Ted Bauman Take on Amazon Being a Monopoly

Some economist and investment analyst spend most of their time appearing on media outlets such as CNBC or Bloomberg TV among others to discuss investment issues. Ted Bauman is an economist and an investment analyst who spend most of his time researching on critical investment areas. Bauman focuses more on delivering results to thousands of subscribers who subscribe to his monthly newsletter The Bauman Letter. The Letter provides readers with innovative investment ideas through which they can preserve and secure their wealth. Bauman joined Banyan Hill Publishing formerly known as Sovereign Society in 2013 and within a period of fewer than five years has built the largest readership as his Letter attracts more than 100,000 subscribers.

Ted Bauman in one of his Letters is cautioning investors from investing at Amazon with the thought that Amazon is a monopoly. Amazon is the world largest online retailer company. Besides online retail, Amazon is also dominating in cloud computing that generates the firm close to 5 billion dollars in revenues. Amazon last year produced 13. 7 billion on Whole Foods and going by these trends it is clear that Jeff Bezos intends to make Amazon a monopoly like what Steve Jobs did for Apple. According to Bauman Amazon has not yet reached the monopoly status.

Amazon currently has close to a hundred million people with prime membership. From statistics out of 20 products, Americans purchases online 9 of them are readily available from Amazon. Amazon has succeeded in the online retail sector because it provides customers with a wide variety of products, offers competitive prices and fast delivery.

Experts are predicting that within three years Amazon will have the largest market share in the online retail market. Ted Bauman completely disagrees with those experts who are referring to Amazon as a monopoly. According to Ted Bauman Amazon is far from becoming a monopoly since other retail stores such as Wal-Mart still have the most significant market share in the retail sector and makes three times revenue of what Amazon makes. Other retail firms such as the Kroger chain of supermarkets also generate more income than Amazon. From those statistics, it is evident that online shoppers do not purchase a majority of items online. Besides Amazon is facing stiff competition from e-commerce companies such as Wal-Mart, eBay, Apple and Target among others that control about 56 percent of the market.