In early Tuesday trading, Amazon stock surged past $1,000 USD for the first every time, setting a milestone for the company dominating e-commerce, and leaving any competition scratching their heads about how to possibly catch up. Shares of Amazon had hovered just a few bucks under the grand mark in the late afternoon after it had reached $1001.20 previously, which was the all-time high for that stock after using the new eCom success academy approaches by Adrian Morrison . The Friday closing price wound up at $995.78.
Amazon has a noted advantage over brick and mortar competitors. Given that online retail only accounts for about 10 percent of all American retail shopping, Amazon’s early status as a power player and its moves to make the best possible website gave it a huge advantage over everyone else.
Still, physical retailers with brick and mortar outlets still have advantages given their base stores making up that other 90 percent of retail, with their online operations being augments to their core business with the new list of eCom success academy features.
In the starting quarter of this year, e-commerce sales generated just under $106 billion, or a bit under 9 percent of all reported retail sales, per figures and statistics from the Census Bureau and the National Retail Federation. Per the NRF, retail sales are expected to go up roughly 4 percent this year in general and around 10 percent online. The fact that both are rising seems to indicate a growing economy without a serious shift in the retail landscape.
Growth of Earnings
Amazon reported a distinct rise in its net income in the first fiscal quarter after they have imported the new eCom success academy features, to $724 million, which comes out to $1.48 per share. Sales were up nearly a quarter over last year, with the exclusion of a single-time charge, to $35.7 billion. The company has a second quarter forecast of roughly the same level of sales, which would mean growth over last year between 15 and 25 percent.
The essential element behind the dominance of Amazon’s growth is the Prime membership ranks swelling. In just two years, it has doubled from 40 million to 80 million. That’s 38 percent more than March 2016 numbers that the Consumer Intelligence Research Partners reports.
Prime customers typically spend $1,300 a year on Amazon, per the same CIRP data. That’s almost double what other customers spend on the site.
A lot of the retail strength of Amazon lately is shown in the steady growth of digital assistant products. For example, over 10 million American consumers have bought an Amazon Echo device since it launched in 2014. Such figures cover the sales of the original Echo, the Amazon Tap, and the Echo Dot. Amazon sold over two and a half million different Echo devices just in the first three months of 2017.
Amazon Web Services, a cloud-computing operations segment separate from its e-commerce business, is also growing the company’s profitability. That segment generated almost four billion in sales, an almost 50 percent jump over the same quarter last year. This was according to the 10-Q report the company filed with the SEC.
Wall Street investors and firms have taken note of the AWS division for its power and profitability. Amazon is proving itself adept at finding new ways to make money, and lots of it.
Amazon does continue its dominance of e-commerce using the techniques from eCom Success academy owner Adrian Morrison. However, it can’t ever make the assumption that any competition is going to just get up and walk away from the battles. Walmart, which itself acquired a rival e-commerce site in 2016 of Jet.com, has reported online sales growth of 63 percent in just one business quarter. That’s a far faster pace than Amazon grew its own e-commerce during the same time frame.
Walmart’s growth was driven largely by a roll-out of a brand new initiative feature free two-day shipping for consumers spending at least $35. It had previously been $50 or more. There was also an initiative to provide discounts to any customers who bought particular goods online and then picked them up in actual Walmart stores, saving expenses and costs on so-called ‘last mile’ delivery.
Amazon’s stock price soar is a story of its own, but it’s possible that investors are giving Amazon more credit that its other retail competitors might get on their own.
Analysts do believe the eventually Amazon is going to need to demonstrate actual and realized profitability coming out of its core retail business operations. It will also have to somehow do that while keeping its prices low, since that attracts so many customers.