Top 5 E-commerce Retailers 2023
In the US, 2022 retail e-commerce revenue was $856.8 billion. Online shopping has revolutionized how we purchase goods and influenced consumer expectations that spill over into other industries today. Convenience, endless options, and seamless experiences are now table stakes. Here, we delve into the top five e-commerce retailers making waves in the digital realm.
For the sixth consecutive year, RIS has collaborated with wRatings to rank the industry’s top-performing retailers. We’ve highlighted the top 100 companies continuing to prosper despite the ongoing volatility, analyzing their percentage of market share and how it translates to overall sales, and where these companies are investing in maintaining their competitive edge. The Top 10 alone totals $2.4 trillion in sales — besting last year’s $2.3 trillion.
Below, RIS breaks out the Top 5 E-commerce Retailers from the complete Top 100 list. From tech-driven innovations to exceptional customer experiences, these brands are setting new standards and redefining the online shopping landscape.
1. Amazon:
No. 2 overall, 14.28% market share
On July 11, 2023, Amazon reached a pinnacle: Its first day of the Prime Day event “was the single largest sales day ever on Amazon, helping make it the biggest Prime Day event ever (members bought 375 million items). Overall sales last year were $514 billion — almost $45 million more than in 2021.
After a decade of investment in robotics technology, the company recently announced that it has more than 520,000 robotic drive units and revealed its first fully autonomous mobile robot, Proteus. Amazon said Proteus can operate safely alongside humans on the warehouse floor.
In other business areas, Amazon is refining plans to meet changing demands, undergoing a significant shift in its strategic approach, and pausing its brick-and-mortar supermarket expansion — with plans to close some Amazon Fresh and Amazon Go physical locations.
2. Wayfair
No. 36 overall, .34% market share
Wayfair became the go-to online destination for home furnishings and decor and stands out for its commitment to personalization and customer experience, ultimately enhancing revenue. AI-powered recommendation systems tailor product suggestions, and augmented reality (AR) technology allows customers to visualize furniture and decor in their homes before buying, reducing returns. Unlike Amazon, Wayfair is doubling down on brick-and-mortar, opening physical stores.
Wayfair opened a second Joss & Main location in May 2023 in Chicago. According to a release, “The Joss & Main store blends the best in-person and online shopping into one seamless experience. In addition to shopping hundreds of products in-store to take home same-day, customers can access an endless aisle of alternative styles, colors, and materials through the Joss & Main mobile app, mobile web, or on a tablet in-store with the help of an associate. For those who may want to skip the line and finish shopping from the comfort of their home, the Joss & Main app makes scanning items in-store and building a digital basket quick and easy, with free two-day delivery on thousands of styles.”
3. Chewy
No. 42 overall, .28% market share
Newsweek named Chewy the No. 2 most trustworthy retailer of 2023. While the online pet supply retailer sells everything pet owners may need, the company has expanded beyond goods into services and is committed to animal rescue.
In August of 2022, the company expanded its insurance and wellness offering, CarePlus — a suite of pet-first wellness and insurance plans, which included its award-winning telehealth service, Connect with a Vet. The month before, Chewy announced a new milestone — more than $100 million in pet food and essential supplies donated to needy pets since the company’s philanthropic program, Chewy Gives Back, began in 2012.
4. eBay:
No. 43 overall, .27% market share
eBay, the longstanding online marketplace, embraces emerging technologies to improve the selling experience and delve into new digital products. During a podcast appearance in June 2023, eBay Chief Technology Officer Mazen Rawashdeh said, “AI, in my opinion, is not a product; it’s an ecosystem. It touches every corner of our company.” He believes that eBay has a unique position in the AI space, citing a hybrid strategy.
In another cutting-edge tech move, eBay recently acquired KnownOrigin, a non-fungible token (NFT) marketplace whose technology and platform provide artists a place to create unique, authentic digital collectibles through NFTs. The company said in a release, “This acquisition is an important step in eBay’s tech-led reimagination, ushering in a new era of digital collecting to the world’s top destination for collectibles.”
5. Etsy
No. 99 overall, .07% market share
Etsy, known for its unique and handmade products marketplace, can turn anyone into a retailer. The platform boasts nearly 8 million active sellers and 95 million active buyers. To that end, in mid-2022, Etsy launched a new seller app with technology that, the company says, will enable it to make updates more quickly to address seller feedback. Changes included seamless customer communication and enhanced order and inventory management, with more updates planned.
In March 2023, Etsy scrambled to ensure sellers got paid when Silicon Valley Bank collapsed. According to the company, teams worked “around the clock” to ensure no missed payments.
Why the Full Top 100 List Looks a Little Different This Year
When comparing this year’s list to last year, we’ve implemented a few changes, which impacted overall rankings when comparing year-over-year. For this year’s rankings, we’ve pulled out all the retailers that were not North America-based. This move eliminated five retailers from the 2023 list, including two which generally make the Top 10: JD.com and Alibaba Group. The five eliminated retailers included four from China and one from Japan because, while these companies trade on a U.S.-based stock exchange, they don’t operate stores there. Additionally, we deleted the restaurant chains category. These changes did not impact the top five retailers on this year’s list. Still, the removal of JD.com and Alibaba Group left room for home improvement retailer Lowe’s and convenience retailer Alimentation Couche-Tard to step up to the limelight, notching the No. 9 and No. 10 spots of the top 10 retailers. Click here for the entire “Top 100 Retailers in 2023” list.