Amazon: On track for $100 billion in revenue in 2015

Growth of Amazon is predicted to eclipse the world's most successful retailer--Wal-Mart--as it is expected to hit US$100 billion in annual revenue in 2015, according to new report.

Amazon is likely to hit US$100 billion in annual revenue and is on a growth path that eclipses the world's most successful retailer--Wal-Mart.

That revenue projection comes from Morgan Stanley analyst Scott Devitt. In a large research report that emphasized that Amazon has plenty of runway left for growth, Devitt made the following points:

  • Amazon can fuel growth just by taking wallet share from its existing customers. Amazon's 121 million customers spend about US$275 a year. Wal-Mart's 300 million customers spend US$750 a year excluding groceries and Sam's Club.
  • International expansion continues.
  • New efforts such as Amazon Web Services and digital sales via the Kindle platform are promising.
  • Subscription e-commerce for grocery staples is another promising avenue. I've been experimenting with subscription groceries for things like tea and cereal. Overall, Amazon's pricing needs to come down a bit vs. Wal-Mart--based on my informal Dignan Go Lean and Frosted Flakes cereal index--but scale should help that.

Read more of "Amazon: On track for $100 billion in revenue in 2015" at ZDNet.


You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
See All
See All