $280 billion worldwide, with the vast majority of revenue from online commerce. Amazon Prime, which offers free and fast shopping, has more than 150 million subscribers and Amazon has scaled past 213 million monthly average users (MAU). The low cost of products, the efficiency for shoppers when making purchases and the ability to buy cat litter and Kindles at the same time makes Amazon a retail industry behemoth. Their closest competitor on the eMarketer ranking, Walmart, has just a projected 5.3% share of ecommerce sales.

Target Expands Delivery And Pick-Up Methods And Cracks The Top 10

Target comes in at number eight on eMarketer’s ranking of top ecommerce sales, with a projected 1.2% share of online sales. This is the first time on the list for the popular brick-and-mortar box store, which brought in more than $75 billion in sales and revenue last year across all platforms. According to eMarketer, Target’s ecommerce business will jump 24% to $8.34 billion in 2020, pushing mainstay Qurate retail group off the list. Target has undergone many changes over the last year, which point to its success in the ecommerce space. 

The launch of Good & Gather, Target’s new private label food and beverage brand, furthered the brand’s reach in grocery sales, an area in which Target has lagged behind competitor Walmart. Good & Gather launched during the same period that Target revamped and refined their same-day, curbside pick-up “Drive Up,” and both are likely factors when it comes to bringing more of their shoppers online. Additionally, Target’s partnership with Shipt continues to evolve, offering same-day shipping, personal shoppers and discounts for RedCard holders.

“At a time when brick-and-mortar stores are struggling to keep up with the fast-changing retail landscape, Target seems to have hit the bullseye,” said eMarketer forecasting analyst Cindy Liu. “Store renovations and expanding same-day fulfillment options, such as in-store pickup, drive-up and delivery with Shipt, are paying off. Target has found a way to use its stores to fulfill online orders while keeping up with customer demands for convenience and speed.”

Macy’s Ecommerce Position Softens As Apparel Sales Slow Down

eMarketer projects Macy’s will command only 1.1% of the ecommerce sales share in 2020, ranking 10th on the list. Based on retail sales, Macy’s is the most successful department store in the U.S. As consumers move away from in-store shopping at traditional stores, the heritage brand has successfully transitioned much of its business to ecommerce, with revenues growing 3.1% in 2019, totaling $5 billion. However, online sales aren’t likely to grow quickly enough in 2020 to compete with other, higher ranking, retailers. 

The softening apparel market, which dropped 3.1% in January of this year, may be part of the problem for Macy’s. An increasingly casual work culture and clothing subscription and rental options that appeal to Millennials, are impactful changes that won’t likely reverse any time soon. (Interestingly, 61% of Macy’s online shoppers use PayPal or Apple Pay, which indicates Macy’s online business is appealing to younger shoppers who often prefer the frictionless payment options Macy’s offers.)

Along with Amazon and Walmart, eBay and Apple round out the top four retailers, with the bottom six companies predicted to constitute just 8% of the ecommerce sales share. Although Amazon remains the biggest player in ecommerce for now, online brands who have begun deploying more delivery options and frictionless payments may find success in ecommerce and ultimately garner larger shares of ecommerce sales.

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