# The e-commerce penetration rate is only 16%, and this giant still has enormous rise space.

Interesting data: **In Q2 2025, online retail accounted for only 16.3% of total sales**, in other words, there is still 83.7% of the market to be developed in e-commerce.

Amazon has captured **40% share** of the US online retail market, while other competitors haven't even touched double digits. How did they manage to be so dominant?

**Three Core Advantages**:
1. Brand moat — The first reaction when buying something is Amazon.
2. Unmatched Logistics Network — Distribution centers and delivery fleets spread across the United States, sometimes achieving hourly delivery.
3. Prime members have strong stickiness — over 200 million paid users, with an absurd renewal rate.

**New Rise Points**: Amazon is betting on groceries (same-day delivery in 2300+ cities) and automobile sales, both of which are just getting started.

In addition, **AWS Cloud Services** (with a 29% market share globally) is benefiting from the AI boom, and the application of robotics + AI automation in logistics still has significant potential for cost reduction and efficiency improvement.

In simple terms: The e-commerce pie has not been fully sliced yet, and Amazon holds the sharpest knife.