I think it’s not an understatement to say that 2007 was Amazon’s best year ever. Besides blow-out quarters (42% growth??), it launched a slew of technology services that are no longer being questioned, it was one of the best performing stocks in 2007 and online retailers flocked to it (reportedly away from eBay, but there’s no hard data to really show how much of a shift of inventory took place).

So what is 2008 going to bring for the hottest marketplace in town? I am a sucker for end-of-year predictions / New Year’s Resolutions so here’s my list of what I believe Amazon is going to do (should do) in 2008. And what they’re definitely not doing.

• Amazon.au — Australia is the last major English-only country with over 15 million active internet users clamoring for a fixed-price, trusted eCommerce marketplace. There are no known plans, Amazon is mum and sourcing is going to be the biggest challenge (build one but probably two fulfillment warehouses). But it’s a ripe opportunity.
• Single seller platform — Amazon is rumored to work on “one seller platform to rule them all” to once and for all take the confusion over Marketplaces vs. Seller Central by the horns. When you have online retailers wondering how to sell stuff, what subscription plan to sign up for, and which software to use then they are surely not pondering how to sell more products or how to provide better customer service. Solving this puzzle will further accelerate Amazon’s growth.
• International Webstore — A number of international 3P merchants I talked to in 2007 are very interested in Amazon Webstore, Amazon’s Out-Of-The-Box eCommerce site. You’d have to localize the content for France and Germany, but eCommerce is growing faster in Europe then in the US so now is the time to make this cool tool available to budding online retailers in the “old country”. At least roll it out in the UK (VAT tax is pretty painful though).
• Global Redesign — Okay, this is a no-brainer, but now that the US site is upgraded with improved navigation (and fresher look), it’s time to do the same in the UK, France, Germany and Japan. And, yes, also in Canada.
• More Mini Sites — Amazon rolled out enhanced product landing pages for toys, Hi-Def consumer electronics and office supplies in 2007. But there are opportunities for other categories, most importantly automotive. Amazon’s site and its configurator (to assist consumers with finding the right part) feels outdated and is not easily accessible on a main automotive page. Its Automotive Blog starts with “Yes, Amazon.com has an Auto Parts store”. Well, go ahead and tell the world. Take some of eBay Motors’ products and buyers
• Specialty Sites — I am a big fan of Endless.com, Amazon’s high-end shoe site. Amazon may not be set up organizationally to take a set of its inventory and sell it on micro eCommerce sites to compete head-to-head. The launch costs must be virtually zero by consuming its own suite of eCommerce services and leverage the Amazon checkout. The challenge of course are the traffic costs and general overhead. In the end Amazon may have launched Endless.com in 2007 simply as a proof of concept. And while it was well done I think the probability of following this with micro sites for jewelry, toys, consumer electronics are pretty low. Bummer, really.

There is really only one thing on my “this Amazon will definitely not do” list: get involved with eBay in any form or shape. There have been a number of blog posts, new articles and forum discussions a few weeks back speculating on an acquisition — downright ludicrous. An acquisition is a big distraction that I don’t think Jeff Bezos is looking for now that technology investments are paying off and consumers are flocking to it in unprecedented numbers.

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