Amazon (AMZN) Boosts E-commerce Reach in Korea With Latest Move
Amazon (AMZN) launches Amazon Global Store on 11st to allow customers in Korea to shop global products seamlessly.
Amazon AMZN is leaving no stone unturned to bolster its international footprint. Its latest move of launching Amazon Global Store on 11st’s platform is a testament to the same.
The move allows customers in Korea to shop from the wide Amazon US selection, which includes more than 30 product categories like fashion, toys, consumer electronics and kitchen.
The huge collection of books on Amazon Global Store becomes accessible to customers in Korea via 11st.
Notably, Amazon strives to offer a seamless shopping experience to customers in Korea by allowing them to shop global products easily with the aid of its latest launch.
Additionally, customers are eligible for availing free shipping of their orders from the United States.
We believe that the move is likely to help Amazon to strengthen its presence in the e-commerce market of Korea.
Amazon.com, Inc. Price and Consensus
Korea Holds Promise
Ongoing digitization, increasing penetration of internet users, growing use of smartphones, solid adoption of AI in retail and expanding urbanization are the key factors behind the rapid growth of the online retail market in Korea.
According to a report from Statista, the e-commerce market of Korea is expected to generate revenues of $92 billion in 2021, which is anticipated to reach $112.9 billion by 2025, witnessing a CAGR of 5.3% between 2021 and 2025.
User penetration in the market is pegged at 74.5% and 83% for 2021 and 2025, respectively.
Additionally, ResearchandMarkets data reflects that the e-commerce market of South Korea is anticipated to reach $325.1 billion by 2025, witnessing a CAGR of 19.9% between 2021 and 2025.
We note that Amazon remains well-poised to capitalize on the above-mentioned immense growth opportunities.
The latest move of Amazon bodes well for its continued focus toward the expansion of its global e-commerce footprint.
Apart from Korea, the e-commerce giant is continuously making concerted efforts to strengthen its online retail business in countries outside the United States, which include the likes of Canada, Australia, India, UAE, Brazil, Germany and the U.K.
We believe that the strengthening global presence will continue to aid Amazon’s dominant position in the worldwide e-commerce market.
However, the company’s mounting expenses related to free shipping services, ultrafast deliveries and fulfillment network expansion across the globe remain major concerns.
Zacks Rank & Stock to Consider
Currently, Amazon carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the retail-wholesale sector are Revolve Group, Inc. RVLV, The Kroger Co. KR and Walmart Inc. WMT. While Revolve sports a Zacks Rank #1 (Strong Buy), Kroger and Walmart carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Revolve, Kroger and Walmart are pegged at 20.71%, 8.46% and 5.5%, respectively.
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