Amazon's North America business to make 60.7% of $334.7 billion in Amazon's 2020 revenues, but Web services segment shows highest revenue growth (in percentage terms)Amazon's North America business, consisting primarily of retail sales in the region, is expected to contribute $203.2 billion (60.7% of Total Revenues) is more than twice that from International business.Web services segment is expected to add $28 billion between 2017-2020 (17.9% of $156 billion expected in incremental revenues)
WHAT IS BIG?(1) North America $203.2 billion (60.7%)(2) International $85.9 billion (25.7%)(3) Web Services $45.5 billion (13.6%)------------------------------------------------------------------------------
TOTAL Revenues in 2020 $334.7 billion
WHAT HAS CHANGED?
From 2017-2020 + Change in North America $97.1 billion + Change in International $31.6 billion + Change in Web Services $28.1 billion
TOTAL Change 2017-2020 $156.8 billion
+ Starbucks' Revenues in 2017 $177.9 billion
= TOTAL Revenues in 2020 $334.7 billion
Below we discuss Amazon's business model, followed by sections that review of past performance and 2020 expectations for Amazon's revenue drivers, and competitive comparisons with Walmart and Target
What does Amazon offer:
Amazon.com, Inc. was incorporated in 1994 in the state of Washington. The company is one of the largest online retailers, and also dabbles in a broad range of businesses including its core e-commerce operations, cloud services, digital advertising, groceries, and prescription drugs. They also sell products such as the Alexa personal assistant and ecosystem, and also gives access to content through subscription on its Amazon Prime platform.
What Are The Alternatives?
Major competitors are Walmart, eBay, Alibaba, Google, Facebook, and Apple.
What Is The Basis of Competition?
The principal competitive factors in the retail businesses include selection, price, and convenience, including fast and reliable fulfillment. Additional competitive factors for the seller and enterprise services include the quality, speed, and reliability of their services and tools, as well as customers’ ability and willingness to change business practices.
Has 3 major Operating Segments:North America
: The North America segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused online and physical stores. This segment includes export sales from these online stores.International
: The International segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused online stores. This segment includes export sales from these internationally-focused online stores (including export sales from these online stores to customers in the U.S., Mexico, and Canada), but excludes export sales from the North America-focused online stores.AWS
: The AWS segment consists of amounts earned from global sales of computing, storage, database, and other service offerings for start-ups, enterprises, government agencies, and academic institutions.
Revenue growth of about $144 billion over three years driven primarily by North America segment
Total Revenue = [A + B + C]
Amazon International [A]
Amazon North America [B]
Amazon Web Services [C]
Total Revenue has grown at a very high pace from $136 billion in 2016 to $280.5 billion in 2019 primarily pushed by the North America segment.
Trefis estimates further growth in Revenue to around $334.7 billion in 2020.
Amazon International business has seen a positive revenue growth over the years. Revenue grew from $44 billion in 2016 to $74.7 billion in 2019.
Trefis estimates further growth in Revenue to around $85.9 billion in 2020.
Amazon North America segment has seen the highest increase in absolute terms in Revenue and also contributes the maximum to Total revenue. The segment revenue increased from $79.8 billion in 2016 to $170.8 billion in 2019.
Trefis estimates further growth in Revenue to around $203.2 billion in 2020.
Amazon Web services is the fastest growing segment as revenue nearly tripled over the last 3 years. It increased from $12.2 billion in 2016 to $35 billion in 2019.
Trefis estimates further growth in Revenue to around $45.5 billion in 2020.
DISAGREE WITH OUR FORECASTS? CREATE YOUR OWN
1. How to save your forecasts:
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
With your forecast saved and named, you can see how well you forecast the company's performance at the end of each period and compare your forecasts to hundreds of other Trefis users who came up with their own forecasts. Lastly, you can share with friends and colleagues to show them how you fared and compare your forecasts to theirs.