AmazonFresh has been available for some time now, providing millions of products the same day or the next day delivery service. But for now, the system is only carried out in several large U.S. cities and international cities and its cost is not low: Amazon earns an additional $ 15 AmazonFresh charge each month for Prime members, and charge an extra $ 10 if orders are less than $ 50.
Amazon's acquisition of Whole Foods, the food company's original retail store and distribution center will help further expand the AmazonFresh system. Conversely, by expanding the size of Amazon's food distribution allows shipping locations closer to customers and lower delivery costs, helping to reduce AmazonFresh monthly fees and minimum order quotas.
2. Amazon Prime fee is expected to increase
In 2014, Amazon raised the Prime membership fee from 20 US dollars to 99 US dollars. Since then, Amazon has significantly expanded its Prime product line, one-day delivery services and invested billions of dollars to develop Prime Video and other digital content services.
As of now, the Prime system has attracted millions of consumers. In 2018, there is a high probability that Prime contributions will exceed 99 U.S. dollars. Meanwhile, Prime Contributions in Germany ($ 58) and Japan ($ 34) are likely to rise as well.
3. Amazon begins to take Latin American markets seriously
Amazon management has noticed that the past international expansion was too limited to the current chance. This seems to explain why Amazon is still a small player in some of the major Latin American markets and does not even exist in some countries.
Now, Amazon is gradually adjusting its international expansion strategy. Last year in March, Amazon Prime system launched in Mexico. It is reported that Amazon plans to open a large warehouse near Mexico City. In October last year, Amazon Brazil Station allowed third-party sellers to sell electronic products. In 2018, Amazon will seek a bigger move to seize market share in Latin America. It is hard to imagine that Amazon will allow MercadoLibre to dominate the Latin American market with a population of more than 600 million and GDP of more than 5 trillion U.S. dollars.
4. India and Advertising became Major Growth Engine for Amazon
After billions of dollars were invested in local warehousing and logistics in India, Amazon quickly became an important player in India's thriving e-commerce market. Amazon India's total sales rise 67% in the third quarter of last year, making it a key contributor to 29% of total Amazon Q3 growth and will make even greater contribution to Amazon's business growth in the future.
Amazon advertising business has also become an important Amazon growth engine. Thanks to the popularity of Amazon's App and the large amount of customer data that Amazon can use to target ads. Among the company's "other businesses" reports, ads were the largest revenue contributors with an annual growth rate of 58%. In the third quarter of last year, advertising revenue reached 1.1 billion U.S. dollars. In 2018, advertising revenue exceeded 6 billion US dollars does not seem to be a problem.
5. Clearing sellers
In the United States and other markets, Amazon has expanded the number of third-party sellers at an alarming rate. Shoppers are able to enjoy more product choices and lower prices as sellers compete. While Amazon gets more revenue through commissions, order delivery and advertising. However, as the Amazon market expands, quality control becomes more challenging. Searching for hot items often results in a series of identical listings comes from different sellers, and reports of counterfeit merchandise sales and other unethical behavior have increased significantly in the last two years.
Amazon attaches great importance to customer experience must increase market supervision 2018, stop harsh sellers open shop, to avoid the emergence of a large number of the same listing damaging the consumers shopping experience.
6、Amazon is likely to acquire physical retailers again
At present, Amazon is working to build Prime Whole Foods customer reward program, and use Whole Foods' infrastructure for food distribution. Once these things are done, Amazon is likely to find another entity retailer for acquisition.
7、AWS usher in more large enterprise customers
Many large enterprises, such as GE and Capital One announced that they plan to close large data centers, and some of the workload transferred to Amazon AWS. In addition, AWS handles the cloud infrastructure needs of Internet / cloud companies such as Netflix, Workday, Zendesk and Boxes. With the price of AWS declining, its huge set of features continue to grow. November AWS re: Invent conference brings dozens of new products, including hot products alternative competitors. At the conference, Amazon announced a cooperation agreement with Disney, Expedia and Turner. By 2018, there may be more big businesses choosing to use AWS cloud services.