A new estimate of Amazon's market share indicates that the technology giant may not be as dominant as we once thought.
Amazon is the second largest company in America, with a market value of $ 921 billion, and this week was voted the most valuable brand in the world by BrandZ.
But the estimated share of US e-commerce sales was dramatically cut by eMarkets, often referred to as a reliable source of Amazon's market share. eMarketer is owned by Insider Inc.'s parent company, Axel Springer, and will combine next year with Insider Inc.'s BI Intelligence research unit.
The research firm downgraded its share of 201
eMarketer told Business Insider that it reassessed the estimates after CEO Jeff Bezos announced in April of the shareholders' annual letter that the sale of Amazon's third-party sellers had come to account for more than 58% of the physical wholesale trade sold on Amazon. These sales have grown from $ 0.1 billion in 1999 to $ 160 billion in 2018. "Third-party sellers are kicking our first lot," Bezos said.
A representative of eMarketer told Business Insider that due to this new information, the company was able to update "a key entry" in its e-commerce sales model for Amazon. This led to lowering its previous estimates for Amazon's sales and market share, added the representative.
Read more: The FTC asks Amazon rivals if they are crushed by Jeff Bezos company
The revised market share estimate can actually be good news for Bezos & # 39; company, which is trying to reduce its size at a time when technological antitrust investigations may be threatening.
Earlier this month, The Washington Post reported that the Federal Trade Commission and the Ministry of Justice had raised responsibility for any antitrust investigations concerning Amazon and Google. Under this new agreement, the FTC oversees Amazon.
"Something happens in the form of monopoly," said US President Donald Trump on Monday about the possibility of investigations in Apple, Amazon, Facebook and Google. "We'll look at it," he added.
The biggest concern for both regulators is that Amazon is so dominant that it is impossible for others to compete. If market shares appear to be less dominant than once thought, this should be beneficial for their advantage.