Some 30% of online buyers began researching their last online purchase with Amazon, compared with 13% researching a product on Google, according to a new Forrester survey of nearly 4,000 US respondents. This is a growing trend as Amazon increasingly becomes the first-stop shop for consumers, taking market share away from other retailers. What’s more, Amazon continues to see astounding growth for a business of its size. In the US alone, 86% of consumers who say they have purchased from a web marketplace have also shopped with Amazon at some point in the past. This aggressive growth, combined with expansion into diverse businesses and growing profitability, has made Amazon’s impact on the eBusiness and retailing sectors top of mind for many. In fact, for many businesses, Amazon has simultaneously become a sales channel, a potential service provider, and a competitive threat.
In a new Forrester report, Analysts Brian Walker and Sucharita Mulpuru take an in-depth look at the drivers of Amazon’s top- and bottom-line growth to date, examining profitability and price-to-earnings compared with other companies, net sales by region and product category, and the value added by Amazon’s 70-plus acquisitions. Additionally, conversations with Amazon partners, industry experts, and former employees reveal some of the company’s vulnerabilities, such as flopping in key emerging markets and bleeding key talent, notes Walker in a new blog post.
What’s next for Amazon? “While it’s anyone’s guess, Forrester believes that further innovation will drive Amazon’s future. Logical next steps include opening physical stores and distribution centers that enable same-day delivery and expanding website features for merchant services and product verticals,” write Walker and Mulpuru.