Amazon was born as a place for Covid-19: Every business field is like a kite in the wind, stronger, the crisis is getting stronger, the future is stronger!

When the Covid-19 epidemic broke out and caused many people to stay indoors, several companies benefited, the most of which was Amazon. From vegetables to cleaning equipment, packages shipped from Amazon have become lifesavers with many people trapped in their homes. Company executives compared the increase in demand with the goods at the same level as the annual festive shopping season.

However, e-commerce is not the only field where Amazon witnessed strong growth. Analysts say Amazon Web Services (AWS) also sees skyrocketing demand as people flock to use the services of some of their customers like Zoom and Netflix to do business. work and play.

Amazon also has platforms that give users access to audiobooks and TV shows to keep people entertained. And as more and more people stay at home, they have more and more time to stick with Amazon-powered AI-powered smart devices.

The immense level of growing business interests and central location in Amazon’s fragile US supply chain underscores the company’s importance to consumers and its dominance potential in the next month.

“The longer this crisis goes, the worse Amazon becomes,” said James Bailey, a professor at George University.

“Every crisis creates gaps. And no matter who can fill those gaps, they have terrible power.”

Amazon is not the only company to benefit. The crisis has helped the whole e-commerce industry boom. According to Bank of America, the sector grew 16% in March compared with a year ago. This consumer habit may remain until the crisis is over, so it is likely that it will create a wave of Amazon’s profit change for many years to come.

However, thanks to its size and efficiency, Amazon is growing stronger in a crisis than its competitors. In this crisis, Amazon may be able to collect another $ 4 billion in revenue this year, although the cost during this period may increase, making its profits slightly lower.

There is an undeniable fact that Americans are increasingly dependent on Amazon. And when the recession hit, it reinforced the question policymakers had always wondered even before the Covid-19 epidemic: Did Amazon have too much power? is not?

Reset position

The most obvious change in demand for Amazon services is not surprising in its core business of retail. The company has built a reputation for super-fast shipping, leaving customers with long delays with essentials like hand sanitizer, toilet paper and thermometers.

An Amazon spokesperson compared the volume this time to what they saw during last year’s festive shopping peak. Last week, Amazon said in a post that it was nearing the end of recruiting an additional 100,000 employees to “meet demand”.

Not to mention, Amazon’s retail business also extends beyond e-commerce. In addition to the acquisition of Whole Food, Amazon also purchased a separate delivery service for vegetables Amazon Fresh. Both are currently willing to benefit from the fact that people have to stay home. A spokesman for Amazon did not hesitate to express that: “This time is very interesting”.

The power of the Internet

While all the focus is on e-commerce business, few people know that cloud computing is Amazon’s golden egg. Financial statements show that AWS accounted for 63% of the company’s operating profit last year.

Nowadays, as the demand for digital applications becomes popular among pandemics, Amazon’s demand for cloud computing is increasing.

“Are you seeing the popularity of apps like Slack, Zoom, Fortnite, and Netflix? They’re all AWS customers. The activity of some of these customers has even increased,” Justin Post said. – experts from Bank of America said.

Help customers fill downtime

Not only has Amazon witnessed a dramatic increase in demand for physical goods, but it also benefits from switching to digital devices when people are at home.

Amazon now owns Audible – an audiobook platform. Last month, Audible gave users access to hundreds of free audiobooks as a program to help people entertain during the pandemic. Since the launch of Audible Stories on March 19, the amount of traffic to the website has increased dramatically. These new products have received millions of views every day from around the world.

Meanwhile, if the increase in digital entertainment could be on YouTube and Netflix, Amazon’s Twitch is no less competitive. This is an online platform for users to watch live streaming of other people playing online games.

In recent weeks, the company confirmed to CNN that traffic and views on Twitch have increased around the world, especially channels connected to sports and music.

Before Covid-19 arrived, Twitch was one of the 10 most popular video streaming platforms across the internet. Now, when demand is high, the company even has to reduce video quality in the European region.

Amazon’s influence will make its impact in other ways, far more significant. When bored with Netflix’s movie store, Americans can switch to Amazon’s television series or buy ebooks to read on Kindle.

In the home, Amazon’s smart devices can help users to schedule meals, ask them to play a song … In general, people can use Amazon services for all needs of life.

Stronger stronger, stronger future

What makes Amazon seem especially born to the epidemic crisis is not the ability to serve the needs of people from afar or their huge customer base. What matters here is that it makes Amazon the best mined retail machine on earth, creating positive feedback loops – the more effective it becomes, the more compelling it becomes.

Consumers do not have the time and money to waste. That was obviously true before the crisis hit, but now it is even more true. That means the crisis could solidify Amazon’s future strength. And that can make some rivals who are less effective, difficult to adapt to their crisis will have to die.

Every detail shows that Amazon is better equipped than its competitors to fight the crisis. Wealth, scale, and supplier relationships have become key factors that help them gain valuable character when any crisis occurs: Resilience.

Until a few weeks ago, Amazon was still receiving a lot of criticism, especially from policymakers about their monopoly, too great power in their hands.

Now, as Americans become more reliant on Amazon than ever before, questions about Amazon’s influence and growth restrictions are raised.

“The Covid-19 pandemic this time will cause people to switch to more online shopping, which clearly benefits Amazon – the biggest giant in the industry.”