Direct Answer
17 SEC filers are classified under the Standard Industrial Classification code that describes the e-commerce retail industry, and their latest annual reports show $815.8 billion of combined revenue and a median operating margin of 0.1%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
E-commerce retailers sell products online directly or through marketplaces and earn product margins and fees. Growth, fulfillment cost and customer acquisition cost determine profit. The first numbers to compare across companies here are gross merchandise volume, active customers and contribution margin.
Key Industry Metrics
- Gross merchandise volume: Total value of goods sold on the site before returns and costs. It measures scale, so compare it with revenue and margin, as marketplaces count sellers' sales in it.
- Active customers: Customers who purchased within a recent period, usually a year. Growth shows reach, and spend per customer shows depth, so both help explain sales growth.
- Contribution margin: Profit after variable costs such as shipping, payment and marketing. It shows whether each order earns money before fixed costs, and negative values indicate growth is subsidized.
- Fulfillment cost per order: Average packing, shipping and handling spend per order. Rising cost with flat order size squeezes margin, and size, speed and region of delivery all influence it.
- Customer acquisition cost: Marketing spend divided by new customers won. Compare it with repeat purchasing and margin per order to judge whether growth earns back its acquisition cost.
Primary Macro Drivers
- Online penetration: As more purchases shift online, addressable sales and customer counts rise, shown in gross merchandise volume.
- Consumer spending: Budget changes affect order frequency and basket size, so active customers and volume react.
- Logistics cost: Shipping and warehousing are major expenses per order, so carrier rates change contribution margin.
- Advertising and marketplace fees: Seller fees and ad income add high-margin revenue, supporting profit beyond product margin.
Major Risks
- Competition from large marketplaces: Dominant platforms with wide selection and fast shipping attract shoppers and raise advertising prices for smaller sellers.
- Rising customer acquisition cost: If ad prices climb, each new buyer costs more, which erodes contribution margin.
- Fulfillment cost inflation: Higher pay and shipping rates raise cost per order, shrinking margin unless prices or fees adjust.
- Returns: Returned orders cost shipping and handling and lower net revenue; watch return rate commentary and contribution margin.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Medium |
| Regulatory Intensity | Low |
| Industry Maturity | Growth |
| Geographic Importance | U.S. / Global |
E-Commerce Retail Filers in the SEC Record
17 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 5961. Their latest fiscal years end between 2025 and 2026, and together they reported $815.8 billion of revenue. Median revenue growth over the prior year was 5.1%. Median operating margin was 0.1% and median net margin -2.3%. Median total liabilities were 60% of total assets, and 8 of 17 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Amazon Com Inc | $716.9 billion | 12.4% | 11.2% | 10.8% | FY 2025 |
| Coupang, Inc. | $34.5 billion | 14.1% | 1.4% | 0.6% | FY 2025 |
| Cdw Corp | $22.4 billion | 6.8% | 7.4% | 4.8% | FY 2025 |
| Chewy, Inc. | $12.6 billion | 6.2% | 2.0% | 1.8% | FY 2026 |
| Wayfair Inc. | $12.5 billion | 5.1% | 0.1% | -2.5% | FY 2025 |
| Qvc Group, Inc. | $8.3 billion | -7.8% | -24.3% | -26.1% | FY 2025 |
| Pattern Group Inc. | $2.5 billion | 39.3% | 1.0% | 0.6% | FY 2025 |
| Gigacloud Technology Inc | $1.3 billion | 11.1% | 11.2% | 10.6% | FY 2025 |
The 8 largest of 17 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The E-Commerce Retail guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
More in Consumer Discretionary
- Consumer Discretionary sector overview
- Electric Vehicle Manufacturers
- Diversified Consumer Services
- European Luxury Goods
- Department Stores
- EV Power Electronics
- Cruise Lines
- Fast-Casual Restaurants
- Consumer Subscription Services
Put it to work
Frequently Asked Questions
What are the main KPIs for the E-Commerce Retail industry?
Key performance indicators for the E-Commerce Retail industry include: Gross merchandise volume, Active customers, Contribution margin, Fulfillment cost per order, Customer acquisition cost. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the E-Commerce Retail industry?
The E-Commerce Retail industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the E-Commerce Retail industry?
The primary risks for E-Commerce Retail companies include: Competition from large marketplaces, Rising customer acquisition cost, Fulfillment cost inflation, Returns. Investors should assess each company's exposure to these factors and its track record of navigating them.