The primary sector of amazons business is retail

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The primary sector of Amazons business is retail sales of products and this is a significant inventory risk. Inventory help can become obsolete or deteriorate in value since inventory is electronic or technology. Rapid changes in a products cycle and pricing along with customer demand and spending patterns is the cause of this inventory risk. The valuation of inventory using the lower cost or market value is very beneficial to Amazon and is a more conservative approach which will give the inventory a more realistic value in its financial statements (Amazon.com Inc. 2016 Annual Report, 2016). Amazon is one of the largest e-commerce companies and having acquired Whole Foods will only increase their profitability. Amazon already has an e-commerce grocery section, Prime Fresh and Prime Pantry. One of the trends for 2018 is grocery e-commerce. Investment in enabling technologies will help to see an explosion in the growth of this sector of on-line shopping. Amazon has already set up a quick delivery service thru the use of UPS and their own delivery drivers, working out of the various warehouses across the United States and overseas (Top 5 Retail Trends for 2018, 2017). Amazon has its Echo voice interface which was very successful in 2017. In 2017 Amazon Echo sold over 15 million units. 2018 will see expansion of what Echo will be able to do. The direct competition will be Googles home hardware unit. If Amazon wants to continue to be the winner in this sector, they need to grow its skill, marketplace, and increase its growth in the voice platform war (Top 5 Retail Trends for 2018, 2017).
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Analysis of Financial Statements 7 References: Amazon.com Inc. 2016 Annual Report. December 31 st , 2016. . Retrieved from Amzn Company Financials. (December 20 th ,2017). . Retrieved from Cash Ratio. December 2 nd , 2017. . Retrieved from Peavler, Rosemary. (August 22 nd , 2016). What is Financial Ratio Analysis. Retrieved from Top 5 Retail Trends For 2018. December 6 th , 2017. www://seekingalpha.com. Retrieved from Wahlen, J.M., Jones, J.P, & Pagach, D.P. (2015). Intermediate Accounting Reporting and analysis, 2 nd Edition. Boston, MA: Cengage Learning. Figures: 1: Liquidity Ratios – Amazon Amzn Entities Financials. (December 20 th ,2017). . Retrieved from
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