DUBLIN--(BUSINESS WIRE)--The "Amazon Data 2020/21" company profile has been added to ResearchAndMarkets.com's offering.
Jeff Bezos' change in job title has obscured Amazon's phenomenal success throughout the pandemic. The business has added more than $100bn on the revenue reported in 2020, much of this has been due to shoppers flocking to the site during the various lockdowns. That said, the $386bn in net sales does not capture the full impact of Amazon's crisis winnings.
Due to the way Amazon reports its results, the marketplace performance of its third-party sellers is somewhat concealed, but the magnitude can be gleaned from the accounts.
The publisher believes that Amazon's total sales have now reached half a trillion in GMV (Gross Merchandise Volume) or the aggregated end prices consumers pay to Amazon or its third-party (3P) sellers. Third-party marketplace sellers now account for 62% of GMV and, if Amazon could, it would shift a lot more transactions into this business unit, as it is more profitable than 1P (or when Amazon is the seller of record).
In 2020 sellers fees paid to Amazon accounted for slightly more than 26% of their sales on average - which compared with the often minuscule margins Amazon achieves on 1P - is massive. Of course, Amazon is offering FBA (storage, transport, payment processing etc) in return for this contribution.
Sales at the US marketplace almost doubled over the course of two years from $80bn in 2018 to $154bn in 2020. Granted there was and remains a huge pandemic impact driving this performance, but still purely viewed from a business perspective this growth is outstanding, especially on the massive billion Dollar sums involved. Amazon's other marketplaces showed similar dynamics, if not quite as stellar as the US performance.
Over the last couple of years, third party sales have outpaced first-party sales by around 10 percentage points, year on year notwithstanding the dynamic performance of Amazon 1P. There is currently little to suggest that 3P performance will slow down significantly going forward. Another major success factor driving Amazon ahead is on the other side of its two-sided marketplace (on the one the marketplace sellers, on the other the shoppers). Amazon manages to attract shoppers due to its vast selection, free and fast delivery options and price competitiveness, in itself achieved through marketplace sellers competing against each other on the site.
Looking ahead, it seems obvious that marketplaces will take over more and more, and Amazon offers full FBA integration, AWS and also the advertising infrastructure so is set to dominate for the foreseeable future. The boom on Amazon sites resulted in 14bn units sold and shipped across both 1P and 3P, much of it transported through FBA. More volume means better capacity utilisation and synergy effects of Amazon logistic footprint and network. As a result, international has become profitable for the first time despite the heavy investment into new marketplaces and regions throughout the year, a couple of years ahead of schedule.
While growth will probably slow down, once lockdowns end or become less frequent, it should not take too long now for Amazon to leapfrog Walmart, especially in GMV. This could come much sooner than many expect, and even in net sales/revenue terms, the gap is closing rapidly. Alibaba with its $1 trillion in GMV though will remain out of reach for now.
Companies Mentioned
- Alibaba
- Amazon
- Walmart
Key Topics Covered
1. Executive Summary
2. The Data
- Data and KPIs: Net Sales & Income, Margin 2010-20, adding $100bn in sales in 2020
- Data and KPIs: Net Sales & Income, Margin 2010-20, Analysis
- Data and KPIs: US, international, AWS sales, in $m, % split, growth, 2013-2020
- Data and KPIs: US, international, AWS sales, Analysis
- Revenues, Financials, KPIs, Benchmarks in Amazon geographies
- Data and KPIs: International sales by country, in $m, % split, growth, 2010-2020, US, DE, UK, JP, FR
- Amazon: Marketplaces around the world
- Data and KPIs: new markets United Arab Emirates, Singapore, the Netherlands
- Data and KPIs: new markets Saudi Arabia, Sweden, Poland
- Active customer accounts per Amazon geography
- Active customer accounts, by country 2010-20, growth, US, DE, UK, JP, FR, other
- Data and KPIs: Active Customer accounts, Analysis
3. Prime
- Data and KPIs: The Prime Universe
- Prime account holders in m per country 2010-20, US, DE, UK, JP, FR, other
- Prime: the all-you-can-eat, physical-digital hybrid
- Prime: more successful at getting customers to cross-shop than any other initiative
- Prime: Most successful tool to get buy-in to new categories, net costs, uplifts
- Prime: the 7 key prime benefits to Amazon
- Average Non-Prime GMV spend 2019, 2020, US, DE, UK, JP, FR, other in US$
- Average Prime GMV spend 2019, 2020 US, DE, UK, JP, FR, other in US$
- Prime: AOV goes up across prime and non-prime shoppers
4. Marketplace
- Data: 3P share of GMV in % 1999-2018
- Data: Amazon GMV in 2019, Analysis
- Data: 1P sales in US$m, 3P sales, % splits, GMV 2014-2020
- Marketplace: 3P sellers GMV 2018, 2019, 2020 per country, US, DE, UK, JP, FR
- Marketplace: 1P Amazon GMV 2018, 2019, 2020 per country, US, DE, UK, JP, FR
5. Amazon GMV: half a trillion in 2020, US MP doubled in two years
- Data: GMV by geography, average price, total units, customers, frequency 2020, US, DE, UK, JP, FR
- Average annual spend per country 2018-20 in US$, local currency, US, DE, UK, JP, FR
- Data and KPIs: Average annual spend GMV 2018 - 20 on AMZN, Analysis
6. Outlook
7. Sources
List of Charts
Chart 1: Amazon Marketplaces around the world
Chart 2: The Prime Universe
Chart 3: 3P share of GMV in % 1999-2018
Chart 4: MP - 3P sellers GMV 2018, 2019, 2020 per country, US, DE, UK, JP, FR
Chart 5: MP - 1P Amazon GMV 2018, 2019, 2020 per country, US, DE, UK, JP, FR
List of Tables
Table 1: Net Sales & Income, Margin 2010-20, adding $100bn in sales in 2020
Table 2: US, international, AWS sales, in $m, % split, growth, 2013-2020
Table 3: International sales by country, in $m, % split, growth, 2010-2020, US, DE, UK, JP, FR
Table 4: Active customer accounts in m, by country 2010-20, growth, US, DE, UK, JP, FR, other
Table 5: Prime account holders in m per country 2010-20, US, DE, UK, JP, FR, other
Table 6: Average Non-Prime GMV spend 2019, 2020 per country, US, DE, UK, JP, FR, other in US$
Table 7: Average Prime GMV spend 2019, 2020 per country, US, DE, UK, JP, FR, other in US$
Table 8: 1P sales in US$m, 3P sales, % splits, GMV 2014-2020
Table 9: MP - 3P sellers GMV 2018, 2019, 2020 per country, US, DE, UK, JP, FR
Table 10: MP - 1P Amazon GMV 2018, 2019, 2020 per country, US, DE, UK, JP, FR
Table 11: GMV by geography, average price, total units, customers, frequency 2020, US, DE, UK, JP, FR
Table 12: Average annual spend per country 2018-20 in US$, local currency, US, DE, UK, JP, FR
For more information about this company profile visit https://www.researchandmarkets.com/r/5qopji
