Amazon earns as much in profit during the pandemic as it did in the previous three years combined
Amazon approached half a trillion dollars in revenue during the pandemic and its net profit increased by 150% year-on-year! The company earned $8 billion in Q1 2021 alone.
We can say that the performance of the eCommerce industry has sky-rocketed in the pandemic, and in the case of the uncrowned king of the industry, Amazon, it is more like a flight into another dimension. In the period between March 2020 and March 2021, the US company reported a net profit of $26.9bn. This is two and a half times more than in the same period last year and more than the full-year results for 2017-2019. The company’s revenue during those 12 months when the COVID-19 pandemic swept the world was $419.1bn.
This year, the king of the eCommerce industry has continued its insane growth. Amazon’s Q1 revenue reached $108.5bn, up more than 45% from $74.4bn in Q1 2020. This is the second consecutive quarter that the company’s revenue has exceeded $100bn.
Jeff Bezos’ company’s operating profit came in at around $8.9bn (compared to almost $4bn in Q1 2020). Net profit, meanwhile, more than tripled compared to the same period of 2020, reaching $8.1bn.
In terms of the company’s geographic areas of operation, Amazon continues to derive the largest share of its revenue from its home market of North America ($64.4bn). International sales exceeded $30bn, with Amazon Web Services accounting for the remainder of Q1 revenue ($13.5bn). However, it is worth noting that while revenues in North American markets grew by an impressive 40%, sales overseas were 60% higher than in Q1 2020.
For example, since entering the Indian market in January, the company has helped create 300,000 jobs. By 2025, it wants to bring (directly and indirectly) jobs to 1 million people in the subcontinent.
Amazon estimates that Q2 revenue should continue to grow and will be between $110-116bn (up 24-30% year-on-year). In addition, the company forecasts operating profit in the range of $4.5-8bn.
It is worth noting that on the wave of the e-commerce boom during the pandemic, Amazon’s market value increased by 47% over the past year, reaching a sky-high $1.74 trillion in April.
Photo credit @ Amazon