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As Amazon Goes, So Does The Online Economy

recounts amazon's rise to the most recognized online retailer. for com 300.

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As Amazon Goes, So Does The Online Economy

  1. 1. As amazon goes, so does the online economy Shane Suzuki Communications 300 Feb. 2009
  2. 2. It all began with a whimper… <ul><li>The business plan for amazon.com was developed by Jeff Bezos and his wife during a cross country road trip in 2004. </li></ul><ul><li>The company didn’t make money until 2001. </li></ul><ul><li>It still has more than $1 billion in debt. </li></ul>
  3. 3. …but it is now a lion! <ul><li>According to the last published Annual Report, amazon.com had net sales of more than $14 billion in 2007. </li></ul><ul><li>In 2003, total online sales for the U.S. were $12.2 billion. </li></ul><ul><li>Amazon.com is the largest online book, movie, video and music seller in the world. </li></ul>
  4. 4. Amazon.com is in the middle <ul><li>Amazon.com owns no real estate, but has invested more than $1 billion in infrastructure. </li></ul><ul><li>This allows them help power other companies online sites including: Target, Sears Canada, Benefit Cosmetics, Bebe Stores, Timex Corporation, Marks & Spencer, Mothercare, and Lacoste. </li></ul>
  5. 5. Wall Street is still not sure about their business model <ul><li>Although amazon.com has made it’s mark as the largest online store, their lack of a traditional model and lack of hard assets make them a risky investment. </li></ul><ul><li>Despite it all, amazon.com is one of the few “dot com” businesses to continually and steadily grow their business; without the explosive growth – or declines - that epitomize much of online sales. </li></ul>
  6. 6. Front and center <ul><li>Amazon.com is not the largest online seller – eBay is bigger. </li></ul><ul><li>But, their sales are dependant on their users providing a product, so their sales are in a completely different arena. </li></ul><ul><li>When it comes to a virtual representation of a brick and mortar store, amazon.com is the brand the public thinks of. </li></ul>
  7. 7. Questions for you. <ul><li>Quick – name four other online retailers! Why is amazon.com so well known? What separates them everyone else? </li></ul><ul><li>How do you determine what online sites you will buy from? </li></ul><ul><li>How much will the economic downturn hurt amazon.com? </li></ul>
  8. 8. Works Cited <ul><li>Amazon.com. (2009, February 18). In Wikipedia, The Free Encyclopedia . Retrieved 05:24, February 23, 2009, from http://en.wikipedia.org/w/index.php?title=Amazon.com&oldid=271633639 </li></ul><ul><li>Bass, Thomas A. (1995, October). The Future of Money. Wired Magazine , Issue 4, Vol. 10 </li></ul><ul><li>D'innocenzio, Anne (2008, April 08). Online sales expected to rise 17% in 2008. USA Today </li></ul><ul><li>Financial Statements and Supplementary Data. In Amazon.com 2007 Annual Report (pp. 44-49). (2008). Retrieved February 23, 2009, from http://media.corporate-ir.net/media_files/irol/97/97664/2007AR.pdf </li></ul><ul><li>Kessler, M. (2003, December 22). More shoppers proceed to checkout online . Retrieved February 23, 2009, from http://www.usatoday.com/tech/news/2003-12-22-shoppers_x.htm </li></ul><ul><li>Online sales spike 19 percent (2007, May 14). In CNN/Money.com. Retrieved February 23, 2009, from http://money.cnn.com/2007/05/14/news/economy/online_retailing/ </li></ul><ul><li>Online shopping. (2009, February 16). In Wikipedia, The Free Encyclopedia . Retrieved 05:12, February 23, 2009, from http://en.wikipedia.org/w/index.php?title=Online_shopping&oldid=271102251 </li></ul><ul><li>Web sales will keep taking larger share of retail pie, Forrester says. (2009, February 18). In Internet Retailer . Retrieved February 22, 2009, from http:// www.internetretailer.com/dailyNews.asp?id =29459 </li></ul>