Amazon Australia Still At A Loss Despite Doubling Revenue
Amazon’s push into the Australian market is continuing its slow start, with the company losing $4.7 million last year post-tax, financial results have revealed.
This was despite the fact it almost doubled the previous year’s revenue, making $562 million in 2019 compared with $292 million in 2018.
The company’s free delivery and video subscription service Amazon Prime was one of the biggest new earners for Amazon in 2019, making $35.4 million compared. This was up from $4.3 million the previous year.
Retail services also grew $113 million, as ‘other related parties’ surged $249 million – although it is unclear what this actually constitutes.
Since opening Amazon Australia in 2017, the company has struggled to enjoy the same success and following it has in the US.
New country manager Matt Furlong – who took over from Rocco Braeuniger in October – has been searching for ways to extend the company’s reach down under.
Amazon Australia last year launched its annual Black Friday sales with a big marketing push to encourage new shoppers to check out the platform.
The company is also in the middle of another significant marketing push, this time around new docuseries on Amazon Prime The Test, which details the Australian Cricket team’s journey over the past few years.
Amazon will no doubt be hoping the series can serve as a way to lure Australian customers onto Amazon Prime.
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