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Amazon’s Growth Is Hitting a Snag Overseas

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Amazon grew only 9% YoY outside North America

Amazon (AMZN) generated $59.7 billion in revenue in the first quarter, growing only 17.0% YoY (year-over-year). The company’s growth was hindered not only by flat growth in its Whole Foods stores but also by tepid growth overseas.

Excluding AWS (Amazon Web Services), the company’s revenue from outside North America, which makes up over one-quarter of its revenue, rose only 9% YoY in the first quarter to $16.19 billion.

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Meanwhile, Amazon’s sales in North America rose 17% YoY to reach $35.81 billion. This segment has slowed considerably over the last few quarters, as the graph above shows. The slowdown has been the main reason why Amazon’s revenue growth has also slowed in the last four quarters. These numbers exclude revenue from Amazon’s AWS business.

Amazon exited China, and it faces headwinds in India

Amazon recently announced that it was exiting China, where it faced stiff competition from local rivals Alibaba and JD.com. Amazon has also hit a few snags in India, its most important market overseas.

India has announced new e-commerce rules that favor local e-commerce companies rather than foreign ones. The rule change may have been one of the biggest factors behind the slowdown for Amazon. India’s e-commerce market has been buzzing, and losing it could prove to be a big miss for Amazon, which has poured billions of dollars into its business in the country.

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