amazon by the number-en v2 - fortnafortna.com/wp-content/uploads/amazon-by-the-numbers_en.pdf ·...
TRANSCRIPT
numbersby the
The Distribution Experts®research presented by
Amazon continues to add new products, services and extensions
135+ private labelbrands & extensions
P R O L O G U E
orem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam
nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam
erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci
tation ullamcorper suscipit lobortis nisl ut aliquip ex ea commodo
consequat. Duis autem vel eum iriure dolor in hendrerit in
vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla
facilisis at vero eros et accumsan et iusto odio dignissim qui blandit praesent
luptatum zzril delenit augue duis dolore te feugait nulla facilisi.
Lorem ipsum dolor sit amet, cons ectetuer adipiscing elit, sed diam nonummy
nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi
enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit
lobortis nisl ut aliquip ex ea commodo consequat.
Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy
nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi
enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit
lobortis nisl ut aliquip ex ea commodo consequat. Duis autem vel eum iriure
dolor in hendrerit in vulputate velit esse molestie consequat, vel illu
m dolore
eu feugiat nulla facilisis at vero eros et accumsan et iusto odio dignissim qui
blandit praesent luptatum zzril delenit augue duis dolore te feugait nulla
facilisi.
Lorem ipsum dolor sit amet, cons ectetuer adipiscing elit, sed diam nonummy
nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi
enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit
lobortis nisl ut aliquip ex ea commodo consequat.
Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy
nibh euismod tincidunt ut laoreet
prime membership
10
20
30
40
0
Prime households
50
60
70
80
90
100
Mar 2015 Mar 2016 Mar 2017 Mar 2018
growthin 2 years2.5X
share of online retail sales
100 million
of U.S. households
next-dayground to globally
Prime members
72%
5 billionitems shipped worldwide through Prime (2017)
all other
retailers 52%
$
walmart
4.4%
valuationmarket cap
revenue v. profitstock price
$937 billion
1998
2019
per share
$6.63billion
$8.44billion
$18.42billion
$19.93billion
$36.49billion
$48.01billion
$67.93billion
$86.43billion
$108.76billion
$212.10billion
$290.34billion
$18
106X
$1,900
increased
20
0
40
60
80
100
120
140
180
240
(in billions)
2013 2014 2015 2016 2017 2018
Net Income
Revenue
logistics
Amazon’s free shipping policies have helped to
widen the gap between Amazon’s shipping costs
and shipping revenue over the last several years.
Logistics (fulfillment and shipping) costs
have increased steadily over the last 9 years to
26.5% of revenue in 2018. That is up from
16.6% in 2007. Amazon is investing heavily to build
out its global distribution network and develop its
own logistics capabilities to give the e-tailer more
control over the last mile, create additional shipping
capacity during peak season and help to reduce or
offset some of the rising costs. Amazon lowered the
free shipping threshold for non-Prime members to
$25 to effectively compete with Walmart, Target
and others with the ability to leverage expansive
brick and mortar footprints.
0
10
2014
21.9% 23.3% 24.8% 26.4% 26.5%
2015 2016 2017 2018
20
30
40
50
60
70
80
Shipping Cost Fulfillment Cost
Logistics cost as a % of net sales
Boeing 767 leases will allow for up to 50 Prime Air
planes
In 2017, Amazon invested $1.5 billion to build
a large air cargo hub for its Prime Air
planes, which are used to expedite shipping for
guaranteed one-day deliveryto Prime members. They signed a 50-year lease for
900 acres of property from Cincinnati/Northern
Kentucky International Airport. And they have plans
to open additional air cargo hubs in the future.
20
40
60
80
100
0
2013 2014 2015 2016 2017 2018
44%
65%
72%
38%26%
17%
72% of U.S. households
within 20 miles of an Amazon DC
purchased
10,000truck trailers
In 2016, Amazon began coordinating ocean
freight shipments from merchants in China
to its warehouses in the U.S. , further expanding its logistics
footprint.
20,000delivery vans
amazon aggressively building
its fourth pillar
millionsof itemsacross industrial supply, tools, office supply, electronics, healthcare and other industries
more than 1 millionU.S. business customers
since January 2016
Forecasted
10%
of B2Bsales in the U.S. by 2021
$1.4 TrillionAddressable Market
U.S. in 2015
UK in 2017
Launched in the
5X growth
Japan, India, Germany and
Italy and Spain in 2018
358
15
22
1
7
226
84
32
20
2216
rapidly expanding distribution network
856+facilities around the globe
2019 planned global expansion
Source: MWPVL
+87 fulfillment centers
new
U.S. DCs, fulfillment centers, hubs &
sortation centers:
= same day or next day delivery
to most of the U.S.
358+ lockers:2800
+ Whole Foods Stores: 467
For over 70 years, Fortna has partnered with the world’s top brands to transform their distribution operations into a competitive advantage.
Fortna helps Clients make and keep bold promises to their customers – fast, accurate and cost-effective fulfillment consistently at every touch-
point, across every channel. Fortna’s expertise spans distribution strategy, distribution center operations, material handling automation, supply
chain systems and warehouse execution software systems. We built our firm on a promise – we develop a solid business case for change and hold
ourselves accountable for results.
2
800-367-8621
www.fortna.com
© Fortna
Sources Include: Fortune, Recode, Statista, Seeking Alpha,
Bloomberg, Business Insider, Wall Street Journal, eCommerce Times,
Reuters, CNBC, MWPVL
For a full list of resources, please contact [email protected]
Based on data available as of May 2019
All trademarks and designs represented here are property of their
respective owners. Fortna does not claim any rights over said marks.
The Distribution Experts®
higher than 15 of the
top U.S. retailers
Bil
lio
ns
$61.7b
$47.0b
$33.8b
$24.9b
$19.5b
10
20
30
40
50
60
Worldwide
2016 2017 2018 2019
U.S.
38.3%
43.1%
48%
52.4%
12.8% 12.9% 13.3% 13.7%
amazon
48%
amazon 2019 projected share
52.4%