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Showing posts from April, 2019

The Principles of Amazon's expansion

Amazon is big. It accounts for 43% of all online sales and has a market cap of close to 1 trillion USD$. What are the reasons behind the size of Amazon and where it is heading ? This is what we will attempt to tell you in this article. This article however is not about how Amazon values the consumer and tries with all it's resources to give you more for less. This article will be about the real mechanics that lead to Amazon being so big and invincible. Here are the key designs that made Amazon the most valuable company in the World. 1) The Marketplace  In order to able to capture such a significant market share in the online retailing business, Amazon needed to expand fast. The faster it expanded in the markets for different products and the more "territory" it gained, the less would be available to it's competitors, and the key thing that allowed Amazon to expand at the needed pace was the Marketplace . The Marketplace is where, on Amazon, sellers and