Examine Amazon's Pivotal Role in Reshaping Consumer Behavior and the Global Retail Industry

Dublin, April 25, 2024 (GLOBE NEWSWIRE) -- The "Amazon Data 2024" company profile has been added to * ResearchAndMarkets.com's* offering.

The retail landscape has shifted dramatically. Amazon now reigns supreme, reshaping consumer behavior and challenging traditional business models.

This comprehensive report offers a groundbreaking analysis of Amazon's dominance, providing you with the unparalleled insights you need to navigate the evolving retail ecosystem. Backed by exclusive data and unparalleled insights, our analysis uncovers the secrets behind Amazon's meteoric rise and forecasts its future impact on the industry.

This report is tailored for key decision makers across retail companies, FMCG brands, professional services firms, logistics providers, advertising agencies, and beyond. Whether you're a CEO, CMO, or supply chain manager, this document equips you with the knowledge to navigate the evolving retail landscape with confidence.

As Amazon continues to redefine the boundaries of retailing, staying informed is more crucial than ever. With our comprehensive analysis, you'll gain a competitive edge in navigating the complex dynamics of the retail landscape. Embrace the future with confidence, armed with insights that transcend conventional wisdom and pave the way for strategic success.

Predicting the Future of Retail: Our analysts paint a vivid picture of how Amazon will continue to reshape the industry. Identify potential opportunities and potential threats to capitalize on or mitigate.

*Some Highlights*

In a major reversal, Amazon's reported revenue of US $574.8bn in 2023 is now bigger than its pure GMV of US $564.8bn in the same year. GMV here is defined as online sales of 1P and 3P only - and excludes the revenue from AWS, FBA fees, Prime fees, and all advertising income. This represents a big shift from the past when GMV used to be double the amount of revenue Amazon posted and showcased the impact Amazon and its online marketplaces had on online and offline retailing.

This also shows how far Amazon has moved to a "Chinese online model" away from making money primarily on the retailing of products. The company now focuses on services (obviously AWS and FBA being prime examples) sold to its 3P sellers, and on its platform search and product discovery are now driven by advertising. From a consumer's perspective, this has resulted in some enshittification of the Amazon app, as organic search has been swamped by advertising, sponsored products, and the like.

Amazon advertising is now not only the company's most profitable business arm but has transformed how products sell and how much it costs to sell them. Retail advertising will only really work for retailers with huge captive audiences. In other words, advertising looks to be another area where Amazon remains "unchallengeable" for the foreseeable future, as no other company has such a competitive moat of selection, low prices, and logistics footprint - and crucially shoppers and the network effects flowing from this.

The publisher believes Amazon has just shy of 1bn customer accounts globally now - which amounts to one in eight persons on the globe being an Amazon shopper. Moreover, the AOV on the platform keeps growing year on year.

Amazon has found that once customers start feeling comfortable with the site, they start to cross shop across categories, but the best driver of this behaviour is of course prime. Prime keeps growing, now at more than 300m members globally, while other streaming services are suffering. Moreover, Prime members are being further monetised now, as new "TV streaming" advertising will become super targeted and personalised - with all the data history across platforms and touchpoints Amazon can access on shoppers.

The marketplace, now at 60% of unit sales, has always been integral to Amazon's success. The company now takes 40% of 3P transactions as a base rate, and if advertising is added on top of these fees, the take rate goes beyond 50%. Basically, every second dollar of marketplace spend is going into Amazon's pockets.

That said Amazon also provides impressive service levels for this spend in return, such as discoverability, advertising on and off Amazon and its effects, but also FBA, warehousing, logistics all the way from China (supply chain by Amazon), payment processing and perhaps crucially for prime eligible products one day or same day delivery speeds.

For 3P sellers and especially the bigger brands this means that many will sell on Amazon just at break even or on a loss making basis. If one adds further costs, not captured in the take rate and advertising calculations, such as returns, and discounts given to take part in Amazon prime days and the like the picture gets quite gloomy.

Looking ahead, Amazon is going to invest in more robotisation in all its business operations from warehouse operations to drone delivery and its somewhat struggling stores business (we expect further advances in its just walk out technology and the One/ palm checkouts). The company will also strengthen its AWS provision (on which a multitude of AI models are running) and try to leverage the promise of AI in all its business units, not just Alexa or the Just walk out stores. AI has always played a crucial role in Amazon's backend - from its pricing and discoverability algorithms to demand forecasting and routing options and the like. At the moment Amazon's chatbots are used for product images and descriptions by sellers, but the company has now also launched a consumer-facing bot.

But there is also trouble ahead. While many observers expect the FTC case to end in a settlement, this is not a given. Threats to Amazon are also emerging from abroad in the form of Shein and Temu, with both Chinese players using slightly different business models (quasi vertical integration and a reverse supply chain signal flow for Shein and a pureplay 3P marketplace for Temu) to attack Amazon. Moreover, if future e-commerce or social media will all be about video - then TikTok, which excels at live-stream shopping, could become a serious threat.

That said, the company has already entered a new phase in its history and development. With pure GMV smaller than revenues, the company has cemented its move away from its historic phase 1 business model into becoming more of a service provider ("becoming the pipeline through which everything flows"), and this change in direction will be further driven along by AI in future.
*Key Topics Covered:*
*Executive Summary*

*The stats*

· Net sales, Net income, Margin, Growth 2010-2023
· Analysis: Net sales, Net income, Margin, Growth
· US versus International, AWS, 2013-2023
· Analysis: US versus International, AWS

*International sales*

· US, DE, UK, JP sales (US$) 2020-23
· FR, IT, ESP (€m) by country 2021-23
· CAN, IN, MEX, BRA, AUS (in US$) 2021-2023
· Analysis: International sales
· Launch dates of Amazon geographies

*GMV, Marketplaces*

· Online stores, 1P, 3P sales, % splits, Total GMV, take rate 2017-2023
· Analysis: Online stores, 1P, 3P sales, % splits, GMV, take rate
· Amazon % of units sold by 3P sellers 2016-2023
· Amazon's take rate at 40% without ads
· What Amazon provides in return

*GMV 1P and 3P*

· Amazon's internationalisation strategy
· Total GMV sales in US $, USA, DE, UK, JP, FR 2018-23
· Growth rates in GMV US, DE, UK, JP, FR, RoW 2019-2023
· Country GMV share of total GMV 2018-2023
· Analysis: Amazon GMV per country
· 1P sales in US$, USA, DE, UK, JP, FR 2018-23
· Growth rates 1P sales per country in US$, 2018-23
· 3P sales in US$, USA, DE, UK, JP, FR 2018-23
· Growth rates 3P sales per country in US$, 2018-23
· 3P:1P share of country GMV, USA, DE, UK, JP, FR 2018-2023

*User numbers*

· Amazon Global user numbers, USA, DE, UK, JP, FR, RoW 2018-2023
· Analysis: Amazon Global user numbers 2018-2023
· Amazon EU user numbers
· Average annual GMV spend, US, DE, UK, JP, FR, RoW in US$ 2018-23
· Average monthly GMV spend data per country in US$ 2018-23
· Analysis: Average GMV spend data per country

*Prime users and spend data*

· Prime users 2018-23, USA, DE, UK, JP, FR, RoW
· Analysis: Prime users 2018-23
· Analysis: Bundling for repeats
· Analysis: 7 key benefits of the programme
· Analysis: the best loyalty programme in retail
· Amazon Prime Video pitch reveals new stats
· Amazon's ad ambitions for prime
· Average prime spend 2023 in US$, US, DE, UK, JP
· Analysis: Average prime spend versus regular spend
· Average non prime spend 2023 in US$, US, DE, UK, JP

*AI*

· The Anthropic investment
· Amazon launches Q, its answer to ChatGPT
· Amazon's Q has 'severe hallucinations'
· A new generative AI feature to answer shopper's questions
· AI for the marketplace, what will happen?
· Will AI make the human 3P seller obsolete?
· If not now, then, maybe in future?

*Outlook*

For more information about this company profile visit https://www.researchandmarkets.com/r/198m7t

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