AP Photo/Ben Margot
- Over the last few years, Amazon has launched retail operations in many international markets as the e-commerce giant continues to expand its global footprint.
- According to RBC Capital Markets, these five countries could contribute more than $25 billion in sales to Amazon's retail business by 2023, and international retail growth could outstrip North America's by 2021.
- The analysis led RBC to raise its long-term forecast for Amazon's 2021 revenue by about $5 billion to $406 billion.
- Here's a breakdown of the five key international markets that could fuel Amazon's international expansion.
- Visit the Markets Insider homepage for more stories.
Amazon dominates the US e-commerce market, and over the last few years the company has aggressively spread its footprint overseas.
The e-commerce giant has expanded into Turkey, Australia, Mexico, Brazil, and India all within the last few years, and RBC Capital Markets believes these five markets are crucial to Amazon's international ambitions.
According to RBC's analysis, sales across the five countries could account for more than $25 billion in revenue by 2023 with international retail growth outpacing North America's by 2021, which would be the first time that's happened since 2009.
"These five countries offer Amazon a very large, underpenetrated market opportunity," A team of analysts led by Mark Mahaney said in a note to clients. "We believe that investors may underappreciate the potential of these markets."
Amazon generated more than $65 billion in international revenue in 2018, compared to $124 billion in North America, according to RBC. Mahaney also said its "somewhat surprising" that international growth rates have been below those of North America, but the five markets mentioned in the report could help change that.
The findings led RBC to increase its 2021 revenue outlook for Amazon by about $5 billion to $406 billion.
Here's a breakdown of the five global markets, which are crucial for Amazon's international expansion:
