While Amazon captured nearly half of all domestic holiday sales, it works harder to boost global sales.

December 29, 2017 – Citing data from GBH Insights, HomeWorld Business is reporting that Amazon accounted for 45% to 50% of online holiday retail sales, up from 38% in 2016.

Amazon Global Sales

Its Q3 international net sales increased 29.3% YoY to $13.7 billion. This is up from 16.7% YoY growth in Q2 2017, meaning its heavy investments may be having the right impact.

International sales may be taking off because of Amazon’s efforts to improve its international logistics capabilities and Prime benefits. The company has been investing internationally in order to offer faster shipping and add Fulfillment by Amazon (FBA) merchants overseas. These moves improve Amazon’s logistics and allow it to offer more products and better Prime benefits. Amazon has often struggled overseas because its logistics and membership program have not been up to par with its US operations, but this improvement in sales suggests that its investments are improving its appeal in new markets.

“Amazon continues to invest heavily in itself globally to build and improve its logistics capabilities, allowing it to compete and win on convenience,” according to Josh Blechman, Director of Capital Markets at ACSI Funds. “Amazon’s fulfillment capabilities in the US are unmatched and are one of the main drivers of its success, as its speedy delivery creates an appealing online shopping experience. Therefore, it’s trying to bring its international segment up to the same level in the hopes of finding similar success.”

The e-commerce titan is not resting on its laurels when it comes to fulfillment in the US. Amazon continues to invest in domestic fulfillment in order to keep building globally on one of its greatest strengths.

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