Amazon announced record-breaking holiday sales with more items ordered worldwide than ever before. Additionally, more customers signed up for Prime – ten of millions of new customers – either for a free trial or full membership; one billion items were then sent in the US with Prime. Many feel these new subscribers contributed to Amazon’s ability to dominate last-minute online shopping, but that is no different than any other year.
After projecting that their operating income to be stagnant to growing minimally as compared to last year, their stock plunged a shocking ten percent once Amazon reported their third-quarter earnings. During that quarter, Amazon failed to reach operating income of $3.9 billion, making only $2.1 billion, and falling short but almost half.
However, this holiday season was the best Amazon has ever seen with customers worldwide ordering more items than ever. These sales could give the company a much needed better outlook after disappointed investors after the company’s last earnings reports. Nonetheless, investors will still have to wait and see how Amazon’s earning in the fourth and final quarter impact their overall earnings. The company did not say exactly how much revenue was generated this holiday season, just that it was a record amount of sales.
With Amazon claims that this has been there best season ever, according to the company’s CEO, they look forward to continuing to grow in 2019 by making it even more convenient for customers to get what they want. Because of Prime’s guarantee, Amazon’s peak season already lasts later and is much greater than those of their competitors.
Tens of millions of customers took advantage of an Amazon Prime membership by either signing up for a free trial or purchasing a paid membership during the holiday season. Because a Prime membership allows members to order items at a discount, receive free shipping, and get it delivered in time for the holiday, this allows theirsales season to last longer than just about any other online shopping service.
The fact that Amazon carries so many different items adds to and enhances their general overall peak. Some of the products among their best-sellers were some of their own devices, such as the Echo Dot and Fire TV Stick 4K, both of which sold in the millions. In addition, Amazon sold a record number of products such as iRobot Roomba 690, Ring Video Doorbell, and Amazon smart Plug, which are smart home devices.
It also seems that customers are growing more accustomed to ordering with Alexa, Amazon’s voice assistant. Amazon says that Alexa was used three times as much than last year for shopping. As a matter of fact, on Apple’s App Store Wednesday, Amazon’s Alexa was the most popular app in the US. This means there were most likely lots of new devices activated on Christmas Day.
Even though Amazon claims record sales, the company refuses to disclose specific amounts of either sales or Prime subscriptions. In closing, an interesting tidbit: After being asked by the Securities and Exchange Commission to disclose specific revenue from Prime subscribers, Amazon says those numbers are essential, basically refusing.
