American E-CommerceWORTH PROTECTING$1.2 Trillion Industry

E-Commerce Is the Greatest Engine of American Entrepreneurship in a Generation

It allows anyone, anywhere in the United States to build a business. It creates jobs in every state. It generates tax revenue in every community. And it is under threat from foreign sellers who don't play by the same rules.

The Scale

$1.2T

U.S. e-commerce sales (2024)

Source: U.S. Census Bureau

1.1M+

American sellers on Amazon alone

Source: DemandSage

2M+

American jobs supported by marketplace sellers

Source: AboutAmazon.com

E-commerce has doubled in five years — from $571 billion in 2019 to $1.192 trillion in 2024. It now accounts for 16% of all U.S. retail sales and is growing at more than double the rate of total retail (7.5% vs 2.6%). This is not a niche industry. It is the backbone of modern American commerce.

Source: U.S. Census Bureau, Digital Commerce 360

You Can Build a Business From Anywhere in America

E-commerce eliminated the requirement to be in a major city to reach customers. A family in North Dakota can sell pasta nationwide. A craftsman in rural Georgia can reach millions. A veteran in small-town Texas can build a brand.

30%+

Year-over-year sales growth for Amazon sellers in rural areas (2024)

50

States with active marketplace sellers — every single one

$450B

Amazon investment in small-town and rural job creation

97.3%

Of all U.S. exporters are small businesses, generating $413B in exports

Millions of American Jobs — Created by American Sellers

2M+

Jobs created by Amazon marketplace sellers alone

11% year-over-year growth

63%

Of all new U.S. jobs (1995–2021) created by small businesses

17.3 million total

$23/hr

Average base pay at Amazon fulfillment

$30+/hr total compensation

750K

Jobs supported by Walmart’s U.S. manufacturing commitment

Sourcing and production

Tax Revenue That Funds American Communities

American e-commerce sellers pay income tax, property tax, payroll tax, and sales tax. After South Dakota v. Wayfair (2018), marketplace platforms collect sales tax in virtually every state. Amazon alone invested $340 billion in the U.S. in 2025, generating substantial payroll and property taxes in every community where it operates.

The Remaining Gap

Sales Tax Gap (Closed)

Before Wayfair, states lost an estimated $8–13 billion annually in uncollected sales tax. That gap has been closed for domestic sellers.

Income Tax Gap (Wide Open)

The income tax gap for foreign sellers — estimated at $9–60 billion — remains wide open.

Source: Tax Foundation

Source: GAO

Source: AboutAmazon.com

The Spirit of American Entrepreneurship

Americans are starting businesses at record rates. Over 500,000 new business applications are filed every month. E-commerce made this possible by lowering the barrier to entry — you don’t need a storefront, a warehouse, or a six-figure investment. You need a product, a laptop, and a marketplace account.

5.4M

New business applications in 2021 (record)

76%

Of Amazon sellers achieve profitability

63%

Achieve profitability within the first year

55,000+

Sellers exceeded $1 million in sales in 2024

$290K

Average annual sales per Amazon seller

$2.5 Trillion

Cumulative sales by independent Amazon sellers over 25 years

All of This Is at Risk

Foreign sellers — operating with a 50% tax advantage, CCP subsidies, and zero accountability — are displacing the American sellers who built this ecosystem. Chinese sellers now represent 57% of million-dollar Amazon sellers. On Walmart, they grew from 20% to 34% in two years. If nothing changes, the American entrepreneurs who made e-commerce a $1.2 trillion industry will be pushed out of it.

American Seller

  • Pays up to 50.3% combined income tax
  • Full regulatory compliance
  • Full product liability
  • Builds American communities
  • Creates American jobs

Foreign Seller

  • ×Pays $0 in U.S. income tax
  • ×No liability for defective products
  • ×No regulatory compliance
  • ×Profits leave the country
  • ×Displaces American jobs

The law already exists to fix this. IRC §864 and the TCJA provide the authority. Established withholding mechanisms provide the collection tools. What’s missing is action.

American e-commerce is worth protecting.