Why Amazon is the Giant Slayer of the Future
Michael Spencer
A.I. Writer, researcher and curator - full-time Newsletter publication manager.
We knew Amazon was making plans, but we're starting to believe if anyone can "take over the world", it's them. Read on.
Amazon Dominating E-commerce is just Half the Story
- Amazon as an E-retailer accounts for 43% of US online retail sales
In fact, by 2021 Amazon is expected to own 50% of the entire US e-commerce market.
Amazon is worth nearly $440 Billion in April, 2017. Just how much is that?
Amazon Shares have jumped nearly 200% since 2015.
Amazon is Destined to be a Major Advertising Super Power
- As Amazon begins to invest more in video, taking on Netflix and video games, their engagement as a brand-of-everything will likely mean they are destined to become an Advertising Giant.
Amazon only doubles its advertising market share from 2% to 4% from now until 2020, but that's just the beginning.
In fact, Amazon's advertising business could reach $5 billion in revenue in 2018. However in the 2020s, it makes its mark there and secures another cash cow.
Amazon Leads the Voice Commerce Revolution
- Amazon Echo "skills" have increased much faster than many onlookers expected, showing nearly exponential integrations with apps.
With the success of Amazon Prime and "Alexa" devices, Amazon has multiple verticals that could be lucrative and profitable in the future, with room to grow further.
Amazon Prime has Discredited all other Subscription Models
The benefits of being an Amazon Prime member just keep racking up. As a baseline for what a subscription service means, it's discrediting a lot of other solutions out there.
Prime members spend about double what non-Prime members spend each year and 80% of them shop on Amazon every month.
Amazon and Facebook in a League of their own
So, is Amazon really making money? Yes. Only Facebook scales like Amazon does. But Amazon is likely to easily overtake Facebook as the leading company of the future.
This is due to how it dominates its competition at every battle and every vertical it enters into seriously. Witnessing Amazon's inroads in India is a case in point, which Flipkart and Snapdeal can attest to.
Not only is Amazon dominating product search, it's teaming up with Facebook to take on Google. Given how Amazon has beat Google in search and with their smart speaker recently, Alphabet should be worried.
Amazon Owns Search
So where do consumers start searching for products?
Amazon Converges in the 2020s
Since Amazon has the funds to be able to think long-term, nobody can really compete with them. They can take on Walmart, Google, Alibaba and everyone else - simultaneously.
Amazon Video could scale to be bigger than YouTube and Netflix combined. (Impossible you say in 2017, read this in 2027!).
- Amazon's assault on brick-and-mortar retail will revolutionize the store of the future and put significant pressure on big-box retailers in the U.S.
- Amazon is now poised to enter any vertical that stands to be highly profitable. Entertainment, Logistics, Grocery, 3D-printing, AR, whatever.
Silicon Valley's Cap is Amazon
The online retailer, which accounts for about 34% of U.S. online sales, should see that market share grow to about 50% by 2021
It however starts to be truly profitable during the 2025-2035 period. That's when we see most of its damage done.
Due to this, Amazon (not Alphabet) is projected to be first in the race to artificial intelligence as it grabs talent in the years to come.
Jeff Bezos is set to become the richest person on the planet, and retail store closures only help Amazon.
Retail Stores are Dying
But Amazon, she's just beginning her ascent.
Enjoyed this article? Share it with your network.
I'm the 2nd ranked LinkedIn Top Voice in Marketing and Social, and cover the ascent of Amazon in retail and as it pertains to the future of artificial intelligence and the automation economy in the years to come.
I live at the intersection of technology and the future. Follow me to stay in touch. Let me know if you enjoy my futurist articles.
What companies are most under threat in the future due to how Amazon will scale?
跨境营销专家,让好品牌走向全世界。
7 年Amazon is still acting slow comparing to Alibaba in global selling industry
Biotech | LLM Researcher
7 年I am not afraid of Amazon, and nor should traditional retailers. Their AI technology in the checkout-free Amazon Go is not revolutionary at all. They just wrapped together widely available AI technology. Other retailers have the potential to reproduce it, they just need the 'balls'. My AI company https://mindolia.com/retail can help them. I wrote a short article about that: https://www.dhirubhai.net/pulse/how-retailers-can-eliminate-checkout-like-amazon-go-profits-benhenda
Independent Consultant in Big Data
7 年Their story is exemplary, bootstrapped as an online book store, invested heavily in scaling the IT infrastructure serving dynamic needs of their online e-commerce business, built a solid supply chain and logistics model in the process, leveraging those IT and operational investments to spin off as services ( AWS ) yielding numbers and finally expanding into other verticals. Its truly a millennial enterprise built from ground up with efficiency as key driving parameter or atleast seems so. Perfect combination of rock solid technology platform dovetailed with strong leadership.
Datacenter Operations Technician (DCO Lead) at Amazon Web Services (AWS)
7 年and what does the Amazon Rainforest think of this company that steals its name?