Amazon Prime — Burn to Grow - Commoncog

Amazon’s growth story hit an unexpected snag in Q3 of 2004. Its online retail store was still growing, but at a slower pace compared to Q3 of the previous year. As an example, the year-over-year growth of its largest product segment, US Media (books, music, video) went from 15% to 12% growth. Not a huge slowdown, but this was a company that had set its sights on becoming an ‘everything store’. By comparison, Best Buy posted an annual sales growth rate of 17% that year. Furthermore, the shift from offline to online commerce was accelerating. This meant that Amazon could lose its head start amidst online retail’s growth if the trend continued.

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