The Dominant Position Of Amazon (NASDAQ:AMZN) In The Online Retail Industry Is At A Risk

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Amazon (NASDAQ:AMZN) is no doubt the biggest online retail company. The revenues of this company were greater than the total revenues of the next top 9 U.S. online retail companies all together, according to the reports of Statista. The company offers its customers almost everything that can be conceivable. Moreover, for its premium members, Amazon also delivers the purchased products for free.  These premium members, however, have to pay a total fee of $99 each year in order to ensure that their stuff get to them as fast as possible.

Many of the market experts are wondering as to whether Amazon (NASDAQ:AMZN) will continue to enjoy a leading positing in the retail industry, especially after Target (NYSE:TGT) and Walmart (NYSE:WMT) have improved their services.

According to the latest studies, Amazon is not the only low priced online retail company that is out there. Wells Fargo Securities conducted a one year long study on apparel, health, electronics, and cosmetic products that are offered online. The results showed that Walmart (NYSE:WMT) offers all these products at a better rate of 10 percent less than other online companies. Moreover, Target (NYSE:TGT) offers the same products at 5 percent lower prices than that of Amazon (NASDAQ:AMZN). The report further showed that Walmart and Target are competing aggressively, and the chances are that the prices will go down even further in the coming months.

Another report released by ShopSavy showed that the prices of Walmart beat the prices of Amazon when it came to some overlapping products. Walmart offered 85 percent of Televisions and 66 percent of other electronic items at lower rates than that of Amazon, giving rise to 23 percent and 28 percent of savings.

But then again, it depends on the products that customers want at a particular period of time.  Deutsche Bank recently conducted a survey on 65 items that Amazon, Walmart, and Target offer. The results revealed that prices of those items on Amazon were 5 percent less than Walmart’s prices. Similarly, the prices were 7.9 percent lower than that of Target’s prices.

Coming to the stock prices of Amazon (NASDAQ:AMZN), the company, on the last trading day of December 26, 2014, started its stocks at a price of $305 and closed at a much higher price of $309.09, after hitting the highest price of $310.78. The company’s total market capitalization was recorded to be at $143.11 billion.  It is important to mention here that the stocks saw an increase of 6.06 percent on the last trading day. Comparing this increase with the current stock prices, it will not be wrong to say that the stocks are gold right now.

On the contrary, the stock prices of Walmart Stores (NYSE:WMT) rose only by 0.48 percent. The stocks opened at a price of $86.18 and closed at a price of $86.91, after hitting the highest price of $87.14. The company has a total market capitalization of $280.13 billion.

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