Amazon.com, Inc. (NASDAQ:AMZN) recent attempts at World Domination

Amazon.com, Inc. (NASDAQ:AMZN) recent attempts at World Domination

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If you require a goat grazer, Amazon.com, Inc. (NASDAQ:AMZN) has good news for you. It has out done itself once again with Amazon Home Services (a unique feature letting customers hire professional service providers for things such as house cleaning, furniture assembly, and lawn care, directly from its website). Presently the service can be availed in New York City, Sans Francisco, Los Angeles and Seattle. Amazon plans to widen service to other major USA cities in the coming months.

Well, isn’t Amazon over-stretched as it is? Not only does the e-tailer sell everything under the sun on its namesake website, but the company has also poured billions of dollars into a myriad of other business ventures in recent years.

Not to mention, a look at Amazon’s balance sheet reveals the e-tailer generated a net loss of US$ 241 million in 2014, on sales of, wait for it:US$88.99 billion. The company also suffered its widest quarterly loss in more than 14-years in fiscal 2014, because of its aggressive spending habit.

Also, because Amazon is simply taking a 10% to 20% commission on the cost of the service rendered, there aren’t significant overhead costs, as is the case with other Amazon ventures. Moreover, tens of millions of Amazon Prime members already trust the e-tailer for most of their online shopping. Therefore, selling these customers on-demand services backed by Amazon’s happiness guarantee seems like a no-brainer. Staying true to its roots of offering consumers the best possible value, Amazon will also let the service providers compete for a customer’s business based on price and availability. So this is clearly a win for consumers.

Amazon Home Services shouldn’t have a meaningful impact on the company’s bottom-line any time soon. It will take time for Amazon to scale this offering, as it is not yet available in many markets.

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Brayden Fortin is a American with numerous years of investment experience in the American Equity Market and in the Global Commodity Market. He has a B.Com degree from a well respected Canadian university and has experience working in the wealth management industry. He is interested in delving into numbers to analyze companies and markets. He won a couple of international strategy simulation competitions involving decision making through numerical analysis, and also scored in the top 50 on the Bloomberg Aptitude Test (out of nearly 200,000 test takers).

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