By Tonya Garcia, MarketWatch
Walmart Inc. has surpassed eBay Inc. in share of U.S. e-commerce sales for the first time, according to May 2020 data provided by eMarketer, though Amazon.com Inc. remains number one by a large margin.
Amazon /zigman2/quotes/210331248/composite AMZN -2.23% tops the list with 38.0% of all U.S. e-commerce sales share, followed by Walmart /zigman2/quotes/207374728/composite WMT -2.59% with 5.8% and eBay /zigman2/quotes/204653455/composite EBAY -3.56% with 4.5%.
“Amazon will increase its e-commerce market share to 38.0% and extend its reign of dominance,” said Andrew Lipsman, eMarketer principal analyst also with Insider Intelligence, in a statement. “But big-box retailers are leveraging their click-and-collect models to accelerate their e-commerce businesses.”
These big box retailers include Target Corp. /zigman2/quotes/207799045/composite TGT -3.00% and Costco Wholesale Corp. /zigman2/quotes/201191698/composite COST -1.58% , which are both also in the top 10.
Retail sales increased a record 17.7% in May, though there was still a 6% year-over-year decline.
E-commerce sales in 2020 will climb 18%, higher than the previous forecast for 13% growth, according to eMarketer estimates, although retail sales overall are expected to drop 10.5% to $4.894 trillion.
Both outcomes are the result of the coronavirus, which forced stores to close and consumers to social distance, shifting shopping activity to necessities and other categories in line with spending more time at home.
“The U.S. retail sector could take years to recover from the impact of the coronavirus, and the hit could be worse than that of the Great Recession,” eMarketer wrote in a June report, with one analysts saying it will be years before consumer activity levels bounce back. Retail sales dropped 8.2% in 2009.
In 2019, retail sales totaled $5.465 billion.
E-commerce is expected to reach $709.78 billion this year, eMarketer said.
Food and beverage is the top growth category, expected to grow 58.5%. Apparel and accessories is expected to increase 8.6%.
“Certain e-commerce behaviors like online grocery shopping and click-and-collect have permanently catapulted three or four years into the future in just three or four months,” said Lipsman.