The Internet retail industry may seem like it’s been around forever, but some of the latest growth numbers prove the e-commerce party is just getting started. The National Retail Federation expects online retail sales to grow by 8% to 12% this year — three times higher than the broader retail industry — and reach an estimated size of up to $443 billion this year in the U.S.
Investors looking to enter this market, or expand their positions, need to look no further than Amazon.com (NASDAQ:AMZN), Shopify (NYSE:SHOP), and Wayfair (NYSE:W). All three are recommendations in several of The Motley Fool’s premium services, and each is poised to stay at the top of the internet retail industry.
Amazon hardly needs an introduction, and while many people know Amazon is the big fish in the Internet retail pond, they may not know exactly how big it really is. Consider that a research report from Slide Intelligence estimates that Amazon accounted for 43% of all online retail sales in the U.S. last year — up from 25% just five years ago.
Amazon’s online retail presence hasn’t just been a boon to its own business (and its investors), it’s also helped the entire e-commerce industry as a whole. Slide estimates that Amazon’s sales accounted for 53% of the sales growth in the broader U.S. e-commerce market last year.
The company’s latest quarter proved there’s no slowing down this Internet giant any time soon. At the end of April, Amazon reported its first-quarter fiscal 2017 earnings, with revenue jumping by 25%, net income popping 41%, and earnings per share up 39%, all year over year.
I can’t talk about Amazon’s internet retail dominance without leaving you with the company’s all-important (but estimated) Prime subscriber numbers. The company now has an impressive 80 million subscribers in the U.S., which is up from about 58 million just one year ago, according to Consumer Intelligence Research Partners. The company’s current dominance in internet retail, along with its massive accumulation of Prime members, means the company should continue to enjoy its position at the top for years to come.