Amazon is currently dominating the ever-increasing e-commerce marketplace, and this trend is showing no signs of slowing. Amazon sales have accounted for 44 cents out of every dollar spent online in the U.S. this year, an their annual revenue is expected to reach $170 billion. According to Fortune 500, this market share is set to rise to 50% by 2021. These are big numbers, and the company’s success is reflected by the increasing prevalence of e-commerce.
Retail e-commerce worldwide was made up of nearly $2 trillion last year, which was an increase of 23.7% from the year before. E-marketer predicts this figure to reach over $4 trillion by 2020. The growth of the e-commerce industry is a result of a number of factors. Firstly, the increase in Internet availability and usage has allowed e-commerce marketplaces to reach a larger audience. Secondly, the prevalence of handheld devices has made the specific targeting of these audiences more frequent and effective. Thirdly, the ease and convenience of the e-commerce medium is enticing new customers and retaining old ones. Amazon has capitalised on the increasing popularity of e-commerce to hold one of the largest market-shares in the industry.
Currently, around 22% of the retail in the US is online. In Australia this figure sits around 9-10%. Amazons objective is to bridge that gap single headedly, and they are not afraid to take risks to do so. The company is constantly trialling new products and selling strategies. It was founded in 1995 as a bookselling marketplace only, and has since expanded to offer a wide range of products that are constantly being purchased and utilized by millions of people around the world. This exponential growth has been possible through the implementation of effective business strategies by Amazon’s founder Jeff Bezos. Bezos has maintained a firm belief throughout Amazon’s journey that the importance of customer service triumphs over competitor management. The execution of this belief has allowed the company to rely heavily on repeat customers, and a high rating on customer satisfaction lists and review sites. Amazon has also ensured their product distribution capabilities always meet the product demands from consumers. They place a huge importance on inventory management and geographic representation so they are prepared for any order. Lastly, Bezos has instilled an ‘in-it-to-win-it’ ethos in everything Amazon does. The founder is constantly taking risks and expanding Amazon’s inventory to keep up to date with the ever-changing demands of consumers and the e-commerce industry.
In many ways, Amazon has set the standards for companies relying on e-commerce and provided a blueprint for success. In order to compete, newly established companies must adopt their strategy and implementation. 2ndLease is an e-commerce sharing marketplace that was founded in 2015. Our company was founded on the simple premise of second hand appliance revival, and has developed into an expansive online sharing marketplace. Our e-commerce method allows users to either rent affordable appliances on a month-to-month basis, or accumulate income by renting out their own spare appliances. 2ndLease has followed Amazon’s success blueprint by placing a huge importance on our customer service, product inventories and distribution. We are constantly working with our e-commerce marketplace users to ensure they receive the best service possible on our platform. We are always on the lookout for new opportunities to provide additional appliances, furniture, or entertainment technologies for our customers. We have also always ensured our product deliveries arrive and are installed on time free of additional charge.
It certainly is the age of Amazon, and whilst this may be detrimental to some e-commerce companies, our team at 2ndLease see it a promotion of the e-commerce medium and an opportunity to thrive within it.