Amazon’s Q4 Earnings Soar

Howdy !

Amazon remains a sturdy giant and the favoured shopping platform of online shoppers as reflected in its earnings for the fiscal fourth quarter of 2017.

The online retailer’s revenue during the holiday season surged to $60.5 billion, surpassing financial experts’ estimation of $59.83 billion, and it secured $1.9 billion net income.

Brian Olsavsky, Chief Financial Officer at Amazon, attributes this successful growth to Amazon Web Services, the company’s cloud services unit, which reported a 45% increase in sales to $5.1 billion.  

The high volume of orders on the Amazon marketplace as well as warehouse efficiency in the run-up to Christmas were also contributing factors.

The revenue from warehousing, packaging and delivery services provided to third-party sellers, who were responsible for the bulk of items sold, jumped 41% percent to $10.5 billion.

Amazon has shipped more than a hundred million items for free in the United States in the last quarter.

Olsavsky said shipping cost will continue to be a strong part of the company’s offering in 2018 as they aim to be more efficient in that area.

All in all the giant retailer’s operating income rose to $2.1 billion compared with $1.3 billion during the same period in the previous year.  

Amazon said their profit includes a provisional tax benefit of approximately $789 million resulting from the new U.S. tax law.

Amazon in 2018

2017 saw the retail giant investing heavily on the expansion of their warehouse space and data centers, as well as a strong demand for its voice-controlled system Alexa.

This year, Amazon CEO Jeff Bezos plans to boost the features of Alexa, and we reckon it will make shopping even easier and faster for Amazon customers who are increasingly turning to voice shopping.

“Our 2017 projections for Alexa were very optimistic, and we far exceeded them. We don’t see positive surprises of this magnitude very often — expect us to double down.” he said.

He added that Alexa currently has 30,000 skills from third-party developers, making it possible for customers to control more than 4,000 smart home devices from 1,200 unique brands with Alexa.

What’s more, emerging brands on the marketplace will be able to step into the spotlight this year as Amazon aims to use advertising to get them closer to customers.

Aside from that, adding Prime benefits, devices, video content, AmazonFresh, and just basically giving a lot of value to the Prime customers is the most important part of the game plan which Amazon intends to carry out.

Dave recorded a video on his YouTube channel looking at the Q4 results of both eBay and Amazon which you can see below.

Online sellers like you have a lot to look forward to, don’t you agree?

To your continued success,

Dave & Matt



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