Amazon sales surge as it prepares for busy holiday season

Amazon has grown sales 37% year-on-year in Q3 of 2020, from $70 billion in 2019 to $96.1 billion, with the tech giant benefitting from the consumer shift to eCommerce during Covid-19.

Amid the ongoing pandemic, the company revealed it is already seeing signs that an unprecedented number of customers will be shopping online during the busy fourth quarter, which includes Black Friday and the Christmas period.

Amazon founder and CEO Jeff Bezos said: “Offering jobs with industry-leading pay and great healthcare, including to entry-level and front-line employees, is even more meaningful in a time like this, and we’re proud to have created over 400,000 jobs this year alone.

“We’re seeing more customers than ever shopping early for their holiday gifts, which is just one of the signs that this is going to be an unprecedented holiday season. A big thank you to our employees and selling partners around the world who’ve been busy getting ready to deliver for customers this holiday.”

Discussing the results, Hilding Anderson, head of retail strategy, Americas, Publicis Sapient, commented: “Amazon set new records with its Q3 results as they emerge as a big winner to consumers’ behaviour shifts related to Covid-19. Revenue crossed the $96 billion mark, up ~37%, while net income increased q/q to around 6.9% of total revenues as Amazon improves their profitability while at the same time getting ready for the holiday season. This is the highest revenue Amazon has ever recording, besting Q4 2019 by nearly $10 billion.

“Amazon is well positioned this holiday season as physical stores’ importance diminishes this year. As the pandemic rages on, I expect that more consumers will stay at home, further solidifying the seismic shift towards shopping online. This year will likely bring the highest ecommerce sales we’ve ever seen for the holiday season, which is certainly an advantage for Amazon’s business.”

Hilding added that Amazon’s progression in the grocery field will be something to keep an eye on over the coming quarters following a number of recent initiatives in this area. This includes free one-hour grocery pick up for Prime members at all Whole Foods locations in the US and Hilding expects to see more Amazon Grocery and Amazon Go stores with contactless technology next year. He said: “2021 will be the year where Amazon becomes a serious competitive threat in the grocery sector.”