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Amazon Economic Factors Amazon Economic Factors - Amazon PESTLE Analysis Economic factors such as consumer spending patterns, inflationary and fresh new pressures, interest rates, and exchange rate fluctuations all affect Amazon. Let’s more closely examine how these various external monetary factors influence the growth of the company. Macroeconomic trends: The prevailing macroeconomic situation is an essential driver of the profitability of companies such as Amazon.


Corporation is built on consumerism and its ability to provide a vast array of vp risk email list products for its customers in a timely and affordable manner. However, suppose customers cannot afford these products due to economic downturns, which reduce their purchasing power, such as recessions and inflation. In that case, consumer spending reduces significantly, and with it, Amazon’s revenue. Despite this, recent trends have shown that online stores such as Amazon are usually the least affected by such economic conditions due to the necessity of the services they offer to consumers.


Exchange rate fluctuations: Amazon is a company that operates within international markets and is thus exposed to the positive and negative effects of exchange rate fluctuations. This unavoidable feature affects the revenue and profitability of the company in several ways. For example, exchange rate fluctuations can affect the competitiveness of the company within different countries. If the currency with which Amazon purchases a majority of its product strengthens against another currency, it makes these items more expensive and thus less attractive to buyers.