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What's Amazon's market share? 35% or 5%?

 

 

https://www.ben-evans.com/benedictevans/2019/12/amazons-market-share19

 

 

Interesting article, but I have one quibble. 

 

"That leaves ‘addressable retail’ (i.e. excluding cars, car parts, gasoline stations, restaurants and bars) of $3.6tr in 2018."

 

I dissagree that you should exclude car parts.  I've bought a lot of car parts on Amazon.  Not only windsheild wipers, but also break pads and rotors, spark plugs, and other things as well.  Also I think Wholefoods does compete with resaurants as a lot of its profit comes from prepared foods.  I think the addressable market is larger than the number the author is using.

 

 

 

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What's Amazon's market share? 35% or 5%?

 

 

https://www.ben-evans.com/benedictevans/2019/12/amazons-market-share19

 

 

Interesting article, but I have one quibble. 

 

"That leaves ‘addressable retail’ (i.e. excluding cars, car parts, gasoline stations, restaurants and bars) of $3.6tr in 2018."

 

I dissagree that you should exclude car parts.  I've bought a lot of car parts on Amazon.  Not only windsheild wipers, but also break pads and rotors, spark plugs, and other things as well.  Also I think Wholefoods does compete with resaurants as a lot of its profit comes from prepared foods.  I think the addressable market is larger than the number the author is using.

 

I know from firsthand knowledge that UPS and FedEx were hot on the trail of the aftermarket auto parts sector. The last year I worked in this segment it was one of the primary focus' for the marketing team. This market was far from being solidified (from the logistics standpoint). I'd imagine Amazon is doing similar research as well, but I can't say for sure. Small and heavy pays the bills. Many auto parts fit that description.

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  • 3 weeks later...

Bezos just launched his $10bn Earth Fund:

 

https://www.instagram.com/p/B8rWKFnnQ5c/

 

Today, I’m thrilled to announce I am launching the Bezos Earth Fund.⁣⁣⁣

⁣⁣⁣

Climate change is the biggest threat to our planet. I want to work alongside others both to amplify known ways and to explore new ways of fighting the devastating impact of climate change on this planet we all share. This global initiative will fund scientists, activists, NGOs — any effort that offers a real possibility to help preserve and protect the natural world. We can save Earth. It’s going to take collective action from big companies, small companies, nation states, global organizations, and individuals. ⁣⁣⁣

⁣⁣⁣

I’m committing $10 billion to start and will begin issuing grants this summer. Earth is the one thing we all have in common — let’s protect it, together.⁣⁣⁣

⁣⁣⁣

- Jeff

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https://www.theinformation.com/articles/aws-plans-to-double-size-of-sales-team-as-microsoft-looms

 

Amazon Web Services, faced with declining sales growth and mounting competition from Microsoft, plans to double the size of its current sales team this year, according to a person with direct knowledge and three people who have been briefed on the cloud provider’s plans.
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I sure hope they do too!!

 

But it also makes me wonder why Amazon is doing drug development and what they bring to the table that the multi trillion dollar pharma industry doesnt. Unless theres something unique they have that no one else is aware of,  those shareholder dollars can surely be put to better use

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I sure hope they do too!!

 

But it also makes me wonder why Amazon is doing drug development and what they bring to the table that the multi trillion dollar pharma industry doesnt. Unless theres something unique they have that no one else is aware of,  those shareholder dollars can surely be put to better use

 

Good question. I tend to give them the benefit of the doubt. So far they haven't shown a tendency like Google to spend huge amounts on stuff that mostly doesn't go anywhere, and they have enough smart people to know if they have a differentiated approach (that maybe isn't tried elsewhere because the financial incentives don't line up for big pharma?).

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Seems like a good thing/collaboration.

 

AMZN is going to be a winner out of the epidemic ordeal. Malls are getting whacked and I think for many stores that are faltering anyways, that this’ll be the death blow. More volume will move online, and AMZN wins.

 

I also wonder if a lockdown affects the cloud services. It’s likely that the cloud keeps the lights on longer than a private data center. These crisis accelerate secular changes.

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Amazon is a winner

Good saas companies are big winners

Even google saas will benefit dramatically (like google class room etc.)

 

I also think this event has a profound impact on the digitization path in China and Alibaba will benefit immensely --- this probably not fully appreciated outside of China

 

 

Seems like a good thing/collaboration.

 

AMZN is going to be a winner out of the epidemic ordeal. Malls are getting whacked and I think for many stores that are faltering anyways, that this’ll be the death blow. More volume will move online, and AMZN wins.

 

I also wonder if a lockdown affects the cloud services. It’s likely that the cloud keeps the lights on longer than a private data center. These crisis accelerate secular changes.

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  • 3 weeks later...

While Amazon's share price has not decreased much, AMZN is one of the few companies who may have increased in intrinsic value.  Has it and if it has, by how much?

 

- AWS increase in use, this could become sticky

- Their push to 1 day delivery forced them to improve on supply chain & delivery.  Forward thinking initiatives like this have allowed AMZN to be resilient with the greater demand (people are still happy with 2-3 day deliveries during this crisis)

- Move Prime accounts

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For sure the Corona situation has a shifted consumer behaviour in more or less permanent basis.

I have kept my AMZN steadfast for almost 4 years now and with everything else dropping it is turning into a portfolio anchor. 

 

Eager to see what is the impact on their cloud business

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hey all:

 

AMZN's reputation in Detroit is going down rapidly.

 

There have been grumblings that AMZN warehouse workers were not being given sanitizer, adequate bathroom breaks and such.

 

Now this is a headline item in the Detroit Free Press:

 

www.freep.com/story/news/local/michigan/wayne/2020/04/01/romulus-amazon-workers-walkout-coronavirus/5103071002/

 

Workers trying to organize a walkout as workers have been diagnosed with corona virus at distribution center.

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For sure the Corona situation has a shifted consumer behaviour in more or less permanent basis.

I have kept my AMZN steadfast for almost 4 years now and with everything else dropping it is turning into a portfolio anchor. 

 

Eager to see what is the impact on their cloud business

 

I'm curious as well.  It seems that they're very levered to the startup ecosystem vs. a microsoft, who is much more levered to the corporate side.  In this environment it seems like MSFT is going to be much more of a winner vs. AWS.  Having said that, I profess close to know real knowledge of the cloud world so if anyone has better information to share I'd certainly love to hear it.

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While Amazon's share price has not decreased much, AMZN is one of the few companies who may have increased in intrinsic value.  Has it and if it has, by how much?

 

 

I know we're kind of giving them a pass for the extraordinary situation we find ourselves in, but when I'm told as a Prime member that it will take 1 month to deliver an in-stock item because they are prioritizing other shipments, it's not helpful at all. If they dropped it in the mail I could have it in a week. I've actually shifted my online purchasing away from Amazon in the past 2 weeks.

 

 

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For sure the Corona situation has a shifted consumer behaviour in more or less permanent basis.

I have kept my AMZN steadfast for almost 4 years now and with everything else dropping it is turning into a portfolio anchor. 

 

Eager to see what is the impact on their cloud business

 

I'm curious as well.  It seems that they're very levered to the startup ecosystem vs. a microsoft, who is much more levered to the corporate side.  In this environment it seems like MSFT is going to be much more of a winner vs. AWS.  Having said that, I profess close to know real knowledge of the cloud world so if anyone has better information to share I'd certainly love to hear it.

 

I think we just need to wait for the earning to understand the impact on all cloud vendors

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While Amazon's share price has not decreased much, AMZN is one of the few companies who may have increased in intrinsic value.  Has it and if it has, by how much?

 

 

I know we're kind of giving them a pass for the extraordinary situation we find ourselves in, but when I'm told as a Prime member that it will take 1 month to deliver an in-stock item because they are prioritizing other shipments, it's not helpful at all. If they dropped it in the mail I could have it in a week. I've actually shifted my online purchasing away from Amazon in the past 2 weeks.

 

I agree - although they seem to be doing underpromise/overdeliver on this. I ordered a replacement light switch (we have prime) that was in stock, normally would be either 1 or 2 day delivery. They said a month because of prioritizing other items. Not in a rush and their price was good so still bought it. Had it in 2 days.

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While Amazon's share price has not decreased much, AMZN is one of the few companies who may have increased in intrinsic value.  Has it and if it has, by how much?

 

 

I know we're kind of giving them a pass for the extraordinary situation we find ourselves in, but when I'm told as a Prime member that it will take 1 month to deliver an in-stock item because they are prioritizing other shipments, it's not helpful at all. If they dropped it in the mail I could have it in a week. I've actually shifted my online purchasing away from Amazon in the past 2 weeks.

 

I agree - although they seem to be doing underpromise/overdeliver on this. I ordered a replacement light switch (we have prime) that was in stock, normally would be either 1 or 2 day delivery. They said a month because of prioritizing other items. Not in a rush and their price was good so still bought it. Had it in 2 days.

 

Not surprised, but they might want to adjust their wording, I've ended up ordering elsewhere.

 

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