Amazon announced great sales numbers Tuesday. But the story behind the story is more interesting: Amazon is a good reflection of consumer adoption of Web transactions.
Despite its technology embarrassments in recent months, Amazon's revenue in the second-quarter soared over the same period last year by an astounding 51%, the fastest growth in a decade.
This is not a story about Amazon being a great stock in which to invest. In fact, Amazon's profits in the quarter actually declined 8% compared to the same period a year ago.
But what impresses me about these sales numbers is the astronomical growth in Internet acceptance by consumers.
Small companies can, of course, show astronomical growth rates because their sales start at zero. Amazon is not a small company, however.
A decade ago was the last time its sales grew at this pace, and that was when the Internet boom had just begun.
Interestingly, Pew Internet Project announced yesterday that more than 70% of online adults in the US report watching clips on video-sharing sites, a 5% increase from last year, and a 38% jump from five years ago.
Point is, more consumers are comfortable about transacting on the Web. What's that mean to your business?
If you're an advisor who is technologically challenged, please let me know how A4A can help you.