Amazon E-Commerce: North America Vs. International Markets

+17.31%
Upside
174
Market
205
Trefis
AMZN: Amazon logo
AMZN
Amazon

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.

amzn-50amzn-51

Relevant Articles
  1. Up More Than 100% Since The Start Of 2023, Where Is Amazon Stock Headed?
  2. Amazon Stock Outperformed The Q3 Estimates, What’s Next?
  3. Amazon Stock Is Up 50% YTD, Can It Top The Estimates In Q3?
  4. Amazon Stock Surpassed The Street Expectations In Q2
  5. Amazon Stock Is Undervalued
  6. Amazon Stock To Beat The Consensus In Q1

View Interactive Institutional Research (Powered by Trefis):

Global Large CapU.S. Mid & Small CapEuropean Large & Mid Cap
More Trefis Research