Amazon's UK revenue growth outpaces wider online market - study

Amazon grew its UK revenue by 23.3% in 2018, which was just below 2017’s growth of 24.9% and faster than last year’s official UK internet retail sales growth of 14.5%, according to new independent estimates.

Coresight Research said in a new report that Amazon reported UK revenues of $14.5 billion in 2018, or £10.9 billion at 2018 exchange rates.

Amazon’s regional revenue incorporates non-retail revenues, including from subscription services to consumers, such as Amazon Prime, Amazon Music and Audible and its high-growth Amazon Web Services cloud computing division.

In Germany, Coresight said that Amazon’s growth slowed meaningfully in 2018 with euro-denominated revenue climbing by 12.1% versus a 17.5% increase in 2017, according to its calculations.

This was in the context of a slowdown in German online retail sales in general, as consumer uncertainty related to Brexit, international disputes and rising inflation resulted in a fall in demand for non-food categories in the country. Amazon’s German revenues in 2018 were estimated to be $19.9 billion, or €16.9 billion.

Coresight said it has converted the dollar-denominated figures reported by Amazon to British pounds and euros, respectively, to indicate growth in domestic currencies. It added that in the absence of disclosure by Amazon on the exchange rates it used for its original conversion to US dollars, average annual exchange rates were used for the calculations.

Euromonitor International has estimated that Amazon captured a 31% share of UK online retail sales in 2018 and a 47% proportion in Germany, although these statistics have not been revised following Amazon’s final results announcement at the end of January.

Amazon reported full-year financials on 31 January, which showed overall net sales increased by 31% to $232.9 billion. Net income jumped to $10.1 billion, compared with $3 billion, one year before.