Page 65 - Fear Unmasked Flipbook

THE WINNERs AND lOsERs Of THE sHUTDOWN

pandemic has forced many businesses to shut down
their storefronts and to direct their customers to
their website as much as humanly possible. People
are scared to go outside as news agencies continue
to drown them in worst-case, fear-induced scenarios
related to the spread of the coronavirus, so the only
way they can buy products is by using online stores.
Amazon owns the e-commerce market. 38.7

percent of all US e-commerce sales flows to Amazon
according to eMarketer. Did you know that during
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February 2020, that people visited Amazon.com over
2 billion times? There are 2,419,200 seconds during
the month of February which means that if you divide
the number of times people visit Amazon.com by the
number of seconds during the month of February,

you get over 830 visits per second.
Amazon knows how to react quickly to market
changes. For example, Amazon expanded its
fulfillment center staff by hiring 100,000 people and
increased the hourly wage across the board by 2
percent as of March 16, 2020. Now while sales are
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up, traffic is up, visitors are up, the question is what
does this mean for Amazon revenues. Can Amazon
convert an increase in demand and sales into an

increase in revenue?
The market is underestimating the coronavirus
impact on Amazon. Amazon is also suspending

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