Amazon (NASDAQ:AMZN) has been one of the companies that have been growing on a massive scale ever since the boom of the internet revolution. It has been steadily witnessing an upscale growth for the past decade ever since its inception. It has also been one of the only few companies that have pioneered all sorts of technological benefits and advantages for various operations in their business.
For instance, Amazon was one of the first companies that had considered the use of drones for the delivery of their products. Even though the drone delivery system has been limited and is still being developed, there are still various other forums wherein the company is working in.
In the case of business models, the online product delivery company has gone into procuring the sale of several household and perishable items. The company will soon be entering the space of offering daily household goods like coffee, tea, milk, spices, detergent and so on. These various products will soon be offered by Amazon, under the Amazon brand name. The private labeled Amazon goods is slated to add a sizeable slice and chunk of profits to the company’s already large and growing portfolio.
The move to begin offering such products online and directly to the customer’s doorstep is also perfectly timed in order to boost the sales of the 99 dollar membership that Amazon has been touting for a very long time.
The success that was expected for the company in the 99 dollar membership drive was limited, but Amazon are hoping that the sale of household goods and daily necessities would boost the company’s sale rate, and in turn, the company’s image. The move was made in order for Amazon to go the way that the company did with its private labelled electronic consumer goods.
Following a lead
Last year Amazon had launched their line of electrical goods like USB cables, flash drives, etc., Amazon had also launched their version of private labeled clothes for the masses. Amazon’s expansion into every sector and space of production seems to be an aberration from most other company moves.
While Amazon still relies largely on their ability to deliver other company products online, it is slowly but surely entering the production line space within various countries. This is estimated to add nearly 20 percent of additional revenue to the company’s revenue stream.