Amazon’s International Business Faces Several Headwinds



Amazon’s revenue from outside North America rose 19% YoY

Amazon (AMZN) continues to lose money outside North America. The company’s revenue from its international business rose 19% YoY in the fourth quarter compared to 15% in the third quarter. However, this segment’s growth has been slowing gradually over the last few quarters.

Amazon registered an operating loss of $642 million in its international business in the fourth quarter compared to its operating loss of $385 million in the third quarter and its operating loss of $919 million in the fourth quarter of 2017.

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Amazon’s India business could face huge headwinds

Amazon faces a few headwinds in its international business going forward. India, which is the fastest-growing major Internet market, has placed some restrictions on foreign e-commerce companies. Indian authorities are enforcing a rule that will keep foreign companies such as Amazon from holding or shipping their own inventories.

According to the new law, Amazon and other foreign companies will not be allowed to tie up with companies to offer exclusive deals. The new rule will also prevent these e-commerce companies from selling products distributed by companies in which they’ve invested.

These rules will definitely have an effect on Amazon’s India business, in which it has invested billions of dollars.

The current global slowdown will also likely affect Amazon’s international business.


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