Merchant Innovation

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.

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.

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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The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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