Amazon has recently announced a $50 tablet, is now offering same-day shipping in 14 cities with Prime Now, and is giving more benefits than ever to Amazon Prime members (including six months of free access to The Washington Post).
Why does all this matter to you?
Well, if you want to build a business, you better look at Amazon.
This year, Amazon is well on pace to do over $100 billion in revenue. If it does, it will be the only ecommerce company to hit this milestone.
In the first half of this year, Amazon produced $34.2 billion in sales, a 10.4% growth over the first half of last year, 2014.
To estimate the full-year revenue for 2015, let’s assume that Amazon grows in the second half of the year at the same rate it grew from 2013 to 2014 (the last two full years). Comparing the second half of 2013 to the second half of 2014, Amazon grew a whopping 36%.
If Amazon’s growth for the second half of this year is the same (and it could be more), Amazon’s total revenue for 2015 will come in around $113 billion.
That will represent growth of more than 20% from 2014 to 2015. This pace is HUGE for a company the size of Amazon and highlights the undeniable trend that?s driving Amazon?s incredible growth ? people want to buy everything from one place.
I know I don’t want to hunt around on 15 different online stores to buy what I need. I want everything readily accessible, all in one place online that I can easily buy from and move on with my life. And I know a lot of people feel the same way I do. This is why Amazon is on such a relentless growth path, and has been for the past decade.
The most exciting aspect of this growth is what?s happening outside the USA.
Here’s a snapshot of some of Amazon?s international ecommerce platforms and the estimated revenue they’ll produce assuming Amazon hits the calculated $113 billion in 2015:
- Germany = 14% ($15.8B)
- UK = 10% ($11.3B)
- Japan = 9% ($10.2B)
I remember living in France and how horrible shopping online was (including on Amazon.fr). However, that was three and a half years ago and now it’s much better, largely thanks to Amazon?s investment in its international platforms.
There is a gold rush happening internationally.
For the first time ever, shopping online is becoming extremely easy for many countries. Amazon is investing billions of dollars to make sure it?s the leading ecommerce platform in as many countries as possible.
As an entrepreneur, this is incredibly exciting! To encourage people who sell on Amazon to expand their product base to other countries, Amazon has started unifying (combining) multiple seller platforms.
For example, you can now sell on Amazon.com (USA) and Amazon.ca (Canada) all from one Amazon Seller Central account.
You can also sell on all of the European platforms, Amazon.co.uk (UK), Amazon.de (Germany), Amazon.it (Italy), Amazon.es (Spain), and Amazon.fr (France) from one Amazon Seller Central account.
Pretty soon, you’ll likely be able to sell products all over the world through one single, seamlessly operated account.
How’d you like to create a product and see it sold in 10 countries all over the world tomorrow?
That’s what Amazon is doing for ecommerce.
Matt Clark is the Chairman and Co-Founder of Amazing.com, a serial entrepreneur, and investor. He’s been featured on Forbes, CNBC, and Entrepreneur.com.