This episode dissects Amazon's Q3 2018 earnings, revealing strong growth in advertising and North America revenue, alongside a slowdown in international markets. It also explores the potential business impact of changes to the UPU treaty on global shipping. Ecommerce operators will gain insights into market performance drivers and strategic considerations for international logistics and advertising trends from an Amazon market perspective.
Key takeaways
Analyze Amazon's advertising revenue growth, which jumped 123% to $2.5 billion, as a benchmark for the increasing importance and potential of platform-based advertising for your own acquisition strategies.
Pay close attention to changes in international shipping regulations, specifically the UPU treaty, as these can significantly impact landed costs and profitability for cross-border ecommerce.
Examine the growth disparities between Amazon's North American and International segments (25% vs. 13% adjusted for FX) to identify potential regional market saturation or emerging opportunities.
Consider the implications of Amazon’s 4-Star retail concept as a bellwether for omnichannel strategies, understanding how online data is informing physical store merchandising and selection, and what that signals for consumer expectations.
Review Scot Wingo's 'Vehicle 2.0 Framework ' for a fresh perspective on developing robust e-commerce strategies relevant to current market dynamics.
Happy Birthday, to Jason's wife, Leila! Scot Wingo is contributing the Forbes Digital Council, and writing about his new Vehicle 2.0 Framework. Introducing Vehicle 2.0. Jason Goldberg is also contributing to a regular retail column on Forbes, starting with his first article: What Competitors Are Missing About Amazon's New 4-Star Retail Concept. Scot is appearing in a national TV spot promoting his alma mater, North Carolina State, "Think and Do!" Jason is leading several sessions at GroceryShop October 28-31 in Las Vegas, including a keynote interview with Sam's Club Chief Merchant Ashley Buchanan. Amazon Earnings: Amazon's third-quarter earnings beat Street estimates, but its revenue and fourth-quarter outlook fell short of expectations. Revenue: Revenue increased +29% Y/Y (+30% ex-FX) to $56.58B, 1% below the Street's $57.11B. 29% Revenue growth was below consensus expectations as Int'l revenue disappointed with a ~$1B shortfall. North America revenue (ex-AWS and ex-WF) of $30.10B was up 25%, in line with 2Q18 growth. International revenue of $15.55B was up 13% (+15% ex-FX), a notable deceleration from 27% growth in Q2 (+21% ex-FX). AWS revenue of $6.68B was up 46%, down from +49% growth in Q2 but in line with expectations. Physical Stores revenue of $4.25B was slightly ahead of consensus expectations. Amazon's "other" category, aka advertising, jumped 123% to $2.5 billion in revenue <img cla
What does this episode say about amazon & marketplaces?
Analyze Amazon's advertising revenue growth, which jumped 123% to $2.5 billion, as a benchmark for the increasing importance and potential of platform-based advertising for your own acquisition strategies.
What does this episode say about finance & fundraising?
Pay close attention to changes in international shipping regulations, specifically the UPU treaty, as these can significantly impact landed costs and profitability for cross-border ecommerce.
What does this episode say about supply chain & operations?
Examine the growth disparities between Amazon's North American and International segments (25% vs. 13% adjusted for FX) to identify potential regional market saturation or emerging opportunities.
What does this episode say about retail & omnichannel?
Consider the implications of Amazon’s 4-Star retail concept as a bellwether for omnichannel strategies, understanding how online data is informing physical store merchandising and selection, and what that signals for consumer expectations.
What does this episode say about amazon & marketplaces?
Review Scot Wingo's 'Vehicle 2.0 Framework ' for a fresh perspective on developing robust e-commerce strategies relevant to current market dynamics.
