Are you ready for the Amazon expansion? Recent reports suggest Amazon is planning to open 2000 brick and mortar stores starting in 2017. Analysts are now wondering if this could be the beginning of the end for the strictly Pureplay model or ecommerce companies need both a physical store and online portal to survive.
All About Profit
Amazon’s latest earnings report certainly show disappointing results. Net income was $252 million in the third quarter, or $0.52 per diluted share, compared with $79 million, or $0.17 per diluted share, in third quarter 2015.
This downward trend was mainly due to:
- High Shipping costs.
- Increased revenue from cloud services – an increase of 55%, $3.23 million.
- High fulfillment expenses – The company added 18 fulfillment centres in 2015.
- Investments in artificial intelligence, Alexa.
- Increased expansion in India.
The question to ask is what is the best strategy? Are you going to pursue a Pureplay model, the retail model, or a combination of both? Contact us and we will help you to research the best strategy for your business.