Amazon’s profits rose 220 percent due to an epidemic in online shopping.

With epidemic shifting sales online and incentive checks to consumers, Adventuress on Thursday Reported $ 108.5 billion in sales in the first three months of the year, up 44 percent from a year earlier. It posted $ 8.1 billion in profit, a 220 percent increase from the same period last year.

First quarter results exceeded Wall Street expectations. Shares rose by 5 percent in aftermarket trading.

The most profitable parts of Amazon’s retail business boomed. Revenue for merchants to list items on their website and use their warehouses was up 64 percent, to $ 23.7 billion. Its “other” business segment, largely its lucrative advertising business, grew 77 percent to nearly $ 7 billion.

Amazon previously revealed that 200 million people pay for Prime Membership, and subscription revenue for that service and others reached nearly $ 7.6 billion in the quarter. According to Morgan Stanley, in addition to paying $ 119 a year on Amazon or $ 12.99 a month for free shipping and other perks, homes with prime memberships typically cost $ 3,000, twice as much as no membership expense. Occur in more than one household.

The high volume of orders during the epidemic allowed Amazon to operate more efficiently. It has driven its warehouses closer to full capacity, and delivery drivers have made more stops on their routes, with less time driving between customers. The number of items sold by Amazon rose 44 percent, but the cost of fulfilling those orders was only 31 percent.

The epidemic shift to remote computing was also a boon for Amazon’s profitable cloud computing business, Amazon Web Services, which had $ 13.5 billion in sales.

“We certainly had strong volumes in all of our businesses,” Amazon’s head of finance, Brian Olasavsky, said on a call with reporters. He said that the company is investing heavily in future growth. It spent nearly $ 50 billion in capital expenditures in the last 12 months, largely in building its logistics operations and data centers, up 80 percent from a year earlier. Mr Olesavsky said he expected “another strong year” for capital spending.

Amazon founder and CEO Jeff Bezos said in a statement, “In just 15 years, AWS has become a $ 54 billion annual sales business in competition against the world’s largest technology companies and its growth Is getting faster. ” Mr. Bezos plans Step down as Chief Executive Later this year and transition to the role of executive chairman.

Amazon’s total work force decreased slightly between December and the end of March, dropping 27,000 to 1,271,000 employees globally. It was still 51 percent more workers than the same period last year. On Wednesday, Amazon Announced It would increase salaries for half a million workers and was employing “tens of thousands” more.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *