Amazon: Profit Drivers In 7 Graphics

Summary:

  • AWS high sales growth and profit margins will continue to increase overall profitability.
  • Emerging market maturation will lift international profitability.
  • Third-party seller services will boost margins, particularly as fulfillment pressures subside.
  • Moderating shipping costs will expand gross profit margin.

born to be wild

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Thesis

Amazon (NASDAQ:AMZN) exhibits competitive advantages across a variety of its businesses. As a result of investing heavily over more than two decades to solidify its favorable position, the company is likely to expand profits significantly

International

North America

AWS

Total

Sales expansion

3.9x

7.6x

25.8x

6.9x

Sales by Segment

Amazon 2013-2022 Annual Reports

Percentage Sales by Segment

Amazon 2013-2022 Annual Reports

Operating Margin by Segment

Amazon 2013-2022 Annual Reports

Percentage Sales by Country

Amazon 2013-2022 Annual Reports

Third Party Seller Services

Amazon 2016-2022 Annual Reports

Fulfillment As Percentage of Sales

Amazon 2013-2022 Annual Reports

Cost of Sales as a Percentage of Sales

Amazon 2013-2022 Annual Reports


Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.


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