Amazon revealed its 2017 Prime shipment number (worldwide) yesterday. How impressive is it? It shipped over 5 billion items via Prime shipping (meaning that Prime members alone purchased 5 billion items worldwide in 2017). So … the figure seems too high to be registered in our mind. Let’s dissect it this way. It’s 5 billion items which is a number 5 with 9 zeros trailing behind it. If you divide it by 365 (days a year), you will get about 13,698,630 (ignore the decimals)… so … it’s whopping enormous 13 millions items per day in 2017 that Prime members purchases alone. It’s almost 13.7 million items shipped via Prime shipping per day in 2017… that’s something … no wonder Amazon’s stock price is leading the tech stock in 2017.
Amazon Dominates E-Commerce
“How formidable Amazon is?”… just by looking at the 2017 Black Friday and Thanksgiving online sales number as follows, you will notice that how dominate Amazon actually is. (The data is from Business Insider)
Amazon was accountable for 50% of all online transactions during the Thanksgiving and Black Friday online sales in 2017. On Black Friday alone, Amazon managed to pull in total of 7.14 million transactions… If you look at the $ amount, it’s $5.03 billion on Black Friday alone. That’s a 67%+ increase compared with the dollar amount in 2016 Black Friday (which was about $3 billion).
The Real On-Sale Item(s)
In fact, if you are an Amazon Prime member and constantly browse deals on Amazon, you would know that the real on sale items on Amazon.com during the Black Friday (Thanksgiving) shopping event days are “Amazon Echo” and “Amazon Fire TV” devices. For other products you might even see a slight price increase during the Black Friday weekend. Well… the brand domination combined with the consumer shopping spree resulted in the great holiday season sale figure. This really applies to every country though… For instance, the world biggest online shopping day (11.11 – November 11th every year) led by Alibaba (China’s Amazon equivalent) enjoys the same outcomes each and every single year. If you head to Alibaba.com or (to be specific) Aliexpress.com (which is for the end consumers who would like to buy couple of items instead of a bulk purchase made via Alibaba.com), you should be able to notice that prior the “Single Day” the price on most items are slightly lower than the price you would need to pay on the “Single Day” shopping sale. Some items may see over 200% price increase since those items’ unit prices are usually very low (e.g., less than 5 bucks or even less than $2 USD).
What To Expect in 2018
From the chart above, we can see that Walmart is in the distant 2nd position; however, it made a tremendous effort this holiday season by partnering up with Google Express to push on its online sales … and … it’s working. In fact, the voice shopping push was a genius approach to get everyone having another look at Walmart’s online presence. It’s not as good as Amazon yet but it really has some potentials since the dominance of the physical store locations as well as the resources that Walmart has over the years in the retail industry network, Walmart put themselves in a position that they are able to make Amazon break a sweat. We call this … a “healthy consumer environment” via a “healthy service/product competitions”.
So … what to expect in 2018? Amazon will keep leading the way (sales-wise) but Walmart might jump to lead the innovation (technology-wise) towards consumer shopping delivering service end. Again, Walmart has the network, manpower, and location to get it done than anybody else in the United States (at least).