Amazon Australia revenue surges to $292m


Retail sales contributed to $106 million of revenue in 2018, while ‘third party seller services’ contributed $23 million.

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More than $150 million of revenue came from “other related parties”. Amazon Australia has been contacted for further detail on this revenue line.

A spokesperson for Amazon said the company had been “delighted” with its first year in operation. The business now has more than 100 million items available through its Australian store, the company said.

“But it’s still day one and we’re just getting started,” the spokesperson said.

One of the retail giant’s biggest spending increases was for sales and marketing. In 2017 the business spent $1.7 million on marketing activities. Last year that figure jumped to $68 million.

Amazon launched its Prime subscription service in June 2018 and has since rolled out other services including its ‘Fulfilment By Amazon’ model for small business deliveries. 

The company says it has more than 10,000 third party sellers in Australia, but will not confirm the uptake of its fulfilment offer.

Its annual accounts indicate it made $4.3 million from subcription services over the past year.

Last week analysts at Morgan Stanley reflected that Amazon Australia was looking more competitive. While the company is being beaten on price by the likes of Rebel Sport and JB Hi-Fi on key categories, when selling its own brand products, it was undercutting other retailers.



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