Amazon: The Hype is Real, Here’s Why…

Amazon: The Hype is Real, Here’s Why…

We’re always talking about how big Amazon is, how it’s such a success story – but just how well are they actually doing?
Here’s a couple of ‘Amazon’ facts to think about:
 
1. They sold 6 times more online than the next 8 largest US retailers combined.
Amazon sold around US$59B worth of product in it’s second quarter this year. In comparison, the next 8 retailers – Walmart, Target, Best Buy, Nordstrom, Home Depot, Macy’s, Kohls and Costco – sold around US$10B online during the same period – combined.
2. Amazon generated 30% of the US’ retail sales growth.
Data from the US Department of Commerce suggests that retail sales grew $31.5B year-on-year in Q2 ’16. If you take into account that Amazon’s North American sales are estimated to have grown by $9.1B year-on-year over the same period, that means that they basically drove 30% of the total US retail growth. That’s crazy!
3. Finally, their (online) sales growth was 10 times higher than the next 8 US retailers combined.
Amazon’s sales increased by $14B year-on-year (globally) in Q2’16. If you compare that again to the same 8 retailers in point 1, who’s online sales grew by $1.3B during the same period. That means that Amazon was growing 10x that of all the 8 combined.
Anyway – so the hype is real!

Author Pippa Kulmar

More posts by Pippa Kulmar

Join the discussion One Comment

  • sixfootdeep@gmail.com' Peter says:

    Yes, Amazon is going to create some hype and hit local retailers who are not up to scratch. What is disappointing though is for all that revenue Amazon’s online marketplace doesn’t return more than 1% to the business bottom line. The business as a whole only made 1.7% on revenue in the first quarter of 2016. Since it has lost a fortune of money over the years it is yet to pay one dollar in tax due to those losses.

    With a business willing to accept such a low return it stifles competition as other retailers exit the market with such low returns on their capital. It ends up hurting everyone (customers especially) and stifles innovation.

    Will be interesting to see how Amazon performs here in Australia.

    Kind regards
    Peter

Leave a Reply

'