Amazon is likely to hit US$100 billion in annual revenue and is on a growth path that eclipses the world's most successful retailer--Wal-Mart.
That revenue projection comes from Morgan Stanley analyst Scott Devitt. In a large research report that emphasized that Amazon has plenty of runway left for growth, Devitt made the following points:
- Amazon can fuel growth just by taking wallet share from its existing customers. Amazon's 121 million customers spend about US$275 a year. Wal-Mart's 300 million customers spend US$750 a year excluding groceries and Sam's Club.
- International expansion continues.
- New efforts such as Amazon Web Services and digital sales via the Kindle platform are promising.
- Subscription e-commerce for grocery staples is another promising avenue. I've been experimenting with subscription groceries for things like tea and cereal. Overall, Amazon's pricing needs to come down a bit vs. Wal-Mart--based on my informal Dignan Go Lean and Frosted Flakes cereal index--but scale should help that.
Read more of "Amazon: On track for $100 billion in revenue in 2015" at ZDNet.