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.
|Year||Online Sales||Total Sales||% difference|
|2004||$748 million||$1.058 billion||41.4%|
|2005||$751 million||$1.094 billion||45.7%|
|2006||$880 million||$1.118 billion||27.0%|
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.