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Amazon (AMZN) is a more complex phenomenon than a highly successful marketplace selling its items and enabling third-party vendors to use its platform to sell its products. It is a multinational technology company relying on e-commerce, cloud computing, digital streaming, and artificial intelligence. Amazon enjoys a reputation as the world’s most influential economic and cultural force. It is also a brand that sets the rules and commands respect even among its FANG peers, Meta (formerly Facebook), Netflix, and Alphabet/Google, which have demonstrated massive growth in recent years.
Read on to see statistics testifying to Amazon’s impressive development over the years and learn more facts about the company. The numbers in the article below demonstrate why Amazon is rightly considered a rare and unparalleled phenomenon in the e-commerce sector and beyond.
Source: Statista
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There are probably few people in the world who do not know what Amazon is. Anyone who ever searched for a product to buy online was directed to this retailer. As Amazon constantly grabs the headlines in the news about financial markets or wealthy businesses, even those who do not shop on the internet have still heard about Amazon’s success or Jeff Bezos’s riches. Yet, although Amazon is constantly in the news, there are some less widely circulated facts about the company. They are listed below:
Billions of people are familiar with the Amazon brand, while millions are its customers. More than 89% of US buyers agree that they would rather buy products from Amazon than other e-commerce sites. As Forbes once stated, “Amazon has earned our trust by delivering the products we want, on time, intact, in the same branded brown boxes—consistently.”
As the popularity of Amazon grows at a rapid rate, many predict that soon it will steal the show from tech giants Microsoft, Tesla, and Alphabet. The latest statistics presented below highlight Amazon’s potential to become the number one company in the world:
Sources: Amazon, Statista
Sources: Wikipedia, Forbes
Amazon reported its 2023 fourth-quarter earnings on Thursday, February 1, with EPS of $1.00, $0.20 better than the analyst estimate of $0.80. Revenue for the quarter came in at $170B versus the consensus estimate of $165.95B.
“Amazon blew past both revenue and earnings per share expectations this quarter, thanks to a strong performance in its key AWS cloud business as well as several cost-saving measures implemented during recent months,” said Jesse Cohen, senior analyst at Investing.com. “Amazon delivered a strong quarter, reflecting ongoing strength in its cloud computing and advertising businesses. Demand for AWS cloud services held up better than expected despite macroeconomic headwinds, posting double-digit growth.
“The bottom line is that despite all the concerns plaguing the tech sector, Amazon has managed to perform surprisingly well,” he continued. “The results indicate that ongoing cost-cutting measures are having a positive impact on Amazon’s business prospects. Amazon’s strong guidance is another indicator that the company may be starting to come out of the woods.”
Jesse Cohen, Senior Analyst at Investing.com
Amazon’s increasing popularity among consumers worldwide guarantees that it will continue earning profits. Amazon forecasts its annual revenue growth rate this year will be 12.73% and expects its revenue to reach $485,902,000,000 in 2022.
These figures are achievable partly because Amazon strongly emphasizes scientific innovations, investing generous amounts of money in scientific research. In 2019, Amazon put a whopping $35.93 billion into technology and content, 12.8% of its net sales. Amazon’s research mainly focuses on advanced technologies such as AI, machine learning, cloud computing, cashless Go stores, robotic warehouses, drone deliveries, and cyber security. There is little doubt that, given this dedicated investment in technology, Amazon’s services will continue improving, and its popularity will increase together with its profits. The table below shows the inexorable upward trajectory of Amazon’s annual revenue since 2009:
Amazon Annual Revenue (Billions of US$)
The figures in the table show that Amazon’s revenue for the second quarter was $121,234 billion, constituting an increase of 7.21% year-over-year. Amazon’s revenue for the twelve months ending June 30, 2022, was $485,902 billion, which is a 9.61% growth year-over-year. Amazon’s annual revenue for 2021 was $469,822 billion, constituting a 21.7% increase from 2020. The largest jump in Amazon’s revenue happened in the first year of the pandemic when people were locked down at home and could only shop online. In 2020, Amazon’s annual revenue was $386,064 billion, a 37.62% growth from 2019.
Sources: Statista, CNBC
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Amazon Annual Revenue by Segment from 2018 to 2022
Amazon excels at diversifying its revenue streams to increase its profits. Indeed, the company’s success partly comes from its ability to use its various business divisions to support and drive growth for other divisions. Far from focusing narrowly and exclusively on retail e-commerce, Amazon has also established an enviable reputation in such areas as cloud computing, online advertising, and digital payments.
The tables below shed light on how each division drives Amazon’s business, individually and collectively. The figures for the current 2022 year are based on the analysts’ estimations from Insider Intelligence. They foresee that Amazon’s global retail e-commerce sales will reach $729.76 billion in 2022, constituting an 18.8% increase year-over-year. Their other prediction is that the US will make up $445.31 billion of that share, accounting for 41.8% of the total American e-commerce sales.
In the fourth quarter, Amazon’s sales decreased as online store revenue sank 2% to $64.5 billion from $66 billion in Q4 2021. For the full year, the e-commerce titan incurred a net loss of $2.7 billion. It has been dealing with slowing sales as, worried about climbing gas and food prices, people began to spend less on discretionary goods. The e-commerce upswing that started during the pandemic has also dwindled because consumers returned to shopping in brick-and-mortar stores.
Amazon Retail E-Commerce Sales Worldwide (Billions of US$)
Source: Statista
Amazon Web Services Revenue (Billions of US$)
Amazon’s web services are the largest cloud infrastructure in the world. They are offered in 26 regions globally and have more than 200 services, ranging from core computing and storage to AI tools and low-code or no-code solutions for products and app developers. The contribution of AWS to the company’s overall revenue has consistently increased. In 2021, AWS revenue reached $62 billion, representing 13.26% of Amazon’s total revenue.
In the fourth quarter, AWS generated $21.38 billion in sales and fell short of analysts’ expectations of $21.87 billion. This is a 20% increase from a year earlier. Although the cloud-computing division showed growth, it demonstrated the slowest growth rate since Amazon started to report its figures separately from other segments. The company expects the growth of AWS to slow further in the coming year.
For the fiscal year 2022, AWS revenue soared 29% year-over-year to $80.1 billion. Still, these figures are lower than the 37% growth seen in 2021. AWS’s operating income was $5.2 billion in the fourth quarter of 2022, dropping from $5.3 billion in the fourth quarter of 2021. AWS’s operating income for the whole of 2022 is estimated at $22.8 billion.
Source: Statista
Advertising Services Revenue from Q3 2020 to Q4 2022 (Billions of US$)
As the growing revenues generated by Amazon’s advertising services clearly show, Amazon might catch up with, and even outperform, Google and Facebook which are presently leading in the digital advertisement space. Indeed, at the end of the first quarter of 2022, Amazon’s advertising revenue jumped 25% to $7.8 billion. Google’s advertisement revenue advanced 22.5% at the end of March 2022, while Facebook celebrated an increase of only 5% over the first quarter of 2021. These numbers suggest that Amazon has a strong long-term potential and is becoming the force to be reckoned with in the digital ad wars.
Advertising revenue in the fourth quarter of 2022 reached $11.56 billion, exceeding analysts’ forecast of $11.38 billion. As its advertising revenue climbed 19% from a year earlier, Amazon again left behind online ad companies Google, Facebook, and Snap. The company thus retains its leading place in digital advertising because it gives sellers more means to pay to promote their goods across the company’s website, apps, and other media channels.
Amazon Prime Services Revenue (Billions of US$)
Although the revenue generated by Amazon Prime services is inseparable from Amazon’s overall revenue, the company provides the net sales numbers related to it, including digital videos, audiobooks, digital music, e-books, and other subscriptions, save AWS.
Sources: Statista
Amazon Prime was launched in 2005 as an Amazon membership service offering free two-day shipping. Although people were reluctant to pay the Prime membership during the first years, they have increasingly been warming up to the service since 2011. In the first quarter of 2018, there were 100 million Prime members worldwide. In 2022, Amazon announced that it had 157.4 million members across 22 countries.
Amazon Prime User Growth in the US
Amazon Prime Services are popular in the United States. The US accounts for 74% of all Amazon Prime subscriptions. Analysts at eMarketer expect the number of Amazon Prime subscribers in America to reach 157.4 million this year and jump to 168.3 million by 2025. The table below reflects the increase in Amazon Prime subscribers since 2013:
Source: Statista
How Many Countries Have Amazon Prime?
Amazon Prime is available in 22 countries. Since 2007, Amazon has offered its Prime Membership in the following nine countries:
Source: Wikipedia
Amazon Prime Day Sales
Amazon launched the Prime Day Sales event in 2015. It is a deal event conducted once a year and available solely to Amazon Prime members. In 2021, sales on Amazon during Prime Day amounted to $11.19 billion, which constituted a 7.7% jump from $10.39 billion a year earlier.
According to the company, Amazon’s Prime Day in 2022 was the biggest Prime Day event. Prime members worldwide purchased more than 100,000 items per minute and ended the event with 300 million items heading to their home addresses. Amazon said that people saved over $1.7 billion and brought the company $11.9 billion in sales. Most items were bought in the following three departments: Household Essentials (29%), Health & Beauty (28%), and Consumer Electronics (27%). The table below shows how steadily people’s shopping appetite has been whetted over the years since the inception of the event:
Sources: Forbes
Amazon has become one of the most powerful and respected companies in the world. It has earned its enviable reputation by uncompromisingly focusing on customers, being willing to experiment, and learning from its mistakes when failing. Amazon’s logistics and shipping have reached the speed and professionalism that no other company can match. The retailer’s venture into advertising has brought success and disputed Google’s predominance as a digital-ad titan. Amazon’s foray into healthcare is expected to buoy the sector. Its constant employment of more workers contributes to positive US Non-Farm Payroll results. By investing in a private spaceflight company, Jeff Bezos has also proved that for him, quite literally, the sky is the limit.
Seeing Amazon’s triumphant march forward, analysts cannot but agree that the company will soon dominate the world. Its wealth and the price of its stock are poised to grow. According to CNN Business, the AMZN stock price will be $174 in less than 12 months, about 24% above current levels. CNN Business also predicts that in 2026, the stock could hit $7,177.35. And as Amazon disrupts and masters new areas, it will become more and more difficult for other companies to oust it from its leading position.
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