Amazon started as online book store and has grown to be the worlds largest online retailer.
How big is Amazon’s ambition?
An article in the Telegraph has caught my eye and it’s an interesting piece that I recommend reading if you sell on Amazon or are interested in the ecommerce ecosystem in any way.
It poses the question as to whether Amazon will evolve into the biggest retailer in the world and become what has been termed ‘the everything store’.
Whilst we know that Amazon isn’t afraid to think big (the mooted Amazon drones are a great example of that), realistically where is Amazon going? As the article notes, it is hardly profitable and continues to invest the cloud and a next generation of hardware too. Expect an Amazon smartphone soon?
Anyway, it’s an interesting reading for that coffee break you deserve today.
They are good there is no question but there are two problems for them to overcome before they claim world domination.
1. They fight on price (I know the service is generally good but try getting hold of them if it goes wrong). You said it yourself they still don’t make money consistently and as long as price is the main object they won’t.
2. Especially in the UK we don’t like the biggest greediest companies – all things being equal we like underdogs and once the web matures fully and people find niche websites with great user experiences my view is that people will enjoy the experience of shopping with them rather than the Amazon site (which can be a bit vanilla).
I think this quote from the last paragraph rings very true:
“But whilst many will complain, few will give up on clicking “Buy now”. For the overwhelming majority, the allure of Amazon’s price and convenience helps to dampen any moral misgivings they may have.”
There is such a furore about Amazon’s tax arrangements, but at the end of the day its up to the government to sort that out. I don’t actually know a single person who has stopped using Amazon or eBay after the whole tax thing came to light.
The furore vs Amazon et al is really just a 5 minute hate. Amazon are exercising their right to the four freedoms of the EU (goods, capital, services, and people). The only solution is to either lower corporation taxes to undercut Luxembourg or leave the single market (which is a more extreme move than simply leaving the EU).
I don’t think there is majority support for either of those things so nothing will happen.
There is a solution of unifying taxes across all EU member states which you have overlooked. We can look forward to all our Amazon/ebay fees and all our other costs spiralling upwards when this happens which will happen in time no matter what the politicians may say. Only then will ebay and Amazon actually decide to base themselves in those countries where they do most of their business.
Pretty much a given that costs will increase over time for a business, be nice if government didn’t add to the problem.
I am looking forward to Fresh Broccoli delivered at my door next. I don’t see this far away.