Amazon spent years investing heavily in warehouses, distribution and delivery, often to the chagrin of Wall Street investors eager for quick profits.
Those investments appear to be paying off as Amazon becomes the go-to e-commerce site in a time of crisis.
If Amazon becomes a salvation for people unable or afraid to go out due to coronavirus risk, analysts say it could win new users worldwide and become a more entrenched habit for those who already dabble with e-commerce.
The best-case scenario for Amazon is “they look like a hero,” said Patrick Moorhead of Moor Insights and Strategy.
Seattle-based Amazon this week boosted pay to hourly workers and set out to hire 100,000 more US workers due to strain on its workforce.
“Getting a priority item to your doorstep is vital as communities practice social-distancing, particularly for the elderly and others with underlying health issues,” senior vice president of worldwide operations Dave Clark said in a blog post.
“We are seeing a significant increase in demand, which means our labor needs are unprecedented for this time of year.”
Amazon has also vigilantly scuttled price-gouging efforts by new vendors who stockpiled coveted supplies like breathing masks and hand sanitizers.
“It looks like Amazon is shutting most of them down, and doing it in a very visible fashion to send a message to others about gouging,” analyst Rob Enderle of Enderle Group said.