How Can Amazon Web Services Disrupt Industries In The Future?

Amazon Web Services


Jeff Bezos once said that the competitor’s margins are something to look for. Because for him, that is the place where he aims to make a profit. It has certainly stood true for Amazon Web Services (AWS).

Amazon found that margin in the Ecommerce business, and we all know how well Bezos is utilizing that opportunity. Today, Amazon is the leader of the eCommerce industry.

On the contrary, the tech giant has now started a brick and mortar grocery chain and uses technology-based robots for local deliveries. In June 2018, Amazon acquired the online pharmacy service, PillPack.

Amazon’s network has grown to the point where every small business wants to work on the same network. This has made them look for ways on how to sell on AWS Marketplace.

How Can Amazon Web Services Disrupt Industries In The Future?

To understand the extent of Amazon’s disruptive potential, we have done a thorough research and concluded that the following industries are in close proximity of being disrupted in the near future.

  • Pharmacy.
  • Small Businesses.
  • Logistics.
  • Groceries.
  • Payments.

Let’s understand these points in more detail.

1. Pharmacy

The pharmacy industry is one of the industries that will only grow in the future. With new advanced technologies and medical achievement, we can assure you that the pharmacy industry will grow. And the same future has been foreseen by Amazon.

Jeff Bezos wants to be the first mover in the modern pharmacy industry. This is why you will see Amazon trying its best to spread its roots in the pharmacy market. Their effort resulted in forming PillPack in 2018.

After entering the market in 2018, Amazon has already started disrupting the pharmacy market by capitalizing the pharmacy market shares by the lies of Walgreens and CVS.

2. Small Businesses Lending

It was 2011 when Amazon entered the commercial lending industry. Since then, Amazon has offered its services to hundreds and thousands of businesses with commercial business loans.

When Amazon entered the market, the market was perfect for Amazon to spread its business. The world was recovering from the 2008 global financial crisis. This event has threatened the global financial infrastructure. People were losing their confidence in the traditional system.

Over the years, Amazon has increased its client user base. Currently, they have more than 8 million third-party merchants.

3. Logistics

For Amazon, selling products is the second priority. Their first priority is to sell the products that really matter to the audiences. They have followed these methods to satisfy their audiences by keeping the right product in the right inventory.

Amazon focuses on keeping the local products to ensure that its audiences get the things they are looking for every time.

The shipping industry is one of the earning pillars for Amazon. And Amazon takes pride in its delivery services. Amazon claims to have one of the best delivery systems to make the customer wait the least number of days to get the products they have ordered.

4. Groceries

The Grocery industry is one of the only few things venturing due to real-life failures. Companies like Homegrocer, Wineshopper, and Kozmo have gone bankrupt while venturing into this domain. However, Amazon was able to pull this off. It is estimated that the currency grocery empire of Amazon is well over $800B.

Amazon is contacting all the local sellers and affiliating with Amazon to get everything fresh and deliver the groceries in just 2 hours.

With the advent of digitalization, it is predicted that the grocery market will soon become a staple product of eCommerce.

5. Payments

Digital payments are the new trends in the financial industry. This is why you will see third-party platforms affiliating themselves with the banks to offer digital transaction services. Amazon also influences this industry in the form of Amazon Pay.

Amazon has been building its presence in the digital payment world in the form of:

  • Amazon Pay.
  • Amazon Visa Debit/Credit Cards.
  • Amazon Go.
  • Amazon Cash.

The Bottom Line

The presence of Amazon has already disrupted the industries we have mentioned. But it is considered that Amazon will continue to grow its influence further. At the pace, Amazon is moving forward. We can hope to see Amazon’s presence in every industry in the future.

Leave a Reply

Your email address will not be published. Required fields are marked *