Amazon Is Crazy Against WAL-MART. The Play Is Really Good.

According to Amazon's third quarter earnings report for 2015, net sales rose 23% to 20 billion 580 million US dollars in the same quarter, and net profit was $79 million. Compared with the same period last year, Amazon's earnings report was bleak and its net loss was 437 million US dollars.

Now Amazon's market capitalization is about $316 billion 200 million, and WAL-MART's market capitalization is about $194 billion 400 million. In the battle between retail sales and physical retailing, Amazon is the champion of the global retailing industry.

So what is Amazon, who is only 20, who beat WAL-MART with 53 years of development? The reporter analyzed the Internet development, technology development and user loyalty from Amazon.

Amazon, founded in 1995, started only online book sales, and then expanded its business from music, film, electronic products and toys to jewelry, clothing and auto parts, and now users can almost buy most of the goods they want from the Amazon.

Amazon's market expansion is not without trace. In the past few years, it has acquired the fashion retail website Shopbop, and launched the clothing discount website Myhabit and menswear website East Dane.

In the process of Amazon expansion, what has WAL-MART changed the traditional retail format? WAL-MART, founded in 1962, has created a one-stop shopping mode of consumption. It has gathered small businesses to sell goods to a larger store and concentrated sales, and successfully solved the market pain of scattered consumption in the past.

WAL-MART's innovation has undoubtedly raised its market value and has gradually become the benchmark of the global retail industry.

However, an innovation does not mean permanent profits. When WAL-MART expanded to a certain scale, the cost of past advantages, such as distribution centers and large shops, was getting higher and higher.

In addition, the rise of the Internet era has led to the shift of user consumption habits to the online market, making WAL-MART's traditional retail businesses worse.

Reporters learned that in 2015

The number of employees is 150 thousand, WAL-MART is 15 times, and has 2 million 200 thousand employees.

Amazon's per capita income is $621 thousand, while WAL-MART is only $220 thousand, a difference of 3 times.

WAL-MART's total revenue in 2014 was about $480 billion, and Amazon was its 1/5, about $90 billion.

Among them, WAL-MART electric business revenue accounted for only 1 billion 200 million U.S. dollars, far less than Amazon's 2007 level.

WAL-MART's annual profit in 2014 reached $about 10000000000, but Amazon has been hovering between small profits and losses. Nevertheless, in terms of revenue growth rate, WAL-MART has declined by 0.1% over the same period, and Amazon has increased by about 20% in a single quarter.

From these figures, it is obvious that the high per capita income and the rapid growth of revenue have revealed that the efficiency of the Internet is bound to increase the electricity providers faster than traditional retailers.

It is hard not to get into the predicament of logistics. Amazon is no exception.

With the founder Bezos's view that "we are not doing retail business" complement each other, Amazon has already demonstrated the style of a technology company in dealing with the confusion of logistics centers.

Back in 1990s, Jeff Wilktaung, who was appointed director of the logistics department, was renamed the Fulfillment Centers, or FCs.

Welker has thoroughly implemented the style of technology companies, and set up 10 supply chain computing teams. The computing team can calculate the storage time and location of Amazon's logistics network, and how to integrate the orders of different products of customers effectively.

In addition, in order to make the order fulfillment center's batch sorting more smoothly, Amazon rewrote the soft program.

Through technical control of all links, the system completes the sorting with the quickest and cheapest delivery method.

Technology helped Amazon reduce its costs significantly, and Amazon also used to lower prices to boost sales.

AWS has been growing rapidly since its official launch in 2006. Net sales from AWS business in the third quarter of 2015 amounted to $2 billion 85 million, an increase of 78% over the same period last year of 1 billion 169 million, a 8% share in total net sales, and a profit of 521 million US dollars, higher than that of last year's 98 million US dollars.

The existence of AWS greatly subsidized Amazon's losses on other businesses.

Many large enterprises and government departments, from online streaming video provider Netflix, the largest picture social networking site in the US, Pinterest, short rent originator Airbnb to NASA and CIA, are all AWS customers.

In addition, AWS has helped Amazon cut prices nearly 50 times in the past ten years.

In addition to its core business, AWS has accelerated its pace of innovation. More than 1170 new functions or applications have been released. In addition to 2011 and 2012, the annual rate of growth is more than 70%.

According to market research firm Market Research Media report, from 2015 to 2020, the annual composite growth rate of the global cloud computing market will be 30%, and the market size will reach 270 billion US dollars in 2020.

It can be deduced that as a pioneer in cloud computing, Amazon will continue to shine brightly in the feast of cloud computing.

Bezos listened to it in 2002.

And computer book Chatim OReilly's proposal, Amazon began to develop a series of application interfaces, allowing third parties to build other websites on the basis of them.

Since 2006, Amazon has become a leading provider of cloud services, providing infrastructure services such as storage, computing, database and networking, and platform services and related software services such as analysis, application, deployment management and mobile services.

Since then, developers, customers and third vendors have become a new group of supporters of Amazon, and the new team also has a formal name: AWS.

Now, the surprising news of Amazon's defeat of WAL-MART is not unusual. Amazon's success is no accident, nor is it simply a victory for the Internet business.

Amazon's business development is unstoppable. What is essential is its positioning for its own enterprises, its pursuit of technology and its innovative ideas that will always progress with the times.

Of course, Amason has been committed to the success of providing customers with high quality services, and has made an excellent example for the Internet industry today.