E-commerce deals bolster Amazon’s Q4

Amazon reported $574.8 billion in 2023 net sales, an increase of 11.8% year over year, which Amazon attributes to more customers, more sellers, added services and improved ease-of-use, according to the company’s fourth-quarter and full-year earnings report, released Feb. 1. [caption id="attachment_94510" align="alignleft" width="300"] An Amazon 737 freighter sits on the tarmac. (Courtesy/Amazon)[/caption] THE BIG PICTURE: Amazon consistently fared better in 2023 than other express giants such as UPS and FedEx . This is attributable to Amazon’s more diverse portfolio, which includes an online buying platform, video production and streaming via Prime, and cloud computing company Amazon Web Services. BY THE NUMBERS: Net sales in Q4 totaled $170 billion, up 13.9% YoY. Also in Q4: North American net sales were $105.5 billion, up 13% YoY; International net sales were $40.2 billion, up 16.8% YoY; AWS net sales were $24.2 billion, up 13.2% YoY; and Net income was $10.6 billion, or $1 per diluted share. For full-year 2023: North American net sales were $352.8 billion, up 11.7% YoY; International net sales were $131.2 billion, up 11.2% YoY; AWS net sales were $90.8 billion, up 13.3% YoY; and Net income was $30.4 billion, or $2.90 per diluted share. WHAT THEY’RE SAYING: Amazon’s Q4 bump was attributed to events offering deals. “We kicked off the holiday season with Prime Big Deal Days, an exclusive event for Prime members to provide an early start on holiday shopping,” Amazon President and Chief Executive Andrew Jassy said in the company’s earnings call on Feb. 1. “This was followed by our extended Black Friday and Cyber Monday holiday shopping event, which was open to all customers and ended up being our largest event ever. These events also helped attract new customers and Prime members.” NOTEWORTHY: Amazon highlighted the following Q4 cargo advances in its report: Prime Air announced that drone deliveries will expand to Italy, the United Kingdom and an additional location in the United States in late 2024. Amazon will also integrate drone deliveries into the company’s same-day sites. Amazon launched Sequoia, a robotics system that allows the company to identify and store inventory up to 75% faster and, when integrated with other technologies, reduce order processing time by up to 25%. A fulfillment center in Euclid, Ohio, became Amazon’s first to eliminate plastic delivery packaging and replace it with paper packaging that is curbside recyclable. Amazon also announced that delivery packaging is now fully recyclable in Europe. FUTURE LOOK: Net sales are expected to be between $138 billion and $143.5 billion in Q1, a growth of between 8% and 13% YoY, according to the earnings report. MARKET REACTION: Shares of Amazon ( NASDAQ: AMZN ) were up 7.87% from market open to $171.81 as of market close today. Amazon has a market capitalization of $1.78 trillion.

E-commerce deals bolster Amazon’s Q4

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