Amazon started as online book store and has grown to be the worlds largest online retailer.
Amazon to account for one fifth of UK online spend by 2024
Amazon are set to continue experiencing growth within the UK market, which expected to rise by 58.2% over the next five years to reach £15.7bn by 2024, says new report Amazon Strategic Review-2019 from GlobalData.
The report analysed UK market share and forecast growth for Amazon. The analysis also shows a breakdown of all sectors in which Amazon operates in, forecasting revenue, market share and the competitive outlook out to 2024.
According to the report, Amazon has experienced worldwide group revenue growth of 161.7% between 2014 and 2018, with revenue reaching $232.9bn (£183.89bn) in 2018. Amazon’s market share will continue to grow in the UK, with the online pureplay set to account for almost one-fifth of all UK online expenditure by 2024.
Grocery sector as the biggest growth area for Amazon
The food and grocery sector on Amazon is forecasted to be the largest growth area for Amazon. It’s anticipated to hike 174.7% between 2019 and 2024 in comparison to the total UK grocery sector which is forecast to grow by 15.5% over the same period.
The research points to Amazon’s focus on the accelerated delivery promise. Amazon Prime success has been made possible by Amazon’s focus on last mile fulfilment. Some 19.4% of UK online shoppers are now Prime subscribers. Amazon will aim to gain more control their distribution network by investing in more fulfilment centres, transport vehicles and automation.
In 2019, Amazon demonstrated vertical integration through their purchase of robotics company Dispatch, which specialises in autonomous vehicles, robotics and artificial intelligence. The move is aimed at creating automated solutions to support their fulfilment operations.
The findings show the growing dominance of Amazon in the UK market. As Amazon attracts more consumers to their marketplace, merchants can expect to get their ‘slice of the cake.’ That’s because of the increasing exposure the marketplace gives to their merchants which shoppers usually see as a single platform rather than a division of Amazon and sellers.