How Amazon Has Dominated Online Retail

How Amazon has grown to completely dominate the online retail industry.

Since being founded in 1994, Amazon has marched on a relentless path to online retail domination.

amaon-dominate-retail-logoIn April 2017, Amazon sales accounted for 34% of all American sales online. A third of all purchases made online! If Amazon continues along its current path, the retailer is expected to grow to make up 50% of all U.S. e-commerce by the year 2021. Wow!

The secret? Amazon has beautifully rode the technology wave, taking advantage of the need for users to be on-the-go, scoping out trends in consumer habits and providing services that address key needs for businesses. In addition, Amazon has also developed a characteristic knack for showcasing products that we didn’t think we wanted, but suddenly realize we need to have. As many of us can attest to, this can be a dangerous combination for our wallets!

Jeff Bezos has built Amazon to be a trustworthy central hub, becoming the go-to brand for a humongous number of users across the globe and most importantly, has built Amazon in a way such that would-be competitors almost depend on the services that the company provides. Many businesses now rely on the services that Amazon offers and companies would be lost without services like AWS.

amazon-dominate-retail-books

Amazon has been so popular because of its ability to gain market share in many different industries. Books was the first retail segment that really made Amazon shine. Next came CDs and DVDs, and then electronics, clothes and other goods. Allowing third party sellers to showcase their goods on the platform really allowed Amazon to rapidly expand, which gave the business the opportunity to sell everything from A-Z.  Amazon Web Services was launched in 2002, and then Amazon released its flagship Prime service in 2005. Then came along the Amazon kindle, Amazon mobile, Amazon Echo, Amazon Pantry and Amazon Studios turning Amazon into the sprawling conglomerate that it is today.

Recently, Amazon announced that it was acquiring the upmarket grocery chain Whole Foods for $13.4 billion. In the month of June, when the deal was announced, Amazon stock jumped 20.3%.

And Amazon continues to outpace its retail competitors. Kohl’s, J.C. Penney and Target enjoyed record internet sales during the 2016 holiday season, but Amazon continues to do more and gain more market share. Even Walmart, who purchased Jet.com last year, only has a fraction of the amount of sales that Amazon does.

With so many hands in so many different pots, it is easy to see why Amazon has had, and continues to have such raging success. With an infrastructure like it has, you can almost bet on Amazon continuing to win!

 

 

iBillionaire Capital LLC is an SEC registered investment advisor. See sipc.org for more details. By using this website, you accept our Terms of Use and Privacy Policy. Before investing, consider your investment objectives and iBillionaire’s charges and expenses. Historical performance is not a guarantee of future returns. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in loss. Not endorsed by, affiliated with, sponsored by, or fully reflective of the “billionaires” or their companies. The information contained on and used by our site and in our apps includes the names, brief biographical information, and references the companies of certain persons whom iBillionaire has identified from publicly available information as high net worth and financially sophisticated personal investors, most of whom are public figures. iBillionaire does not communicate with and is not supported or endorsed by or affiliated or associated with any of these individuals or their companies. To the extent these individuals use their names or the names of their companies as trademarks, such trademarks belong to their respective holders, and iBillionaire’s use of the same does not imply any affiliation with or endorsement by them. Information about the investments of the listed billionaires is limited to that which is publicly available in regulatory filings and may not provide a complete picture of each of their personal investment strategies. Daily and annual performance rates for the billionaires are calculated based on this limited information and will not accurately reflect each billionaire’s personal investment return. In addition, certain information is gleaned from filings made by companies substantially owned or controlled by one of the billionaires, which we have attributed to the billionaire personally.

[ssba]