- Carvana is now among the top 10 US retailers by ecommerce sales.
- By the end of 2022, Carvana will reach $19.11 billion in online sales, up 50.0% over last year.
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Americans have taken to buying cars online, so much so that ecommerce car dealer Carvana is now among the top 10 US retailers by ecommerce sales. This year, it will become the eighth largest US retailer by online sales, surging past established retailers like Best Buy, Costco Wholesale, and Wayfair, according to the latest retail forecast from Insider Intelligence.
By the end of 2022, Carvana will reach $19.11 billion in online sales, up 50.0% over last year. That puts its share of US ecommerce sales at 1.8%. The company experienced meteoric growth during the pandemic, as consumers shied away from visiting car dealerships in person.
“Carvana did a great job of making consumers feel more comfortable about buying a car online,” said Whitney Birdsall, forecasting analyst at Insider Intelligence. “It lowered buyers’ risk of purchase by offering a money-back guarantee and a seven-day return policy. It also offered the convenience of getting the car delivered or collecting it from a car vending machine. Also, because Carvana only sells used cars, it benefited from the semiconductor chip shortage that affected new car dealers.”
Carvana’s gain in ecommerce share comes at the expense of older retailers. In 2021, it displaced Wayfair, whose sales declined 4.6%. Wayfair was hit hard last year with supply chain and inflation issues, but its growth will rebound this year. In 2022, Carvana will surpass Best Buy, Costco Wholesale, and The Kroger Co. in sales and remain competitive in terms of ecommerce share.
Looking more broadly at the US car market, just 5.2% of auto and parts sales will come from ecommerce, or $86.26 billion in 2022. But we expect Carvana to make up 22.2% of the entire US auto and parts ecommerce category this year.
