With the rising trend of online shopping people tend to buy things from Amazon as it has almost everything to satisfy their customers with good online purchasing. People are now even selling their own products on Amazon to build their E-commerce store. But the pandemic has devastated many businesses and people had to suffer a lot. Many businesses were completely finished because of low sales. Since the arrival of COVID-19 things have changed completely and its impact can be clearly seen on the people as well as the whole wide world. It was a huge and drastic change which no one would have predicted or expected.
As this pandemic has affected everything, Amazon was also on the list but it didn’t let any devastation affect its business. In fact the company’s revenue and earnings jagged in 2020 because more people tend preferred ecommerce platform to buy things in the times of COVID-19. As the sales have increased since the pandemic the e-commerce planners are also active in keeping the check and balance of the sales and revenue.
The overall discernments of the customer are analyzed by these e-commerce planners to provide the support to the merchants to develop and execute customer focused ingenuities online. With increasing sales on Amazon the company’s share price was increased by 76% in the last year. Keeping these stats in mind, nothing could be predicted yet of what 2021 will bring for Amazon but here are 2 main things that you should know about.
- Strong e-commerce sale
Even during the times of COVID-19 the sales on Amazon never stopped or decreased. It has only increased. In prior year Amazon was expected to grow its revenue by 27%. Its sales spiked in the 2020. As more people were preferred online shopping, Amazon hired a team of 400,000 workers in less than 10 months. That’s incredible. Furthermore, Amazon also added 50% more square footage for the logistic business.
Because of the pandemic people believe that online shopping is the most convenient and safe mode of shopping to keep them safe from catching virus. And this is the main reason Amazon is flooded with number of consumers. Further research has shown that people are now more into online shopping and will hardly like to go out for shopping. Results shows that 70% of consumers plan to endure online shopping after restraints are over.
If this might be the case then we can say that Amazon’s sale will continue to grow in the coming years as well. Another reason behind the success of Amazon is that it has a large selection of products, low prices, and efficient delivery that every customer demands for. In short Amazon is fulfilling all that customer wants and in return consumers tend to shop more from Amazon.
- Cloud computing demand has increased
With the rise in sales on Amazon, ecommerce planners have also speed up their work in analyzing customer discernments to optimize the experience. The profit that Amazon gets mostly comes from AWS (Amazon Web Service). It is a leading cloud computing company. AWS currently holds 33%of the market that is quite a lot. AWS is still growing steadily. In the year 2020 AWS sales enlarged 30% to $32.6 billion and the operating profit from AWS also increased by 50% to $9.9 billion.
Cloud computing is the on demand delivery of particular resources over the internet. You don’t have to buy or own any data center but you can simply get the access to technology services such as storage, power, servers, and computing. The overall public cloud spending is likely to further increase and the AWS growth is in the benefit of the company.
Further research revealed that worldwide public cloud spending will reach $362 billion in 2022, up from $243 billion in 2019. There is no doubt that Amazon is reaching heights day by day and. Amazon makes an average of $26.6 million per hour and on weekly basis it makes $4.4 billion. Keeping in view Amazon’s existing prevailing position in the cloud and the growth trajectory, the company will surely continue to get benefit from market in the coming year as well.
As COVID-19 continues to bring changes in our live it has become a part of the world and people are now trying to accept the reality and making things work in that direction. Just like that online shopping will never end in fact people will only get easier and confortable in buying things online rather than stepping out and this will further increase the sales on Amazon as it is the biggest online shopping platform that people like.
Before Covid-19, only 12% of retail sales happened online, so there’s quite a lot of upside for e-commerce.
