Amazon’s US GMV Growth Could Surpass Estimates: Credit Suisse Analyst

While Google Cloud’s revenue continues to build its gradual momentum against AWS, opex trajectory went slightly in the wrong direction. For Walmart click & collect (or drive up) has taken 50% of all online orders – and possibly all of US online grocery has developed like this, as it is the cheapest option for both retailers and shoppers, due to the last mile deliveries cost falling away. During the pandemic click & collect also enabled shoppers to avoid going into crowded shops. Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors. The marketplace contribution is expected to grow from 53 percent in 2016 to 70 percent in 2023.

Some of the remaining 12% e-commerce sales at Walmart are 3P which do not track well with GMV. The bottom line is that Walmart equivocates a bit with the numbers needed to estimate their GMV for the latest quarter but I don’t think it is drastically higher than the reported sales number of $137.2 billion. On the how much generative AI may impact the capital expense spend, included in that number is a pretty significant amount of capital expense in the AWS business for large language models and for generative AI. Central to our efforts has been the decision to transition our stores’ fulfillment and transportation network from 1 national network in the United States to a series of 8 separate regions serving smaller geographic areas.

  1. The 12% YoY growth reflects the tough comp of 2Q’22; since cost optimization mostly started in the latter half of last year, 3Q’23 and 4Q’23 may prove to be easier comp for AWS.
  2. As a Premium user you get access to background information and details about the release of this statistic.
  3. Prime members the same or next day, nearly 4x what we delivered at those speeds by this point in 2019.
  4. This is evidenced by their increasing contribution to eBay’s total GMV, starting from a 20.9% in 2021 to an expected 26.3% in 2023.
  5. The marketplace contribution is expected to grow from 53 percent in 2016 to 70 percent in 2023.

The difference between total sales and GMV is that total sales represent the actual revenue a company earns from its core operations, while GMV includes the total value of all transactions on a platform, encompassing fees, taxes, and shipping costs. GMV is a broader measure of economic activity, whereas total sales focus solely on a company’s income from its primary business activities. The gross merchandise value describes the total value of transactions generated on an online marketplace before discounts, advertising, and delivery. GMV thus calculates how much commerce has taken place on a platform and can be seen as a measure of business activity.

EBay’s total GMV has been rising and falling in the years since 2018 and a long-term trend points to stagnation. Still, the share of eBay’s GMV accounted for by China-based amazon gmv sellers is growing steadily. Despite declining transaction values across the platform starting in 2021, sellers from China continue to do business on eBay.

The analyst writes that shareholders should be willing to underwrite growth CapEx. JPMorgan estimates that there will be about 300 million Prime members globally by the end of this year. In 2021, then-CEO Jeff Bezos said the company had “more than 200 million Prime members worldwide.” As a Premium user you get access to the detailed source references and background information about this statistic. Click here for the latest trending stock tickers of the Yahoo Finance platform.

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Meanwhile, year-over-year sales and GMV growth at Walmart was much more modest where we saw sales increase 2.6% from $133.7 billion in 1Q21 to $137.2 billion in 1Q22. In this last quarter, across the top 60 largest U.S. metro areas, more than half of Prime members’ orders arrived at the same day or next day. Prime members the same or next day, nearly 4x what we delivered at those speeds by this point in 2019. I continue to believe what I said last quarter…which is I do believe that we’ll get back to margins like what we had pre COVID. 3P, subscription, and AWS grew by mid- to high teens, while ad segment increased by 20%+.

This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. It is important to understand that GMV is not the same as the revenue generated by a marketplace operator. Instead, providers deduct a fee for each transaction made on the platform, which is how they make a profit.

In just three years the marketplace is estimated to double – from $103 billion in sales in 2016 to $212 billion in 2019. After experiencing its first QoQ revenue decline in 1Q’23, AWS added $786 Mn revenue QoQ in 2Q’23. The 12% YoY growth reflects the tough comp of 2Q’22; since cost optimization mostly started in the latter half of last year, 3Q’23 and 4Q’23 may prove to be easier comp for AWS. However, as he moved to 4Q22 and 1Q23, this represents the second quarter of accelerating share gains amidst normalizing comparisons.

The primary reason I thought this earnings call was excellent is I am much more optimistic that shipping and fulfillment cost as % of GMV may come down over time. People want to bring generative AI models to the data, not the other way around. AWS not only has the broadest array of storage, database, analytics and data management services for customers, it also has more customers and data store than anybody else. At least, operating margin was slightly up, so hopefully AWS operating margin already bottomed in 1Q’23. One thing I would like to track is Google Cloud’s operating performance trajectory against AWS.

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This is evidenced by their increasing contribution to eBay’s total GMV, starting from a 20.9% in 2021 to an expected 26.3% in 2023. The experience has been so positive for customers in our business that we’re planning to double the number of these facilities. We believe that we are https://1investing.in/ far from the law of diminishing returns and improving speed for customers. Second, when shipments come from fulfillment centers that are closer to customers, they travel shorter distances, which cost less in transportation, get there faster and is better for the environment.

What is the largest eCommerce platform by GMV?

This ability to have shipments closer to customers is the result of a lot of work and invention on the regionalization side, placement logic and local in-stock algorithms. It’s also driven by our development and expansion of same-day fulfillment facilities, which is our fastest fulfillment mechanism and one of our least expensive, too. Sellers in China are increasing their presence on online marketplaces around the world. Third-party platforms are an ideal way for Chinese manufacturers to sell their products directly to consumers in Europe or the U.S. at unbeatable prices. Some of the remaining 12% e-commerce sales are 1P which should also track closely with GMV. Seeing as the latest release from Target (TGT) said that their stores fulfilled more than three quarters of their digital sales, I think a substantial portion of e-commerce sales at Walmart and Target are 1P.

Since launching in 2015, the company has selectively released GMV figures, the last time in 2021 when it pegged its worldwide GMV at $25 billion for 2020. As a Premium user you get access to background information and details about the release of this statistic.

Chinese Producers to Reach 28% of Expected GMV on Amazon by 2023

We keep a broad selection of inventory in each region, making it faster and less expensive to get those products to customers. Gross merchandise volume measures the total value of transactions on a platform, while revenue is the actual income a company earns from its core operations. Credit Suisse estimates that the marketplace is going to grow by roughly $35 billion in both 2017 and 2018. The challenge for sellers is positioning themselves in a way so they can benefit from this.

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