Amazon Reports 23% Rise In Q1 Net Sales, Launches Grocery Service

Amazon Inc. on April 23 reported total first quarter net sales of $19.74 billion, up 22.8 percent from $16.07 billion during the same three-month period ended March 31 last year and beating analyst estimates by a reported $320 million. Net income was $108 million, up 31.7 percent from $82 million.

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    Net product sales globally totaled $15.7 billion, up 18.1 percent from $13.3 billion, while net service sales rose 42.9 percent, to $4 billion from $2.8 billion, the company said in its earnings announcement.

    In North America, net sales totaled $11.9 billion, up 26.6 percent from $9.4 billion. Media sales totaled $2.8 billion, up 12 percent from $2.5 billion, while electronics and other general merchandise net sales totaled $7.8 billion, up 27.9 percent from $6.1 billion.

    International net sales totaled $7.9 billion, up 16.2 percent from $6.8 billion. Media sales totaled $2.6 billion, up 4 percent from $2.5 billion, while electronics and other general merchandise net sales totaled $5.2 billion, up 26.8 percent from $4.1 billion.

    North America represented 60 percent of net sales, while international represented 40 percent.

    Amazon also announced the retail team’s launch of Prime Pantry, a new option available only to Prime members that offers exclusive access to everyday essentials in non-bulk sizes, ranging from breakfast foods and popular soft drinks, to cleaning and personal care items.

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    The company appears to be targeting discounters such as Walmart with the grocery service, which allows Prime loyalty club members to fill a 45-pound box with groceries for a flat shipping rate of $5.99. Available nationally, Prime customers can buy a selection of items and have them delivered to their home. Selection includes popular soft drinks and bottled water, a new range of paper and laundry products, boxes of breakfast cereal, potato chips, and personal care products, Amazon said in its earnings release.

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