You may have never thought of this, but we are living in the future. For example, do you need groceries? Okay, just order on AmazonFresh and get fresh groceries in as little as an hour. Don’t have the time to go on your phone and individually select each item. That’s fine, you can ask one of Amazon’s Alexa devices. Just say your shopping list out loud, and get it in an hour. Don’t want to order online? Then just go to 1 of 4 AmazonGo Stores (Amazon’s version of an modernized supermarket). Amazon reported they want to open 3,000 more AmazonGo stores in three years, the most convenient supermarket ever. There is no way out of Amazon. This is just one of the examples.
In this age, it is possible to live just off Amazon. It is possible to never go to a store again. Amazon has 564 million products available, Walmart, “Amazon’s Competition,” only has 4.4 million products and doesn’t seem like a real competition.
Let’s say you need to buy some Tide Pods. On Amazon, it costs $18. You can order it, and it comes within 24 hours with Amazon Prime ($100 a year). From another retailer such as Walmart or Target, the same product is $20. Amazon isn’t just more convenient, it can be cheaper too.
Amazon is also one of the most valuable companies right now. They may not be the richest company in the world, but the data they collect is precious. When you buy multiple items from Amazon, they create data on what you like. Amazon creates a profile on what you buy, and when you buy it. They can order and ship products that they know users will buy. Also, Amazon collects data on the types of purchases in different neighborhoods, and supply’s those products to that area that they know will be sold. This is a major advantage.
Lastly, Amazon has so many different departments and companies. For example, Amazon buys companies in different sections of the industry. Amazon owns 40 different companies. The more companies Amazon buys, the more data they can collect. Amazon bought Whole Foods to make AmazonGo and AmazonFresh better, and to get a head start in the food industry. Amazon bought Ring in order to get a head start in the security camera industry. Finally, when Amazon buys these companies, they can make more of those products for cheaper, sell them for cheaper, and place them as the first results, and make more money. Amazon is so wealthy that if they have competition, they can buy their competition! In 2009, Amazon bought Zappos when they expanded into online fashion retail, and Zappos was their main competitor.
The main reason why Amazon is different from other companies is that they think about the future. They build now to make more later. They buy more companies to make more later. Amazon doesn’t care about making money now, it’s making more money in the future.