Power Sellers Unite

elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

Everyone awed by Facebook's $50 billion valuation may want to break away for at least a moment to consider Amazon's future. An analyst with Morgan Stanley has predicted that Amazon will generate an impressive $100 billion in revenue in 2015.

To put that in perspective: Amazon reported $7.56 billion in revenue during the third quarter of 2010, $6.57 billion during the second quarter, $7.13 billion during the first quarter, and $9.52 billion during the fourth quarter of 2009 (totaling $30.78 billion), so $100 billion in a single year will represent a huge increase.

Still, summing up a report authored by Morgan Stanley's Scott Devitt, Larry Dignan wrote, "Amazon is likely to hit $100 billion in annual revenue and is on a growth path that eclipses the world's most successful retailer - Wal-Mart."

more.. link to news article

Patty00 · Joined: 13 Dec 2005 Posts: 1018

I can agree with the assessment made of Amazon. I sure do plenty of shopping there and I have had a smooth transaction every single time. That speaks volumes for the company. As far as the consumer is concerned they have their head on straight.

Now if Facebook comes out with some kind of shopping comparable to Amazon, all bets are off ;-)

theplainsman · Joined: 27 Dec 2010 Posts: 150

Yes, amazon is coming on strong, BUT wal-mart has the ingredients to jump start their sales even more than amazon does. With their brick and mortar stores everywhere and now their beginning in online selling soon wal-mart may be the biggest online seller of anyone.

Look what buyers could do. they could buy from wal-mart online and walmart could have a section at each walmart for online returns. So buyers would have the BEST guarantee and the leaset amount of time and trouble with buying from wal mart online items.

I think amazon knows this and is RUSHING very fast to set up physical locations.

Now all this will indeed stop even more the hard life of alternative sites trying to make it.

GreyJaguar · Joined: 12 Jul 2008 Posts: 316

I remember when internet online sales first started becoming popular (ebay was greatly involved with this), it primarily was by small sellers, not large corporations. In fact, large corps weren't even particularly interested in having an online presence.

Now, it's all going back to the same issues as with brick and mortar businesses--small businesses vs. large companies. Large companies both on land and on the internet have the bucks to advertise squeezing the small businesses to the back of the line when it comes to exposure to the consumers.

highdesertdetails · Joined: 20 Dec 2006 Posts: 548 Location: Great Basin

Just where is Amazon setting up physical retail stores? And Walmart already sells online. Quite frankly it doesn't even come close to the experience of Amazon.com. Walmart is too invested in going into towns and demolishing what's left of mom and pop stores. Plus they have spent a lot of time trying to rebuild their image and presence in the areas their stores already reside.

None of this - amazon or walmart is going to stop the hard life of alternative sites trying to make it. Plains - if you bothered to use Amazon.com you'll see many of the sellers are alternative - and come from other sources than directly Amazon.com.

Are you trying harder to provoke a response now?

theplainsman · Joined: 27 Dec 2010 Posts: 150

Amazon is setting up alot of physical distribution centers physical locations hiring employees. This gets in the news and people ordering online from them feels more secure. And it would not be a stretch to see these big giants setting up physical locations for online returns .

I see this as one of the very best ways to do online selling and only the big bucks companies can do this and once they do this then the alternates will have a much harder time.

Yes, its in the interest of all sellers for alernatives to succeed BUT not knowing what the reality is or what the future looks to be is NOT in the interests of sellers.

I see some people love to attack me here, the only people that should be attacking me is owners of alternative sites and maybe their friends.... Even sellers who wants alternatives to succeed their interest is with me in wanting to know the reality. And wanting to know the future.

And i'm now wondering if flea markets may one day be taken over by the big bucks companies. But i don't see how they can with peoples garage and yard sales.

BUT the very good thing is we have some different companies with BIG bucks to compete against each other and that too will make it much harder for alternatives. With them competing against each other they will have to lower their profit margins to just enough where its worthwhile for them to continue and THAT then maybe the best for sellers even more so than any alternative without the competing big bucks and the efficientcy that goes with big bucks.

alternatives just cannot compete with how the big bucks can bring the BEST efficientcy and this is what makes the best deal for both the shoppers and the sellers.

highdesertdetails · Joined: 20 Dec 2006 Posts: 548 Location: Great Basin

I don't love to attack you but your posts seem to work hard at provoking people. And it's clear you are a cheerleader for the big guys. Nobody knows what the future is. Did all the people selling stuff from their garage's in the 90's, know that ebay would be what it is today? Would we have heard of any of these alternative stores?

Now you're saying flea markets are going to take over? Have you ever been to one?

I think you are missing the point - alternatives are not trying to directly compete with big buck companies. They are only trying to grab a share. Create a presence. If you open an alternative online store and think you are going to rival ebay or amazon.com - you are not thinking clearly and probably will fail. If you utilize places like Amazon and cross sell there, plus attracting people to your own site or ecrater site or atomic mall, etc., - you might be the smartest of all. Diversify.

And if Amazon becomes a massive giant - they'd better be careful. Even the big guys have problems.