Not long ago, we wrote a piece about Amazon’s market dominance, and then we looked at how one challenger hoped to combat it. Well, we’re here to tell you the story isn’t over, and Amazon just keeps getting bigger and stronger. Now comes word from Bloomberg that during the big holiday shopping spree capped by Black Friday, Amazon captured almost 40% of online retail sales, more than its next 21 biggest competitors…combined.
Friends, the end is near. Soon, Amazon will be the one place we all go to shop. And that might not be a bad thing, as just about everyone has good things to say about Amazon. Of course, early on it was the punchline of a lot of jokes, as it spent and spent and made no money. But Jeff Bezos is no dummy, and clearly he had something in mind as he gave things, like shipping costs, away for free. The gamble paid off, because not only is Amazon now profitable, it is also ultra-dominant. It developed lots of good will among customers during its spending spree, which is just about the best way to do things – a whole lot more effective than say, spending a lot on Super Bowel ads…
Not everything Amazon has done has turned to gold – it’s play at daily coupons was a bust, just as it was for every other investor that bet big money on outfits like Groupon and Living Social, and it’s Fire Phone was a major misstep that anyone could have seen coming. And whether its Amazon PrimeNow foray into same-day deliveries makes sense remains to be seen, but it’s pretty impressive. And its Echo connected home device is getting rave reviews, and is sold out through the beginning of 2016!
As a sign of what’s to come, one of the biggest players in the PC industry, TigerDirect, is now in the process of shutting down sales of PC components. A quick search of its video card offerings reveals, wait for it…none. And TigerDirect has stopped selling most CPUs as well. At this point, if you want to buy something PC-related, or even generally tech-related, your two best options are Amazon or Newegg. And even that probably won’t last long. Newegg has been dominant for a long time, but all reigns come to and end. It still has the very best product information on the web for PC enthusiasts, but when push comes to shove, shoppers value fast, free shipping, free returns, and exceptional customer satisfaction, which Amazon has locked up.