Wednesday , April 21 2021

Amazon further expands its empire

The numbers are dizzying. According to an estimate released this week by the company specializing in eMarketer, Amazon is expected to reach almost half of the online commerce business in the United States in 2018, precisely 48% against 43.1% last year. That represents more than 250 billion dollars. Growth estimated at 29% over last year.

Amazon is way ahead of its competitors and continues to widen the already colossal gap in its pursuers. Ebay is in the second stage of the podium, with a market share that should pass this year to 7.2%, according to the study, against 7.6% in 2017. In the giant physical retail, Walmart is in third place . His market share went from 3.3% to 4%, allowing him to drive Apple out of the podium. Apple finished fourth with 3.9%. The Arkansas Walmart group has recently accelerated significantly in online commerce, with growth of 40% in the second quarter and 33% in the first three months of the year.

Amazon is in the lead, 24 years after its creation, and 21 years after its IPO. Today the company employs more than 540 thousand people worldwide. The French subsidiary was created in 2000 and, here too, success is at the meeting point. In 2016, Amazon became the leading non-food retailer in France in terms of revenue.

Two new seats in the United States

Today, the giant continues to grow in the United States, including the establishment of its two new headquarters in New York and Crystal City in Virginia. Both cities are the lucky winners of a contest that took months to attract two mega sites. Amazon promises to create a total of 50,000 jobs, with $ 5 billion in investments.

Problem: the public subsidies granted are far from unanimous. Critics denounce the billions of dollars in incentives these communities have to lure the giant. They estimate that the amount of these tax incentives and state investments, $ 3 billion for New York and $ 2.5 billion for Virginia, could erase the economic benefits provided by the company. Others believe that one of the richest companies in history should not receive support from the taxpayer. However, this system remains common in the United States for groups seeking a location. Approximately $ 90 billion would be offered annually to businesses by governments and local governments.

Antitrust Threats

Growth that could spark the antitrust ire, competition authorities in the United States. Donald Trump does not seem to expect it: "Look at the European Union, they have condemned Google to billions of dollars in fines, and frankly I do not like them to do that because it's a US company … I do not think it's good that they do it, but if everybody does it, then I think it should be our duty to do it, "he said in October on the site. Information from Axios. And for the Axios journalist who asked him to specify whether to ask the Justice Department to assess the monopoly situation that Google is in, he replied: "It's really something we think about." Google only? No, of course, and the White House said after he was talking about Amazon, Google and Facebook. The president also multiplied the attacks against Amazon during the presidential campaign and during the first weeks of his term, Amazon accused of destroying downtown businesses. Jeff Bezos owns the Washington Post, which is openly campaigning against the American president

In total, online commerce in the United States is expected to represent $ 525 billion by 2018, including $ 252 for Amazon. Peak sales are expected in the coming days on Thanksgiving and Black Friday. Last year, US distributors noticed on the internet, on this occasion, a record turnover of $ 7.9 billion. An increase of 17.9% compared to 2016. An additional 18.4% for Amazon.

Amazon may well have to wonder soon how to contain its growth, which seems to be as complicated in the current state of things as keeping up that pace

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