Amazon: Deconstructing the Retail P&L
Former Finance Manager at Amazon
inpractise.com/articles/amazon-deconstructing-the-retail-pandl
Former Finance Manager at Amazon
Interview Transcript
This is a snippet of the transcript, sign up to read more.
Why do they exclude ads from retail?
If you include ads in the core consumer business, you are unable to assess the health of the business, at its fundamentals. When you think about the core ecommerce, because the fulfilment network and those investments are so massive, there is a relentless focus on optimizing the opex/capex outlays associated with those operations. That includes those fulfilment centers, the staffing of those centers and the ultimate operation of the site, as a core business.
This is a snippet of the transcript, sign up to read more.
I think, within that third party, globally, it’s roughly 63% in 2021. How much of that do you think is FBA?
70% to 80%.
This is a snippet of the transcript, sign up to read more.
Is there a target or goal for a certain margin, excluding ads, for those established ecomm businesses?
Yes, absolutely. The reason you want that ex ads view, largely, is to maintain strong control over your operations costs, per unit, which excludes returns, importantly; it’s just all the units shipped.
This is a snippet of the transcript, sign up to read more.
Related Content
Copyright Notice
This document may not be reproduced, distributed, or transmitted in any form or by any means including resale of any part, unauthorised distribution to a third party or other electronic methods, without the prior written permission of IP 1 Ltd.
IP 1 Ltd, trading as In Practise (herein referred to as "IP") is a company registered in England and Wales and is not a registered investment advisor or broker-dealer, and is not licensed nor qualified to provide investment advice.
In Practise reserves all copyright, intellectual and other property rights in the Content. The information published in this transcript (“Content”) is for information purposes only and should not be used as the sole basis for making any investment decision. Information provided by IP is to be used as an educational tool and nothing in this Content shall be construed as an offer, recommendation or solicitation regarding any financial product, service or management of investments or securities. The views of the executive expressed in the Content are those of the expert and they are not endorsed by, nor do they represent the opinion of In Practise. In Practise makes no representations and accepts no liability for the Content or for any errors, omissions, or inaccuracies will in no way be held liable for any potential or actual violations of laws, including without limitation any securities laws, based on Information sent to you by In Practise.
© 2024 IP 1 Ltd. All rights reserved.