What keeps e-commerce giant Amazon standing tall in global markets and achieving record-breaking success? The answer may lie in its home market—the United States. Not only does the U.S. market contribute over 70% of Amazon's total revenue, but its exceptional customer value also serves as the core engine driving Amazon's profit growth.
The U.S. Market: Amazon's Revenue Foundation
Data reveals that the U.S. market holds a pivotal position in Amazon's global strategy. In 2023, Amazon's global Gross Merchandise Value (GMV) reached approximately $700 billion, with the U.S. market accounting for 70%-73% of that total—equivalent to $490-$510 billion. By 2024, Amazon's net revenue grew by 11% to reach $638 billion, with North American operations (primarily the U.S. market) showing a 10% sales increase to $387.5 billion. While exact percentage breakdowns aren't publicly specified, the overall trend confirms the U.S. market remains Amazon's dominant revenue source.
Amazon's remarkable success in the U.S. market stems from several key factors:
- Strong brand recognition: As Amazon's home market, U.S. consumers demonstrate high awareness and trust in the brand. After years of development, Amazon has become deeply integrated into American daily life as the preferred online shopping platform.
- Mature shopping habits: The U.S. boasts a developed e-commerce ecosystem and vast online shopping user base. American consumers have established online shopping routines and maintain high expectations for platform services.
- Advanced logistics network: Amazon has built a comprehensive delivery system that provides fast, convenient shipping. Efficient logistics serve as crucial infrastructure for enhancing user experience and retention.
- Extensive product selection: Amazon's platform aggregates countless products covering nearly all aspects of life. Consumers can find virtually any desired item, significantly satisfying shopping needs.
Customer Value: The Pillar of Profitability
Beyond substantial revenue contributions, the U.S. market demonstrates exceptional performance in customer value metrics. Data indicates Amazon's average order value in the U.S. ranges between $50-$60—significantly higher than other regions. This advantage stems from both American consumers' generally stronger purchasing power and quality-focused shopping preferences, along with Amazon's carefully designed membership program.
Compared to global counterparts, U.S. consumers exhibit greater spending capacity and relatively lower price sensitivity, prioritizing product quality and shopping experience. This consumption pattern directly elevates Amazon's average order values in the American market.
Amazon Prime stands as the cornerstone strategy for boosting customer loyalty and purchase frequency. Prime members enjoy not only expedited shipping but also access to extensive streaming content and exclusive discounts. These benefits significantly increase member retention and purchasing tendencies, thereby raising average customer spending. The Prime membership's success represents Amazon's masterstroke in customer value enhancement.
The Profit Engine: A Self-Reinforcing Cycle
The U.S. market's dual advantages—high revenue generation and superior customer value—form the foundation of Amazon's profitability. In 2024, Amazon's net profit grew to $59.2 billion, with North American operations contributing $25 billion in operating profits as a key component. This robust domestic market provides stable cash flow, enabling massive investments in technology R&D, logistics infrastructure, and global expansion—creating a virtuous cycle that maintains Amazon's e-commerce leadership while supporting overall profit growth.
Specifically, the U.S. market's profitability empowers Amazon in these critical areas:
- Technological innovation: Amazon channels substantial profits into R&D, continuously launching new products and services to enhance user experience and solidify its e-commerce dominance. Investments in artificial intelligence and cloud computing, for instance, rely heavily on U.S.-generated capital.
- Logistics optimization: Amazon consistently improves its delivery network to increase efficiency and reduce operational costs. Within the U.S., Amazon has established an expansive logistics system capable of same-day or even hourly deliveries.
- Global expansion: Profits from the U.S. market fuel Amazon's international growth into new territories, expanding its worldwide e-commerce footprint. Currently, Amazon operates across numerous global markets.
Looking ahead, as U.S. e-commerce continues evolving alongside Amazon's innovations, the domestic market will remain crucial for profit growth. Maintaining leadership requires Amazon to further deepen its U.S. presence through enhanced user experiences and operational efficiencies, ensuring sustainable development.