Keeping Up with Amazon

Introduction

For the last two decades, Amazon has been busy revolutionizing the retail industry. It started selling books online in 1994, expanded to CDs and DVDs three years later, then came toys, electronics, jewelry, groceries, shoes, the Amazon Marketplace, and more.
Today, the company sells more than 450 million items online. In 2015, it sold more than $107 billion worth of merchandise online. The entire US ecommerce market was worth $341.8 billion last year. Other retailers may never be able to match Amazon’s reach, inventory, or technology back end and know-how. But they can match or even beat Amazon in the customer experience they deliver.
Along the way, it’s entered the cloud computing business, produces its own TV shows which it streams on its own video-on-demand service, and designs and sells its own hardware devices. And it’s moving into physical retail stores, opening a brick-and-mortar store in Seattle, with plans to open more stores in the near future. In short, Amazon has become the 800-pound gorilla.
Established or startup online retailers or brick-and-mortar retailers looking to build and grow their online presence have to contend with Amazon at some point. Other retailers may never be able to match Amazon’s reach, inventory, or technology back end and know-how. But they can match or even beat Amazon in the customer experience they deliver.

Amazon’s Performance Scorecard

Amazon, like every other website on the planet, is not perfect when it comes to performance.
We’ve chronicled some of their recent stumbles on our blog, including a 20-minute site outage in March and a 3 ½-hour search engine outage in June. Still, it generally scores high in availability. White it’s not the fastest site in the world, it generally does well in the most important metrics and outstanding.
Contrast that with some very high-profile retail site outages during that same holiday shopping season, including Target on Cyber Monday and Neiman Marcus on Black Friday. Failing on peak holiday shopping days or when site wide sales and free shipping promotions take place, is failing to compete with Amazon.
But what about Amazon’s day-to-day performance? A look at our Q1 ecommerce performance benchmarks shows that Amazon is relatively slow in document complete time—the average time it takes for webpage to become interactive—at 3.57 milliseconds.

Amazon’s Prime Day

On July 12, Amazon held its second Prime Day promotion. Amazon Prime Day is a one-day global sales event, featuring thousands of deeply discounted items exclusively for Amazon Prime members.
This year’s event was Amazon’s largest sales day ever, generating more than $500m in sales, according to multiple Wall Street analysts’ estimates. In some metrics, like document complete, the point at which a website becomes fully interactive, Amazon beats its first quarter average.
At least eight other major retailers held online sales and promotions for July 12 to counteract Amazon Prime Day. Wal-Mart, the world’s largest retailer, eliminated its $50 minimum purchase for free shipping. Kohl’s, Best Buy, JC Penney Co., Toys R Us, Sears, New Egg and Gap also had special sales and promotions.
Amazon did have some brief hiccups with its Amazon Smile fund-raising page and its checkout process, the latter pointing out the need for testing multi-step transactions (see Section 2 under Competing with Amazon below). But on its biggest sales day of the year, the company, though not the fastest site.
© Catchpoint Systems, Inc.