Amazon records losses despite $6 billion in Australian sales amidst a surge in both retail and cloud services.

Amazon’s Australian operations achieved over $6 billion in sales last year, driven by substantial growth in both its retail and cloud computing divisions, each expanding by more than 20 percent annually.

According to filings with the corporate regulator, Amazon Web Services and Amazon Commercial Services, the company’s retail arm, each exceeded $3 billion in revenue for the first time in 2023. While the online retail giant’s total sales for the calendar year climbed 18 percent to $3.1 billion, its net loss for 2023 decreased to $8.84 million from $32.74 million in 2022.

This follows a robust performance in 2022, with revenue surging 50 percent to over $2.6 billion, driven by investments to double distribution capacity to more than 330,000 square meters, enabling faster delivery.

Amazon’s online store contributed significantly to group revenues, with net sales rising 21 percent to $1.57 billion. Since its entry into Australia in late 2017, Amazon has expanded its one-day delivery service to five additional cities: Brisbane, Geelong, Gosford, Newcastle, and Wollongong.

Australians spent approximately $51.11 billion on online retail in the year to December, equivalent to around 13 percent of total retail trade, according to the monthly NAB Online Retail Sales Index.

The company’s subscription revenue increased to $346.2 million in 2023, driven by Prime memberships, which offer services such as free delivery, video streaming, music, and e-books, up from $246.21 million in 2022.

Amazon’s advertising business also saw significant growth, expanding by 50 percent to $153.4 million. Amazon Prime Video is set to introduce advertising in Australia this year.

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