Amazon Review: Looking Back on 2024
If you own Amazon shares, 2024 was another boost to your wealth. The E-commerce giant remained dominant with global sales exceeding $620 billion. Profit has been easier to come by thanks to stronger international margins and their profit hounds - advertising and AWS continuing to grow by between 19-25%.
The days of the Bezos Bonanzas are over. Since taking charge, we can see Jassey prefers a more measured approach.
Amazon’s media empire grabbed the headlines, as they continued to invest in Prime Video, launching over 10 TV shows and films exclusive to Prime. Twitch continues to expand its content beyond gaming to attract new audiences and a younger generation. The Freevee service was sunsetted, as it never attracted the viewership.
Amazon continued to invest significantly in their advertising product. New features were often a weekly occurrence through 2024 making it difficult for agencies and advertisers to keep up. They launched Prime Video advertising, the first streaming service to do so, giving them a leap on Netflix. This has been a huge success with advertisers moving brand building budgets to the platform, attracted by the good rates and targeting capabilities.
Amazon Prime membership continued to surge, reaching an estimated 250 million subscribers worldwide. New benefits were introduced, including expanded grocery delivery options, exclusive access to entertainment content, and early access to deals.
Whilst Amazon has spent less on innovation there were some notable achievements. The company expanded its cashierless grocery store concept, with numerous new locations opening across the US and Europe. Amazon Prime Air drone delivery service expanded to several new cities, offering faster and more convenient delivery options for eligible customers. They continued to integrate AI across thebusiness, from personalisedproduct recommendations to improved customer service through chatbots. In November, they launched Amazon Haul in the US, a mobile only shopping experience with crazy low prices, as response to the threat of Temu and Shien.
There were a few new device launches too.The launch of a new e-reader, the Kindle Scribe, includes an innovative stylus for note-taking, unlocking a multitude of opportunities for usage. Additionally, Amazon began its exploration of the health and wellness category with the Halo Rise, a sleep tracker designed to promote quality sleep and healthier habits. Amazon users were even treated to new editions of the Echo and Firestick devices among other new editions across their product range.
Amazon made significant strides in its sustainability efforts, including investing in renewable energy, reducing packaging waste, and launching initiatives to support climate-conscious businesses.
Overall, it was another year of steady growth. Whilst the new Chinese marketplaces started to eat into their US market share, the threat still remains distant.