The above graph represents Amazon operating expenses by quarter, starting from fiscal Q1 1997 to the recently completed quarter. The company spent a whopping 95.6% of its quarterly revenue in Q4 2019 on Cost of sales, Fulfillment, Technology and content, Marketing, General and administrative, etc. The company’s total expenses increased 21.8% YoY in Q4 2019, to a record-high of $83,558 million.
|Source||Amazon Quarterly Reports, SEC Filings|
|Note||Amazon Fiscal Year – from January to December|
Amazon cost of sales surpassed $50 billion mark for the first time in Q4 2019, amounting to $53,977 million ($53.98 billion). That’s an impressive 20.5% YoY growth.
Amazon marketing and sales expenses also increased 25.7% YoY in Q4 2019, to $6,172 million ($6.2 billion) – the highest-ever till date. This represented nearly 7.06% of the company’s total revenue generated during the quarter.
The retail giant spent nearly 13.9% of its Q4 2019 revenue on the Fulfillment by Amazon (FBA) service. The total Fulfillment spending increased 21.6% YoY during the fourth quarter, totalling $12,192 million ($12.2 billion).
Amazon technology and content expenses also increased to $9,740 million ($9.7 billion) in Q4 2019, representing a considerable 27% YoY growth.
About Amazon Inc.
Amazon.com, Inc. (NASDAQ: AMZN) is an American multinational internet and e-commerce company, founded by Jeff Bezos and is headquartered in Seattle, Washington. The company was initially incorporated on July 5, 1994, as Cadabra, Inc, and reincorporated on May 28, 1996, in the state of Delaware.
In July 1995, Amazon began its service as an online bookstore. However, later it started offering an array of products and services to the people around the world. Today, the online retail behemoth has got hands almost in every business related to tech, from retail e-commerce to cloud computing and IoT.
On May 15, 1997, Amazon completed its initial public offering (IPO) of 3,000,000 shares of its common stock, at a price of $18.00 per share.
Amazon’s major products and services include Amazon Web Services, Amazon Prime (February 2, 2005) Amazon Music ( September 25, 2007), Amazon Kindle ( November 19, 2007), Amazon Echo (November 6, 2014), Fire Phone (announced on June 18, 2014), etc.
In June 2013, Amazon finally launched its market place in India.
With $97 billion value, Amazon ranks 4th among the world’s most valuable brands 2019 by Forbes.
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