Amazon Excels on Home Turf

For a company known to be a global e-commerce leader, Amazon is surprisingly dependent on its home market. According its latest annual report, Amazon generated two thirds of its revenue in the United States last year. With U.S. sales amounting to $90.3 billion, the company’s domestic business is more than six times as large as its largest international market, which is Germany with $14.1 billion in sales.

What’s even more surprising, given Amazon’s international growth ambitions, is the fact that the company’s dependence on the home market is increasing. The percentage of sales Amazon generates in the United States grew from 61% in 2014 to 66% in 2016. Notably absent from Amazon’s largest international markets is China, where Amazon struggles to compete with local players.