The bargaining power of Amazon buyers is formed from the combination of the following factors:ДЎ. Likewise, other companies can find new previously unnoticed opportunities in e-retail to threaten the position of established market players such as Amazon, eBay, Alibaba and others.Д«argaining power of buyers in Amazon PorterвЂ™s Five Forces AnalysisД«argaining power of Amazon buyers is great in general. Amazon was able to reach its current position partly because it found an opportunity in online sales in 1994, when other companies didnвЂ™t notice or utilise such an opportunities. In other words, time of entry is an important factor that increases the threat of new entrants in global e-commerce.ДЈ. Such an increasing popularity of internet shopping naturally attracts new entrants that will attempt to find new niches and competitive advantages. It has been estimated that e-retail sales worldwide will reach to USD 4,8 trillion by 2021. An estimated 1,8 billion people worldwide made online purchases in 2018 and the global e-retail sales amounted to USD 2,8 trillion during the same year. Therefore, economies of scale can be specified as substantial barrier for new entrants.Дў. Although potential new market entrants can copy Amazon business model, they cannot benefit from the economies of scale at the same extent as Amazon. The e-commerce giant operates 109 fulfilment centres worldwide and it has generated operating income of USD4.2 billion, USD4.1 billion, and USD12.4 billion for 2016, 2017, and 2018. Amazon is theВ largest internet retailer and internet company by revenueВ in the world. The following set of factors determine the threat of new entrants for AmazonвЂ™s industry.ДЎ. Threat of new entrants into online retail business is significant. Threat of new entrants in Amazon PorterвЂ™s Five Forces Analysis The essence of Amazon PorterвЂ™s Five Forces is represented in figure below: PorterвЂ™s Five Forces analytical framework developed by Michael Porter (1979) represents five individual forces that shape the overall extent of competition in the industry.

Bright food threat of new entrants