What’s ahead for Amazon? Latest corporate developments and growth

Our post today looks at the latest Amazon corporate developments to keep retailers and e-commerce competitors up to speed on what Amazon is planning and where it could threaten other competitors.

First up is a fascinating analysis by Washington Business Journal which says Amazon has received more than $1.24 billion in taxpayer subsidies at the state and local levels. That also doesn’t include further state tax incentives and grants at the county, municipal and school districts. Now there are 238 jurisdictions bidding on Amazon’s plans to build a $5 billion second corporate head office somewhere in the US.

The result is a sprawling business enterprise that includes 257 sorting and distribution centers with 141,000,000 sq ft of facilities and hundreds of thousands of employees.  Amazon Web Services also owns or leases millions of square feet of Class A office space and has received an estimated $229 million in known taxpayer subsidies.

Amazon could get 44% of US e-commerce sales in 2017

A new report from eMarketer suggests Amazon could earn nearly 44% of US e-commerce sales by the end of 2017. This is based on estimates of 32% growth over 2016 to reach $196.8 billion by year-end. This represents an estimated 4% of all US retail sales by Amazon.

Other retailers’ estimated 2017 share of e-commerce sales include eBay (6.8%), Apple (3.6%), Walmart (3.6%), Home Depot (1.5%), Best Buy (1.4%), Macy’s (1.2%), Wayfair (0.9%), Costco (0.9%) and QVC (0.7%).

Another research report from FTI Consulting suggests US e-commerce sales will reach $1 trillion by 2027 although online sales now total about 12% of all retail sales. ironically, Amazon announced plans to take over the top six floors of Macy’s flagship store in downtown Seattle to accommodate its need for more office space top of plans to also lease another 722,000 sq ft of offices in a new office tower planned for nearby Rainier Square.

Amazon hiringAmazon also may spent more than $12 million in DC lobbying efforts this year to keep up its pro-business message and charm offensive with lawmakers. The company’s growth strategy also extends to India where it recently launched a B2B marketplace called Amazon Business which will offer more than 100 million products to small to medium businesses.

It’s all part of Amazon’s growth strategy at home in the US and abroad. it also extends into new product verticals as reported in another post called Amazon competitors – watch your niches.

The Amazon Effect: How taxpayers are funding the disruption of the US economy

Americans have supported the Bezos surge in two distinct ways: by buying everything from dog food to diamonds on Amazon.com and by kicking in at least $1.24 billion in taxpayer-funded subsidies and incentives that have fueled the company’s growth across the country. That figure does not include hundreds-of-millions of dollars in additional breaks from deals to phase in state sales taxes, nor does it include dozens of hard-to-quantify tax abatements and land arrangements struck with a mosaic of towns, counties and school districts along the way. Via bizjournals.com

Amazon HQ2: States explain why they don’t want Amazon’s $5 billion HQ

http://www.businessinsider.com/amazons-headquarters-cities-states-didnt-submit-bids-2017-10When Amazon announced in September that it will create a $5 billion headquarters and 50,000 jobs in an undetermined location, cities, states, and regions across North America rushed to explain why the company should pick them. Amazon received 238 proposals from 54 states, provinces, and districts. Just seven states — Arkansas, Hawaii, Montana, Vermont, Wyoming, North Dakota, and South Dakota — didn’t submit. Via businessinsider.com

Amazon could receive nearly 44% of US e-commerce sales in 2017

https://www.recode.net/2017/10/24/16534100/amazon-market-share-ebay-walmart-apple-ecommerce-sales-2017Amazon’s e-commerce sales are expected to grow 32% to $196.8 billion dollars in 2017 in the US, or 43.5% of total e-commerce sales according to eMarketer. These figures represent gross merchandise volume data, which includes sales made by third parties on Amazon’s marketplace. Amazon held 38% market share, or $149 billion in sales, in 2016, and it remains the biggest e-commerce company, followed distantly by eBay, Apple and Walmart. Via recode.net

Online and Amazon to grow more dominant over the next decade

http://www.retailwire.com/discussion/online-and-amazon-to-grow-more-dominant-over-the-next-decade/?utm_source=Listrak&utm_medium=Email&utm_term=http%3a%2f%2fwww.retailwire.com%2fdiscussion%2fonline-and-amazon-to-grow-more-dominant-over-the-next-decade%2f&utm_campaign=Today+on+RetailWire%3a+Retiring+the+holidays%3b+Amazon%27s+sportswear+moves%3b+Online+dominance+-+10%2f18%2f17Consumers will continue to make more purchases online while cutting back on in-store purchases over the next decade, according to a report by FTI Consulting, which forecasts total online spending in the US to surpass $1 trillion by 2027. Online sales, which now account for roughly 12% of total retail sales, excluding auto and gas, will grow to 22% over the next 10 years, according to the estimates. The biggest beneficiary of the shift from stores to online will be Amazon.com. The e-tailer, which currently accounts for 34.2% of online sales, will see its share grow to more than 50% of the market by 2027. Via retailwire.com

Amazon tightens its death grip on retail

http://nypost.com/2017/10/25/amazon-will-soon-control-half-of-all-e-commerce-in-the-us/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202017-10-26%20Retail%20Dive%20Newsletter%20%5Bissue:12601%5D&utm_term=Retail%20DiveAmazon is far and away the leader in e-commerce sales. The closest competitor is eBay, which is projected to hold a 6.8 percent share of the market this year. Apple and Walmart are bound for third place at 3.6 percent. Home Depot, Best Buy and Macy’s round out the top seven retailers online.
Online shopping still accounts for a small share of the overall US retail industry, though it’s growing quickly. E-commerce sales will jump 15.8 percent in 2017, and Amazon is responsible for nearly 4 percent of retail sales, eMarketer says. Via nypost.com

Amazon Moving Into Macy’s Flagship Store in Seattle

http://www.mytotalretail.com/article/amazon-takes-most-of-macys-building-in-seattle-for-office-spaceIronically, it was announced this week that e-commerce giant, Amazon.com, will be taking over the top six floors of the Macy’s building in downtown Seattle. The Seattle Times reports the lease, confirmed by an Amazon spokesman, is the latest sign of expansion in the company’s hometown. News of the lease and further expansion comes a few weeks after Amazon confirmed it would take the entire office-space portion of the planned Rainier Square downtown skyscraper in Seattle, a massive 722,000-square-foot lease. Via mytotalretail.com

Amazon is sweeping the nation’s capitol with a branding campaign of jobs creation and support for small businesses, promoting the upsides of its major expansion in media, groceries and transportation. This year, Amazon has increased its lobbying staff to 83 members from 60, making it one of the biggest corporate lobbying shops in town. The company is also on its way to surpassing its previous high for lobbying spending: $11.3 million last year. The $6.2 million Amazon spent in the first two quarters of this year was the 11th most among companies, above Exxon and far above Walmart, which spent $3.6 million in the same period. Via nytimes.com

Amazon Business – Amazon’s B2B Ecommerce Portal Debuts In India

https://inc42.com/buzz/amazon-business-ecommerce-b2b/US-based ecommerce giant Amazon has launched a B2B marketplace Amazon Business. It will focus on the procurement needs of Small and Medium Businesses (SMB) such as technology and service companies, manufacturers, universities, schools and offices. In an official statement, the company said that through Amazon Business sellers registered with the ecommerce portal will provide SMBs with an access to over 100 million products along with GST compliant invoices. Via inc42.com