Online giants Amazon could be responsible for nearly a third of all US e-commerce transactions, according to a leading analyst.
Despite the recession, many web based companies – including etyres, the UK’s leading online tyres retailer – have experienced sales booms.
Customers are looking for cheap prices and better value for money on everything, especially essentials like car tyres, and they are turning to the internet to track down the best deals.
According to Stephen Ju, RBC Capital analyst, Amazon’s reported revenues are a mix of gross revenues from its own businesses plus net third-party commissions.
Amazon has never given specific figures for these two areas, expect as a percentage of units shipped, and it is therefore difficult to calculate how much e-commerce the company is facilitating.
However, Ju predicts close to a third of all transactions are flowing through Amazon. It is widely recognised that the novelty of the company really hit home in the UK when it became widely-known among consumers that they could buy products online without paying sales tax.
The secret of etyres success is much easier to understand.
etyres offers a convenient mobile tyre fitting service and does not have expensive depots to maintain, therefore its overheads are low and the savings are passed on to customers in the form of cheaper prices – up to 40% lower than the leading high street tyre depots.
Katherine Clarkson, National Accounts