Amazon Inc. (AMZN) Has Become A Focal Centre Of Global eCommerce Growth !

Must Read

Apple Store In India: More Of Disappointment Than Excitement?

Apple has started making moves to strengthen its presence in India. With the launch of Apple online...

Windfall! Online Grocery Market In India Looks Set For Purple Patch Ahead

Silver linings are clearly in short supply in the pandemic fuelled world that we have come to...

Facebook’s Chasm Of Distrust: An Ever-Deepening Divide

Facebook, the world's most popular social media platform has failed measurably as it is voted as the...

With the increasing penetration of Internet amidst the world population, more and more marketers as well as consumers are adopting the platform of E-commerce which has simply revolutionized the retail trade on this universal pulpit. The trade analysts have forecasted the Compound Annual Growth Rate (CAGR) of the Global E-commerce platform to be 13.54 percent over the year 2013-2018 which demonstrates the expanding realms of this market segment. One of the key players which can be attributed as the prime booster of this electronic market is the tech giant Amazon Inc. (NASDAQ:AMZNwhose logo only depicts that it sells everything from A to Z.

amazon

The giant leap of Amazon

E-commerce approximately accounts for 12% of the world’s retail trade and this proportion is assumed to double up in the coming decade, but the retail mega-giant Amazon is actually thriving at a whopping pace of three times the rate of comprehensive e-commerce growth rate and hence has emerged as the skyrocket in gaining the market shares in this sector.

ecomm2

Amazon has been already the leader of the American retail business. It’s the 35th largest company in the US in terms of market capitalization and also enjoys the status of being the ninth largest retailer in the nation, which is till now the largest Internet retail revenue-generator with the total sales growth in the Financial Year of 2012-2013 reaching $43,962,000. But the future prospects of growth for Amazon behold in the markets of the developing nations of China, India and Latin America where the E-commerce revenue exceeded the mark of $185 billion in 2012, expanding at a fast rate of 44% in contrast to the 14% growth in the US during the same time span.

Advertisements

Initiated by Jeff Bezos in 1994 as an online bookstore, Amazon has been the quickest in advancing itself from the limitability of desktop computers to the world of mobile phones and tablets. The launch of the first Kindle, a series of e-book readers and then the Kindle Fire is revamping it to the mini tablet computer version helped the company beat their 2012 first quarter estimates first time ever and now with the commencement of Fire TV, the company is moving even deeper into the deep digital business. Amazon registered an increase of 12.2% in its worldwide media sales (including e-books, DVDs, CDs, music and more) in the fourth quarter and in the long run the company estimates approximately 90% of its media sales to be digital and this digitization has really helped Amazon to stand tall among its tech rivals.

Amazon- the emerging third-party marketplace

The Amazon’s entry into the Business-to Business sector with the cloud computing services has largely increased its affluence and in the recent times its major concentration has been in leasing out of server space at its large data centers all over the globe so that the small entrepreneurs don’t have to risk such upfront capital investment.  amazon-web-services

It has also expanded substantially its third-party marketplace wherein the vendors can set up their own virtual online stores on Amazon.com and sell their products parallel to Amazon. Indeed, the third party retailers now account for 40% to 50% of the total products that Amazon sells each year generating 10-15 percent of its total revenue. These all new developments have exponentially protracted Amazon’s economic reputation beyond its tech competitors like Apple Inc. (NASDAQ:AAPL), Google Inc. (NASDAQ:GOOGL) and  Facebook Inc. (NASDAQ:FB)

Amazon.in and its contemporary competitors

Amazon in India boasts to provide more than 10 million different products to its customers and its latest announcement of the investment of $2 billion in the Indian Marketplace has made India the fastest country in Amazon’s track to cross the billion dollars gross. The timing of this disclosure just after Flipkart’s revelation of a massive $1 billion fund raising marks the fledging rivalry between the two online mega stores  both of them competing for the larger chunk of the  Indian e-commerce market which is expected to reach $56 billion by 2023. Although Flipkart dominates the Indian e-commerce market with close to 22 million registered users, Amazon is set to give a tough competition in coming times to it. Another Indian key company  in this online retail sector is SnapDeal which has so far generated a revenue of $435.7 million.

Flipkart_Vs_Amazon_Catalogue

Amazon’s greater strength is its implicit one-to-one customer relationship, which is invaluable and brings Amazon to the focal center of the growing role of E-commerce in the world and with such manifold strengths, we can expect it to lead this online retail marketing segment surely in the coming times.

Advertisements

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

TikTok Escapes The Ban In the US, Albeit Temporary

As usual, a new day and a new action relation to TikTok ban in the US. On...

Windfall! Online Grocery Market In India Looks Set For Purple Patch Ahead

Silver linings are clearly in short supply in the pandemic fuelled world that we have come to know. In a rare exception,...

$4.6 Billion Incentive For Companies To Push Electric Vehicle Adoption In India

The Electric Vehicle (EV) market in India is at a nascent stage. So far, the sales of EVs have been encouraging, albeit...

Amazon Luna Is Here To Eat Into The Cloud Gaming Market, Dominated By Google And Microsoft

The cloud gaming space has been one of the key interest areas of Amazon for quite some time. Today, the eCommerce giant...

Facebook’s Chasm Of Distrust: An Ever-Deepening Divide

Facebook, the world's most popular social media platform has failed measurably as it is voted as the least trusted social media platform...

With 9.8 Million Users Coursera Observes Boom Of Online Education In India

The global outbreak of Covid-19 has changed the lifestyle of people and almost every industry has resorted to online in a bid...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This