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Amazon Profits More Than Tripled in First Three Months of 2021 |  Economic news


Amazon’s profit in the first three months of 2021 was $ 8.1 billion (£ 5.8 billion) – more than triple what it was in the same period of the year last.

The online marketplace is among the businesses that have thrived during various government lockdowns aimed at limiting the spread of the coronavirus.

As millions of people have been forced to stay at home, Amazon has been relied on to deliver supplies.

Since the start of the pandemic, the company has posted four consecutive record quarterly profits, attracted more than 200 million Prime Loyalty subscribers and recruited more than 500,000 employees to meet demand.

Revenue rose 44% to $ 108.5 billion (£ 77 billion), making Amazon one of four U.S. companies to report quarterly revenues above $ 100 billion (the others being Apple, Exxon Mobil and Walmart).

Amazon’s advertising business sales grew 77%, and its cloud computing business – which helps power the online operations of Netflix, McDonald’s and others – grew 32%.

Brian Olsavsky, Amazon’s CFO, said many companies want to outsource their technology infrastructure to Amazon Web Services.

“We expect this trend to continue as we move into post-pandemic recovery,” he said.

Picture:
Jeff Bezos will step down as CEO this year in favor of an Executive Chairman role. Pic: AP

But COVID-19 came at additional costs: The company bought cargo planes and new warehouses to bring its items closer to customers and expedite delivery.

Amazon has also faced activism within its workforce, recently seeing a unionization effort defeated in a warehouse in Alabama.

The push to organize was the largest in Amazon’s 26-year history, and it was only the second time such an effort within the company has reached the voting stage.

Critics of the company’s work environment seem to encourage Mr. Bezos’ admission earlier this month: “We have to do a better job for our employees”.

Neil Saunders, managing director of GlobalData, said Amazon’s weak point is its physical retail.

“For us, Whole Foods reveals Amazon’s Achilles heel: both in terms of functional factors such as convenience, operational prowess, technological innovation, etc., something is missing from the soul. when it comes to creating inspiration and excitement.

“This applies particularly to physical spaces but is also manifested by the very functional nature of its website and its difficulty in gaining ground in certain sectors such as luxury fashion.

“At some level, it doesn’t matter because Amazon’s skills and differentiation are elsewhere.

“However, this weakness is one of the great opportunities for other retailers and, as a retailer like Target shows, focusing on things Amazon is not so good at is a recipe for considerable success.”



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