With each passing year, online commerce or eCommerce is growing at a staggering rate. By 2021 it is expected that the global eCommerce sales market will be worth $4479B. Yes that is Billions with a B. The biggest online retailer is by far Amazon.com, with a market cap of $478 B in 2017, which is more than the five biggest retailers in USA – COMBINED!
However, wallmart’s revenue was still higher in 2016 than Amazon. So what gives amazon such value?
The reason behind this is the fact that Amazon is more than just an online shop. This diversification makes it a better financial entity.
Amazon FBA – Readily Available for Everyone
Now this brings us to another important fact. The marketplace and their database of buyers is readily available to everyone via their selling marketplace. This enables people to sell on amazon, either via their Amazon FBA (fulfillment by Amazon) or by fulfilling the orders themselves. With FBA, sellers and their listings are eligible for Prime, the free 2 day shipping available to members. This is a huge benefit, because Prime members (65 million) are very active and loyal shoppers.
There have been numerous 7 figure brands developed and built, just using the infrastructure available through amazon.com. There has also been a lot of training courses, some free, some paid, popping up all over the internet. The latest one will be launched in January 2018. It is called the 7 figure cycle and it will combine the marketplace amazon offers with wholesalers. In a nutshell, the opportunity arises by buying products from wholesalers and then selling them on amazon at a profit margin.
With the trends picking up, we see the opportunity for many people who can use platforms like these to build are brand new brand or scale an existing one. A great resource for anyone starting our would be this review at GFK. It is based on the same principle as the above, so read the article if you would like.
We don’t see this trend going anywhere in the near future, as amazon and eCommerce in general is growing each year. With more and more people shopping online, amazon is taking their share and with smart investments they are growing their brand as well as worth.
If you liked this article than you should also check out our Shopify UAE blueprint.