Online retailers: Amazon approaches the billion profit – Handelsblatt

Amazon

Amazon CEO Jeff Bezos consoled shareholders for a long time. The wait was worth it. The online retailer has for the past quarter present compelling figures

(Photo: AP).

New York For a long time the master of Jeff Bezos consolation. He founded 1994 online department store needed a decade to expel the first annual profit. Then Amazon kept slipping into the red, almost always for the same reason: costly investment in a global distribution network of the Internet department store

The wait has paid off for shareholders.. The company is headquartered in Seattle announced figures for the most recent quarter, which can be seen. Revenue rose 31 percent to 30.4 billion dollars outstanding performance – however, the Group has often achieved such growth rates

developments in e-commerce

• The online trade turnover rising steadily for 15 years. In the industry it is estimated that in 2016 in Germany 62 billion, in 2017 even € 73 billion are being implemented.

• The consumers demand ever better service. These would include the simple conversion or fast delivery. That leaves rents, but also sales per area in the cities ansteigen because Händler need centralized storage.

What stands out is the profit. Amazon approached with $ 897 million of the one billion mark. A surprise for analysts, who had a lower one-third profit expected

The Group wrote five consecutive quarters in the black -. With a steeply rising momentum. Thus, the profit amounted to the same quarter of last year only 92 million dollars. The stock rose after trading by almost two per cent to a historic record price.

In the success of Amazon Prime membership club played a large role. Customers can also obtain for $ 99 a year free packages, for example in the USA, or see certain movies via streaming. Amazon turned out the success of the newly launched Prime in India, where the company invested five billion dollars and the offer is now represented in 100 cities. “Worldwide, we were at Amazon kind of hustler,” Bezos said, “especially in India”.

Fast package delivery Premium Amazon makes the trade legs

Nearly ten percent of total sales from Amazon accounted for the cloud service AWS. The subsidiary offers cloud computing, run not on local computers or servers, but the internet important programs in which large customers such as businesses or government agencies. The proceeds in the division soared by 58 percent up to 2.89 billion dollars. Thus AWS is on track to achieve the predetermined by Bezos sales mark of ten billion dollars a year.