According to amazon’s March 29 financial filing with corporate regulators, In Australia, amazon’s fiscal 2018 revenue jumped 150 percent to $292.3 million, compared with $17.3 million in 2017.
Amazon Australia, however, has yet to turn a profit, with a total tax loss of $5.3 million for 2018, driven in part by general and administrative expenses of up to $158 million and sales costs of $138 million.
Amazon Australia lost as much as $8.9 million in fiscal 2017, when retailers on the platform said they were ” skeptical about the strength of amazon’s business in Australia.”
Financial documents also show that amazon Australia received a $77 million cash injection from its U.S. parent, which helped improve its cash flow. Amazon Australia reported a total of $85.6 million in cash and cash equivalents at the end of 2018.
Amazon Australia has also boosted its marketing efforts, spending $68 million in 2018, up from $1.7 million in 2017.
In an earlier statement, an amazon Australia spokesperson said the company was very pleased with the response from Australian consumers and said the platform already offers more than 100 million items, as well as a range of proven services, including amazon Prime, amazon music and FBA logistics.
An Amazon spokesman said: “But it’s only the first day and the good play is just about to start.” Our focus is on continuing to expand the services we provide to Australian consumers and invest in our home business to create jobs and economic opportunities for thousands of small businesses in the country. ”
Gary Mortimer, associate professor at QUT’s business school, said amazon’s $106 million in retail sales represented a tiny fraction of Australia’s roughly $28 billion online retail space, suggesting the retail giant still has a long way to go.
Amazon Australia may continue to use other sources of revenue, such as Amazon Prime Revenue and cash injected by its US parent company, according to Mortimer, who said other international retailers, such as Costco and Kaufland, have adopted similar strategies.
“The expansion of logistics services helps bring products to market faster, so I don’t think the e-commerce giant will have any serious impact on the market until amazon opens more logistics centers in places like Brisbane and Sydney,” Mortimer said.