While Amazon had a huge soaring in revenue in the last year thanks to the lockdown and the consequent increase in shopping online, a recent report on the company’s earnings shows it could slow down. Let’s find out all the details together and what it could mean.
Is Amazon’s online shopping likely to slow down?
Amazon’s net sales increased by 15% to $ 110.8 billion in the third quarter. This is a step back from the growth rate of 27% of the previous quarter. For this reason Amazon reveals to the public that the problems of the global supply chain, the shortage of manpower and theincrease in shipping costs could result in “several billion dollars in additional costs” in the next quarter.
Similarly, Amazon shares fell by 3.8% in trading extended as a result.
Amazon CEO Andy Jassy recently revealed that the company wanted it minimize the impact of these customer and sales partner issues this holiday season. Regarding this, Jassy stated:
“It will be expensive for us in the short term but it is the right priority for our customers and partners.”
This also marks the Jassy’s first quarter as CEO of Amazon since Jeff Bezos stepped down earlier this year.
Of course this doesn’t mean Amazon isn’t making more money. Indeed, quite the opposite. This is the fourth consecutive quarter in which the company has earned more than $ 100 billion. Even if online sales are decreased, Amazon Web Services continues to be a big money maker for the company, with an increase in revenue by the 39% to $ 16.1 billion.