Amazon Is Squashing Competitors, Redefining The World Of E-commerce, And More
Updated: Aug 16, 2020
Amazon means business
Founded in 2000 by Jeff Bezos, Amazon has rapidly grown to become a household name. Their remarkable E-commerce services have affected millions of people. Amazon.com provides a platform for 3rd party vendors to sell products to consumers. In 2018, Amazon reportedly had 49% of the US E-commerce market share with Walmart at a distant second of controlling 7% of the US E-commerce market share. In May 2020 alone, Amazon.com had over 2.5 billion visits from various devices. However, claiming that Amazon is just an E-commerce website serves them no justice.
Amazon has delved into several other industries recent years. In 2005, Amazon released a subscription service known as AmazonPrime which expedited the delivery process for purchases on the marketplace. Additionally, subscribers were provided with a free streaming service through the purchase. In 2007, the company released the Kindle, an e-reader that is backed up by the endless library that Amazon provides, allowing you to pick and choose what books you would like to read without ever leaving your couch. Also in 2007, Amazon launched AmazonFresh, a grocery service that delivers food right to your front door. These are just some of Amazon's services and it's safe to say they are killing it!
One of Amazon's fastest growing services is AWS (Amazon Web Services). Amazon Web Services is a cloud computing platform that provides customers with a wide array of cloud services such as computing power, database storage, content delivery and various other functionalities. AWS is recognized for their creation of Alexa, which powers AmazonEcho, a smart home assistant. Alexa uses the extensive servers provide by AWS to relay information to satisfy the user's demands.
Amazon's cloud unit (AWS) announced the launch of Honeycode on Jun 22nd, 2020. Honeycode is a service that allows non-coders to write their own programs. Honeycode acts as a visual editor to create personalized programs for one's specific needs. Coding an app can be a daunting task for those who have little experience in the field, but Honeycode will enable individuals who are unable to code with the ability to create their own programs.
In the past few months has raked in a lot of revenue due to COVID-19. Unlike many other companies, the services that Amazon provides are in higher demand due to the global pandemic. To avoid physical interactions with people, an online market place is the best way to buy and sell products. Amazon had a phenomenal first quarter and the numbers reflect it. They gained a record high of $75.5 billion in their Q1 revenue and are projected to do even more by the end of Q2. With a current market cap of $1.346 Trillion, the 52-week range of their stock value has gone from $1,626.03 to $2,796.00. Amazon's (AMZN) current stock value sits at $2,727.81. There is a clear bullish trend, and with minimal competition Amazon has no perceivable limits in the near future.
Amazon has proven to be a pioneer in the E-commerce industry and has diversified into several other industries as well. Led by the world's richest man, Amazon has a bright future.