In 1994, Jeff Bezos took a decision that would not only change his life but would also come to define the e-commerce industry. This was the year when he decided to quit his day job and start Amazon from his garage. The following year in 1995, Amazon booked its first online order. Within a month of its website launch, it had earned $20k per week in sales revenue, selling books in all 50 American states as well as in 45 other countries.
In just over a quarter of a century, Amazon has become the largest e-tailer in the world and is now a household name when it comes to e-commerce.
Amazon truly defines online shopping. It has experienced exponential growth through product development, acquisitions, and numerous other services. Its customer base keeps on getting larger with each passing year. Amazon appears to offer something for everyone. With online shopping showing no signs of slowing down, Amazon is expected to grow even more in the future.
Here are some statistics that make Amazon amazing.
Amazon has enjoyed an unprecedented level of popularity. The Amazon app is America’s number one online shopping application, with over 150 million users. It must be noted too that Amazon is miles ahead of its competitors. The mobile app of Walmart has just 76 million users, despite being in business for far longer than Amazon.
Amazon has established a high level of trust in the eyes of its customers. According to a survey conducted by Feedvisor of 2000 US e-commerce customers, a remarkable 89 percent said Amazon is their first choice for online shopping. This is because Amazon delivers on its promise of reliability consistently.
Amazon Prime Subscribers
Amazon has also branched out into the content streaming business with its Amazon Prime service. Its membership keeps on growing with each passing year. There are currently over 200 million Amazon Prime subscribers.
Amazon Prime is a subscription-based service. It was launched in 2005 and is available across the world. It includes multiple services like free two-day shipping and video and music streaming.
Within America, most shoppers buy apparel, electronics, kitchen, and other home goods.
Amazon Prime members tend to be more active shoppers than those without membership. According to a survey conducted by Statista.com, about 20 percent of all members stated they made purchases on Amazon Prime a couple of times a week. Seven percent of the members surveyed revealed they shopped on an almost daily basis.
Amazon regularly increases its offerings for Prime subscribers. They offer free delivery for certain product categories and/or minimum order quantities. For those who frequently make purchases on Amazon, it makes sense to get a Prime subscription.
With the mushroom growth in global e-commerce sales, it only makes sense that the world’s number one online retailer will have the largest share of this revenue. And sure enough, Amazon’s revenues have also shown a similar trend.
Amazon generated sales revenue of over $125 billion in the last quarter of 2020. This represents a 44 percent growth over the previous year.
Net income during this quarter alone was over $7 billion, which is more than twice as much as in the same quarter of the preceding year.
The vast majority of sales were accounted for by the North American region. North American sales stood at $75.3 billion (a 40 percent rise from the previous year) compared with $37.5 billion sales from the rest of the world.
Keeping these figures in mind, there should be no doubt that Amazon is here for the long run. This is a wonderful platform that offers opportunities for sellers from practically every industry. Use this data as a starting point to understand Amazon’s business model and then look for ways to enhance your presence on this platform.
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