Friday, December 02, 2016

Amazon's growing power

Laura Heller writes in Forbes,
According to a lengthy study by Institute for Local Self-Reliance,
Today, half of all U.S. households are subscribed to the membership program Amazon Prime, half of all online shopping searches start directly on Amazon, and Amazon captures nearly one in every two dollars that Americans spend online. Amazon sells more books, toys, and by next year, apparel and consumer electronics than any retailer online or off, and is investing heavily in its grocery business.

As a retailer, its market power now rivals or exceeds that of Walmart, and it stands only to grow: Within five years, one-fifth of the U.S.’s $3.6 trillion retail market will have shifted online, and Amazon is on track to capture two-thirds of that share.

Black Friday weekend was Amazon's best-ever, according to the company.

...Shoppers are already more likely to search Amazon for product information and reviews than even Google. Once they become accustomed to going first to Amazon, they cease to even compare prices, sometimes paying more for a product thanks to the convenience and perceived value of Prime.

Walmart, though, is positioning itself for an epic battle with Amazon and its recent $3 billion purchase of will help it better compete with Amazon's marketplace and technology platforms while leveraging the a vast distribution network that includes more than 6,000 stores.
Read more here.

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