Sep 24, 2020
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Amazon’s International Segment Expected To Grow The Slowest Over Coming Years

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A picture shows the Amazon logo on the entrance of the Amazon logistics centre in Amiens northern. [+] AFP/GETTY IMAGES Amazon (NASDAQ: AMZN) makes money through its consumer ventures (online and offline retail sales search advertising content streaming etc) and cloud services (rental of compute storage etc) and competes with industry leaders within the retail as well as technology industry including Walmart Facebook Google Microsoft IBM eBay and Oracle


Trefis highlights trends in Amazon s Revenues over recent years inclusive of our forecast for 2019 and 2020 in an interactive dashboard. While the technology giant did well to surpass Q3 earnings expectations we believe that its growth rate over coming years will be dragged down by sub-par growth internationally


While growth from India and Japan are guided to be weaker for the current quarter with the aid of country-specific events we expect headwinds to Amazon s international growth to increase over several quarters – making its international segment the slowest growing division within the near future. A Quick Check out Amazon s Revenues Amazon has 3 Operating Segments Amazon North America: Segment revenues are derived from the sale of consumer products and subscriptions across North America


Amazon International: Segment revenues are derived from the sale of consumer products and subscriptions globally excluding North America. Amazon Web Services: Segment revenues are derived from the sale of compute storage database and other enterprise service offerings. Amazon s revenue grew 71. 3% over 2016 to 2018 to $233 billion and is predicted to increase 50% to just about $350 billion by 2020


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6 billion over 2016-18 and we expect it to growth $69 billion over the subsequent two years due to same-day shipping and frictionless payments. This represents an increase in Amazon s North America revenues by nearly 50% between 2018 and 2020. (2) Amazon International Division revenues have grown $21. 9 billion over 2016-18 and we expect these revenues to grow by $29 billion over the subsequent two years with the aid of the growing trend of digitization in International markets


However this represents an efficient growth of 44% within the division s revenues through 2020 – a figure which pales in comparison to the anticipated 50%-growth for the much bigger North America division over an identical period. (3) Amazon Web Services Division revenue growth of $19 billion over the subsequent two years could be driven by AWS s leadership position in public cloud and AWS s initiatives to expand into the private cloud


This represents a powerful 75% growth within the segment s revenues over 2018-20. TREFIS What s behind Trefis? See How It s Powering New Collaboration and What-Ifs For CFOs and Finance Teams| Product R&D and Marketing Teams More Trefis Data Like our charts? Explore example interactive dashboards and create your own

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