Forum Key Insights

Amazon – US e-commerce landscape and approach to M&A

  • Public Equity
  • Multi Sector
  • Global

Last month, Third Bridge Forum spoke to a former chief merchant at Amazon to discuss the company’s positioning in US e-commerce vs legacy bricks-and-mortar retailers, as well as regulatory headwinds. Here are the need-to-know insights from that Interview:

  • The specialist said that despite potential e-commerce sales declines coming off the pandemic, Amazon’s underlying share and drivers remain relatively intact. We heard this is due to Amazon Prime’s stickiness and new consumers captured mid-pandemic.
  • Though prior recessions have benefitted Amazon, the specialist believes it may feel the effects of a potential recession today given its sheer size. However, they said it “won’t suffer as much as a traditional retailer”.

“[Target and Walmart] don’t have anywhere near the selection that comes from overseas that Amazon has, and I don’t see that changing anytime soon.”

  • The specialist was “surprised” Amazon announced plans to scrap the number of fulfilment centres, claiming it seems “over-reactionary”.
  • Access to a new customer base, technology and human capital are the three main drivers to potential M&A activity at Amazon, according to the specialist. iRobot – Amazon’s recent acquisition – was likely tapped for its technology, we were told.

For more human insights on Amazon and its competitors, click on the transcripts below.

Related Transcripts

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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