Markets

Amazon Boosts Retail & E-commerce Presence With Storefronts

AmazonAMZN is aggressively trying to bring more small and medium sellers onto its e-commerce platform in a bid to strengthen online retail business further. This is likely to expand the company's online product portfolio.

Recently, the company has introduced a new section called Amazon Storefronts. This new section is meant to allure small and medium sized merchants to showcase their products online. This new site is currently available to the U.S. customers.

Based on the product ratings, the company has selected around 1 million products from almost 20K small and medium sized merchants to list on Amazon Storefront. This will enhance the product offerings of the company, consequently expanding its seller base.

Reportedly, it intends to bring more products online from these sellers.

Coming to the price performance, share of Amazon have returned 68.5% on a year-to-date basis, outperforming the industry 's rally of 31.2%.

Social Benefits to Add Business Strength

The latest move of Amazon will not only expand its product portfolio but will also benefit the small merchants in reaching their customers faster via the online platform.

Moreover, these sellers will be able to expand their customer base by leveraging the huge customer base of the company. Further, this is likely to aid their revenue generation.

Additionally, the company strives to provide a platform for these sellers to display their products with clarity for customers via the new section. This will enhance the viewer base and sales of these products.

We believe all these facts will help Amazon to counter the criticism of hurting the businesses of these sellers.

Meanwhile, this will allow the company to reach the customers with a more affordable range of products. Consequently, Amazon will be able to deliver a better shopping experience to customers.

All these factors are expected to boost the customer base of Amazon which will in turn drive its top-line growth.

Amazon.com, Inc. Revenue (TTM)

Amazon.com, Inc. Revenue (TTM) | Amazon.com, Inc. Quote

Bolstering Retail Presence

Amazon's aggressive retail strategy, expanding seller base and distribution strength will continue to benefit it in gaining traction in the retail space.

The latest plan of promoting the interests of the small and medium sized merchants will definitely provide a boost in this regard. Further, this will strengthen the company's competitive position in the retail space against major retailers, especially Walmart WMT which is its biggest rival in the United States.

Additionally, Amazon is planning to launch a similar type of site in Germany and the U.K. This initiative will bolster its presence in the global retail space.

According to the latest report from Mordor Intelligence, the global retail industry is anticipated to witness a CAGR of 5.3% between 2018 and 2023 and to reach $31.9 trillion by 2023.

The company's strong efforts to deliver the retail services via its e-commerce platform will continue to help it in reaping benefits from this growing market.

Further, Amazon's growing presence in the global online retail space with expanding online product portfolio will give a tough competition to other e-commerce companies like Alibaba BABA and JD.Com JD which are also taking strong initiatives to expand globally.

Currently, Amazon carries a Zacks Rank of #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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