An Insider View:

An Insider View:

Release date: September 14th, 2011 (48 pages)
PDF/Powerpoint format. Price: GBP500.00


Amazon is on track to overtake Carrefour in the next decade

A strategic evaluation explains how the world fastest growing retailer achieved growth of 40% in 2010. Stellar growth of this kind is usually only seen by companies growing from very low bases, not on sales volumes of US$34bn that Amazon generates.
The analysis is provided by Europe’s premier experts on online retailing, strategy and insights, based on in depth conversations with former and current Amazonians.

Analyses the interplay between customer centric loyalty approaches such as ecosystems (Kindle), recommendations, peer reviews, and the supreme loyalty tool, the delivery service Prime.
Explains the significance of marketplace in terms of sales contribution and sales growth driver, price deflator, data warehouse, range multiplier – all achieved without significant upfront Capex.
Outlines the leveraging of cutting edge technology on the back end (cloud, use of algorithms) as well as on consumers’ smartphones.
Shows how Amazon’s successful execution has resulted in many online consumers beginning and ending their online shopping journey at the retailer.
In 2010 which grew faster marketplace volumes or sales through the primary Amazon website?
What is it about marketplace sales that makes it so successful? Why is it the perfect cash cow?
What are Amazon’s sales broken up by the various country sites? How much do the UK, Germany and Japan account for of Amazon’s global net sales? What about China and Italy and the potential of soon to be launched Spain?
How much has mobile contributed to Amazon sales in 2010?
How many Kindles have been sold in 2010?
Demonstrating the success of the ecosystem, new Kindle owners buy how many more books than prior to owning the device?
What is the targeted turnover generated from the device for 2011?
How many of the forthcoming tablets can the e-tailer expect to sell in Q4 2011? Assuming the price remains under $300?
How many of Amazon’s active buyers, those who bought from the retailer in the last 12 months, are Prime subscribers?
How much bigger is the contribution to sales from Prime subscribers on average compared to non-Prime subscribers?
How many of Amazon’s sales come from returning loyal customers – driven by recommendations, product reviews, the ecosystem, Prime etc?
Assuming growth maintains an even trajectory, by what time should Amazon have caught up with the world’s second largest retailer Carrefour – at constant exchange rates?


Benchmark your performance against Amazon’s KPI
Find out whether it makes sense to partner or to compete with Amazon
Puts online retailing into context, by revealing margins, debts, losses etc.
Learn about Amazon’s white spaces and where weaknesses are
Understand how to copy winning strategies such as ecosystem development, loyalty driver creation, the use of algorithms and delivery passes such as Prime
Have access to key figures about Amazon’s Kindle sales and loyal customers that the retailer does not usually share
Find out how big Amazon will become over the next decade

Table of contents

Overview p6 Country presence, careful internationalisation p7 Categories, aspiration from “A to Z” p8 Acquisitions, past, present & future p9 Partnerships, successes & failures p1 0 Recent Developments p1 1 Going physical p1 2 Catering for students, App and Trade–in p1 3 DM partnership in Germany p1 4 Trade-in roll out and reaping the benefits p1 6 Publishing and Prime revamp in the US p1 7 Mobile advertising on the Kindle p1 8 Launching the cloud player, beating Google and Apple p1 9 Financial benchmarks p2 0 Global financial data, 2008 – 2010, stellar growth (US $) p2 1 US and international financial data 2008 – 2010, shift to international? p2 2 The marketplace contribution 2008 – 2010, rapid growth driver p2 3 Categories data 2008 – 2010, shift to hard goods despite e-books contribution p2 4 International sales split per country in €m, e 2008-2010 p2 5 UK, Germany, France, Italy - Analysis p2 6 Japan and the promise of China - Analysis p2 7 Strategies p2 8 Combining the right strategic tools ... p2 9 dominate the future of retailing p3 0 Private label proposition and digital downloads p3 1 The cloud player, the always connected consumer, a supreme loyalty tool p3 2 Kindle the creation of an ecosystem and the e-book revolution p3 3 Kindle price cut, mass market uptake, competition p3 4 The forthcoming Kindle tablet, Android and sales projections p3 5 Marketplace – the game changer p3 6 Marketplace stretching into fulfillment p3 7 Consumer facing innovations – reviews, recommendations and nudging p3 9 Prime, the jewel in the loyalty crown p4 0 Mobile, an early adopter, Amazon remembers, Sales contribution p4 1 A potent cocktail of growth enhancing strategies p4 2 Outlook p4 3 Investments, cloud, back end and ecosystems p4 4 Competitive barriers and in house expertise p4 5 Global dominance, Spain, on its way to overtaking Carrefour in the next decade p4 6Resolving the tax issue in the US p4 7 Sources p4 8