On Thursday, Amazon.com said its profits have been doubled to more than $1.6 billion (Rs.10,700 crore) by the end of its first quarter. It made a contribution to its second quarter to run in a billion-dollar margin. Moreover, the sales have risen from 43 percent ($35.7 billion a year) to $51 billion a year.
Starting from May 11, Amazon Prime will hike its Prime membership to $119 a year. The revised rates will be applicable for the existing members from June 16. Earlier this month, the company said that it has about a hundred million users. It’s been the first time that the company had released the number.
Speaking about the earnings on Thursday with the analysts, the chief financial officer of Amazon, Brian Olsavsky said, Amazon Prime is a strength to continue in the top line.
Indeed, the Prime program has been a great retail business. Now, the users of Prime will receive free shipping within 2 days on 100 million products, he said.
Amazon shares have raised to almost 7 percent – creating a record, $1619 after trading, removing the losses which occurred after receiving tweets from Donald Trump those attacked the company.
Challenges for Amazon & Accessibility for Amazon Prime
The president also initiated a study of whether Amazon is getting better of the deal from the Postal service of the US. Amazon has been founded 24 years ago as an online bookseller. Slowly it has grown to a billion dollar company.
“Amazon continues the trend of investment-fueled revenue expansion,” Charlie O’Shea, a lead retail analyst has written in a note to clients. Cash flow “remains formidable, buttressed by $25 billion in cash and short-term investments, providing ample cushion as the company continues to invest in its many platforms.”
But the success of the company led to the complaints from the competitor’s end. This is because the company is getting too big. But the success of Amazon is not an easy task for the regulators to meet with.
Additionally, Amazon Web Services has been a cloud platform. It contributed to the company to continue with a great profit margin. As thousands of companies registered for the service, the cloud platform brought $44.5 billion to the company.
“[Amazon Web Services] had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down,” Bezos said in a statement. “That’s why you’re seeing this remarkable acceleration in AWS growth, now for two quarters in a row.”
Earlier this week, the company made an announcement that it will begin delivery of packages to few vehicles parked at the publicly accessed areas. Initially, the program will be available for Prime members in 37 cities. It’s a recent effort from the company’s end to satisfy the customer to receive online orders in an easier way.
© The Washington Post 2018