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Amazon net sales grow 23%

Amazon net sales increased 23% to $35.7bn (£27.7bn) in the first quarter, while net income jumped from $513m (£397m) to $724m (£561m) during the period.

In the UK, the firm has previously announced it will create more than 5,000 new full-time jobs in 2017, taking its total workforce to more than 24,000. This week the online giant also announced plans to open a fulfilment centre in Warrington, creating 1,200 new permanent jobs, as well as the launch of Echo Look in the US, a new hands free camera and style assistant powered by Alexa.

In terms of fashion, the firm now has seven private apparel brands available to its Prime members in the US, including Goodthreads, Amazon Essentials, Paris Sunday, Mae, Ella Moon, Buttoned Down, and Lark & Ro.

It said UK consumers ranked Amazon.co.uk top in customer satisfaction for the second consecutive year based on a 10,000-person poll by the Institute of Customer Service.

Neil Saunders, managing director of retail analyst firm GlobalData Retail, said:Although Amazon’s sales advanced by a respectable 23% over the quarter, the pace of growth at the online behemoth remains much slower than it was over most of the prior fiscal year. Some of this is the result of a less favorable exchange rate diluting contributions from the international business.

“However, some is also down to a more challenging demand environment in North America which has limited spending uplifts on products within Amazon’s core territory,” he added.

He said it is essential that Amazon maximises its potential in areas and categories where it is currently underweight, such as fashion.

“Although [private labels such as Goodthreads and Lark & Ro] are embryonic, they provide Amazon with the building blocks to develop a much more compelling, and slightly higher-margin, fashion proposition which will help it to grab market share profitably,” said Saunders. “This will be aided by new technology such as the Echo Look, which will help Amazon to sharpen its fashion credentials and services in a way that is challenging for other players to imitate.”

 

 

 

 

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