But as Amazon uses its powerful platform to bolster its private-label business, there is also debate in legal circles whether some of its activities could be viewed as monopolistic in nature. Some say Amazon could face a legal challenge akin in size and scope to when the Department of Justice two decades ago filed antitrust charges against Microsoft for bundling its own browser into its software, making it difficult for consumers to install a browser from Microsoft’s top competitor, Netscape. Microsoft lost that court battle.
At this point, some might think it’s too late to buy Amazon (AMZN - Free Report) stock since its run of absolutely insane growth is over. But Amazon’s days of impressive expansion don’t look like they are done just yet. And now might be a good time to think about buying AMZN stock before Amazon reports its Q3 financial results on Thursday, October 25.
Sports brands such as Nike, Under Armour and Adidas are among the most-bought brands bought on Amazon. These brands’ presence across both clothing and footwear likely supports their leading positions—and, as we discuss later, footwear is a very popular category on Amazon Fashion. Lower-cost casualwear also ranks highly, as do underwear brands such as Hanes and Fruit of the Loom, implying that Amazon is popular for basics.
Our survey found that membership declines from the April 2018 peak spanned the income scale, although the greatest declines were among consumers in the $35,000–$74,999 income range. This is a demographic that has a near-average Prime penetration rate, meaning that the group does not exhibit the growth potential of lower-income households, which account for a smaller proportion of Prime members. But those in the $35,000–$74,999 income segment also do not have the financial security of those in higher-income households, which account for much higher-than-average subscription rates. So, these data may imply that those in the “squeezed middle” are canceling their Prime memberships at higher rates than those in other income groups, despite an apparently benign economic context.
Bloomberg reported yesterday that Amazon is using its own ‘Vine’ reviewer program to dramatically increase the number of product reviews for some private-label products. Bloomberg’s analysis found that the Amazon Basics motor oil product has almost as many product reviews three months after launch as a close competitor, a Valvoline motor oil product. Eighty percent of Amazon’s product reviews are from the “Vine Reviewer” program, an Amazon program where brands pay for selected users to review their products, compared with zero Vine reviews for the competing Valvoline product.
In August 2012, Amazon announced it would be adding a gaming department to its company titled Amazon Game Studios. Amazon stated that it would introduce "innovative, fun and well-crafted games" to consumers. According to the Amazon Game Studios website, the last game that was launched by the department was Amazon's first ever mobile game Air Patriots, released on November 1, 2012.
On July 15, 2015, to commemorate its 20th birthday, Amazon celebrated "Amazon Prime Day", which Amazon announced would feature deals for prime members that rivaled those on Black Friday. Also that month Amazon Prime announced that it would be signing Jeremy Clarkson, Richard Hammond, and James May, formerly of BBC's Top Gear, to begin working on The Grand Tour, due to be released in 2016. On July 13, 2016, Amazon Prime said customers placed 60 percent more orders worldwide on "Prime Day".