The CEO of Amazon, Andy Jassyshared his annual Letter to shareholders, offers a detailed overview of the company’s achievements in 2023 and presents some perspectives for the coming months. This letter clearly highlights the areas that brands and retailers need to focus on.
In 2023, Amazon saw its total revenue increase by 12% from $514 billion to $575 billion compared to the previous year. Crucially, Amazon increases its focus on both product offerings and advertising while working to optimize its logistics services to ensure maximum speed to market.
Amazon advertising progress shows solid growth. Up 24% year over yearof $38 billion in 2022 47 billion dollars in 2023, driven primarily by sponsored ads. This increase suggests that brands will need to make greater investments in this area in 2024 to ensure their online visibility. Numerous online advertising platforms and brands have emerged this year increase their investments in this area by an average of 10 to 15% of advertising prices. For example, Amazon has introduced ads on its streaming platform, allowing brands to reach more than 200 million monthly viewers and allowing Amazon to achieve greater revenue growth in this area.
Amazon statistics and data 2023
revenue
- Amazon’s total revenue increased 12% year over year (“YoY”), from $514 billion to $575 billion.
- North America revenue increased 12% year-over-year to $353 billion from $316 billion.
- International sales increased 11% year-over-year to $131 billion from $118 billion.
- AWS revenue increased 13% year-over-year from $80 billion to $91 billion
Advertising
- 24% YoY, from $38 billion in 2022 to $47 billion in 2023, driven primarily by our sponsored ads.
- Streaming TV advertising expanded with the introduction of ads on Prime Video shows and movies
More interesting data
- By 2023, customers could save nearly $24 billion through millions of deals and coupons
- That is almost 70% more than in the previous year.
- 7 billion items arrive the same or next day
- over 4 billion in the US
- more than 2 billion in Europe
- Amazon increased the number of same-day and next-day items delivered by nearly 70% year-over-year.
- In 2023, Amazon reduced its delivery costs per unit globally for the first time since 2018.
- In the US alone, deployment costs fell by more than $0.45 per unit year-over-year
What does Andy Jassy’s letter say about the future of Amazon?
Although it has been nearly 18 months since Amazon cut around 10,000 jobs as part of a cost-cutting initiative, the retail giant remains focused on improving its bottom line. “Looking ahead to 2024 (and beyond), we are not done reducing our cost of service. We’ve challenged every long-held belief about our fulfillment network, reevaluated every part of it, and found several areas where we believe we can reduce costs even further while delivering faster to customers. “Our inbound fulfillment architecture and resulting inventory placement will be a focus in 2024 and we are optimistic there are further benefits for us.” he wrote CEO in the letter.
According to eMarketer, there hasn’t been much emphasis on adopting cutting-edge technologies since Jeff Bezos left the company. Instead, the company has focused on increasing its revenue by improving established services, such as implementing ads on Amazon Prime.
Additionally, based on data, they comment that Amazon will continue to focus on e-commerce, as this is expected to be a first for the company more than 40% of the industry’s total sales in the USA. What’s even more impressive is Online sales are growing faster than most major retailers.