Amazon’s Online Stores segment is projected to generate $62.8 billion in first-quarter 2026 revenues, a 9.4% increase year over year. This growth is bolstered by a surge in high-frequency purchase categories, particularly everyday essentials and groceries, which now account for one in three units sold in the U.S. The segment recorded a 12% increase in paid units year over year in Q4 2025, highlighting robust underlying demand.
Fulfillment improvements are evident, as same-day delivery now covers over 2,300 cities and towns across the United States. The burgeoning demand for essentials is shifting Amazon’s role from a discretionary marketplace to a primary shopping destination. However, potential geopolitical risks and pressures on discretionary spending could impact future growth.
In comparison to competitors, Amazon’s frequency-driven model is distinct from eBay and Etsy’s focus on discretionary purchases. Over the past six months, Amazon shares have decreased by 9.6%, outperforming the declines of 15.7% for the Zacks Internet – Commerce industry and 7.2% for the Zacks Retail-Wholesale sector.
