Amazon in Australia has filed revenues of AU$562m for 2019, an increase of 92.4% of the previous year, however it still hasn't made a profit.
Revenue up AU$270m
Having entered Australia in December 2017, the huge growth builds on the AU$292m of revenue it reported in 2018, with Amazon Prime membership one of the major contributors to the increase. Prime membership grew from AU$4.3m in 2018 to AU$35.4m in 2019. Additional revenue from 'other related parties', which the retailer describes as services, grew AU$89m to AU$247m. However, despite the growth, Amazon still made a loss of AU$4.7m, an improvement on its AU$5.3m loss in 2018.
Amazon is steadily building scale in Austalia, Its entry, as is expected, has not been without teething issues, but the strong growth shows that its presence will only grow in the coming years. Amazon now offers over 125m products for sale via its platform. Its Prime service is clearly gaining membership and it continues to expand its offer, launching Amazon Flex, an Uber style delivery service, a garden store, as well as registering the Amazon Pharmacy trade mark in early 2020. With scale has come increasing costs, now employing 555 people and marketing costs jumping 60% in 2019, as the business looks to grow its appeal. With a relatively new country manager, Matt Furlong, Amazon's growth down under looks well placed to continue.