3 Ways Amazon Can Bounce Back in 2023

It’s been a tough year for Amazon shareholders. The company’s stock price saw a big increase early on in the pandemic due to store closures and other COVID-related restrictions that drove people to shop online. However, in 2022 the stock price has declined.?After a few quarters of slowing growth, Amazon’s shares are down significantly this year.

There are several steps it can take to improve its performance in the coming year. Here are three ways Amazon can focus on to regain its momentum:

01. Utilize the growth potential of AWS

While Amazon is known for its vast e-commerce operations, the company’s e-commerce sites are no longer the primary source of profit. Instead, Amazon Web Services (AWS) is the main source of profit for the company. AWS is the leading provider of cloud infrastructure services and holds a 34% share of the $217 billion market — more than its next two competitors combined. Amazon can leverage the growth potential of AWS to drive its overall performance.

“Amazon Web Services (AWS) holds a 34% share of the $217 billion market.”

02. Capitalize on the growth of the digital ad market

Amazon’s marketing solutions have helped third-party merchants achieve strong returns on their ad spending, and the company is quickly gaining share in a digital ad market that is predicted to reach $876 billion by 2026. While a recession may temporarily decrease spending on digital ads, as the economy stabilizes and recovers, spending on digital ads is expected to increase again. Amazon can focus on capitalizing on the growth of the digital ad market to improve its overall performance.

“The digital ad market is predicted to reach $876 billion by 2026.”

3. Return e-commerce to sustained profitability

Although e-commerce sales have slowed as more people have returned to physical stores due to the easing of COVID-related safety measures, the long-term trend of rising e-commerce sales remains unchanged. Amazon’s size and third-party merchant network allow it to offer lower prices on a wider selection of goods than nearly all its competitors, and the company has invested heavily in its fulfillment network to offer fast delivery services. If Amazon’s e-commerce business can return to sustained profitability, investors may be willing to pay a higher price for its shares.

“Amazon’s size and third-party merchant network allow it to offer lower prices on a wider selection of goods than nearly all its competitors.”

In conclusion, Amazon has several strategies it can focus on in 2023 to improve its performance and bounce back from any challenges it faced in the previous year. These strategies include leveraging the growth potential of AWS, capitalizing on the growth of the digital ad market, and returning e-commerce to sustained profitability.

What other strategies do you think Amazon should consider to improve its performance in the coming year? Share your thoughts in the comments below.

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