Amazon.com, Inc.(NASDAQ: AMZN) reported revenues of ~$135.987 billion in fiscal year of 2016 as compared to $107.006 billion in the prior corresponding period. The company has launched premium subscription service, Amazon Prime, in 2016 to offer faster deliveries. The group’s International revenues surged to $43.983 billion in fiscal year of 2016 as compared to $35.418 billion in the prior corresponding period. The rising unit sales were driven largely by their prices cut for customers, including shipping offers coupled with sales in faster growing categories like electronics and other general merchandise, rising in-stock inventory availability, and better selection of product offerings.
Amazon after launching its website in June 2013, Amazon India has made rapid advances last years in terms of gross sales as compared with Snapdeals and Flipkart. Amazon’s has invested $2 billion and has promised to spend another $3 billion more. Company’s revenues for fiscal year March 2016 doubled from Rs 1,022 crores to Rs 2,275 crore but its losses too doubled from Rs 1724 crore to $3572 crore. In 2016, the company launched multiple initiatives and claim to have 100% YoY growth. With its Global Store it gave Indian customers access to global products, which otherwise may not have had access to. Furthermore. Through AmazonNow and Amazon Pantry, customers were able to buy groceries and other essentials from the ecosystem of their local stores.
The company is expanding its foothold in Middle East region. It has agreed in principle to buy 100% of the region’s biggest e-commerce player – Dubai based Souq.com. It is said that Souq has been valued at $1 billion at the time of raising $275 million. Souq was launched in 2005 as internet auction site and in 2011 shifted its business to a retailer and marketplace for third-party vendors serving customers in UAE, Egypt, Saudi Arabia, Kuwait, Bahrain, Oman and Qatar. As per McKinsey report, the e-commerce penetration in Middle East is meagre 2% of retail sales and hence offers high growth potential.
In China, Amazon acquired the Chinese e-commerce company joyo.com to establish a beachhead in China. In Mexico the company launched Amazon.com.mx, a Spanish language site. The company also launched its selling services for Mexican businesses and sellers alongside its fulfillment by Amazon service.
Amazon.com aggressive growth plans drove the stock 18.2% in the last three months (as of March 31st, 2017; Source: Google finance) and the stock promises more potential.