If you’re a business owner and want Amazon.com to leave you alone, think again. Even though the company has received $50 billion in revenue in 3 months, it still has to look for new markets to enter.
From books to cloud services, to general merchandise, Amazon’s expansion has already shown some huge leaps. In the short term, it’s obvious that AWS is the main driver behind the company’s growth. Approximately, it increased their annual revenue growth by 50%.
That being said, Amazon is planning to move into three different industries. They plan on working on advertising, automated cars, and home security. One of these three ventures might become the next growth driver for the company.
So keep reading to find out!
Securing Revenue Growth
Amazon is already a successful company, but it has to continue to make innovations to keep its revenue growth. While it’s in competition with Google, the company still has applications, new physical locations, and improved services for their customers.
One of the main changes that Amazon is taking is moving to a service company. In the last quarter, about 60% of Amazon’s revenue comes from product sales. The other 40% came from service sales.
This trend is expected to continue, as the service sales increased by 59%, while the product sales have jumped to about 29%.
All of the industries that Amazon moves into focuses on giving services to their customers. The first business the company has to disrupt is a new development. Amazon obtained Ring in April this year. In Amazon’s true fashion, they aren’t afraid to undercut their competition in order to receive more market share.
Connecting Car to Home
It’s no secret that companies such as Amazon, Apple, and Google are competing obtain your smart-home dollar. Android Auto and Apple’s Car Pay have been in vehicles for years, but Amazon isn’t going to let their competitors have all of the fun.
Amazon isn’t a company that waits for vehicle manufacturers to add to their system either. There is a lot of third-party devices that can install Alexa in your car. For example, Garmin Speak is an Alexa speaker that’s placed on your windshield.
While most of this is made out of autonomous vehicles, a lot of analysts will expect that there is a larger layer of the market that has additional capabilities such as multimedia streaming, auto, maps, and a lot more.
Analysts expect that there is a slowdown in Amazon’s revenue growth. They expect that their revenue will decrease from 32% to 22% in 2019. If Amazon can collect around 5% in one of the three industries, it could lead to around $30 billion in revenue.
Amazon’s stock is far from cheap, as it has reached 75 times the expected rate in 2019. If Amazon is able to improve in its new ventures in advertising, connected cars, and home security, then its success will continue.
Overall, this news means that Amazon has aws developers for hire. This means that as the company continues to grow, they’ll start making more changes to their infrastructure. These changes will result in an increased demand for AWS developers that can help Amazon grow their annual revenue.