There are other companies that have done well online in ecommerce. Niche focused companies like Newegg come to mind as a great example of how to compete and suc

There are other companies that have done well online in ecommerce. Niche focused companies like Newegg come to mind as a great example of how to compete and succeed. Monoprice is another. Also, companies like Hayneedle have grown large on the model o focused niche e-commerce stores in lots of different verticals. I don't think any store is going to come along and "destroy" amazon anytime soon. However, one area where other e-commerce retailers will exist is as sellers on the Amazon Marketplace. In some ways, Amazon becomes a large sales channel for online retailers in the same way that Facebook and AdWords are. Fundamentally, I don't think Amazon cares who is selling what as long as they are making money and their customers are happy. Amazon, like eBay really gets that they are a platform that other sellers add a lot of value to.