Amazon; Market Structure Earth's Most Customer Centric Company

ECON 545: Course Project “To be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” © presentationgo.com By: .com Overview Vision Introduction Choices, Trade-Off, and Economic Systems Supply and Demand Strategies Market Structure and Profit Maximization GDP and Economic Growth Unemployment and Inflation ECON 545: Course Project 2 © presentationgo.com By: .com Amazon’s Vision To be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online. 3 “ ” © presentationgo.com By: .com Introduction 310 million active customers, 90 million U.S.-based Prime subscribers 12 million+ products Amazon Marketplace sellers = 353 million Amazon Prime subscribers spend $1,300 per year 85% of users hesitate to buy because of shipping charges 95% of current Prime subscribers say they’ll either “definitely” or “probably” renew $22.99 billion in third-party seller service revenues ECON 545: Course Project 4 © presentationgo.com By: .com As of the last reported period, Amazon had 310 million active customers The tech giant now counts 90 million U.S.-based Amazon Prime subscribers Amazon sells more than 12 million products, not including books, media, wine and services. [3] When Amazon Marketplace sellers are factored in, the total product count balloons to more than 353 million A CIRP survey, which includes data from 500 Amazon customers, estimates that Amazon Prime subscribers spend $1,300 per year, nearly doubling the $700 per year average that non-member spends on the eCommerce site. [2] 85% of Amazon users hesitate to buy because of shipping charges, while slow shipping deters both Prime and non-Prime members (60% and 41% respectively. [4] CIRP also found that 95% of current Prime subscribers say they’ll either “definitely” or “probably” renew In 2016, Amazon generated 22.99 billion U.S. dollars in third-party seller service revenues. Third-party sellers account for 50% of paid units sold on Amazon. [7] In 2016, Amazon more than doubled the items they delivered for other sellers from 2015 to exceed over 2 billion items. [8] Active sellers using their fulfillment service rose more than 70% in 2016. [8] Four times as many sellers reach 1 million sales on Amazon versus eBay. Week 1: Choices, Trade-Off, and Economic Systems ECON 545: Course Project 5 © presentationgo.com By: .com Made $60.5 billion in net sales in 4th quarter of 2017, adding to $177.9 billion total revenue 2017 The fourth quarter up 38 percent from 2016 and annual revenue up 31 percent exceeding analyst projections At $177.9 billion, Amazon’s revenue would make it the world’s 55th richest nation, sliding ahead of the oil-rich Qatar and Algeria, a country of 40.6 million people, both of which have a projected 2017 GDP of about $173 billion. Amazon Its revenue in 2004 was $6.92 billion, less than a 20th of what it is now. That would have made Amazon the 146th richest country in 2017, ahead of the Central Asian nation of Kyrgyzstan. Since then Amazon has experienced