On Thursday night, Amazon shares dropped by nearly 5%. Though Amazon stressed unfavourable currency exchange rates, sales growth is at its lowest point in four years.
This is not to say Amazon is on the rocks. The last three months of 2018 saw the firm’s profits hit US$3.03 billion, a 63% increase. Amazon is valued at a record-breaking US$1 trillion.
Nevertheless, its robust profit margins are threatened in places like India, where new e-commerce restrictions prohibit foreign retailers from monopolising distribution, selling products of companies they’ve already invested in, and using deep discounts to drive down prices.
Amazon’s gradual decline in sales rates echoes the experiences of other online giants. Apple and Facebook now face the backwash of their own market-conquering waves. The world’s stagnating economy will also likely impact future growth.
Credit for this article's header image goes to Getty.