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How Did Amazon Come To Rule Online Retail?

HOW AMAZON. MAKES ITS MONEY It seems Amazon can make money out of anything BUT WHERE DOES THAT MONEY COME FROM? AMAZON'S WORTH According to the Forbes Global 2000 List, as of October 2017 amazon TRADITIONAL RETAILER Market Value Market Values NORDSTROM *macys $7.4 billion $8.9 billión конLS BEST BUY $6.8 billion $14.9 billion $427 $291.5 jepenney TARGET $29.4 billion Billion Billion $1.8 billion sears $1.2 billion Walmart $221.1 billion RAPID GROWTH Amazon E-commerce domination will grow 2016 34% 2017 37% 2018 41% 2019 45% 2020 47% 2021 50% WHY IS AMAZON SO SUCCESSFUL? Constant innovation and adaptation Started in 1994 as an online bookseller Since expanded to become cloud computing giant, tablet and smart home device manufacturer, ebook publisher, movie studio, and more Amazon's 2017 video production budget is $4.5 BILLION That's over 2X HBO'S BUDGET FOCUSED ON CUSTOMERS 35% of Amazon's revenue comes from "Frequently Bought Together" and "Customers Who Bought This Item Also Bought" features RANKED #1 RANKED #1 2017 Corporate Reputation Harris Poll 2017 American Customer Satisfaction Index FOCUSED ON GROWTH INSTEAD OF PROFITS ($ $) "You can work long, hard, or smart, but at you can't choose two out of three" ($) JEFF BEZOS CEO, Amazon H $4.2 BILLION | Looks to the future, not the present Operating income 2016 That's only 4% of TOTAL SALES FAILURE IS AN OPTION Amazon Fire Phone fizzled out in 2014–instead of giving up, Amazon has since launched Amazon Echo and other successful tech FOLLOW THE MONEY According to the Amazon 2016 report, released in Feb. 2017 SPEND A LOT TΟ ΜΑΚΕ A LITTLE Sales 2014 $89 billion 2015 $107 billion 2016 $136 billion Operating Expenses 2014 $88.8 billion 2015 $104.8 billion 2016 $131.8 billion Operating income 2014 $178 million 2015 $2.2 billion 2016 $4.2 billion NET SALES BY REVENUE STREAM 5% Amazon Web Amazon Prime and other Services (AWS) retail subscriptions $7.9 $12.2 $4.5 $6.4 billion 2015 billion 2016 billion 2015 billion 2016 17% 2% Retail third-party Other (includes ad services sellers and co-branded credit card agreements) $16.1 $23 $1.7 $3 billion billion billion billion 2015 67% 2015 2016 2016 Retail products $100 $76.9 $91.4 billion billion 2015 UNREDEEMED AMAZON GIFT CARDS alone made $2.4 billion in 2016 2016 HOW CAN YOU GET A CUT? 40% of product sales on Amazon Marketplace come from third-party sellers In 2016, Amazon made $23 billion in sales from third-party sellers HOW MUCH DO SELLERS MAKE? Fewer than 0.6% sell more than $50 million 49% 36% 13% 2% Less than $100K $100K-$1MM $1MM-$10MM More than $10MM Primary products sold by third-party sellers 18% 11% 9% 8% Home and Kitchen Toys and Games Books Health 8% 7% 7% 6% Beauty Electronics Clothing Sports and Outdoors AMAZON REVERED AND FEARED Sellers concerned about punishment/competition from Amazon TOP CONCERNS 61% 44% 43% Amazon taking away my seller privileges Amazon selling Negative my items customer feedback WHAT DO SELLERS OWE AMAZON? Professional Individual Sellers Sellers (more than 40 items per month) (fewer than 40 items per month) referral fees $39.99 + 10-15% $0.99 + and variable per month of transaction per sale closing fees With Amazon's Multi-Channel Fulfillment (MCF) Amazon can STORE, PACK, AND SHIP YOUR PRODUCTS FOR YOU Amazon is reaching for even more money-making ventures, from drone delivery to brick-and-mortar stores–make sure you're not left behind SOURCES sellbrite DEVELOPED BY N NOWSOURCING

How Did Amazon Come To Rule Online Retail?

shared by NowSourcing on Jan 19
Amazon does more than you think. From cloud computing to smart home devices, Amazon has their hands in everything. Learn more about how Amazon makes its money from this infographic!








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