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The Ecomcrew Ecommerce Podcast

E586: Amazon Just Revealed Ad & FBA Costs from Q4 2024

Feb 10, 2025
Dive into the financial implications of Amazon's Q4 2024 earnings report, revealing a 7% growth in online store revenue and a 9% increase in FBA fees. The spotlight shines on advertising, where revenue skyrocketed to $17.2 billion, outpacing the growth of FBA. Sellers are feeling the pinch from rising ad costs, prompting a call to adapt strategies. Discover Amazon Haul's launch aimed at drawing in more Chinese sellers and how holiday season developments hint at competitive pricing shifts.
17:16

Podcast summary created with Snipd AI

Quick takeaways

  • Amazon's Q4 2024 earnings report indicates a 7% growth in online store revenue, highlighting a stabilizing retail environment for sellers.
  • The significant 18% increase in advertising revenue demonstrates Amazon's shift towards an advertising-centric model, which is straining sellers financially.

Deep dives

Amazon's Q4 Earnings Overview

Amazon reported a Q4 2024 online store revenue of approximately $75 billion, marking a 7% increase from the previous year. This growth rate is notably slower than the double-digit increases seen during the pandemic, where growth reached as high as 40% in previous quarters. The online store revenue primarily derives from vendor central sales, which do not provide an accurate representation of overall sales by third-party sellers, as Amazon only acknowledges the fees incurred from those sales. This trend indicates a more cautious retail environment, signaling a potential shift in Amazon's marketplace performance.

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