Performance soared
The veteran e-commerce giant Amazon has won a big victory on the e-commerce track without losing its development resilience.
On August 3, Amazon announced its financial results for the second quarter of 2023 ending June 30.Financial report shows,Amazon’s revenue in the second quarter was US$134.4 billion, an increase of 11% year-on-year, which was higher than the average analyst’s expectation of US$131.5 billion; its net profit reached US$6.7 billion, almost twice the average analyst’s expectation.
(Source: Amazon2023 Q2 Financial Statements)
It is worth mentioning that although Amazon is an online shopping platform giant, its financial report pointed out that the reason why Amazon can achieve both revenue and profit exceeding expectations is inseparable from the strong promotion of advertising business and cloud computing business.
It is understood that in the second quarter of 2023, Amazon's cloud computing division (AWS) revenue increased by 12% to $22.1 billion, a slowdown from 16% in the previous quarter.
(Source: Amazon 2023 Second Quarter Financial Statements)
Although this is the slowest growth rate since Amazon began reporting AWS revenue in 2015, Amazon CEO Andy Jassy believes that as customers begin to shift from cost optimization to new workload deployments, and AWS continues to pass a large number of AWS's growth has stabilized as it builds on its generative artificial intelligence offerings to solidify its leadership in cloud computing.
In addition, the performance of Amazon's advertising business is equally impressive, becoming an important pillar of Amazon's profitability.In the second quarter, Amazon’s ad revenue hit $10.68 billion, up 22% from $8.8 billion a year earlier.
Excellent business performance also makes Amazon full of hope for the future.In the outlook for the third quarter of 2023,Amazon expects net sales of $138 billion to $143 billion, up 9% to 13% year-over-year.Operating income is expected to be between $5.5 billion and $8.5 billion, up from $2.5 billion in the third quarter of 2022.
(Source: Amazon 2023 Second Quarter Financial Statements)
It can be said that Amazon's performance in the second quarter showed a blowout growth trend, far exceeding analysts' expectations, and it is expected that future revenue will continue to accelerate growth.
hard work will pay off
In this world, there has never been a free lunch, and there is no success that can be obtained without hard work, just as every second of wonderful moments on the stage is exchanged by the performers with a drop of hard work off the stage.Amazon's current achievements are due to its unremitting efforts.
When it comes to customer experience, Amazon never takes it lightly.Committed to providing users with a better experience, we hope that consumers can make their lives more convenient by shopping on Amazon.
For example, as an "infrastructure madman", Amazon,Take the lead in logistics services, continue to increase the size, and initiate rounds of product delivery speed reforms.It is reported that in the second quarter, Amazon achieved the fastest Prime delivery speed ever, and it has delivered (on the same day or the next day) 1.8 billion items to Prime members in the United States, almost four times the delivery speed in 2019.
(Source: CNBC)
In addition, it is worth mentioning that in order to meet the growing shopping needs of consumers, Amazon has enriched consumers' choices and added many new beauty and fashion brands to the Amazon store in the United States, including D'Amelio Footwear, Dyson hair care, IT Cosmetics, etc.
In fact, Amazon was able to dominate the e-commerce market, in addition to the strong growth of AWS and advertising business,Countless sellers on its platform also play a mainstay role.
In May of this year, Amazon released the latest "Amazon Small Business Empowerment Report 2022", the report shows that,More than 60% of sales on the Amazon platform come from third-party sellers.
(Source: Amazon 2022 Small Business Empowerment Report)
According to a survey report on the order volume data of third-party sellers on e-commerce platforms in the first half of 2023 released by market research firm Extensiv,Third-party sellers on Amazon have bucked the trend and surged in orders.Specifically, in the first quarter of 2023, the average order volume of Amazon third-party sellers increased by 17% year-on-year, and in the second quarter of 2023, the order volume increased by 44% year-on-year.
(Source: Extensiv)
It can be said that Amazon and sellers have achieved a two-way rush. Amazon's selling advantages continue to attract high-quality sellers, and the outstanding performance of these high-quality sellers feeds back Amazon.
Generally speaking, in the current e-commerce market, Amazon's dominant position is still very obvious, and there are not a few support projects for sellers.As a mature e-commerce platform, Amazon is a good choice for players who want to join the e-commerce track.
Release time: 2023-08-11