As holiday numbers continue to roll in, it’s hard not to be in awe of the Amazon’s utter dominance, and likely huge profits, in 2015. At 39.3% of online sales between November 1 through December 6, up from 37.9% from the same period a year earlier,Amazon owns enough of the market to be bigger than the next 21 retailers combined. After years of putting infrastructural improvements and building capacity before margins, CEO Jeff Bezos is seeing his vision come to life. 69 cities now have Amazon processing and shipping facilities and 1-Hour delivery has been steadily rolled out in several geographies this year. Prime has become all but ubiquitous: with so many customers almost entirely used to 2-day shipping, it was only a matter of time before Amazon saw this reflected in their margins. Bring on the drone delivery.
“Jeff Bezos was beaten up for a long time about the infrastructure investments he made and the drain on profitability it caused,” said Ken Cassar, vice president of analytics solutions at Slice. “He is seeing the payoff on those investments.”
Below, an illustration from Bloomberg on Amazon’s unquestionable ecommerce dominance: