Amazon’s profit increased by 220%.

Amazon's profit increased by 220%.

Thanks to the transformation of users online, Amazon has first-quarter results that exceed Wall Street expectations.

Amazon reported revenue of $ 108.5 billion for the first three months of this year, up 44% from the same period in 2020. Profit was $ 8.1 billion, up 220%. First-quarter results exceeded Wall Street expectations, helping its shares rise 5% in the following trading session.

The most lucrative segments of Amazon’s retail business are growing. Sales from sellers increased 64% to $ 23.7 billion. Other business, mostly advertising, grew 77% to nearly $ 7 billion.

Earlier, Amazon revealed that 200 million users had registered as Prime members. Revenue for these and other services reached nearly $ 6.6 billion in the quarter. In addition to paying Amazon $ 119 a year or 99 12.99 free shipping a month and other perks, Prime members typically spend $ 3,000 a year on Amazon, which is more than twice as much as homes. Morgan Stanley says the family has no members.

Rising orders during epidemics have made Amazon more efficient. Its warehouses operate at almost full capacity and supply drivers stand at high points along the routes they handle. The number of items Amazon sold was up 44%, but the cost of fulfilling those orders was only up 31%.

Workers work at an Amazon order fulfillment center. Photo: Reuters.

This epidemic helped the company grow its cloud computing business. Amazon Web Services (AWS) had revenue of $ 13.5 billion in the last quarter. “We have definitely made great sales in all areas of our business,” said Brian Olsowski, Amazon’s chief financial officer.

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Amazon has spent nearly $ 50 billion over the past 12 months, mostly to build logistics and data center operations, an increase of 80 percent over the previous year. Olsovsky said there would be one more year for “strong spending.”

“In just 15 years, AWS has become a $ 54 billion annual business that competes with the world’s largest technology companies and accelerates its growth,” said Jeff Bezos, Amazon’s founder and CEO. Billionaire Bezos plans to step down as chief executive later this year.

Amazon’s total workforce fell slightly from 27,000 to 1.271 million employees worldwide. This is 51% more than the same period last year. On April 28, Amazon announced a pay rise for half a million workers and employed “tens of thousands.”

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Seth Sale

About the Author: Seth Sale

Seth Sale is an all-around geek who loves learning new stuff every day. With a background in Journalism and a passion for web-based technologies and Gadgets, she focuses on writing about on Hot Topics, Web Trends, Smartphones, and Tablets.

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