Amazon E-Commerce: North America Vs. International Markets
Amazon (NASDAQ:AMZN) has a dominant market position in the e-commerce industry in North America, and has also developed a strong foothold in about a dozen countries across Europe, South America and the Asia-Pacific region. North America contributes about two-thirds of Amazon’s retail revenues, and sales in the region have been growing at a healthy 23-25% compound annual growth rate (CAGR) over the last 3 years. On the other hand, Amazon’s e-commerce sales in international markets have grown at a significantly lower CAGR of about 10.5%. As a result, Amazon’s total retail sales have increased at around 19% annually since 2012. We expect the company’s total retail sales to increase at a CAGR of around 17-18% over the next three years, as it consolidates its position in North America and expands in international markets including India and Brazil.
In terms of profitability, Amazon has a higher EBITDA margin in North America compared to international markets – 11.2% compared to 6.6% in 2015 – and it has improved consistently over the last 4 years. This is due to the company’s economies of scale and dominant market position in the region. Going forward, we expect Amazon’s retail business to report EBITDA margins of over 10%, driven by growth in both North America as well as international markets.
- Up More Than 100% Since The Start Of 2023, Where Is Amazon Stock Headed?
- Amazon Stock Outperformed The Q3 Estimates, What’s Next?
- Amazon Stock Is Up 50% YTD, Can It Top The Estimates In Q3?
- Amazon Stock Surpassed The Street Expectations In Q2
- Amazon Stock Is Undervalued
- Amazon Stock To Beat The Consensus In Q1
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research