How many eCommerce companies are there and how many make more than a million dollars in revenue through just online sales?
In an earlier blog post on eCommerce product categories, we disclosed how many B2C physical goods eCommerce companies are there in the US and what product categories they sell.
According to PipeCandy’s proprietary eCommerce intelligence database, there are approximately 860,000 valid eCommerce companies in the U.S. of which nearly 285,000 are B2C eCommerce companies that sell physical goods. In this blog post, we take a look at how much eCommerce revenue these companies clock.
Before we do, for the benefit of the curious, a quick note on.
How does PipeCandy estimate ‘Online Sales’?
First off, Online Sales refers exclusively to sales revenue from an eCommerce company’s website. By that definition, it does not include sales through a marketplace and other retailer websites.
PipeCandy uses an ensemble of ML models to estimate trailing 12-months online sales revenue for eCommerce websites.
Some of the business attributes that form features for the ML models include:
- Traffic rank and monthly visits
- Estimates of Average Conversion Rates and Average Order Value based on product category, eCommerce business type, brand ownership and awareness, social media engagement and maturity of tech used.
This is then validated using first-party and second-party data on eCommerce companies.
eCommerce is long-tail, but long-tail is not eCommerce
We ran the models on all ~860,000 valid eCommerce companies in the US (regardless of whether they’re B2B or B2C or if they sell physical goods or digital goods or services or a combination of either of these). What we found is that the ‘long-tail’ – i.e., eCommerce companies that make less than a million dollars as online sales revenue – constitute more than 80% of the eCommerce market.
Diving into our subset of ~285,000 eCommerce companies, the story is no different.
However, what’s interesting is that over 50% of revenue in 17 different eCommerce categories comes just from Amazon!
At the time of writing, an estimated 4% of companies (~11,580) are yet to have their Online Sales ranges identified.
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