E-commerce scenario in the world: Role of Amazon in the rise

E-commerce and Amazon are attached through a reciprocating business line. Both the spaces have fulfilled each other’s requirements as time has turned ‘work done’ into ‘revenue produced’. Since 1994, after Amazon started its business, retail sales have boosted up significantly throughout the world.

As per Statista, “ By the end of 2018, total retail sales reached approximately 5.3 billion U.S. dollars, a two hundred million U.S. dollar increase from the year before. Retail sales have steadily increased from 2009, as the economy recovered from the drop due to the recession following the 2007-2008 financial crisis” Below are the statistics of Amazon sales from 2014 to 2020 in the United States and rest of the world.



As per the stats Amazon has been the major contributor in retail sales in the United States and in the rest of the world. Since the internet has revolutionized the era, and smartphones have acquired a notable portion of the digital market. And, people have started to rely more and more upon e-commerce for their daily needs. There has been a boost in Amazon sales and door-to-door e-commerce services.

Introduction to the role of Amazon in E-commerce: What has changed with time?

Firstly: Amazon and its journey

Amazon started its first venture in 1994 by selling books at the time through the internet. Nobody anticipated being as large as today at the time. But it grew consistently inspiring and motivating other entrepreneurs to start e-commerce businesses.

Secondly: Emerging e-commerce 

Parallelly, the internet which is the foundation for online business evolved as well. From the 2000s to 2020 it has done its part of increasing the availability of products and services on Amazon as well as on other e-commerce platforms.

Thirdly: Increased userbase

Furthermore taking advantage of the facilities available the user base on the internet has grown from few thousand to billions now. This has encouraged up the online shopping portfolios.

Fourthly: Increased transportation infrastructure

Advancement in vehicular transportation has evolved throughout the world and in the United States as well. The average time to transport an item from one place to another has decreased significantly.

Fifthly: Increasing e-commerce( say Amazon alikes) infrastructure

The infrastructure around the world has emerged as the prime source of development measurements and status of zones and regions of the world. This expansion has only increased the storage capacities of e-commerce and other retail-based businesses around the world.

Sixthly: E-commerce (Amazon) inspired business models

The emerging times have produced better business models and Amazon has well coped with it. For example, retail businesses could only watch Amazon grow and develop until the change was introduced in 1999.

Seventhly: Overall GDP growth

The boost in the average GDP of the world also contributed. This pushed the common folk out of poverty. Just because of it people got more power in terms of economy and went rather frequently to buy items than previous times. Hence, hoisting up the e-commerce sector.

E-commerce stores: Advantages of the huge customer base

A growing customer base is a source for a business. If there is an increase in the number of customers in the graph the sales trajectory will automatically skyrocket. Let us discuss some of the advantages of a growing customer base.

  • E-commerce businesses have more data to deal with an ever-growing customer base. Therefore increasing the data to research and sell to.
  • Online businesses like Amazon, eBay, Shopify, etc. will have more product support as per the research.
  • Saves time both for the consumer and the service-providing e-commerce companies.
  • E-commerce stores are always open giving an opportunity to sell 24/7/365. The automatic algorithm of Amazon and other e-commerce companies ensures the flow of sales continuously.
  • Scaling up has always been easy through an e-commerce platform as formalities such as warehouses can be skipped.

Going online: E-commerce Businesses continue to grow

Going online heightens up your sales”, a saying told well. The success of Amazon has inspired many businesses to go and grow online on an e-commerce platform. Online retailers have grown up consistently as the algorithm changes in Amazon have always personalized the experiences.

It is reported that nearly half of the sales of Amazon in 2019 were from third-party owners on Amazon. Furthermore, due to Corona Pandemic when people are forced to live in their courtyard, there is an increase of 77% in gross sales on e-commerce (say Amazon, Shopify, etc.) platforms.

Products on Amazon: Increasing revenue in E-commerce

As more and more people are getting engaged in e-commerce platforms for their needs the variety of availability of products on Amazon has also increased. Henceforth, this has lead to an increase in daily revenue and traffic on the online portfolio.

Amazon Prime: What has driven e-commerce?

Any offer at the right time fruits. The same befell Amazon prime. It was started on the 2nd of February, 2005 for providing exclusive privileges to the patent customers. Following has driven Amazon e-commerce:

  • Amazon FBA:  Fulfilled by Amazon is a unique feature that allows the seller to achieve new heights at the comfort of his or her home.
  • Jeff Bezos: Being the CEO of the company Jeff Bezos has run the company through a smooth road of achievements.
  • Amazon offers: The seasonal and non-season offerings have promoted the platform many folds.
  • Unique Advertisements: Unique style of advertisement of Amazon on media platforms has also brought “fame and name” to the company.
  • Seller product offering: A seller product offering sometimes beats Amazon’s offering on certain specialties. Thus, bringing more people to the ‘show’.
  • Social Media platforms: Social media platforms have promoted Amazon due to its wonderful feedback and service systems.

Conclusion: What has changed on Amazon since “Malgudi Days”?

From selling books to one of the largest companies in the world, Amazon has revolutionized itself and the industry. Change that has been brought by the company due to the contribution of the above factors is phenomenal.

Since the ‘Malgudi Days’ the most significant change is “the connection and trust factor” between the consumer and the seller. For example, one buys a product or one sells a product without knowing each other and with a least of conversation between the two. Since Amazon has been launched the world of e-commerce has only been seen rising to the economy.