On-AMZN: I was interviewed for this article with BusinessInsider by Jillian D’Onfro with a point of emphasis on the challenges and weak points of Amazon’s business and results. As Amazon’s annual growth has slowed the past few years from 50% YOY to 22% to now forecast at 20%, Amazon international growth has lagged behind North America annual growth. I’ve always wondered when the international investments will start driving a higher growth percentage.
One Of Amazon’s Biggest Challenges For The New Year
by Jillian D’Onfro
John Rossman, a former Amazon employee and “disruption expert” at the consulting firm Alvarez & Marsal, told Business Insider that one of the biggest question marks he hasn’t seen Amazon answer is about international growth.
“Internationally, what are they learning?” Rossman said. “How are they having to adjust relative to local markets? What’s working in international and what’s not working in international?”
Amazon reported relatively disappointing international growth in 2014. Its year-over-year international revenue growth declined to 13% in the third quarter of 2014, from 20% in the third quarter of 2013.
“I continue to scratch my head a little bit over their international growth and why that isn’t larger as a year-over-year percentage standpoint,” Rossman says. That will be one of Amazon’s biggest challenges in 2015: Growing its international revenues.
In a recent Piper Jaffray note, analyst Gene Munster pinpointed expansion into new geographic markets as one of Amazon’s top five priorities in 2015.
“Amazon is actively investing in fulfillment center and distribution infrastructure in each of these countries, with significant capacity build-out relative to existing demand,” the note reads. “We believe that Amazon’s strategy is to build out capacity so that demand can be met with a seamless experience.”
Read the entire article HERE