Amazon doubled its income final quarter because of COVID-related demand

Last quarter, Amazon noticed an enormous uptick in gross sales as nicely, however total income had been barely dampened as a result of $four billion in COVID-related bills. The truth that internet revenue for Q2 was so excessive regardless of the rise in bills reveals simply how a lot customers used Amazon previously few months. Throughout the name, Amazon’s Brian Corridor attributed a lot of this success to Prime members. He stated that Prime members store extra usually, and with bigger basket sizes. Additionally they make up a heavy element of the aforementioned on-line grocery gross sales. Prime Video viewership went up due to them as nicely — almost double year-over-year.

“This was one other extremely uncommon quarter,” stated Jeff Bezos, Amazon founder and CEO. “We’ve created over 175,000 new jobs since March and are within the technique of bringing 125,000 of those workers into common, full time positions. And third-party gross sales once more grew quicker this quarter than Amazon’s first-party gross sales.”

The final level is a nod in the direction of Bezos’s current testimony within the Home Judiciary Committee yesterday, the place he needed to defend the corporate towards antitrust accusations. Although Bezos stated that promoting on Amazon is helpful for third-party sellers, he couldn’t reassure the committee that the corporate hadn’t misused knowledge from them as a way to promote Amazon-branded merchandise. When confronted with a Wall Street Journal report on the matter, Bezos stated that he “can’t assure” that the coverage that prohibits workers from utilizing seller-specific knowledge hadn’t been violated.

The corporate has additionally confronted a number of accusations that it hasn’t prioritized the safety of its warehouse workers, which have allegedly led to COVID-related deaths. In response, Amazon stated within the earnings launch that it’s planning on spending extra money to make sure the security of its workers, comparable to elevated social distancing and new medical services. The corporate stated it will spend $2 billion in COVID-related bills in Q3. Amazon says that’s decrease than what it spent in Q2 as a result of higher price effectivity.