The Amazon Effect on the U.S. Economy

Amazon’s reach is now large enough to influence multiple parts of the U.S. economy, from how much people pay for goods to business profitability. The piece notes that Amazon, which started in 1994 and launched Amazon.com in July 1995, accounted for an estimated 39.7% of U.S. e-commerce sales in 2026. It also cites estimated global sales of $12.9 billion during Prime Day in 2023. Economically, Amazon’s online model can reduce some retail overhead while still carrying substantial fulfillment, shipping and technology costs—enabling competitive pricing. The article argues that while e-commerce can affect inflation dynamics, research has not proven that Amazon breaks the broader wage-inflation link. It also highlights headcount, citing about 1.5 million employees worldwide by mid-2023, down more than 4% year over year.