Online shopping hit new highs in 2020, and Amazon was able to ship billions of products worldwide this Christmas season. This is a record quarter for the online retailer’s fourth fiscal year.
The e-commerce giant released a new blog post announcing that it is supplying more than 1.5 billion toys, household products, beauty and personal care products, and electronics to its customers around the world.
At the same time, third-party sales at Amazon worldwide increased by more than 50 percent compared to the previous year. One of the reasons for this could be because the company has taken on more than $ 5 billion in operating costs on behalf of independent sellers since the pandemic began.
Amazon also recently announced that it will postpone the move to increase merchant fees until next June, with fees for fulfillment through Amazon services being suspended for the time being.
Jeff Wilke, CEO of Amazon’s Global Consumer Business, provided further insight into the steps the company has taken to address a blog entry, Saying:
“Amazonians around the world have really shown what it means to be customer centric and support our communities this year. When our customers – including frontline healthcare workers – needed essential supplies most urgently, our teams and partners went out of their way to store and deliver these items. When it became clear that COVID-19 testing would be important, Amazonians quickly built their own testing capabilities across the company to protect employees and deliver products to customers. And when customers needed a little more vacation joy, millions of employees and partners worked together to deliver more savings and Christmas gifts than ever before. We couldn’t be more proud or grateful for our teams around the world. “
Fourth Quarter Results
Amazon is expected to release its fourth quarter results next month Earnings report for the third quarterThe company expects fourth-quarter sales between $ 112 billion and $ 121 billion.
Should it turn out to be true, it would represent a 28-38 percent year-over-year increase and would be the first time the e-commerce giant grossed over $ 100 billion in a single quarter. Amazon’s third quarter results were close to $ 96.1 billion, but higher Christmas sales should help the company break its previous record.
According to Mastercard SpendingPulseUS ecommerce sales rose 47.2 percent year over year from November 1 to December 24 as more consumers choose to shop from home. In fact, online sales accounted for 19.7 percent of total retail, up from 13.4 percent last year.
Now that Covid-19 vaccines are moving fast, e-commerce sales could decline for the next year, but Amazon has shown that its supply chain can more than weather a pandemic.
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