Source: PaxForex Premium Analytics Portal, Fundamental Insight
Walmart (NYSE: WMT) has added another online trading trophy to its growing list of awards. According to eMarketer, for the first time in May 2020, this retailer surpassed the pioneer eBay (NASDAQ: EBAY) in terms of sales share in the U.S. online business.
eBay has longstanding digital sales leader Amazon.com (NASDAQ: AMZN), which accounts for 38% of online purchases in the country. Walmart moved to second place with 5.8% of digital retailing, and eBay moved to third with 4.5%.
In the first quarter, which ended May 1, Walmart reported a 74% year-on-year increase in sales driven by the strong contribution of its product collection and delivery services, Walmart.com, and its marketplace. During eBay's first quarter ended March 31, eBay's market profit, excluding classification business, fell 1% year on year. This indicates that Walmart was gaining popularity, as eBay was losing it even during a period that was quite strong in terms of digital sales.
According to the U.S. Department of Commerce, online sales in the U.S. in the first quarter of 2020 grew by almost 15% year-on-year and accounted for 12% of total retail sales.
According to eMarketer estimates, in 2020 sales volume will increase by 18% compared to the previous year, exceeding the previous forecast of growth by 13%. At the same time, total retail sales are expected to decline by 10.5%.
A shift in consumer behavior as a result of the coronavirus COVID-19 pandemic was widely reported. With the widespread distribution of home orders and the transition of employees to remote work, many customers choose the simplicity and convenience of online shopping, refusing to travel to brick and shell shops for fear of contracting the virus. Unfortunately, eBay was unable to take advantage of this shift.