Love for e-commerce and the exodus from physical stores and shopping mall has hit all traditional business system hard. According to Cushman & Wakefield’s latest U.S. economic forecast, now malls and physical stores are experiencing 50% reduction in terms of visitors. The rate of visitors has reduced by 50% between 2010 and 2013. On the other hand, the retailer giant, Amazon is soaring high with high market share.
Continuous growth of Amazon and e-commerce
The e-commerce company Amazon is continuously gaining market share. Amazon alone increased as much as 53% of online sales within U.S. in 2016. Cushman and Wakefield found that e-commerce engine continues to grow rapidly. As a share of retail sales, excluding automobiles sales, e-commerce has grown from 1% in the first quarter of 2000 to 9.3% in the third quarter of 2016. We expect that share to increase by another 1% by the end of 2018. This means that the current rate of $100 billion eCommerce sales per month will increase by roughly 25% to nearly $125 billion per month in the fourth quarter of 2018.
Experts in the field opine that Amazon’s card game is strong. Citing JP Morgan BI reported, “The penetration of Amazon’s credit card appears headed higher,” the bank said. “13% of people who do not already have an Amazon credit card say they are “very likely” to sign up for either the enhanced Chase card or Synchrony card.” Credit policy of the company is one of the strengths of the corporation. This year in January Amazon has renewed its long run relationship with JP Morgan Case & Co.
Amazon’s credit card strategy alone helps the company to get a high market share in the sector. Day by day more people are signing up adopting the credit card option.