Amazon’s exponential revenue growth

Revenue and net income development of Amazon since 1997

Amazon reported US$280.5 billion in revenues by the end of 2019, up from almost US$233 billion in 2018. With its success in 2019, the eCommerce giant cemented its position as the leading online retailer in major parts of the world once again.

One of Amazon’s biggest achievements in 2019 was the Prime membership. Amazon now has 150 million paid Prime members worldwide. A highlight for the company was the growth of paid members in Brazil, which saw “the fastest growth in paid Prime members in Amazon’s history”.

While Amazon’s revenues have shown impressive long-term growth, its growth in net income has been relatively modest. As Amazon reinvested most of the money it makes, there is a huge difference between the company’s exponential long-term growth in revenues and its relatively modest net income growth. This difference is illustrated in our chart below.

For the first quarter of 2020, Amazon announced further growth. Revenues are expected to grow by between 16% and 22% compared to the first quarter of 2019. Since Amazon is planning and reinvesting in a major server update, the operating result will decrease compared to the previous year.

Amazon revenue growth since 1997


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February 2020