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Amazon's integration of online retail and total supermarket business boosted its market value by breaking $1 trillion.

via:博客园     time:2018/7/10 17:11:30     readed:125

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Amazon chief executive Geoff beos

BI Chinese station report in July 10th

As Amazon's competitors, it has reached the level of personal danger.

By next year, the e-commerce giant will occupy about half of the market share in the United States, according to Daniel Ives (Daniel Ives), an analyst at GBH Insights. But Ives said Amazon bought the whole food supermarket last year and took a series of measures to combine Prime members with high-end supermarket chains to further boost their online retail business.

While Amazon's acquisition of supermarkets and investments in other areas of business will drive down margins in the short term, Ives says, it will create a new kind of product in the near future.

Amazon's strategy seems to have seen returns. Amazon is expected to announce its second quarter earnings later this month. Ives expects Amazon's retail business in North America to be stronger than Wall Street's expectations. At the same time, Amazon will not only bring more performance than expected, but also provide more clear guidelines for the third quarter performance expectations.

Based on this optimistic analysis, Ives raised Amazon's target share price from $1850 to $2000. If this goal is achieved, Amazon's market capitalization will exceed $1 trillion. Ives has said before that Amazon will become the first publicly traded company with a market value exceeding 1 trillion dollars.

Deepening the link between the whole food supermarket and the Prime members

As the most representative online retailer, Amazon has been involved in the field of physical sales for the first time after acquiring the city's supermarkets. It is widely believed that Amazon will promote its online retail business by buying whole foods supermarkets, and vice versa.

In recent months, Amazon has begun to take action. First, the company deploys lockers in the whole food supermarket. Customers can get the goods ordered from Amazon in the locker and reduce the return rate. In some areas, Prime members can also order goods directly from the city's supermarkets and deliver them within two hours. The total supermarket also provides an extra discount for Prime members.

Ives said that these measures are only the first step of Amazon's future plan. The link between the city's supermarkets and Amazon's online stores is becoming more and more closely linked, which will not only promote the sales of both sides, but also make the competitors more uncomfortable. These measures are likely to promote the continued purchase of Amazon Prime members in the city's supermarket members, while Prime members can enjoy the membership price of the whole food supermarket.

Amazon's share price rose by $19.06, or 1%, and $1726.69 on the previous trading day.

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