Amazon sales up 29% in Q316
Last week Amazon reported quarterly results for the third quarter of 2016.
Growth is strong and they also increased profits but they fell slightly short of Wall Street’s expectations and the stock did take a bit of a hit. One of the reasons is Amazon’s long term investment in its fulfilment network and that’s expensive to build out: they’re increasing capacity 30% year on year on a square footage basis.
Global sales across all the business units totaled $32.71bn up 29% from the $25.36bn reported for the same period in 2015. Amazon reported $252m in profit up from $79 million in Q3 last year.
Interestingly, for the first time, goods from third-party sellers made up 50% of the units sold an Amazon.
Amazon is good shape as we all head towards Christmas. There is a real possibility, it it goes well, that Amazon will have its first quarter where it makes sales topping $100bn.
As always, for a deeper dive into the numbers we recommend Channel Advisor’s Scot Wingo for some more sophisticated analysis.