Amazon Stock: Prime Is About to Get Stickier

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E-commerce titan Amazon (AMZN) unveiled some pretty exciting innovations that could help it make a push toward the $2 trillion market cap mark — a level that was within reach less than a year ago.

Undoubtedly, Amazon Web Services continues to grow at a rapid rate. However, new services such as "Buy with Amazon Prime" open up the firm's logistics and payments solutions to the world.

Shares have been treading water alongside the rest of the broader market of late. Retail could find itself on the receiving end as the consumer recession approaches. Still, it's hard to count out one of the most disruptive forces in the tech scene, even if the macro picture isn't looking too great.

Amazon's Prime Service Coming into Its Prime

Indeed, logistics can be an incredibly capital-intensive business. Over the years, Amazon has steadily made the right investments (including overspending in recent quarters) such that it's now ready to offer storage and timely transport as a service.

Undoubtedly, Amazon could do to the logistics market what it did to the public cloud scene. In the beginning, Amazon was in-housing cloud for itself before opening up to the public.

I think "Buy with Prime" is a profoundly disruptive model that other retailers and Prime customers could embrace with open arms. Who wouldn't want the convenience of two-day shipping and quick payments?

The service is a one-two punch in the gut to the many payments companies out there who can't offer what Amazon can. Indeed, the number of payment buttons on commerce websites is growing, and promises of rapid delivery are key to winning the most clicks from shoppers.

It's not just the expansion of Prime delivery to other websites that makes Prime one of the stickiest services out there. The number of perks seems to be growing, with Amazon recently taking a small stake in GrubHub alongside announcing the inclusion of one year of GrubHub+ for its Prime members in the U.S. market.

Amazon's move into food delivery just makes sense. Over the next year, I think the food delivery market will feel the disruptive impact of the e-commerce behemoth.

Disrupting Markets That Are Ripe for Disruption

If there are economic profits to be had in a market where no single firm has formed a moat around its business, Amazon may swoop in like a hawk. Indeed, steep capital expenses are of no concern to the deep-pocketed behemoth that's used size to its advantage better than most other firms.

The food-delivery market, physical retail, digital payments, and logistics are just some of the key areas that Amazon could thrive in as it leverages the powerful network effects from its Prime service.