Amazon's International Division Surges with $1.6B Profit

Amazon's International Division Surges with $1.6B Profit

Neha Patel
2 min read

Amazon's International Division Projects $1.6 Billion Operating Profit in 2024

Amazon's international division is set for an impressive turnaround, with a projected $1.6 billion operating profit in 2024, marking a significant shift from a $2.7 billion loss in 2023. The surge in profitability is attributed to strategic reorganization in logistics and delivery, particularly in markets such as Germany and the UK. This positive trajectory is expected to lead to over $5 billion in profits by 2024.

Key Takeaways

  • Amazon's international unit expected to hit $1.6 billion in operating profit in 2024.
  • Strategic logistics reorganization boosts profitability in Germany and the UK.
  • Amazon counters Chinese competition with faster delivery and expanded logistics network.
  • CEO Andy Jassy predicts international segment to become highly profitable.
  • Amazon plans direct-from-China discount section to compete with Temu and Shein.


Amazon's strategic shift in logistics significantly boosts international profits, impacting investors and competitors like Temu and Shein. The move to expand physical networks and introduce direct-from-China discounts aims to secure market dominance. While initial expansion costs may dent profits, sustained growth is likely, driven by enhanced delivery services. This turnaround positions Amazon strongly against global e-commerce rivals, with long-term profitability expected to rise.

Did You Know?

  • Temu and Shein:
    • Temu and Shein are Chinese e-commerce giants that have been gaining significant market share globally, posing a competitive threat to established platforms like Amazon. Temu, launched by PDD Holdings, focuses on offering a wide range of affordable products, leveraging aggressive pricing strategies and direct sourcing from manufacturers. Shein, known for its fast-fashion apparel, has disrupted the fashion retail industry with its rapid product iteration and low-cost business model. Both companies utilize advanced data analytics and efficient supply chain management to quickly respond to fashion trends and consumer demands, which has allowed them to rapidly expand their international presence.
  • Direct-from-China discount section:
    • Amazon's plan to introduce a direct-from-China discount section is a strategic move to directly compete with Temu and Shein by offering lower-priced goods sourced directly from Chinese manufacturers. This section is expected to feature products that are competitively priced due to reduced intermediary costs and potentially lower import duties. By doing so, Amazon aims to attract price-sensitive consumers and retain its market share in the face of growing competition from Chinese e-commerce platforms. This strategy also leverages Amazon's global logistics network to ensure efficient delivery of these discounted products, enhancing customer satisfaction and loyalty.
  • Strategic reorganization in logistics and delivery:
    • Amazon's strategic reorganization in logistics and delivery involves a series of structural and operational changes designed to optimize its supply chain and delivery processes. This includes investing in advanced technology for warehouse automation, expanding its fleet of delivery vehicles and aircraft, and enhancing its last-mile delivery capabilities. By doing so, Amazon has been able to reduce delivery times and operational costs, which has significantly improved its profitability, particularly in key markets like Germany and the UK. This reorganization reflects Amazon's commitment to maintaining its competitive edge in the e-commerce industry by continuously improving its logistics efficiency and customer experience.

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