These Are All of the Industries Experiencing The Amazon Takeover

Amazon’s continuous growth is prompting the company to expand into a variety of industries well beyond their initial scope of electronic commerce. Beginning as an online bookstore, Amazon now represents the most valuable United States retailer regarding market capitalization. Amazon founder Jeff Bezos is presently the world’s richest person. A combination of success and drive for constant expansion is resulting in an Amazon takeover of several important industries. Amazon still reigns supreme as an online retailer, though clearly that title alone is not enough to satisfy Bezos. His areas of interest are vast, including the following.

Brick-and-Mortar Retail

Just last year, the Amazon takeover included Whole Foods, where they were acquired for $13.7 billion. The move continues Amazon’s battle with Walmart to reign supreme in the retail space. On the other side, Walmart is continuing to refine their online space, while remaining America’s top employer. The battle between these two giants will continue to wage on, with Amazon’s interest in the brick-and-mortar space being no secret.

Even before the Whole Foods acquisition, Amazon’s plans to build convenience stores and curbside pickup locations shows a deep infatuation with becoming a strong brick-and-mortar presence. Beyond a mere presence, Amazon is confident that consumers will continue embracing a model that allows them to order online and pick up in person.

Amazon’s opening of the Amazon Go Store in Seattle in January marks an exciting time for these interests. Customers enter the store and scan their Amazon Go app as they do. Cameras and other sensors track customers’ activity as their browse, registering an item into their virtual cart when they take it off the shelf. Customers are charged when they leave the store with their goods. Amazon terms the idea “Just Walk Out” shopping and hopes to attract customers who despise waiting in lines, as many do.

Amazon’s reshaping of the typical brick-and-mortar presence is introducing consumers to new ideas like “Just Walk Out” shopping. Combined with the acquisition of Whole Foods, the company will without a doubt continue to redefine the brick-and-mortar shopping experience.

Delivery

Amazon has been shaping the delivery industry for many years now, especially since Amazon Prime’s introduction in 2005. The company’s vow to deliver items to Prime customers in two days or less still presents a challenge to online retail competition, who are well aware that they must match these shipping expectations or compensate in some other way, like offering lower prices. Meeting Amazon’s delivery promises and their costs is a major challenge, especially to new eCommerce businesses.

Beyond Amazon Prime’s major influence on shipping expectations among online retailers, Amazon is redefining what the delivery space means through their utilization of drone technology. Specifically, Amazon Prime Air is introducing a new delivery system, where unmanned aerial vehicles can safely get packages to customers in 30 minutes or less.

Amazon, already familiar with quick parcel delivery, is upping the ante even more in the delivery industry with such lofty ambition. Still, with a private trial already underway in the UK, Amazon Prime Air and the use of drones in delivery is a very real aspect of the future. Upon receiving the regulatory support, we can anticipate Amazon Prime Air to be an option for many.

Technology

It makes sense that Amazon is continuing to make significant moves in the tech sphere. There’s no doubt regarding the company’s technical expertise and how technology can accommodate access to their variety of products.

Among their technological products is Amazon Fire TV, which streams live TV and enables users to watch hundreds of shows and movies. There’s also the Amazon Kindle Fire, which capitalizes on Amazon’s vast digital library in the form of a tablet computer with a seven-inch multi-touch display. Many still view Kindle Fire as a strong competitor to Apple’s iPad.

Amazon’s Dash buttons, while simple, are also an exciting addition to their array of tech. The Dash Button is a single-function controller that consumers can place around their house near items that need replenishing. Need a new order of Tide paper towels? Order a specific Dash button for Tide, put it near the towels and press the button when you notice them running low. They will then arrive on your doorstep in a couple of days.

Entertainment

Amazon Prime offers much more than free two-day shipping. One of Prime’s most notable benefits is the increasingly impressive Amazon Video platform. The Amazon Prime Video show Transparent won the Golden Globe Award for Best Television Series, Musical or Comedy in 2005, while 2017 Oscar Best Picture nominee Manchester by the Sea is also developed by Amazon Studios.

Amazon is increasing their influence in both TV and film by producing excellent content, including many notable releases in development. They’re emerging as a viable competitor to cable, Netflix and Hulu.

Whether a consumer prefers reading a book or watching a movie, Amazon is seeking to have the entertainment niche covered.

Is This Amazon’s Peak?

Amazon’s firm grasp across multiple industries begs the question: Is this Amazon’s peak? While it’s impossible to tell definitively, stockholders should monitor the situation closely. Amazon has been a model of consistent growth since 2000. Presently, Amazon’s stock trades for approximately 130 times the business’s projected earnings for 2018 and almost four times its projected sales for 2018.

These growth prospects rely on revenue per customer growth. Although there will certainly be customers who increase their spending on Amazon, it’s difficult to think of any huge breakthroughs or offerings that will prompt more revenue per customer, especially upon Prime’s increase to $119 per year. Many customers may opt to spend that on a Costco membership instead.

Additionally, it’s important to note that Amazon’s acquisition of Whole Foods plays a significant role in the stock increases the past year for Amazon. The market seems to be operating under an assumption that Amazon will make a similarly buzzworthy acquisition this year, which is far from a given.

Still, even if market projections seem a bit optimistic at the moment for Amazon, there’s no doubting that the company will continue playing a significant role in shifting expectations within several industries, from delivery and entertainment to the brick-and-mortar experience.