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Amazon is Booming into New Economy

The Amazon Prime Membership allows users to have anything they need shipped and delivered in 2 days. Now Amazon has introduced the Amazon Dash Button, which connects to Wifi to reorder customers most often purchased products with the simple press of a single button. Amazon is booming into the new economy.

The Birth of Amazon

Amazon began its online business selling books. The company has grown hugely over the years and is now the leading online retailer and cloud services provider in the world. The growth of Amazon is also due to its video streaming services and a large line of electronic devices.

Jeff Bezos started Amazon.com in 1994. In the beginning, it operated from his garage in Bellevue, Washington. Bezos secured funding from Nick Hanauer, amounting to $40,000 and a larger investment of a $100,000 from Tom Alburg. Bezos envisioned Amazon to be more than just a simple book selling website. In the early days, he added a tool that let readers add their own reviews of books for all the users to view and read.

The company went public on May 15, 1997. The first public offering (IPO) was targeted at $18, yet the public demand for the new stock raised the share price to over $24 per share on opening day. The company was not profitable for years until the tide started to turn after more than a decade in business.

Amazon Stock Booms

The online giant is leaving no rock unturned for increasing its existence in the e-commerce area with the aid of its vigorous Prime subscription-based services. Amazon is seeing a growing adoption of its Prime delivery service, despite the hike in its annual membership price that surged from $99 to $119 a year in April. Just about anything consumers want to purchase can be found on Amazon.

Analysts attribute its growth to exciting discounts, customer friendly offers, quick delivery services, and the ever-growing video content available. Amazon crossed over 100 million paid members last quarter. The summer shopping special sale named Prime Day was in sync with the enlightening subscriber base of the business. The event played a major role in the growth of traffic on the website and resulting increase in online sales.

Amazon Now

The company has also introduced Amazon Now, which is a delivery service for organic and natural foods, including vegetables bought at Whole Foods, now available in major metro areas, including Houston, Chicago, Minneapolis, Indianapolis, and San Antonio.

The free two-hour grocery delivery service for Prime shoppers at Whole Foods is also now available in Boston, Atlanta, Baltimore, Austin, San Francisco, Dallas, Denver, San Diego, Virginia Beach, and more areas are becoming available daily.

Amazon’s Advertising Business

Amazon’s advertising business may be worth over $20 billion in 2020 and may challenge the likes of Yahoo and Google in search, one analyst said. Alex DeGroote, a media analyst at Cenkos Securities, estimates that North America’s advertising market represents about 40 percent of the global total or around $200 billion currently. He said Amazon is about $3 billion of this now, amounting to around a 1.5 percent market share. Given the growth DeGroote is expecting by 2020, Amazon could soon have an $8 billion share in North America, and globally that would equate to $20 billion.