Transcription

Tacos Tuesday Podcast – Episode 29: Deep Dive on Amazon Australia 2024 Filing Results

Host: Hamish Conway (Sell Global)

Welcome to Tacos Tuesday.  I’m Hamish Conway from Sell Global. Unfortunately, Sebastian Hargreaves isn’t joining us today, but we’re doing something a little different. I’ll be sharing key insights into Amazon Australia’s 2024 ASIC filing results.

For those new to Tacos Tuesday, Sell Global is an Amazon specialist marketing agency. We’re an Amazon Ads Advanced Partner, managing some of the highest ad spends in Australia, and we help brands succeed on Amazon in Australia, the USA, Canada, and the UK.

On March 3rd, Amazon Australia released its 2024 ASIC filing. Since this information is crucial for brands selling on Amazon, I’ve done a deep dive into the data to uncover what it means for you.

Getting the report wasn’t straightforward. The ASIC (Australian Securities and Investments Commission) website isn’t user-friendly. After some searching, I found that Amazon Australia operates under Amazon Commercial Services Pty Ltd. After paying $49 for the report, I finally got my hands on it.

The document is 30+ pages long, full of financial statements, cash flow reports, and taxation details. The real gold starts around page 17, where the key numbers emerge.

Amazon Australia must file these reports because they are classified as a large proprietary company that is not a disclosing entity. The criteria for this status include meeting two of these three conditions:

• Over $50 million in revenue
• Over $25 million in assets
• 100 or more employees

Since Amazon easily exceeds these thresholds, it must file annually.

Amazon Australia’s online store revenue continues to grow rapidly. In 2021, revenue was $886M. In 2022, it jumped to $1.293B, a 40% increase. By 2023, it reached $1.567B, a 21% increase, and in 2024, it hit $1.936B, growing by 23.5%.

Over the last three years, revenue has more than doubled (+118%). Compared to major Australian retailers, Amazon is gaining ground. Coles’ e-commerce revenue is $3.7B (up 9.2%), and Woolworths’ is $7.96B (up 18.5%). Amazon currently represents around 5% of total online sales in Australia, but in the U.S., it commands 40% of all e-commerce. If this trend follows, Amazon Australia could grow to $12B in the next decade.

Amazon Prime membership revenue surged by 38.8% in 2024, reaching $480M. Based on estimated average spending per user, this suggests there are now 4.29 million Prime members in Australia. A source at a recent event suggested Amazon expects to hit 5.8 million members by year-end.

The significance of this is clear: more Prime members mean more shoppers and increased expectations for fast delivery. For sellers, using Fulfilled by Amazon (FBA) is becoming even more essential, as Prime members expect fast and free shipping.

Amazon’s third-party (3P) seller fees soared by 47.6% in 2024, reaching $839M. This shift means that more sellers are choosing 3P instead of wholesale (1P). Currently, over 60% of Amazon Australia’s sales likely come from third-party sellers, and half of them are from China.

For Australian sellers, this means competition is increasing. To succeed, sellers must focus on strong branding, compelling offers, and optimized product listings. Many of these new sellers are highly experienced, competing in the U.S. market, where Amazon is far more competitive. Without a solid strategy, existing sellers may see their sales decline.

Amazon Ads revenue has nearly quadrupled over four years, from $63M in 2021 to $242M in 2024, a 58% increase from the previous year. At this pace, ad revenue could exceed $363M in 2025.

New advertising opportunities such as Prime TV ads, DSP (Demand-Side Platform), and Amazon Marketing Cloud will continue to drive ad spend. Amazon’s attribution model offers better insights than platforms like Meta and Google, making it an attractive option for brands looking to maximize their advertising investment. Additionally, non-endemic advertisers (e.g., finance, automotive, and travel brands) are beginning to advertise on Amazon’s platform, further fueling revenue growth.

Amazon itself increased its own advertising spend by 33%, reaching $447M in 2024. This aggressive strategy ensures continuous customer growth and marketplace expansion. Currently, Amazon’s ad spend accounts for 18% of its store and subscription revenue—a significant percentage compared to traditional retailers.

This level of investment reinforces Amazon’s flywheel effect: more shoppers attract more sellers, increasing competition and ad spend, which in turn drives better offers and selection. This cycle leads to even more growth and dominance in the Australian market.

Amazon Australia reported a 1% profit margin ($38M EBIT) in 2024, with $22M in taxes paid, largely due to employee share benefits tax. The company employs 3,681 people, with an average salary of $100K. Additionally, Amazon spent $241M on professional fees, which includes contractors, accountants, and legal teams.

Amazon is carrying $333M in inventory, mostly from 1P (wholesale) vendors, with an estimated 10% write-down ($30M in expired/damaged stock). The company also invested $239M in fulfillment infrastructure, further strengthening its logistics capabilities.

Amazon Australia is scaling rapidly, and its growth trajectory shows no signs of slowing. With revenue nearing $4B, continued investment in Prime memberships, advertising, and fulfillment infrastructure will solidify its dominance in the e-commerce space.

Sellers who adapt quickly to these changes—leveraging FBA, refining their listings, and optimizing ad strategies—will thrive. Those who don’t will find it increasingly difficult to compete.

If you found this deep dive valuable, let me know. Connect with me on LinkedIn (Hamish Conway) or reach out via Sell Global.