Amazon is the world’s leading online retailer and as such the best in class and the only benchmark. Seattle’s finest is transforming the retail industry and the effects are felt by players in every category, in every channel and in every market. The various business models and KPIs Amazon operates with will undergo a radical change soon, when sales growth, profit growth and market shares will reach a definitive tipping point. While some business units will see maturing growth rates, lulling some competitors into a false sense of security, other parts of the business will see an outright explosion of growth, which will have an even bigger impact on the retail universe than Amazon has had up to now. Clearly, for some the worst is yet to come.
Crucially and dangerously these parts of the business remain hidden from view through Amazon’s reporting policies and only emerge once one has carried out a deep dive into the business model.
The move to next day deliveries, innovations around prime, the roll out of more fulfillment centres and lockers across the globe, linking up the international marketplaces and pushing of FBA, offering credit lines and opening up advertising to 3P (and the scalable AWS infrastructure in the background tying it all together) show where Amazon’s journey is headed.