According to Wall Street firm Needham, the US-based retail giant Amazon will lead the e-commerce segment by 2021 and will account for 50 per cent of the segment’s revenue in the country which will be 16 per cent up from current 34 per cent.
“We believe Amazon’s established dominance in the US is sustainable with Prime, mobile penetration and third-party growth,” said Kerry Rice of Needham.
Amazon’s Prime feature, which allows subscribers free two-day shipping for a US $ 99 per year charge, along with other entertainment offerings such as television shows and music streaming, makes the retailer popular amongst millennials.
Adding to that, Research firm Consumer Intelligence Research Partners states that Amazon had around 65 million Prime users last year, more than double the number in 2014, and the members are expected to increase in the coming years which will lead to more shopping on Amazon.
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Amazon is also investing a lot in innovative technologies. It recently developed an “Outfit Compare” feature in its app which will tell Prime members what to wear. The feature now effectively adds one more accomplishment to the online retailer’s ever-growing list of offerings. This shows that Amazon is trying to stay ahead with better and innovative solutions to attract more consumers.
