Following an official valuation earlier this month, Amazon has reached $1 trillion in overall company value.
Due to its growing momentum and regular uptake in market value, e-commerce giant Amazon has reached a $1 trillion (approx. £780 billion) company valuation just one month after Apple has become the first U.S stock to reach the impressive figure. With its dominance in the e-commerce market clear, eMarketer has predicted that 49 cents of every dollar spent on e-commerce purchases this year will be attributed to Amazon. With their emphasis on customer loyalty, an expansion into other services and creating new partnerships with a variety of established retailers, the e-commerce giant continues to prove to be a thorn in the side of small businesses and high street stores.
Amazon Prime Day
One of the main contributory factors in the new valuation being met is their decision to further extend their ‘Prime Day’ online promotion for Prime members. Sales during this period are told to have been the most likely cause for a sharp rise in Amazon’s stock price and overall estimated worth. Taking place in July, the promotion was crowned the biggest global shopping event in Amazon’s history, with the company quoted to have sold more than 100 million products worldwide. Interestingly, Amazon also confirmed that small businesses had accounted for more than $1 billion (approx. £770 million) of the sales made half way through the duration of ‘Prime Day’.
Retailers Fighting Back
Whilst now regarded as the driving power behind most online purchasing, brick and mortar stores and online retailers once feeling threatened by the e-commerce giant are starting to push back. According to discount aggregator LovetheSales, retailers are starting to fight back, with a new rise in the overall volume of discounted products now being made available to customers on a more regular basis.
“Data from July 2018 shows a significant shift from the norm as retailers look to take the fight to Amazon.” comments Stuart McClure, Founder and Chief Marketing Officer of LovetheSales. “The fact there are more discounts on electricals now than there were during the last Black Friday is staggering. Although Prime Day is still in its infancy, it’s quickly gathering pace and becoming one of the biggest shopping events of the year. Unlike Black Friday though, where retailers took time to catch up and see Amazon’s game, retailers are now on the front foot and are trying to beat Amazon to the punch.”
So, what will Amazon’s next milestone be?
Only time will tell, but we’ll be sure to keep a keen eye out here on the Office Supplies Blog