Every time this happens, Amazon crushes another legacy retailer

Once e-commerce’s share of a retail category reaches 20%, Amazon is poised for concerted action.

For investors in Amazon, the most important number to remember is 20.

When online sales hit 20% of all purchases in a given retail category, a surge in Amazon growth is sure to follow, according to L2 Inc., a business intelligence firm.

It’s a threshold indicating “Amazon is going to displace a legacy retailer,” said Cooper Smith, L2’s director of Amazon research. “Twenty percent is when Amazon steps on the gas … when consumer behavior is changing.”

This pattern has held true for Amazon AMZN, +1.45% since the very first sector CEO Jeff Bezos disrupted, books, which passed the 20% mark between 2007 and 2008.

>>> Original Source <<<