Amazon Q2 2013 Results Preview

July 24, 2013

ChannelAdvisor Scot Wingo By Scot Wingo

Amazon reports its Q1 2013 results after the bell this week on Thursday, April 25th 2013.  eBay and Google had mixed results, both citing non-domestic slowness as key headwinds and mobile/US as key tailwinds.

The following table details the usual key metrics we track in Amazon’s results for sellers/retailers that we think most illustrate how not only Amazon is doing, but most importantly for readers of this blog, the health of the third-party (3P) marketplace.

Out of all these metrics, what I look at most closely to get a pulse on the Amazon marketplace:

  • 3P unit growth -Q4 was 40% y/y growth which will be hard to maintain given the EU malaise and the bad Feb weather.  I imagine this will come down a bit in Q1.
  • % of units from 3P – Q4 was 39% 3P units.  Amazon has been shifting substantially from 1P to 3P, so we look to see that trend continue.
  • Active users – eBay has seen acceleration on this metric due to mobile.  It will be interesting to see if Amazon sees this as well.  Q4 grew at a 22% y/y clip, we will see if Amazon can keep up this pace, or if it accelerates or decelerates.

What else to look for?

Additionally, we will be keen to hear anything about:

  • Any Prime/Fire updates – Prime is the turbo-booster of Amazon and we’re always keen to see if there are any interesting new tidbits that Amazon shares.  The Kindle Fire family of devices include a 30-day Prime trial and we suspect a good up-take from that offering which accelerates the Amazon flywheel, so we’ll be listening closely to any new information there.