Amazon Marketplace is unique because it provides sellers with access to the world's largest e-commerce platform, allowing customers to choose from millions of products without Amazon having to invest in additional inventory. Amazon's ability to track purchase data allows it to enter and dominate any segment as soon as it becomes lucrative. Furthermore, Amazon's growth is inversely correlated with the rest of the retail sector, meaning that as Amazon grows, its cost of capital decreases while it increases for other retailers.
This question was asked on the following book summary:
How do you gain a career edge in a world dominated by Big Tech? What makes “The Four,” namely Apple, Google, Facebook and Amazon, so incredibly succes...
Go to dashboard to download stunning resources
DownloadText this question was asked on:
Amazon Marketplace is an online network, which enabled sellers to gain access to the world's largest e-commerce platform. Customers got to choose from millions of products without Amazon having to invest in additional inventory. Amazon, tracking the purchase data, could enter and dominate any segment the minute it became lucrative. Traditional retailers did not respond to the Amazon e-commerce threat until it was too late, and in 2016, US retail grew at 4%, while Amazon Prime grew at over 40%. Amazon's growth is inversely correlated with the rest of the sector. This means that Amazon's cost of capital continues to decline while it increases for other retailers.