Amazon’s model is not suited for their perpetual growth in coming years. Amazon must consider investing some of its substantial cash reserves to diversify its portfolio of businesses to help protect them against the ever-changing technological and consumer patterns by creating new avenues for revenue growth. Amazon posted a small but unexpected loss in the second quarter of 2013, as it continues to spend heavily on fulfillment centers and digital content. Amazon.com lost $7 million, 2 cents a share, after earning $7 million, 2 cents a share, a year earlier. Amazon can roll out an online payments option that lets shoppers make purchases on websites by logging in with their regular Amazon accounts. Their very own service such as PayPal. By doing this they will benefit their company the most because in the past customers had to separately enter their account details for each purchase made at one of Amazon’s third-party retailers.
Now, Amazon could enable companies to make millions of Amazon customers their customers by inviting online shoppers with Amazon credentials to access their account information safely and securely with a single login.
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This alternative will also enable Amazon to have a better control on their customer base. The only drawback of this alternative is that Amazon will encounter competition from services such as PayPal.