Amazon May Have Won The Weekend, But It Has A Ways To Go To Catch This Global Online Giant
Even with combined online holiday sales, Amazon has a very long way to go to catch this global online leader.
PHOTO CREDIT: Getty Images
As someone who enjoys shopping from the comfort of my couch -- and because I avoid holiday retail rushes like root canals -- I have particularly enjoyed the rise of Amazon and all of the creature comforts it has afforded me.
So I was not surprised to hear that Amazon's online sales hit a record this past Black Friday holiday weekend, generating $5.03 billion in revenue, up from $3.34 billion last year. Additionally, the company's Cyber Monday shopping totals reached a record with $6.6 billion in revenue during the one-day online shopping rush.
Maybe more impressive is that Amazon reportedly accounted for 50 percent of all Black Friday online revenue this year and said yesterday that this year's Cyber Monday was its biggest shopping day ever.
This of course is wonderful news for Amazon, but nobody was more excited than the company's founder, Jeff Bezos, who saw his net worth sore to $100 billion after the weekend.
That is a lot of Amazon Dots.
And while these numbers are staggering and show only signs of increasing over the coming years, the accomplishments pale in comparison to another popular online shopping experience -- China's Singles' Day.
Originally started in 1993 at Nanjing University in China and creatively held on November 11 (11/11), Singles' Day was created to celebrate being single and provide for an occasion for single people to party together.
After a few years, China's e-commerce giant, Alibaba, picked up on the idea in 2014, trademarking the name and setting off ambitious plans to turn the holiday into the biggest shopping day of the year in China.
So far, it is working -- and in a big way.
This past Single's Day, Alibaba reported sales of $25.3 billion in revenue, a 40 percent increase from last year.
To put that in perspective, Singles' Day generated more in revenue than Amazon's Thanksgiving ($2.87 billion), Black Friday ($5.03 billion), Cyber Monday ($6.6 billion) and Prime Day in July ($1 billion) combined.
Without a doubt, Amazon has room to grow, albeit a smaller population with which to work. Consider, however, that a vast majority of US shoppers are still shopping in stores, with estimates in 2015 showing that 94 percent of all retail revenue was still be generated through traditional brick and mortar.
US shoppers simple prefer in-store shopping vs online, mainly because they like to "test the merchandise" before purchasing.
Personally, I think this will change, especially as more shoppers start to appreciate shopping in PJs, with a tall mug of hot chocolate, while getting caught up on Game of Thrones, versus the experience of wrestling a five year old for the last Fingerlings or a 45 year old for the last 4K television.
Trust me, the five year old will win. It's not even worth trying.
BY Young Entrepreneur Council