Thursday, March 23, 2017

Breaking down Amazon's revenues

Amazon supplies different revenue breakdowns:

On a quarterly basis:

  • Products & Services
  • North America & International & AWS
  • Media & Electronics & Other & AWS
  • Shipping revenues (separately)
On an annual basis:
  • Retail products, Retail 3rd party, Retail subscriptions, AWS & Other
  • US, Germany, UK, Japan & RoW
Note: you have to be very careful about what is included in all these items, specifically Shipping, Prime and AWS.

This is what we found for 14Q1 and 16Q4:

Disregarding geographic distribution, this is our estimate for 8 different revenue contributors, based on very few assumptions. We have estimates on a quarterly basis, going back to 14Q1. Our main findings for the period 14Q1 - 16Q4 on revenue contributions:
  • Retail media (12%): falling
  • Retail electronics (50%): almost flat 
  • 3rd Party media (3%): almost flat
  • 3rd Party electronics (14%): rising
  • AWS (8%): rising
  • Prime (4%): flat to rising
  • Shipping (7%): rising
  • Content subscriptions & other (1%): flat to rising
Note that a stable contribution still implies that growth is in line with Amazon's overall 20+% growth.

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