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Why Amazon’s Top Line Is Booming

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Amazon’s e-commerce segment boosts top line

Amazon (AMZN) has maintained its lead in the e-commerce space despite growing competition from e-commerce and brick-and-mortar retailers like eBay (EBAY) and Walmart (WMT). The company’s stellar top-line performance stems from the strong growth of its e-commerce segment, which is driven by its popular Prime membership.

The popularity of Amazon’s Prime membership in local and international markets positively impacts its top line performance besides providing it a competitive edge over other retailers. Moreover, Amazon continues to witness increased unit sales on account of quick delivery, low prices, and enhanced offerings.

In an effort to gain a competitive advantage over eBay and Alibaba (BABA), the company made small items manufactured by overseas players like mobile screen protectors and cosmetics to be Prime eligible, according to Bloomberg. The move is likely to speed up the delivery time of these items.

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Amazon’s sales are growing despite competition

Recently, Walmart has taken several initiatives to drive its e-commerce business including its latest acquisition announcement of Jet.com. The company is beefing up its offerings by expanding its online grocery ordering options including store pickup and delivery. Moreover, it introduced its ShippingPass subscription last year to compete with Amazon Prime.

However, all these measures shouldn’t worry Amazon too much since Walmart has much more catching up to do in the e-commerce space. Although Amazon has never been vocal about the number of members using its Prime services, it has stated that worldwide Prime subscriptions are growing at a healthy pace, which will boost the company’s top line.

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