With all the holiday sales online and in-store, Amazon was a little off the radar in the news. So it’s time to take a look at their holiday sales and some interesting strategic moves they’re making around the globe. Amazon accounted for 30.9% of all sales from Black Friday to Cyber Monday according to a report from Slice Intelligence. Amazon, Walmart and Best Buy were Black Friday weekend sales winners said Moody’s analyst Charlie O’Shea.
Amazon offered more than 5 million toys and games for sale compared with the 100,000 offered by large retailers. Jet.com offered the best holiday weekend sales prices over Amazon on 64% of toys while Walmart had lower prices on 55% of products compared with Amazon. 250 striking pilots at Amazon air service contractor ABX Air were ordered back to work during the holidays by a US District Judge. Cowen & Co estimates Amazon Prime now has nearly 50 million US members, up 23% from a year ago.
Feedvisor reports 95% of loyal Amazon Prime members bought from the online giant in the past year. The Institute for Local Self-Reliance says Amazon has received more than $760 million in tax concessions from local governments to open fulfillment centers in various jurisdictions across the US between 2005 and 2014. This represents 17% of net profits by Amazon during that time, impacting thousands of local businesses.
Netflix may be the next business to be disrupted by Amazon Prime Video which plans to offer its entertainment service eventually in more than 200 countries. Alibaba is close to acquiring Indian e-commerce firm Snapdeal in plans to compete with larger rivals Flipkart and Amazon India. Finally, Amazon is close to finalizing an acquisition of the Middle East’s largest e-commerce company Souq.com for more than $1 billion. Busy times indeed.
Amazon wins Black Friday with 31% of all
Black Friday weekend was a boon for all retailers – but Amazon especially.
The online retailer accounted for 30.9 per cent of all sales from Black Friday to Cyber Monday, according to a report from Slice Intelligence. The company says it was there best sales weekend ever.
Following Amazon in the rankings were Best Buy with 7.4 per cent of sales, Target with 4.4 per cent and Walmart with 4.1 per cent. Best Buy made the biggest improvement this year, upping their sales 1.3 point from 2015. Via dailymail.co.uk
Amazon, Best Buy, Walmart Are Retail Winners Over Black Friday Weekend
Retailers stepped up their game over the holiday shopping weekend, offering more deals online to boost sales, said Charlie O’Shea, retail analyst at Moody’s. He says retail winners included Amazon (AMZN) , Walmart (WMT) and Best Buy (BBY) .
According to Adobe, online sales topped $3 billion for the first time on Black Friday. O’Shea said some retailers were offering doorbuster sales online, rather than just in stores. Based on early indications, O’Shea said it looks like holiday sales this year will be stronger than last year. Via thestreet.com
Amazon No. 1 on assortment, Jet.com lowest on prices for holiday toys
Amazon leads retailers for largest toy and game assortment with more than 5 million items, compared to about 100,000 for other retailers, according to Boomerang Commerce. Jet.com has the lowest prices, beating Amazon on average by 64%, up from 55% in 2015.
Walmart was a close second to Jet, pricing 55% of popular items the same or lower than Amazon, a 9% drop year over year. Walmart and Jet offer the most aggressive price discounts, with products discounted by 54% and 47% respectively. Via fierceretail.com
Court orders striking pilots back to work in time for holidays
About 250 pilots working for ABX Air, an air freight contractor servicing both Amazon and DHL, returned to work Wednesday evening after a federal judge ordered a five-day end to the strike, Bloomberg reported Wednesday.
U.S. District Judge Timothy Black stated the dispute should be resolved under arbitration, since the strike involves differing interpretation of worker contracts. The pilots’ lawyer told Bloomberg a decision on further action would be announced this week.
A strike last weekend would have caused “irreparable harm” to the many businesses, which depend on contractors for peak season delivery, according to the Judge. The two-day strike grounded roughly 75 flights according to a press release. Via supplychaindive.com
Amazon Prime Grows to 50 Million Members
The ranks of Amazon Prime members continues to grow. The e-commerce giant now has 49.5 million Prime members in the United States, according to new third-party data from Cowen & Co.
Amazon.com doesn’t disclose its Prime membership count, so Cowen bases its estimate off a panel of 2,500 U.S. consumers. Some 45% of that panel now has Prime, which translates to 49.5 million total consumers, Cowen estimates, up 23% from a year ago, when the firm estimated 40 million Prime subscriptions.
Prime costs $99 a year. It gives Amazon shoppers free two-day shipping, plus free access to the company’s growing library of streaming TV and music. Via barrons.com
Amazon’s customer loyalty eats into competitors
Amazon is tightening its grip on the total US retail market with its shoppers now so loyal that they’re less inclined to make purchases from competitors at all, according to a report from Feedvisor.
This trend is likely to continue as Amazon adds perks to its Prime membership program, which could encourage more existing Amazon shoppers to join, thereby intensifying their loyalty even further. US Amazon shoppers are much less likely to consider outside options.
Amazon customers stay close to home: In fact, 95% of US Amazon customers had made a purchase from the marketplace in the last year as of summer 2016, according to the report. Most notably, this encompasses Amazon’s general customer base including Prime and non-Prime members, heightening the threat that the e-commerce giant poses to traditional retailers. Via businessinsider.com
How did Amazon conquer American retail?
It’s hard to remember holiday shopping before Amazon, which has put a Santa’s workshop’s worth of goods within 48 hours of tens of millions of Americans, and devastated tens of thousands of local businesses who once sold things in person.
The company couldn’t have done it without us. We’ve embraced the convenience and prices of e-commerce, of course. But we’ve also supported the tax breaks that have made the company so competitive with local bookstores, Best Buy, and everything in between.
Like most companies of a certain size, Amazon plays aggressively with states and localities to get tax breaks, pitting politicians from neighboring municipalities against each other in a prisoner’s dilemma. A new analysis from the Institute for Local Self-Reliance, a nonprofit that advocates for local economic development, tries to put a number on just how much Amazon has saved from taxpayer largesse in the United States: $760 million between 2005 and 2014. It’s a figure, according to ISLR’s exhaustive new report, that’s equal to 17 percent of the company’s global profits during that time. And it’s likely an underestimate. Via slate.com
Netflix May Be Threatened By Amazon Video’s Global Expansion
Amazon Prime Video is now available in a few countries such as the U.S., the U.K. and Germany, with a planned roll out in India, as well. Reports suggest that will soon be expanded to about 200 countries worldwide. This would make Amazon a strong direct competitor to Netflix , which went global earlier this year. While Netflix has a strong user base in the U.S. and is growing rapidly in international markets, its main competition in these regions was primarily from local players in the streaming media space.
In Q3 2016, Netflix added 3.2 million subscribers internationally surpassing its initial guidance of 2 million subscribers. However, with Amazon in the fray and several other perks available to Prime members (Amazon also has a standalone Video offering), Netflix will now need to compete against a strong global player. Quality of content is the key area where the two compete. Via forbes.com
Alibaba Isn’t Quite Ready to Let Amazon Lay Claim to India’s E-commerce Market
Chinese e-commerce behemoth Alibaba (BABA) isn’t ready to lose out on the Indian e-commerce market just yet.
Alibaba is in talks to acquire Snapdeal, the second largest e-commerce firm in India behind Flipkart, Indian news site Factor Daily reported on Thursday.
Alibaba however, has been a little late to the party and its delayed start in India has given Amazon (AMZN) the chance to claim a significant portion of the $23 billion e-commerce market. Amazon founder and CEO Jeff Bezos has poured $5 billion into the expansion of Amazon India so far, a move that has caused both Flipkart and Snapdeal to lose steam. Via thestreet.com
Report: Amazon may acquire Dubai e-commerce site Souq for $1B
Amazon is in talks to outright acquire Middle Eastern e-commerce site Souq for about $1 billion, Bloomberg reports. The news agency previously reported that Amazon was among companies interested in purchasing as much as 30% of the Dubai-based company.
There is no final agreement in place and the talks may yet break down, sources told Bloomberg, which noted that neither Souq nor Amazon responded to requests for comment.
Souq last month tapped Goldman Sachs Group Inc. to find prospective buyers for at least a stake in the company. Via retaildive.com
Holiday weekend sales a record
That wraps up a busy kickoff to the critical retail sales season online and in-store. We’ll keep the updates coming on Amazon and global e-commerce and, in the meantime, enjoy your weekend.