Amazon Is Preparing For A Profitable Fourth Quarter.

  Amazon Is Preparing For A Profitable Fourth Quarter. Holiday shopping on Amazon started earlier than usual. Amazon AMZN (NASDAQ) $3.315,81 +13,38 (+%0,41) kicked off the holiday shopping season earlier than usual, announcing new deals on thousands of products in its online store starting the first week of October. However, holiday spending is expected to be even stronger this year. Amazon's decision to start early is another and important sign that it expects a great quarter.

New warehouses, new hires but still not enough capacity

Due to the pandemic last year, Amazon customers struggled to keep up with their orders. That's why he shifted Prime Day, which is usually started in the summer months, to the beginning of Autumn. In the 75 days until Christmas, online sales rose 48% last year, according to Mastercard's estimates. In 2021, while a further 7.5% increase in the payment network is expected, Amazon is already preparing for it. In addition to 450,000 new hires during the pandemic, it is gearing up to hire more than 125,000 new employees over the next few weeks. Amazon's aggression towards its competitors is helping it grab market share not only in holiday retail but also in online retail, with its already large market leadership.

Amazon Is Preparing For A Profitable Fourth Quarter.

How much can Amazon improve on last year's record?

Amazon reached record sales figures in the fourth quarter of last year. However, the strength of sales has slowed as Amazon weathered the impact of the coronavirus pandemic. Given that online sales still make up the bulk of Amazon's revenue, analysts are expecting 16,1% in the fourth quarter. But they expect Sales to slow further in the fourth quarter and increase only 13,7%. Amazon will have outperformed expectations as online store sales growth converges to analysts' overall revenue growth projections. But it's also worth noting that Amazon has a fast-growing advertising business, AWS continues to grow at a solid pace, and subscription services continue to be a steady source of revenue growth. It's also worth noting that by integrating third-party merchants into its ecosystem, Amazon also outperforms its seller services. Amazon's big effort to kick start the holiday shopping season early, etc. It should be noted that it marks a new online retail sales record.  

Source: The Motley Fool

 

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