We are at the very birth of a technological era that involves a structural change in the economies of developed countries. One of these changes is happening in retail, with the emergence of Amazon and the constant growth of online sales.

Amazon has provided its millions of daily consumers with low prices and the largest selection of products in the world at the time of purchase. Much of the necessary consumer products are on Amazon and shipped to your door in a few days.

 

The flexibility of this business model to adapt to consumer needs with maximum convenience is one of the keys to understanding the expansion of online commerce versus retail. That’s why Amazon today has a market capitalization of $ 461 billion in stock market and Amazon’s founder and CEO Jeff Bezos has dethroned Bill Gates as the richest person in the world.

While these statements may seem anomalous from the figure of the president of the largest world power when attacking one of the main companies in the country, the fact is that the data endorse the decline of retail in recent years versus online commerce.

Since 2011, it has become clear that the growth of retail trade in the United States has slowed in the face of accelerated growth in online commerce sales. Presently, retail sales are retreating against the 13% growth in online sales.

In the United States, Amazon poses a threat to retail workers. Many companies in the retail sector are reducing their workforce and in the last two years, 125,000 workers in the sector have been dismissed.

Amazon, along with other online commerce vendors, has led to US department stores dropping jobs by 250,000 workers, or 14% since 2012.

Currently, about 12 million retail jobs are facing the increasing competition offered by Amazon, more specifically 6.2 million people working in the type of stores that are mainly located in large shopping centers.

2 Comments to: These are the losers in the Amazon business model

  1. Daniel

    August 19th, 2017

    Some day, probably very soon, we all will regret this fall of the traditional commerce.

    Reply
    • newsroom

      August 19th, 2017

      You do not explain why do you think that, but what it could be more interesting is to know what you are doing about this issue, and what we all can do about this change.

      Reply

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