![]() To accomplish its shipping speeds, Amazon also maintains an economic moat in logistics. It feeds into itself, keeping customers hooked on both shopping with Amazon and paying the monthly or annual subscription for the 5% credit card rewards. ![]() From free, fast shipping, to Prime Entertainment, to the Amazon Prime credit card with 5% rewards, the Prime membership is a large contributor to the value. The most obvious is Amazon’s Prime membership, which is all-encompassing in addressing customer needs. As such, there will be no competition that can match it in its entirety anytime soon. A Look at Amazon’s Many Moats: Prime, Logistics and MoreĪlthough existing competitors can do bits and pieces of what Amazon does, Amazon’s core e-commerce business and logistics ability are economic moats. Buffett would typically invest in a company that has an economic moat, but Amazon has more than one. Amazon’s Economic Moat and Competitive AdvantagesĪn economic moat, a concept successful investor Warren Buffett and CEO Bill Gates use to invest, occurs when a company has a huge market advantage over its competitors.
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