The retail giant Amazon declared previous year’s holiday shopping season as record-breaking. Every additional spending of $1made by Americans on a particular item online last year helped Amazon capture around 51 cents.
Ben Schachter, a retail analyst at Macquarie, said that out of the expected $94 billion retail sales previous year, Amazon alone claimed for around $22 billion, or almost a quarter. This holiday shopping season also served to solidify the notion that the Internet is increasing Jeff Bezos’ world and the rest of us are just shopping in it.
Amazon declared its previous year as blockbuster year by reporting what it said was a record-breaking holiday season. The retails giant shipped around 200 million items through its Prime subscription service, which offers free shipping and a host of other benefits.
Schachter said, “It’s remarkable. Amazon is truly in a league of its own. It’s going to be extremely challenging for anyone else to catch up”.
Strong results of Amazon have caused a dramatic rise in its share price, which has more than doubled this year. Its market capitalization of about $325 billion now dwarfs that of Walmart’s, which shrank by a quarter to just below $200 billion.
Although Amazon has dominated the online retail world, its actual profits are still very less. The company earned just $79 million on $24.5 billion in total revenue in the quarter.
Amazon picked up 3 million new Prime members during the third week of December alone. As per some analysts estimates almost half of the American households will be Prime members by 2020.