On today’s Business Beat, Jeff discusses Amazon’s continued dominance, and why the company has continued to experience such monumental success.
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Good morning, Paul!
You know, you can’t think about entrepreneurship or e-commerce or frankly, anything having to do with business these days without thinking about Amazon. We’ve covered them before on the beat, and we’ve got an update on this most amazing company. How about this? It is projected that in 2021, Amazon will account for 41% of all US retail e-commerce sales.
This means that Amazon will earn more than $2 of every $5 spent shopping online in the US this year. It’s estimated that Amazon’s e-commerce sales will hit $386 billion by the end of this year. By comparison, now Walmart comes in at second on the list for e-commerce sales. They own 7.3% of the market share. They’re followed by eBay at 4.2%.
Again, let me remind you Amazon’s market share: 41.4%. How could this be? Well, let’s take a closer look. Much of Amazon’s growth is fueled by consumer electronics sales. Amazon owns 50% market share in that sector. The company also corners the market for books and magazines sales, pocketing 80% market share on all of those online sales last year, according to ComScore.
What can you say, Amazon? They’re the Tom Brady, the LeBron James, the Paul W. Smith of e-commerce. They are operating at a very different level than any other player in the space. And they’re simply dominant. Look, there are lessons to be learned here for all businesses.
Amazon success has been built on supreme execution of the fundamentals: provide a sublime customer experience, make sure the shopping experience is crisp, easy, convenient, and efficient, make sure you have a broad selection and competitive price. Look, the lesson here is, to win in business you don’t need to necessarily be revolutionary. You simply need to out-execute everyone else on the fundamentals in ways that delight your customers to the point where it makes it hard for them to do business with anyone else.Do that, and you win.
I’m Jeff Sloan, founder and CEO of StartupNation.com, and that’s today’s Business Beat, on the Great Voice of the Great Lakes, WJR.