During Amazon’s earnings conference call, most of the questions centered on Amazon’s efforts for one-day delivery and its first party and third party relationships with vendors.
Amazon’s goal is to make one-day shipping available to all Prime members, including Business Prime members. It has pledged to spend $800 million to find ways to speed up delivery, which is something all distributors are trying to do. Right now, Amazon plans to see increased one-day delivery by the fourth quarter of this year.
“In Q2, we had a meaningful step up in the one-day shipments, primarily in North America,” Brian Olsavsky, Amazon Senior Vice-President and CFO told reporters. “One-day volume was accelerating throughout the quarter. We’re in the middle of the journey here. We expect to see continued ramp of the one-day selection availability for the next few quarters.”
Amazon says on Prime Day alone, it had more than $2 billion in products sold from small and medium-sized businesses. “So when we win, we win together with our vendor partners and also our seller partners,” Olsavsky said.
“We’re focused on price convenience and selection for our customers. And whether product is a retail offering or third-party offering is not that important to us. As long as it’s in stock, as long as it’s priced competitively. So, as you know our 3P percent of units has been increasing over time and increased again in this quarter to 54% of units. We continue to invest very heavily in our systems both for retail vendors and also for third-party merchants invest billions of dollars a year on behalf of then making Amazon a better place for customers to buy and increasingly not only vendor sales, but also third-party merchant sales.”
Amazon: 2Q Earnings Snapshot
SEATTLE (AP) _ Amazon.com Inc. (AMZN) on Thursday reported second-quarter earnings of $2.63 billion.
The Seattle-based company said it had profit of $5.22 per share.
The results did not meet Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of $5.29 per share.
The online retailer posted revenue of $63.4 billion in the period, beating Street forecasts. Fourteen analysts surveyed by Zacks expected $62.57 billion.
For the current quarter ending in October, Amazon said it expects revenue in the range of $66 billion to $70 billion. Analysts surveyed by Zacks had expected revenue of $67.22 billion.
Amazon shares have risen 32% since the beginning of the year, while the Standard & Poor’s 500 index has climbed 20%. In the final minutes of trading on Thursday, shares hit $1,986.06, a climb of roughly 7% in the last 12 months.
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