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Amazon’s E-Commerce Revival Boosts Profits Amid Economic Uncertainty

Amazon’s online retail sector has seen a revival in the quarter ending June, following a period of tepid spending in a largely stagnant economy. This resurgence is credited to CEO Andy Jassy’s initiative to streamline and expedite Amazon’s delivery service, the company reported. This led to an 11% year-on-year surge in total sales, hitting an impressive $134.4bn (£105.4bn), surpassing expectations. Amazon’s July Prime Day broke records with 375 million items sold.

The company outperformed analysts’ forecasts, posting quarterly profits of $6.7bn (£5.2bn), a stark contrast to a $2bn loss the previous year, marking the highest profit in over a year. Although Amazon is renowned for its online retail operations, its financial performance is largely influenced by other divisions, such as its cloud computing arm, AWS, and more recently, advertising.

AWS sales have steadied, with a 12% year-on-year increase, as businesses show less economic apprehension. Advertising revenue also saw a 22% year-on-year boost. Despite consumers monitoring their budgets closely due to inflation, Amazon’s online sales experienced a 4% year-on-year growth in the April to June quarter. This is viewed as a promising sign for the remainder of the year. Even Amazon’s international business, which was experiencing a downturn a year ago, reported approximately 10% sales growth.

Kernel Reporter

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