Amazon’s Next Big Move: Predicting the Future of E-commerce & Cloud Computing

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Written By Kris Enyinnaya

E-commerce and cloud computing are two impactful innovations in recent times. One of the companies at the forefront of e-commerce and cloud computing is Amazon.

Chances are you’ve already used one or more of this company’s services. Based in Seattle, Washington, Amazon’s e-commerce, cloud computing, advertising, and digital streaming services have given it worldwide acclaim.

Quick fact, as of January 2024, Amazon has a mindblowing market cap of  $1.62 trillion

Amazon however had humble beginnings. Jeff Bezos founded the company in July 1995 as an online bookselling company,though the vision he had in mind was bigger than just an online bookstore.

He was able to expand the product catalog from just books to clothes, appliances, music, gadgets, and other items over the years.

Over the decades, this company’s success story has involved moving from selling only their goods to serving as a platform where other third-party retailers can connect with interested buyers. 

The company now offers several services, products, and subscriptions with their major services being Amazon Marketplace, Amazon Web Services (AWS), Amazon Prime, and the famous AI assistant, Alexa.

Read More: Will Amazon Remain a Titan in The Stock Market?

How did Amazon Dominate the E-commerce Market?

Undisputably the world’s largest e-commerce platform, In 2023, Amazon made a whopping $133.5 billion in global revenue from e-commerce alone.

Mindblowing, isn’t it? Amazon’s success is the e-commerce industry is as a result of a  dedication to enhancing customer satisfaction and simplifying online transactions, which ensured a dominance in the e-commerce market and shot the company ahead of its competitors..

UPS parcel delivery woman scanning parcel from Amazon online ret — Stock Photo, Image
Credits: DepositPhotos

For starters, Amazon is one of the e-commerce companies that offer rapid shipping times.  Just order a product and watch it arrive faster than most e-commerce services.

This is basically due to abundance of strategically located warehouses and a fleet of delivery vehicles that make it easier for them to deliver products to their customers within two days.

This gets even better, you can enjoy this perk all for free if you’re an Amazon Prime subscriber.  

Amazon also offers an excellent shopping experience to members and non-members alike with special features such as a responsive user-friendly interface, an efficient search bar, an AI-powered recommendation engine, and a smooth and straightforward “Buy Now” option. 

These features improve user experience and also allow buyers to search for their preferred items with ease, ultimately making the buyer journey, from searching for a product to making a decision and checking out, simple and hassle-free. 

Furthermore, members of the Prime subscription enjoy numerous incentives that encourage buyers to return for more. 

Lastly, Amazon offers customers a wide range of products and brands to pick from. The average individual is sure to find different brands of the same product on Amazon. This has earned it the reputation of having the best deals. 

As a result, more buyers patronize the platform. The equal opportunity it presents also encourages more retailers to sell on it, leading to competitive pricing as different brands or retailers try to outbid each other and attract more customers. 

Amazon’s Innovation in Cloud Computing

Amazon Web Services is the leading voice in the Cloud computing industry. Thanks to their services, companies, individuals, and governments can easily access the IT infrastructure they need to carry out their operations effectively — without buying or investing in the hardware structures required to carry it out. 

AWS offers clients a pay-as-you-go subscription plan that grants them access to a familiar and fully functional programming model, architecture, database, and operating system on which they can build. 

AWS’ Infrastructure as a Service (IaaS), Software as a Service (SaaS), and Platform as a Service (PaaS) solutions handle the technical aspects of the business so that founders and business owners can focus on the operational activities. 

Their solutions cover several cloud computing services related to storage, computing, machine learning, databases, networking, etc. — basically taking the bulk of the technical work off their clients.  

One major advantage of AWS is its simplicity and accessibility. Clients don’t need technical knowledge to navigate the platform. 

It’s designed with the average businessman in mind. Hence, users can easily access built-in applications and add their desired SaaS applications without prior coding expertise. This feature has made it popular among founders and business owners alike.

Another benefit of AWS is its cost-effectiveness and scalability. With the pay-on-the-go payment structure, businesses can start small and then scale as their needs change with them only needing to pay for the services they require each time.

Even more, Amazon’s cloud computing services are flexible and clients get to choose their preferred database, operating system, programming language, etc. Lastly, this company pays special attention to data privacy.

Their services allow users to encrypt their data and manage visibility control easily.

Also Read: The Electric Future: Analyzing Rivian’s Role in the EV Market

Amazon’s Upcoming E-commerce and Cloud Computing Projects

Amazon has a reputation for disrupting the industry and coming up with fresh ideas and innovations. 

Expansion into New Markets

Amazon announced its plan in 2023 to set up shop in South Africa. Though this project has been challenging, the multinational is still making plans and intends to kick it off in 2024. 

Robert Koen, the General Manager of the sub-Saharan Africa region, in a press release expressed the company’s eagerness to help local brands and business owners grow their businesses with Amazon. 

The company has also expressed interest in expanding to other untapped regions like Nigeria, Chile, Colombia, and Belgium. 

Supply Chain by Amazon

FeedVisor’s prediction that 72% of brands will be on Amazon by 2024 seems to be actualizing speedily. Amazon recently launched Supply Chain by Amazon, a service designed for third-party sellers. 

This service simplifies the delivery process by picking up goods directly from global suppliers and shipping them straight to customers. 

Experts project that this service will significantly lower costs, and make the delivery process cheaper and faster for third-party sellers. Considering that 70% of SMB Amazon sellers are third-party sellers, and 86% of sellers already use Amazon FBA, this development could significantly affect the entire ecosystem. 

This service would also allow third-party sellers to offer more competitive prices, giving them an edge. Projecting further, Supply Chain by Amazon could attract more third-party sellers to the Amazon network, setting it ahead of its competitors once again. 

According to research carried out by Jungle Scout, 89% of Amazon sellers are profitable and 63% are profitable within a year. Furthermore, 22% of SMB sellers made over $10,000 in monthly sales.

The Future of Cloud Computing

With Amazon at the forefront of the cloud computing industry, the predictions about the evolving cloud computing landscape are certainly interesting.

In the future, there will be developments that’ll include hybrid and multi-cloud adoption, AI integration, and the rise of edge computing. As more organizations adopt cloud computing, there will be more importance placed on security. 

Freight semi trucks with logo loading or unloading at warehouse dock. Editorial 3D rendering — Stock Photo, Image
Credits: DepositPhotos

In the next few years, cloud computing will also offer businesses and organizations more opportunities to revolutionize their operations. Businesses that fail to adopt this technology risk falling behind or incurring higher operational costs.

Closing Thoughts

Living up to its reputation as an industry bigwig, Amazon once again is pushing past the boundaries of technological innovation as the company aims to further improve customer satisfaction and streamline how companies and individuals execute their business. 

Read Next: The Future Of Netflix: Can It Maintain Its Streaming Dominance?



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