Amazon: Staggering Success, Will It Continue? Is Amazon The Most Trending Online Store Now?

Amazon Staggering Success Will It Continue

Will Amazon Succeed In 2019?

If you are a regular online person, you must have come across Amazon. It is one of the largest online retailers on the planet today. But it didn’t just that way. As any other business, there’s always a slow period in the beginning. Back in 1994, Amazon was known as Cadabra. The owner Jeff Bezos started this prominent online shop as an online bookstore in his garage.

If you ask me, I think he didn’t actually know that it will become such a hit by the 21st century. Today, the company sells diverse products. From music CDs, cookware to games, hardware, and tools. Let’s get to the technical success of Amazon.

The company grew at an alarming rate of $150 million in 1997 to $56.6 billion rises in its revenues in 2018. However, this rise in revenue has also led to a corresponding increase in operational cost leaving the company with a substantial deficit.

Amazon Prime: Shall You Invest

Amazon Prime started as a fast and free shipping program for orders of any amount. This was one of the services that made Amazon such a great success story.

Getting free next day shipping or two-day delivery on millions of items remains the cornerstone of the service. The company then moved into many other areas, including improvements to its delivery services and discounts on groceries.

But is Amazon prime worth it? Amazon Prime costs $119 per year in the United States and offers one-day delivery, music, and instant video streaming and more. But what exactly are the benefits, and are the goods and services worth every penny?

I use Amazon Prime because the shipment is cheap. Normally, the goods on the amazon prime are more expensive than goods not on the amazon prime. However, if you like comfort, then the delivery and the simple shopping experience is great. But there are people who simply shop without knowing how expensive the goods are.

Getting Started On Amazon: Make Your Business Blooming

This is probably one of the easiest platforms to navigate around. Even the registration is quite simple. Whether you are planning to sell your products or simply buy from Amazon, there are simple steps you can follow.

You don’t need to register for the right seller account in advance. A seller account can be opened from your first listing. Meaning, if you own a buyer’s account on Amazon already, you can add your seller account to that. But there’s really no much difference in the profit margin with other online marketplaces.

On the contrary, the company majorly focuses on the products, not the sellers. So, even if you are a very successful seller, a few unfortunate incidents can cut off your revenue stream in an instant.

Future Of Amazon

“It won’t be long now.” That’s the message from Daily Reckoning writer David Stockman who says a tech crash is imminent…

“After all, Amazon is 24 years old, not a start-up. It hasn’t invented anything explosively new like the iPhone or personal computer. Instead, 91% of its sales involve sourcing, moving, storing and delivering goods. That’s a sector of the economy that has grown by just 2.2% annually in nominal dollars for the last decade, and for which there is no macroeconomic basis for an acceleration.”

Some people genuinely believe that Amazon as a company with all its success would exist forever with that success. But many critics are not so optimistic about that and are even warning others from buying Amazon Stock.

The stock market will potentially fall for Amazon as it has the most downside potential given its enormous present valuation. In the long-term, Amazon’s competitive approach for growth will fall victim of the myths of the market share supremacy. The consumer now has a surprising amount of information at their disposal, making e-commerce a channel that is here to stay. However, what the market is not buying into its valuation of Amazon are the long-term demands of its consumer base.

One other threat that Amazon has is its dependence on UPS and FedEx for its actual delivery. Amazon’s shipping costs increased by 26% between 2014 and 2015 and this was due to its free shipping promotions on Amazon Prime. These extra costs are eating away at Amazon’s bottom line and will continue to do so as Amazon seems to focus mainly on its top line growth.

The danger it faces with its free shipping promotions is that Amazon will grow increasingly relying on them and will not be able to wean themselves off without getting significant pushback from its consumer base. Shipping costs are currently on the low due to low oil prices. However, any additional cost in shipping costs will further destroy its ability to turn a profit.

In 2017 Amazon announced it was looking for a second headquarters which would bring with it 50,000 high tech workers and $5 billion in investment. This was not only because of the high taxes paid in Seattle but also because they needed more extremely talented people.

The great company builds success on great people and talent. The reputation between Amazon and the locals in Seattle that work at Amazon is not so great.

When Amazon first started building in Seattle, the locals believed the town’s luck has turned owing to the size of the company and because it was also an American based company. But, that wasn’t the case. When some locals started working for Amazon. They were disappointed at how they were treated and were stacked like they didn’t matter at all.

In Summary

Well, as you can see, Amazon is one of the greatest businesses of our century. The services as much as people will try to criticize are still amazing and to those you love shopping online, then Amazon is the best place to do so. Though if you want to invest in stocks, then it’s best to approach the Amazon stocks with caution.

It may or may not be a speculation, but the company will have to step up their game just to remain on top. Those are some of the challenges any company will face when they are successful. Also on the employee experience, I personally think they should get a better work environment.

But if you’ve read any of my previous posts, then you should know that depending on one job is not the best way to go. To become a successful now, there are a few things you need to work on. Don’t just follow someone. If you got fired from your day job, then you need to be happy that happened. Sounds like an oxymoron, but look through my other posts then you will understand what I’m saying.

Image By: Markus Spiske

20 thoughts on “Amazon: Staggering Success, Will It Continue? Is Amazon The Most Trending Online Store Now?

  1. I have not received Amazon Prime items in two days in probably a year. Ever since it got so popular. I swear they count totally different that the rest of the world. I no longer count on anything being here in two days. But . . . . I still order pretty much everything from Amazon. And what? It is $119? I thought it was $79? Now I am feeling ripped off even more!

    I think one way they can help with their shipping costs is the Amazon locker. I hear of a lot of people having their delivery stolen so they opt for the locker. The locker idea has to be less expensive for Amazon because their delivery person can drop of multiple deliveries at that one location. Hmmm . . perhaps they are paying people to steal stuff so people will start using the lockers? 😉

    1. Hi Terrepruitt, thank you very much for sharing your experience and knowledge about Amazon. Let me surprise you… my Christmas delivery was either stolen or potentially delivered to wrong address. I was on the call with Amazon representative few days back discussing this. You are right, I though it’s only me, Amazon, often, lately would not deliver items in two days for Prime members(well, I would say it depends on order(s)). I’ve experienced that too. I believe prime membership is $119, they raised the price few years back, hope they won’t raise it again. I wish you all the best! I need to try locker 😉

      1. My husband gets some of his stuff delivered to lockers. Me, I don’t want to go get it, if I wanted to GO GET IT, I would buy it from a store. The whole reason I use Amazon is it comes to me. I am home more often than not, so if the delievery people would ring the doorbell I could get the package without there being time for it to be stolen or ruined by the elements. Lockers are cool if there is one close to where you are – like on your way home from work. 🙂

        1. Thats a really good point, I completely agree! Thank you for advices and for sharing your personal experience 🙂

  2. Very informative article and very interesting! I tried Amazon Prime but because of where I live the shipping was no better than regular shipping and it was costing me more. Due to health I am not able to get out and shop easily so shopping with Amazon is great and delivery right to my door! I really do enjoy your posts, keep it up!
    Steve.

    1. Hi Steve, thanks a lot for kind words, I’m praying for your health! You are right, for some areas prime membership does not really make any different, in terms of shipment speed. But I hope one day, they will improve this. Blessings to you Steve!

  3. Very interesting post!
    To tell you the truth, I think Amazon can be considered a great opportunity not only for those who want to buy items but even for those who want to sell something. In my case, for instance, I wrote some books but, at first, it was hard to find a traditional publisher in my country: they were not available to publish my books… they didn’t trust me because my name was not known but I was not known… because they didn’t trust me (a kind of vicious circle). So, i decided to release my book by means of Amazon and thanks to it, I finally had the opportunity to spread the word all around and I sold thousands of copies of my books on Amazon in the last three years! It works and it’s a piece of cake!
    By the way: in terms of royalty they pay the authors more than any other traditional publisher (70% of the cover price).
    See you 🙂

    1. Hi Giovanni, thank you very much for sharing your experience with Amazon. Very interesting information. I’m sure a great hint for some Savvy101.life readers! Really appreciate it. Wish you good luck!

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.