Amazon will dominate the US apparel market by 2020

By Nancee Halpin, Cooper Smith

Consumers often associate Amazon with electronics, home goods, and media, but the online retailer may soon be the No. 1 seller for apparel in the US. Amazon's apparel business is expected to grow from 5% of the total US apparel market in 2015 to 14% by 2020, according to new research from Cowen Company. This would make the company the largest domestic apparel retailer, taking the top spot from current placeholder, Macy's.

It is estimated that the company's apparel business will grow from $16 billion in gross merchandise volume (GMV) in 2015 to $52 billion in GMV in 2020. Compared to its most notable competitors, Amazon has 34% more apparel buyers than Target and 2% more than Walmart.

To help accelerate its growth in the apparel market, Amazon has made some investments in fashion recently. The e-commerce giant hired Julie Gilhart, the former fashion director at Barneys New York, as an adviser. Amazon is also opening fashion photography studios in Brooklyn and London.