NOTE – The article below has the analysis for the year 2015. To see an analysis for the year 2016, please see Amazon Revenues and Profits Analysis - 2017 Update.
In this article, we will present a “snapshot” analysis of Amazon revenues and profits for the year 2015, i.e, we will present the financials for the year 2015 only. We will answer the following questions:
- What were Amazon revenues, gross profit, operating profit, net profit, gross margin, operating margin, and net margin during 2015?
- What were Amazon operating segments revenues and operating profits during 2015? What was the revenue share and operating profit margin of the individual segments during 2015?
- What were Amazon geographic segment revenues during 2015? What was the share of each of the geographic segment in the total revenues?
Amazon Total Revenues and Profits 2015
- Amazon had $107.0 billion of total net sales in 2015.
- The gross profit was $35.4 billion and gross profit margin was 33.0% in 2015.
- The operating profit was $2.2 billion and operating profit margin was 2.1% in 2015.
- The net profit was $0.6 billion and net profit margin was 0.6% in 2015.
- The key costs during 2015 are as follows:
- Cost of Sales: $71.7 billion
- FulFillment: $13.4 billion
- Marketing: $5.3 billion
- Technology and Content: $12.5 billion
- General and Administrative: $1.7 billion
Amazon Segments Revenue Share 2015
Of the $107.0 billion of net sales in 2015, Amazon generated
- $63.7 billion, 59.5% of the total, from North America segment.
- $35.4 billion, 33.1% of the total, from International segment.
- $7.9 billion, 7.4% of the total, from Amazon Web Services (AWS) segment.
Amazon Segments Operating Income and Operating Margin 2015
The operating income and operating margin of Amazon segments is provided as follows:
- North America segment had a segment operating income of $2.8 billion and a segment operating margin of 4.3%.
- International segment had a segment operating income of -$0.1 billion and a segment operating margin of -0.3%.
- AWS segment had a segment operating income of $1.9 billion and a segment operating margin of 23.6%.
Amazon North America and International 2015 Net Sales by Category
Of the $63.7 billion of net sales from North America segment in 2015, Amazon generated
- $12.5 billion, 19.6% of the total, from Media.
- $50.4 billion, 79.1% of the total, from Electronics and Other General Merchandise.
- $0.8 billion, 1.3% of the total, from Other.
Of the $35.4 billion of net sales from International segment in 2015, Amazon generated
- $10.0 billion, 28.3% of the total, from Media.
- $25.2 billion, 71.1% of the total, from Electronics and Other General Merchandise.
- $0.2 billion, 0.6% of the total, from Other.
Other includes sales from non-retail activities, such as certain advertising services and Amazon co-branded credit card agreements.
Amazon 2015 Net Sales by Country
Of the $107 billion of net sales in 2015, Amazon generated
- $70.5 billion, 65.9% of the total, from United States.
- $11.8 billion, 11.0% of the total, from Germany.
- $9.0 billion, 8.4% of the total, from United Kingdom.
- $8.3 billion, 7.7% of the total, from Japan.
- $7.4 billion, 6.9% of the total, from Rest of the World.
Amazon Segment Definitions
- The North America segment consists primarily of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused websites such as www.amazon.com, www.amazon.ca, and www.amazon.com.mx. This segment includes export sales from these websites.
- The International segment consists primarily of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused websites such as www.amazon.com.au, www.amazon.com.br, www.amazon.cn, www.amazon.fr, www.amazon.de, www.amazon.in, www.amazon.it, www.amazon.co.jp, www.amazon.nl, www.amazon.es, and www.amazon.co.uk. This segment includes export sales from these internationally-focused websites (including export sales from these sites to customers in the U.S., Mexico, and Canada), but excludes export sales from North American websites.
- The Amazon Web Services (AWS) segment consists of amounts earned from global sales of compute, storage, database, and other AWS service offerings for start-ups, enterprises, government agencies, and academic institutions.
Amazon's Key Costs Definitions
- Cost of sales primarily consists of the purchase price of consumer products, digital media content costs, including Prime Video and Prime Music, packaging supplies, sortation and delivery centers and related equipment costs, and inbound and outbound shipping costs, including where Amazon is the transportation service provider.
- Fulfillment costs primarily consist of those costs incurred in operating and staffing North America and International fulfillment and customer service centers and payment processing costs.
- Marketing costs primarily consists of spend on a number of targeted online marketing channels, such as Amazon Associates program, sponsored search, portal advertising, email marketing campaigns, direct sales, and other initiatives.
- Technology costs consist principally of research and development activities including payroll and related expenses for employees involved in application, production, maintenance, operation, and platform development for new and existing products and services, as well as AWS and other technology infrastructure expenses.
- Content costs consist principally of payroll and related expenses for employees involved in category expansion, editorial content, buying, and merchandising selection.