While other shops struggle with inflation, Amazon takes advantage of the situation.
Q2 2023 was Amazon‘s most impressive quarter, exceeding expectations. “It was another strong quarter of progress for Amazon,” CEO Andy Jassy said in a statement released Thursday (Aug. 3).
The profits demonstrate the efficiency of Jassy’s cost-cutting efforts. The shopping platform carried out its most substantial personnel reduction, laying off 27,000 employees since the previous autumn and then laying off a “small number” of employees in its Pharmacy division in July.
Furthermore, corporate recruitment was halted, and Jassy actively worked to reduce spending in numerous departments. According to Statista, The shopping platform global workforce was 1.46 million at the end of the second quarter.
The shopping platform had its finest Prime Day ever in July. According to Adobe Analytics, Prime Day spending in the United States hit $12.7 billion, a 6.1% rise over the previous year and a new high for this sales event.
According to Shopping platform, shoppers purchased over 375 million things during the event. The first day of the sale was the most profitable single sales day in the company’s history.
This year’s Prime Day underlined the importance of small businesses, with their contributions outpacing Amazon’s retail business.
Before the event, PYMNTS spoke with Claire O’Donnell, Amazon’s director of selling partner empowerment, communities, and trust. The discussion centered on new emphasis on promoting offers from small and medium-sized businesses (SMBs).
O’Donnell emphasized a shift in consumer behavior, particularly among younger populations, in which purchasing decisions align more with personal convictions. This includes supporting small businesses. Amazon promoted local businesses in response.
Members could explore items, owing to a new perk known as Buy With Prime. When members in the United States purchased directly from participating brands’ websites, they received the same Prime benefits and trustworthiness.
Promotions were promoted on the shopping platform through various channels, including on-site banners within the Amazon shop, influencer content, and digital marketing to generate awareness.
Through Buy With Prime, participating retailers saw a tenfold increase in daily orders.
Amazon also looked for new ways to attract consumer spending.
For example, Amazon collaborated with the trip booking platform Priceline to provide exceptional prices for Prime Day.
However, because Prime Day happened after the quarter ended on June 30, Amazon’s financial report for the second quarter did include Prime Day figures.
Amazon In Numbers
Amazon’s net sales increased 11% in the second quarter to $134.4 billion, up from $121.2 billion in the same quarter in 2022.
The North American segment increased sales by 11% to $82.5 billion. Sales in the overseas division increased 10% yearly to $29.7 billion.
The second quarter of 2022 saw operating income rise to $7.7 billion, up from $3.3 billion in the same period the previous year. North American active income totaled $3.2 billion, a $3.2 billion increase from the last year’s loss of $0.6 billion.
The international segment recorded an operating loss of $0.9 billion, down from $1.8 billion in the second quarter of 2022. The net profit was $6.7 billion.
