Top Reasons Why Amazon is the Future of Online Shopping

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Online shopping has come a long way since Amazon’s inception in the early 1990s. As a website that started out selling only books, Amazon had quick success making sales in every state and over 45 countries in its very first month. In fact, the company rang a bell every time there was a sale and had to quickly turn off the bell due to the number of sales they were bringing in. This in itself was a clue that Amazon would eventually turn into the future of online shopping.

Ecommerce was the big winner coming out of 2020 and the COVID-19 pandemic. While the eCommerce industry was already doing quite well with 15% growth year after year, 2020 brought a whopping 32% growth to online retailers. Amazon had a massive part in that success, given their unique shipping times and range of products. Check out these six reasons why Amazon is the future of online shopping and how you can get in on their success.

Unphased by Global Pandemic

The many lockdowns and quarantines of the pandemic kept us all at home and shut down brick and mortar stores. However, Amazon proved to be a lifeline to many of us who needed an item but had no other way to purchase it. It is true that Amazon had to adjust to pandemic life, but the adjustments were minor compared to those businesses that had to close and lock their doors.

While we can all hope that there will not be another pandemic like this, we can’t guarantee that either. So no matter what happens in the future, Amazon should continue to be unphased by global pandemics or have less of an adjustment period in providing goods and services to the public than competitors.

Increased Demand That is Still Growing

Another reason why Amazon is the future of online shopping is due to its rising profits. Amazon’s 2020 annual revenue grew a whopping 38%, up to $386 billion. Add that Amazon’s net profit was up 84%, and there is a good chance that Amazon isn’t going anywhere but up. As a result, consumers save both time and money when it comes to shopping online. The convenience of Amazon has made a considerable difference in the way people shop today.

Continued Shipping Winner

While any growing company has a few hiccups when it comes to supply chains, Amazon has learned from the past and created a supply chain that is hard to beat. Amazon purchased 11 more cargo planes last year and plans on having 85 jets in the skies by the end of 2022. More planes mean increased delivery time to juggle demand.

Amazon figured out how to get items to doors in less time than shipping to competitors as well. While shipping usually takes an average of 5.1 days from click to door, Amazon decreased its time from 3.4 days to just 2.2. This quick shipping feature is now becoming a norm where consumers expect ultra-fast shipping no matter where they live or where they made their purchase.

Security in the Platform

Person holds two large Amazon boxes

Amazon’s dropshipping services are secure

All of this success allows those sellers on Amazon who use dropshipping services a unique umbrella of protection. Amazon has the online shopping key, and those who partner with them on their platform can get in on the action as well. 

Their unique part of the market opens doors to eCommerce store owners who would never be able to reach as many consumers without Amazon’s website. So while Amazon still is the primary winner in the eCommerce world, it also allows smaller store owners a seat at the table to provide items and variety to more consumers. 

Imitation by Competitors

Other online retailers and markets have watched Amazon’s success and have tried their best imitation. Delivery times have dropped, and online eCommerce sites have stepped up their game regarding features and overall ease of purchase. Those brick-and-mortar stores that did most of their business in person now offer websites that are a considerable part of their overall success. Some of these stores, like Kohls, even offer to pack and ship Amazon returns for free. Imitation is the best form of flattery and is a nod to just how well Amazon is blowing everyone else out of the water. 

Going Into Grocery

The fresh foods market has always been part of the consumer industry where Amazon has had less of an impact- until now. After purchasing Whole Foods in 2017, Amazon has made waves in significant cities by recently opening its Amazon Fresh stores. These stores offer a smaller building than most grocery stores, with the added convenience of cashier-less technology. Instead, simply walk in, scan the items on your Amazon app, and walk out. While Amazon Fresh stores are only located in California and Illinois, initial media reports estimate that at least 84 more stores are in the works.

This news from Amazon has made it easy for both investors and entrepreneurs to start eCommerce stores. Like NextGen Strategic Investments, Amazon management services help both investors and store owners manage and build their stores without any extra work. Earning passive income is the dream for many of us, so why not make it a reality with Amazon? 

There are so many reasons why Amazon is the future of online shopping. We can all agree that the 2020 pandemic showed consumers how important the brand is when shopping and delivering items that we all need (and want). The future is bright for Amazon, and their diversification and unique staying power are too good for eCommerce store owners to miss!

Learn how NextGen can help boost your business through an Amazon eCommerce store. Contact us today for a free consultation to see if NextGen would be a good fit for all of your passive income needs!


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