Sales and profits surge at Amazon in latest quarter

Online giant Amazon has reported $108.5 billion in sales in the first three months of the year, up 44% from the previous year, as the COVID-19 pandemic continued to boost traffic to the ecommerce business.

In the three months to 31 March, net profit at Amazon grew to $8.1 billion, up 224% compared to the same period last year. Operating profit also reached new highs, more than doubling to $8.9 billion, compared to $4 billion in 2020.

The high volume of orders during the last year has allowed Amazon to operate more efficiently - running its warehouses closer to maximum capacity and delivery drivers having more stops on their routes, with less time driving between customers.

The number of items Amazon sold grew 44%, but the cost to fulfill orders only grew 31%.

Chris Mole, Founder and CEO of Europe’s leading Amazon agency, Molzi, told TheIndustry.fashion: "Amazon’s Q1 earnings call revealed that the company’s booming success during the pandemic is showing no sign of slowing down. Amazon has made significant gains in the grocery sector this quarter by opening its first Amazon Fresh stores in the UK and even more in the US. It has also continued to grow its ads business which is quickly becoming one of its biggest revenue streams, beginning to rival the advertising giants of Google and Facebook.

"Projections suggest that ecommerce sales as a percentage of total retail sales will never again be as low as they were pre-pandemic: COVID-19 has delivered an unprecedented boost to consumer confidence in making online purchases.

"Brands must not blindly discount products to generate sales, but instead ensure that they have retail ready listings, with high quality images and descriptions, a well thought out keyword and advertising strategy based on data insights and most importantly available stock to meet increased demand."