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Amazon Australia Sales Surge 57%, Towards $2B A Year

Amazon has become one of the leading online marketplace in Australia in just four short years, zooming ahead of rivals such as Catch and Kogan during the COVID-19 lockdowns.

Amazon’s sales revenue hit A$1.75 billion in 2021, due to its “the everything store” status, coupled with a hefty streaming offering through Amazon Prime. In 2020, revenue more than doubled to reach A$1.12 billion.

Amazon.com.au, the online store portion of Amazon’s local business, generated sales of $883 million in 2021, a huge leap from 2020’s $517 million.

Amazon Prime memberships accounted for $155 million, and is a fast-growing arm of the local Amazon enterprise. In 2019, the nascent streaming service made just $35.4 million in Australia.

“Revenue from related parties”, which accounts for royalties from Aussie shoppers buying via international arms of the Amazon store, reached $471 million, up from $371 million.

Amazon’s advertising revenue made up $63.5 million, tripling in just one year.

All this growth has resulted in increased costs, with staff doubling to over 2,000, new distribution centres and warehouses, and the resultant costs of COVID-related protocols saw Amazon Australia’s losses hit $25.7 million in 2021, compared to $3.83 in 2020.

In concert with this growth was an increased focus (and cost) on local marketing, with a bil of $225.7 million in 2021, compared to the $156.6 million spent in 2020.

“We’ve continued to invest in our growing logistics capability, created new jobs, and supported our Australian selling partners and local communities during this challenging time,” an Amazon Australia spokesperson said.

 

 



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