E-commerce company Amazon made $ 2.1 billion (Rs 14910 crore) in the July-September quarter. It is 28% lower than the same quarter last year. In the September quarter of 2018, profit was $ 2.9 billion. The company invested heavily in accelerating order delivery. Amazon announced the results on Thursday.
Revenue Estimate of $ 80-86.5 Billion in December Quarter
- The company introduced the delivery facility in 1 day instead of 2 days for customers with prime membership. Therefore, shipping expenses rose 46% to $ 9.6 billion (Rs 68160 crore) in the September quarter. However, it increased sales, and the company’s revenue grew 24% to reach $ 70 billion (Rs 4.97 lakh crore). In the September quarter last year, it was $ 56.6 billion.
- Amazon expects revenue of $ 80 billion to $ 86.5 billion in the October-December quarter and a profit of $ 1.2 billion to $ 2.9 billion.
- Web Services (AWS), which has a significant share in the company’s profits, generated $ 9 billion (Rs 63900 crore) in revenue. It is 35% higher than the September quarter of last year, but the lowest in the previous four years. The company started giving AWS revenue figures in 2015.
- Amazon CEO Jeff Bezos said on the results that the investment would be beneficial in the long term. Customers prefer the facility of one day delivery instead of two days. After this facility, orders are seen to increase significantly.