Many online retailers have been successful in their e-commerce business but Amazon.com, Inc (NASDAQ:AMZN) story is more juicer. A new report from Slice Intelligence states that the retailer captured 53% of online sales growth in the U.S. This was an incredible increment from the 40% of 2015. The company just had its best holiday shopping season to the astonishment of its rivals, the likes of Wal-Mart Stores Inc (NYSE:WMT).
Clearly, Amazon has maintained a significant lead especially in electronic products like Amazon Echo. The company has also continued to uphold its top position in shipping speed whereby it takes an average of 3.4 days to deliver a package. This is way too admirable compared to 5.6 delivery days taken by a majority of other online services who are still struggling to reduce this period.
In support of Amazon’s success, Slice principal analyst Ken Cassar writes, “Amazon maintains an obsessive focus on removing every pain point from the buying process. This is clearly exemplified with its Prime program, with free, reliably quick shipping.”
Wal-Mart responds to Amazon’s significant success
Not a single business feels safe when the market becomes competitive. In this regard, Wal-Mart feels insecure and has thus introduced a new initiative to keep the competition flame alive. The retailer will be offering a free two-day shipping on any orders above $35. This will apply to more than 2 million items according to The Business Insider. In doing this Wal-mart hopes to undercut Amazon Prime.
Wal-Mart’s US E-commerce CEO, Jeff Lore outlines that the store is considering adding more innovative strategies that will help attract more customers.
But Amazon is also working on something else
The e-commerce will not just go back to a comfort zone. There are rampant speculations that it is luring Australia into a close relationship which will involve existing logistic Companies and Australia Post. It is also salivating on the Marketplace program in order to win third party organizations, which come in handy in reaching more customers. Any third-party seller using Amazons Marketplace will have access to Amazon’s customer base.
As it is now the Marketplace is so far available on Amazon sites in over 60 countries. Meanwhile, Amazon’s stock closed at $832.35 witnessing an increase of $8.87 or 1.08%.