Amazon.com, Inc. (NASDAQ:AMZN) remains the talk of the e-commerce space two decades after Jeff Bezos made its services available from his garage. It’s been an impressive ride more so last year as the company went on to reaffirms its dominance on e-commerce.
Amazon growing e-commerce Dominance
With spending patterns switching to online, Amazon.com, Inc. (NASDAQ:AMZN) could be in for yet another impressive ride in 2016. According to a recent study by Macquarie, for every additional $1 spent by Americans online the company always ends up with 51 cents. It is a feat that very few companies in the industry could be able to replicate.
Last year, more than $94 billion was spent in stores and online of which the e-commerce walked away with almost a quarter of the total proceeds at $22 billion. Ben Schachter, an analysts at Macquarie, believes the holiday shopping season only went to solidify Amazon.com, Inc. (NASDAQ:AMZN)’s position when it comes to e-commerce. To affirm its position in the business the company capped the year having shipped more than 200 million items through its Prime Program.
Amazon’s Ripple Effect
Investors are becoming increasingly confident of that the company’s retail business that continues to show maturity after years of aggressive investment. Other retailers have already taken note of the bar that Amazon continues to set in the retail business.
In July, a move by the e-commerce giant to create a new sales holiday, Prime Day, prompted Wal-Mart Stores, Inc. (NYSE:WMT) to match deals on offer in the popular platform. The nation’s largest retailer went on to launch four centers all dedicated to filling online orders.
Even with growth in the number of transactions the company facilitates its profits are still a point of concern. In the recent quarter, the company’s net income stood at $79 million on $24.5 billion in total revenue.
Concerned with the slow growth in profits Amazon.com, Inc. (NASDAQ:AMZN) is slowly shifting its focus to growing its cloud computing business that is turning out to be a revelation. The company is also expanding into new areas having unveiled a crafts market as it moves to challenge Etsy. It has also expanded its offerings into the groceries business.