In my earlier post (and in the comments) on Amway Global’s sales in 2008 I incorrectly thought that Internet Retailer regularly reported much the same overall figures as Amway reported as total sales figures for Amway North America.
It seems I was wrong. Regular visitor SP75 has tracked down the Internet Retailer reporter online sales data for previous years and compared it to Amway’s actual reported sales.
While it’s fairly clear that online sales are becoming an increasingly larger percentage of Amway’s sales in North America, what’s also clear is that Amway’s online sales increased 5.4% from 2007 to 2008. If we guestimate and say actual sales were 20% higher, this puts Amway Global’s actual revenues in the region of $1.084 billion for 2008. Personally I think that if Amway’s sales had been over the billion dollar mark again in 2008 they would have said so, but it would appear that it probably wasn’t far off. It seems any negative effects of the TEAM dispute and the name change to Amway was nowhere near what I thought! What’s most interesting is that I have heard unconfirmed reports that the total number of renewed IBOs at the end of 2008 was down as much as 30% over the previous year. With the loss of business from TEAM, this implies that remaining Amway groups must be growing substantially in volume, even accounting for the fact (revealed in the TEAM vs Quixtar california lawsuit) that IBOs affiliated with TEAM generated significantly less PV than the average.
I’m guessing things are looking good for Amway Global in 2009!
Thanks again to SP75 for bringing this to my attention.
Back in February, Amway reported their 2008 sales at $8.2 billion globally. In a break from previous years, the data for Amway Global/Quixtar in North America was not reported separately. In what was clearly a bit of spin, Amway PR explained they were moving away from reporting individual market data. The US press releases rarely mentioned individual international data in the past, and many Amway affiliates around the world have continued to release their sales data. Quite obviously, Amway Global’s sales (confusingly, Amway Global is actually only Amway North America) must have suffered in the continuing fallout from the dispute with TEAM, as well as the initially unpopular decision to revert Quixtar back to the Amway brand.
Well – now we know. Last week it was announced that Amway Global has again been ranked the #1 online Health & Beauty retailer by Internet Retailer. This is the sixth consecutive year Amway has topped these rankings, with an astounding market share of nearly a third. Hidden in the press release though, it was reported that Amway Global’s sales were $904 million in 2008, a drop of nearly 10% from 2007 sales of just over a billion, which were themselves a 4% drop from Amway North America’s best ever year in 2006.
With the publicity surrounding Amway’s 50 year anniversary, and the Orlando Magic’s challenge for the NBA Championship at Amway Arena, as well as other great initiatives like the Amway Global LA Sol and San Jose Quakes, it’s clear to me that the decision to move back to the Amway name was the right one, though as I said in February, it will probably take a few years to really have an effect.
UPDATE: Please read this post for important new information – Amway Global sales up 5% in 2008?
Over on Amway Wiki a number of diligent editors have been creating information pages about the many, many people around the world who have qualified at the Amway Diamond level or higher. I’ve now added an extension to the Wiki which allows us to easily list these pages and so far we have information (at least the names!) of more than 1400 Amway Diamonds and above. Alas … we have a long way to go! A few years ago I saw an Amway “fact sheet” that said more than 4000 business had qualifed at Diamond and above. At the 50th Anniversary celebrations in Ada, Michigan last week Steve Van Andel reported there were 544 currently qualifying Founders Executive Diamonds and above businesses in attendance, and there were reportedly over 4000 currently qualifying Diamond and above IBOs (so around 2000 IBOships) in Las Vegas.
If you can help contribute to Amway Wiki with information on existing Diamonds, or even just a simple page with the names of any Diamonds we’re missing and their level – please do so! Amway Wiki is one of the most popular Amway related websites on the internet, with nearly 20,000 visitors a month – and an awful lot of that traffic comes from people searching for the names of individual Diamonds – folk are looking for information, let’s help them get the facts!