The online retail giant Amazon,may soon be on the pathway to become a trillion dollar company,according to the consulting firm Morgan and Stanley.
It is already one of the most valuable companies in the world owing to a vats number of diversions and a lot of value on the Wall Street.
What is the overall Market value of Amazon?
The overall market capitalization of Amazon is around $548 billion.It is soon going to be a trillion dollar company it is nearly twice its current size.We take a look at some of the Amazon Services.
Anyone who purchases anything on Amazon have a knowledge that there are two types of goods.
It is responsible for the first and the third party sales and the former is pegged at a much $200 billion and the later is at $400 billion.The point to be noted here is that Amazon gets a much higher margin as compared to its third party sellers.
There are 3 prime reasons for the growth of the popularity of the ONLINE giant.
The Amazon Web services
The growth in the online shopping
The continued popularity of its Prime web series.
Amazon WEB services
The Amazon cloud division could be worth $270 billion but actually the value is really conservative and Amazon has better growth margins on its third party seller business because it has to carry a few operational costs.
Amazon Prime and Advertising
An estimated of around 85 million AMERICANS subscribe to Amazon and also some of them are the Prime consumers who spend $1300 more than those who are not in the prime scale.
By 2022 according to a prediction by Morgan and Stanley,there will be 146 million subscribers for $21 billion.
Prime has been primarily responsible for Amazon’s success and the company has been heavily investing in it.
Amazon Chief Executive,Jeff Bezos recently leaped to become the world’s richest man overtaking Warren Buffet.
It is also responsible for bolstering its private label apparel and also consumer packaged goods.