Amazon.com, Inc. (NASDAQ:AMZN) is eying to capture a bigger slice of the online spending during the current year’s holiday season in US. The company is expected to face tough competition from bigger retailer firms like Wal-Mart Stores, Inc. (NYSE:WMT) or Target Corporation (NYSE:TGT) and others.
Spending Indication
There is already an indication that Amazon.com, Inc. (NASDAQ:AMZN) is gaining its share from the online spending in the current year. For instance, the e-commerce spending between November 1 and December 6 enabled it to capture 39.3% compared to 37.9% in the same period last year. This was disclosed by Slice Intelligence that collected data from the e-mail receipt of about 3.5 million shoppers during the period.
The online retailer is way ahead as even a combination of 21 retailers’ share put together falls short of it. Those retailers included Wal-Mart Stores, Inc. (NYSE:WMT), Best Buy Co Inc (NYSE:BBY), Target Corporation (NYSE:TGT), Home Depot Inc (NYSE:HD), Costco Wholesale Corporation (NASDAQ:COST), Macy’s, Inc. (NYSE:M), and Nordstrom, Inc. (NYSE:JWN). Their share was 38.6% while all other retailers’ share was 22.1%.
Strong Network Of Warehouses
The success for Amazon.com, Inc. (NASDAQ:AMZN) has not come easily as it spent billions of dollars in the last twenty years to establish a strong network of warehouses, as well as, shipping hubs in 69 cities in the America. Those fulfillment centers were meant to deliver merchandise to both businesses and homes. The shoppers now got used to the two-day delivery practice adopted by the retailer.
Currently, Amazon.com, Inc. (NASDAQ:AMZN) is improving its delivery pattern with Prime Now in big cities to capture large sales from even brick-and-mortar stores. Forrester Research said that the total online shopping witnessed 11% growth in November and December to reach $95.5 billion, which was in-line with the expectations. Another data from ChannelAdvisor indicated that the online retailer recorded 19.5% sales jump in the second week of the current month. That was quicker than the overall 15% growth witnessed in the e-commerce segment.
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