Amazon ecosystem map for 2021 ... AMZN GMV overtaking Walmart in 2022 with no foreseeable slowdown
Jon Nordmark
Co-founder, CEO @ Iterate.ai (est. 2013) and eBags.com (est. 1998, $1.65 bn sold before being acquired)
Here is Iterate.ai's Amazon ECOSYSTEM MAP for 2021 as Amazon becomes America's largest retailer.
Click this graphic to see a larger version of the Map -->
2021 highlights:
Strategic IoT and Healthcare Initiatives:
Healthcare - 2018. Healthcare offerings continue (PillPack to Care) despite the breakup with JP Morgan and Berkshire. PillPack was acquired in 2018. Amazon Care launched as a pilot in 2019 in Seattle. Care started as a service for Amazon employees and dependents. Today, Care seems to be in Phili, Chicago, Dallas, and Boston. Amazon plans to bring it to 16 more cities in 2022: Atlanta, Denver, Detroit, Houston, Indianapolis, Kansas City, LA, Miami, Minneapolis, Nashville, NYC, Phoenix, Pittsburgh, SF and San Jose, St. Louis.
IoT Devices - 2007. Kindle, for reading books, launched in 2007. Since then, Amazon has develop an extensive data-sharing ecosystem by rolling out dozens of IoT devices. Today it offers Ring, Blink, and Fire Stick ... Kindle, Echo Loop, Echo Frames, Echo Buds, Echo Studio and Echo Show ... Flex, Ring Fetch, plus many other devices. Digital services like Sidewalk interact with these IoT devices.
Brick-n-Mortar initiatives:
Amazon will roll out more digitally-enabled physical stores to further develop its ecosystem. Temporary pop-ups are located in many malls, but rollouts span categories ranging from grocery to bookstores to beauty.
Bookstores - 2015. Amazon began experimenting with its first brick-and-mortar bookstore in 2015. Today Amazon operates 24 physical bookstores.
Four-Star - 2018. The first Four-Star opened in 2018 in locations like Park Meadows Mall (Lone Tree, Colorado). Four-Star sell a curated, localized selection of products that are rated four stars by people living near that store. These spaces tend to be ~4,000 sq ft, similar to the early Amazon Go formats.
Just Walk Out (Amazon Go) - 2018. Amazon opened the first Amazon Go convenience store in 2018. Each store seems to have 2,000 to 4,000 cameras and sensors. Today, there are 23 of these B&M stores.
Amazon Fresh - 2020. This Amazon-branded grocery concept first opened in August 2020, five years after the first bookstore. Today, Amazon has 15 of these smaller grocery stores.
Just Walk Out larger formats - 2021. This year, in 2021, Amazon tested autonomous-checkout in store formats the size of a Trader Joe's (12,000 sq ft).
Just Walk Out (of Whole Foods) - 2021. Amazon launched "Just Walk Out" in Whole Foods this September.
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WholeFoods is also testing Amazon One, as shown in this Geekwire Article. Amazon One offers a way to light up check-in and check-out.
B&M Experiments - ongoing. Experiments and rumors continue to emerge.
Beauty Businesses. Beyond selling beauty products wholesale, an Amazon Salon experiment is running in London as described on the Amazon DayOne blog. Mike Edwards sent me this picture this October.
This is a picture from the DayOne blog post:
Department Stores. The Wall Street Journal is suggesting that Amazon will head into the Department Store space as suggested by this ars Technica article:
All of this activity suggests more and more trials, continuous experimentation. Actual experimentation -- not just ideation.
Third Parties: a New Era
Amazon Aggregators. This third-party trend has gotten so large that it's creating billion dollar rollups as shown below in this graphic produced by Marketplace Pulse:
Amazon Embraces Headwinds
As the Technica article describes, Amazon creates controversy. Right now, a backlash is happening with the Amazon One biometrics-based product. But, controversy is an Amazon sweet spot. Amazon embraces controversy, which is sister of innovation and invention. Amazon grows fast because it tackles problems on multiple fronts that other companies choose to ignore or just debate.
Summary of Amazon's Traction
Bigger than Walmart. JPMorgan wrote this summer that Amazon?will become the largest U.S. retail in 2022, passing?Walmart. Not to mention JPMorgan said that Amazon’s U.S. gross merchandise volume, or GMV — total value of goods sold over a certain time period — has grown “significantly faster” than both U.S. adjusted retail sales and U.S. e-commerce, the analysts said.
Today, Amazon's gross merchandise value sales (GMV includes a measure of actual third-party marketplace sales)?is roughly $500 billion. It will reach?$631.6 billion (online and offline) by 2025, according to Retail Insight. For comparison, Walmart’s total sales (offline, online, plus Sam’s Club) will reach?$523.3 billion by 2025 according to Chainstore Age.
Amazon digital ecosystem will continue to grow. Amazon is a new type of company, far different from Walmart. Its ecosystem is vertically integrated yet it span across many industries and is digitally connected. It allows third parties to leverage Amazon's strengths. It is a data-sharing engine, feeding AI engines that empower consumers with things like recommendations and voice interactions.
THANKS for reading. If anything is missing, send me a note at [email protected]. Again, click here for the graphic in a larger format:
Chief Marketing Officer | Product MVP Expert | Cyber Security Enthusiast | @ GITEX DUBAI in October
1 年Jon, thanks for sharing!
Head of Business Development | ArchySoft | Custom Web Application Development Services
2 年Jon, it is interesting!
CEO @ WishKnish | DLT, Federated Commerce, Supply Chain, Healthcare
3 年What a terrific summation and insights, Jon Nordmark! You know, I have been thinking of Amazon in terms of the world's first true #metaverse for a while now, and seeing it laid out the way you have has pretty much convinced me that's what we're looking at (and have been for quite some time now). It's odd how the term metaverse has come to be (outside, perhaps, of the concept of #smartcities) largely considered as an entertainment construct. But if one views all the differing, very much business-related, tangents Amazon has been going into - and creating a single identity for its customers around, then how is what it's building not a living, breathing, PHYSICAL manifestation of a metaverse? Especially if you happen to add that 1 out of every 153 Americans is an #amazon employee! (https://www.businessinsider.com/amazon-employees-number-1-of-153-us-workers-head-count-2021-7)
Well done Iterate!
EVP, CMO, Author, Speaker, Alchemist & LinkedIn Top Voice
3 年Jon, brilliant insights and thought-starters, as usual. Happy and healthy New Year.